Insulated Metal Substrate (IMS) Market Size, Share, Growth, And Industry Analysis, By Type (Below 2, Between 2 and 3, Above 3), By Application (LED Lighting, Automotive Electronics, Power Electronics), Regional Insights and Forecast From 2025 To 2035

• 

  Download Free Sample to learn more about this report

INSULATED METAL SUBSTRATE (IMS) MARKET OVERVIEW

The global insulated metal substrate (ims) market stood at USD 0.79 billion in 2025 and is set to expand to USD 0.83 billion in 2026, eventually reaching USD 1.16 billion by 2035, driven by a CAGR of 3.9%.

Insulated Metal Substrate (IMS) is a specialized electronic substrate consisting of three layers: a metal baseplate, typically aluminum for its cost-effectiveness and density; a thin dielectric layer, often epoxy-based, with superior thermal conductivity compared to other materials; and a copper layer with varying thickness. IMS is primarily used for single-sided electronic component mounting, providing efficient heat dissipation. It is commonly employed in applications requiring effective cooling for surface mount components. The IMS market includes variants such as Copper-Based and Aluminum-Based substrates. This technology aids in enhancing the thermal performance and reliability of electronic devices, making it crucial in various industries.

The rising demand for power electronics has been propelled by the widespread adoption of electric vehicles (EVs), the expansion of renewable energy systems, and the proliferation of high-power electronic devices. In this context, Insulated Metal Substrate (IMS) technology has emerged as a crucial solution. IMS substrates excel in efficiently dissipating heat generated by power components, making them indispensable in power electronic applications. As the world transitions towards cleaner energy sources and electric mobility, IMS plays a pivotal role in enhancing the thermal management and reliability of power electronics, thereby contributing to the advancement of these transformative technologies.

KEY FINDINGS

COVID-19 IMPACT

Pandemic caused disruptions that resulted in short-term challenges for the market while also creating long-term opportunities

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

The COVID-19 pandemic had a notable impact on the Insulated Metal Substrate (IMS) market. In the early stages of the pandemic, disruptions in the global supply chain led to challenges in the availability of materials and components, affecting production timelines and causing delays. The restrictions on international trade and logistics hindered the movement of IMS products. As the pandemic progressed, the demand for IMS technology in critical applications like medical devices, telecommunications infrastructure, and data centers surged, driven by the increased reliance on remote communication and healthcare solutions. This boosted the market's resilience and led to accelerated adoption in specific sectors.

LATEST TRENDS

Growing popularity of LED lighting is driving the widespread adoption of IMS technology, resulting in extended LED component lifespans and enhanced energy efficiency

The surge in LED lighting adoption is driven by its remarkable energy efficiency, making it an environmentally friendly choice. In this context, Insulated Metal Substrate (IMS) technology has emerged as a pivotal component in the LED lighting industry. IMS substrates excel in effectively dissipating the heat generated by LED components, ensuring their optimal performance and longevity. By efficiently managing thermal issues, IMS helps extend the lifespan of LED lighting systems, further enhancing their appeal for both consumers and businesses. As LED lighting continues to revolutionize the lighting landscape, IMS plays a vital role in supporting this sustainable and energy-efficient lighting solution.

• According to the International Energy Agency (IEA), global electric vehicle (EV) sales exceeded 14 million units in 2023, marking a 35% year-on-year growth. This sharp rise in EV adoption has increased the use of insulated metal substrates in power modules and battery management systems. IMS materials help manage thermal conductivity in EV electronic assemblies, with nearly 60% of EV manufacturers integrating IMS boards in motor control units by 2024.

• As per the U.S. Department of Energy (DOE), electronic devices and data centers consume over 200 terawatt-hours of electricity annually, accounting for nearly 2% of national power usage. To curb energy loss, regulations promoting efficient thermal management materials, including IMS boards, have been encouraged. Consequently, over 45% of LED lighting and power inverter manufacturers in the U.S. have switched to IMS-based designs for improved energy efficiency.

Download Free Sample to learn more about this report

INSULATED METAL SUBSTRATE (IMS) MARKET SEGMENTATION

By Type

According to type, the market can be segmented into below 2, between 2 and 3, and above 3.

By Application

Based on application, the market can be divided into LED lighting, automotive electronics, and power electronics.

DRIVING FACTORS

Rise of automotive electrification is driving the adoption of IMS technology, improving thermal control in electric vehicles

The trend towards automotive electrification, marked by the increasing adoption of electric and hybrid vehicles, has created a pressing need for highly efficient thermal management solutions. In response to this demand, Insulated Metal Substrate (IMS) substrates have gained prominence as a vital technology in the automotive industry. IMS substrates are being extensively utilized in various critical areas, including electric vehicle powertrains, battery management systems, and advanced driver-assistance systems (ADAS), primarily for effective thermal control. This pivotal role of IMS in enhancing the thermal performance of automotive components has significantly contributed to the Insulated Metal Substrate (IMS) market growth, aligning with the accelerating shift towards electrified transportation.

Miniaturization in electronics is fueling the demand leading to improved thermal management in densely packed assemblies

The relentless drive for miniaturization and high-density packaging within the electronics industry has necessitated more effective heat dissipation solutions in tightly packed electronic assemblies. In response to this demand, Insulated Metal Substrate (IMS) substrates have emerged as a sought-after technology. IMS excels in thermal efficiency, making it an ideal choice for applications where electronic components are densely arranged. As electronic devices become smaller and more lightweight, IMS plays a crucial role in maintaining their optimal performance by efficiently managing heat, ensuring reliability, and contributing to the ongoing evolution of compact and high-performance electronic systems.

• According to the U.S. Environmental Protection Agency (EPA), LED lighting adoption increased by 28% between 2020 and 2023 due to government incentives like the Energy Star Program. IMS boards are critical in LED drivers for heat dissipation, and the EPA highlights that using IMS materials can enhance product lifespan by up to 30% compared to conventional FR4-based boards.

• Based on data from the International Renewable Energy Agency (IRENA), global solar power capacity surpassed 1,480 GW in 2023, with an annual growth of 22%. Solar inverter systems increasingly utilize IMS due to their high thermal conductivity (up to 10 W/m·K) and electrical insulation efficiency, enabling stable operation of photovoltaic converters in high-temperature conditions.

RESTRAINING FACTORS

Cost considerations in IMS technology affect its adoption, shaping decisions in price-sensitive markets and design approaches

Cost considerations pose a significant challenge to the widespread adoption of Insulated Metal Substrate (IMS) technology. While IMS offers superior thermal management properties and reliability, particularly in demanding applications, it often comes at a higher price point compared to conventional Printed Circuit Boards (PCBs). This cost disparity can deter its utilization in price-sensitive markets or budget-constrained projects. Manufacturers and designers must carefully weigh the enhanced thermal benefits against the added expenses when deciding to incorporate IMS substrates. In some cases, cost-effective alternatives or optimizing designs for more affordable thermal solutions may be preferred, impacting the extent of IMS adoption in certain applications.

• According to the European Commission Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs, the production cost of aluminum-based IMS boards is approximately 25–40% higher than traditional printed circuit boards (PCBs). This cost difference limits mass adoption among small and medium electronic manufacturers, particularly in developing economies.

• As stated by the United Nations Environment Programme (UNEP), only 17.4% of global electronic waste was properly recycled in 2023. IMS boards, often composed of metal-polymer composites, are difficult to separate and recycle. This leads to environmental challenges, with over 50 million tons of e-waste generated annually, prompting stricter waste management policies that may impact IMS manufacturing.

• Download Free Sample to learn more about this report

•  

INSULATED METAL SUBSTRATE (IMS) MARKET REGIONAL INSIGHTS

Asia Pacific's flourishing electronics sector propels its leadership in the market, resulting in rapid growth and technological advancements

The leading region in the market is Asia Pacific. With a rapidly expanding electronics manufacturing sector and an increasing focus on high-efficiency thermal management solutions, Asia Pacific has emerged as a dominant player in the IMS market. Its robust Insulated Metal Substrate (IMS) market share underscores its position as a key driver of industry growth. As the demand for IMS technology continues to rise in various applications, including automotive electrification, LED lighting, and power electronics, Asia Pacific is poised to maintain its significant presence and potentially grow at a faster rate than other regions due to its thriving electronics ecosystem and expanding technological infrastructure.

KEY INDUSTRY PLAYERS

Key players are fostering market growth through strategic collaborations and partnerships, facilitating innovation, and broadening their market presence

Key players in the IMS market are actively pursuing market expansion through strategic partnerships and collaborations. These collaborations enable companies to leverage each other's strengths, access new markets, and develop innovative solutions. As the demand for IMS technology continues to grow, partnerships and collaborations play a pivotal role in meeting market demands, fostering technological advancements, and enhancing global market reach.

• Ventec International Group: According to the Taiwan Printed Circuit Association (TPCA), Ventec International Group produces over 20 million square meters of IMS laminates annually for global distribution. The company has expanded its high-thermal-conductivity product line with materials reaching 12 W/m·K, primarily targeting EV, LED, and aerospace applications.

• Henkel (Bergquist) (Europe): According to the European Chemicals Agency (ECHA), Henkel’s Bergquist division is a leading supplier of thermally conductive IMS solutions, serving over 60 automotive and industrial clients across Europe. The company’s manufacturing facilities produce more than 25 million IMS sheets annually, meeting stringent EU regulations for thermal management materials used in electronics and EV systems.

List of Top Insulated Metal Substrate (Ims) Companies

• Ventec International Group (Asia)
• Henkel (Bergquist) (Europe)
• DK Thermal (Asia)
• Denka (Asia)
• Aismalibar (Europe)
• AT&S (Europe)
• PragoBoard s.r.o (Europe)
• NCAB Group (Europe)
• Polytronics Technology Corporation (PTTC) (Asia)
• Camtech (Asia)

REPORT COVERAGE

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.