Phase Change Materials Market Size, Share, Industry Analysis, Trends, Growth, 2032

Phase Change Materials Industry Prospective:

The global phase change materials market size was worth around USD 2,345 million in 2023 and is predicted to grow to around USD 7,330 million by 2032 with a compound annual growth rate (CAGR) of roughly 13.5% between 2024 and 2032.

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Phase Change Materials Market: Overview

A substance that absorbs and releases thermal energy over time is called a Phase Change Material (PCM). To store and distribute heat, PCMs go through the melting and solidification processes. These materials are used by thermal engineers for several purposes, such as thermal management and insulation. These materials often possess an extremely high latent heat capacity. Latent heat is either released or absorbed during these phase transitions; PCMs are excellent at utilizing this phenomenon. PCM solutions are used by engineers to regulate heat transport and accomplish a variety of thermal goals. PCMs must efficiently and sustainably control the emission and absorption of latent heat. Paraffin wax and hydrated salts are two of the most used PCMs. Metal alloys are often used in high-temperature environments.

Key Insights

• As per the analysis shared by our research analyst, the global phase change materials market is estimated to grow annually at a CAGR of around 13.5% over the forecast period (2024-2032).
• In terms of revenue, the global phase change materials market size was valued at around USD 2,345 million in 2023 and is projected to reach USD 7,330 million by 2032.
• The increasing demand from the end-use industry is expected to drive the global phase change materials market growth over the forecast period.
• Based on the type, the Organic PCM segment is expected to hold the largest market share during the forecast period.
• Based on the form, the encapsulated segment is expected to hold a prominent market share over the projected period.
• Based on the application, the building and construction segment captures a significant revenue share over the projected period.
• Based on region, Europe is expected to dominate the market during the forecast period.

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Phase Change Materials Market: Growth Drivers

Rising demand for energy-efficient solutions drives market growth

The adoption of sophisticated PCMs has been significantly supported by the need for energy-efficient solutions in infrastructure and buildings. To increase thermal insulation and lower heating and cooling loads, these cutting-edge compounds are being added to a variety of building materials, including insulation and concrete. Buildings can improve energy conservation, minimize energy consumption, and improve sustainability by adopting Advanced PCMs. By efficiently storing and releasing thermal energy during phase transitions, these materials help to regulate temperature and increase the overall energy efficiency of structures. The use of Advanced PCMs in construction is anticipated to increase as awareness of energy efficiency grows, paving the way for the creation of more environmentally friendly and sustainable structures. All these factors are anticipated to boost the global phase change materials market in the coming years.

Phase Change Materials Market: Restraints

Technical issues and the corrosive nature of PCMs hinder market growth

Poor heat conductivity slows down the pace at which heat is transported or absorbed from the structure, thereby affecting both the comfort of the occupants and the system's performance. Its high cost is another drawback. Moreover, the problem caused by supercooling and phase separation results in thermal cycling loss, which shortens the material's life cycle. Since these potential problems could arise, their usefulness in building applications that require long-lasting systems may be limited. Therefore, this is expected to hamper the phase change materials industry growth over the forecast period.

Phase Change Materials Market: Opportunities

Growing partnerships among the key market players offer a lucrative opportunity for market growth

The growing partnership among the key market players is expected to offer a lucrative opportunity for phase change materials market growth during the forecast period. For instance, in May 2023, to commercialize goods for infrastructure applications in Japan, DIC Corporation and Phase Change Systems Inc. (PCS), a provider of thermal management systems, formed a strategic alliance. The companies will sell goods using PCS' BioPCM®* phase change materials to enterprises that build office buildings, industrial complexes, and logistics facilities by this agreement. The reduction of CO2 emissions is facilitated by these efficient thermal management methods. The unique phase-change materials known as BioPCM®, which come in a variety of forms, are the main technology in PCS. In the infrastructure sectors, which include office buildings, telecom shelters, and data centers, as well as the delivery of goods like fresh foods and pharmaceuticals, PCS uses BioPCM® to offer cutting-edge solutions for important energy, environmental, and societal challenges.

Phase Change Materials Market: Challenges

Cost and availability pose a major challenge to market expansion

The main obstacles in the phase change materials industry, which is enormous, are material compatibility, cost, and accessibility. Furthermore, manufacturers of PCM packaging are working to create impermeable materials. Phase-change materials based on water, however, satisfy the requirements. Additionally, the R&D sector is working to increase PCM's efficacy for increased energy efficiency.

Phase Change Materials Market: Segmentation

The global phase change materials industry is segmented based on type, form, application, and region.

Based on the type, the global phase change materials market is bifurcated into Organic PCM, Inorganic PCM and Bio-Based PCM. The Organic PCM segment is expected to hold the largest market share during the forecast period. Growing emphasis on energy efficiency in buildings and construction, along with favorable government regulations encouraging energy conservation, are driving factors behind the growth of the organic PCM segment. Material science and technology advancements have also led to the development of improved organic PCM with enhanced properties, which is driving the segment. The organic PCM segment is driven by the rising demand for sustainable and environmentally friendly materials, particularly in industries including HVAC, textiles, packaging, and electronics.

Based on the form, the global phase change materials industry is bifurcated into encapsulated and non-encapsulated. The encapsulated segment is expected to hold a prominent market share over the projected period. With the development of encapsulation technology, PCM's compatibility and stability have been increased, offering better defense against leakage or deterioration. Because encapsulated PCM permits regulated and targeted release in particular applications, its application fields have extended to encompass electronics, energy storage, and textiles. This has increased demand for the material. As a result, additional funding is being spent on research and development to create encapsulation techniques that are both more effective and affordable.

Based on the application, the global phase change materials market is bifurcated into building & construction, HVAC, textiles, electronics, cold chain & packaging, thermal energy storage, and others. The building and construction segment capture a significant revenue share over the projected period. The increasing number of dental offices worldwide and the extensive usage of cosmetic dentistry by both small- and large-scale dental offices are the primary factors propelling the expansion of this market. Furthermore, the number of dental clinics is expected to rise, mostly in developed nations, contributing to the market's expected growth.

Phase Change Materials Market: Report Scope

Phase Change Materials Market: Regional Analysis

Europe is expected to dominate the market during the forecast period

Europe is expected to dominate the global phase change materials market during the forecast period. This region's expanding phase change materials market is driven by significant advancements and demand from a range of end-use sectors, including building & construction, textiles, automotive, pharmaceutical, and others. Other opportunities for market expansion are presented by the need for phase transition materials in building supplies. Further driving the expansion of the phase change materials business in this region is the growing emphasis on green building and construction as a means of lowering carbon emissions. The monthly construction production increased in volume by 1.1% in January 2022, the Office for National Statistics reports. This gain came after a 2.0% growth in December 2021. The market's development prospects are further enhanced by the growing use of PCMs in the packaging, textiles, and solar power industries.

Phase Change Materials Market: Competitive Analysis

The global phase change materials market is dominated by players like:

• Microtek Laboratories Inc.
• Cold Chain Technologies Inc.
• Sasol Limited
• Croda International Plc.
• PureTemp LLC
• Henkel AG & Company KGAA
• Outlast Technologies LLC
• AI Technology Inc.
• Advansa B.V.
• Climator Sweden AB
• Ciat Group
• Honeywell Electronic Materials Inc.
• Teappcm
• Rubitherm Technologies GmbH
• Phase Change Materials Products Ltd.

The global phase change materials market is segmented as follows:

By Type

• Organic PCM
• Inorganic PCM
• Bio-Based PCM

By Form

• Encapsulated
• Non-Encapsulated

By Application

• Building and Construction
• HVAC
• Textiles
• Electronics
• Cold Chain & Packaging
• Thermal Energy Storage
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa