Phase Change Material Market Size and Share Analysis by Type (Organic, Hygroscopic Materials, Inorganic), Application (Building and Construction, HVAC Systems, Energy Storage Management, Cold Chain and Packaging, Textiles) – Industry Growth Forecast to 2030

Market Overview

The global phase change materials market size stood at $1,775.5 million in 2021, which is projected to advance at a CAGR of 16.8% during 2021–2030. This is primarily attributed to the escalating growth in the construction and packaging industries and increasing emphasis on green buildings.

Despite the fact that about half of the world's energy demand is used for heating and more than 60% of that demand is dissipated as waste heat. This mismatch contributes considerably to global climate change, but it also provides a significant chance for improvement if waste heat can be saved for later use. The growth in energy supply and resource augmentation has failed to meet the rising needs exerted by the growing population, progressing economy, and surging urbanization. In order to reduce dependency on fossil fuels, conserve energy, and minimize greenhouse gas (GHG) emissions, phase change materials (PCMs) have been developed.

In China, the demand for PCMs is increasing since the construction of green buildings is rising at a significant pace. In recent years, China's construction industry has experienced rapid growth. Its annual capacity of the completed floor area of buildings surpasses 5 billion m2. The construction industry has outpaced all other industrial sectors to become the largest contributor to the GDP of the country, and more investments could offer financial backing for a large-scale transition in the industry.

PCMs Are Mostly Used in Building and Construction Application

The building and construction category accounted for the largest revenue share, of around 35%, in 2021, and it will proceed at a CAGR of more than 16% during the forecast period, in the phase change materials market. Since the demand for residential buildings with low heating and cooling loads has increased, building envelope technologies have been steadily improving. The adoption of innovative building materials with active thermal components, such as PCMs, is the ultimate step in realizing large energy savings. For the past 40 years, PCMs have been studied as a thermal mass component in buildings, and the majority of studies have concluded that PCMs improve building energy performance.

Also, the integration of an appropriate PCM in construction materials can reduce temperature swings, resulting in increased human comfort and reduced energy usage in a building. The use of PCMs in building materials is advantageous, especially in extreme hot and cold climates, where the consumption of energy is high to maintain pleasant internal building conditions. Thus, PCM is largely preferred in building and construction applications.

Demand for PCMs for Cold Chain and Packaging Application To Witness Fastest Growth

The cold chain and packaging category is projected to witness the highest CAGR, of more than 17%, in the coming years, in the phase change materials market. This can be primarily due to the increase in PCM demand to maintain precise temperatures throughout the supply chain while lowering CO2 emissions. Moreover, increasing demand for fresh and frozen foods across the world is a primary driver for temperature-controlled packaging solutions. The rising availability and adoption of reusable, material-based, temperature-controlled packaging solutions have contributed to the surging adoption of sustainable materials in logistics, such as PCMs, which help in efficiently transporting the products while saving energy.

Future Scenario

Using air conditioners and electric fans to stay cool accounts for nearly 20% of the total electricity used in buildings around the world. The rising demand for space cooling is putting great strain on many countries' power infrastructure, as well as leading to increased emissions. For instance, around two-thirds of the world's households could have air conditioning by 2050. Air conditioners that are energy-efficient can save money on energy consumption and maintenance. The average cost of cooling energy would be nearly half with the use of efficient systems. For example, during 2022–2050, the effective cooling scenario will cut investment and operating expenses by around $3 trillion.

With the massive rise in the need for energy-efficient air conditioners, the demand for PCMs will soar, as the electrical consumption of modified air conditioners with PCMs could be reduced by 3.09 kWh per day.

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Increase In Emphasis Toward Green Constructions

The phase change materials market is mainly driven by the increasing emphasis on green constructions. The annual building energy consumption is increasing rapidly, owing to the growth in population, rapid urbanization, and change in people’s lifestyles. The climate change risks and increased GHG emissions have drawn attention to implementing alternative energy sources. It has been estimated that by the year 2050, the GHG emissions will be doubled unless several initiatives in regard to energy sources are taken. Further, in recent years, PCMs have been offered as a novel solution for a variety of thermal applications.

Green building efforts have primarily focused on increasing energy efficiency, conserving natural resources, employing environmentally compatible building materials, and implementing revolutionary changes in the design concept, procurement, and management processes to reduce the impact of buildings on the environment. PCMs have a great capacity for storing and releasing heat energy during phase transition, and they can control thermal energy across the building envelope under a variety of climate circumstances. For instance, by 2030, California is projected to achieve zero net energy, and also around 8,000 GWh of electricity would be saved globally through this.

Europe Held the Largest Market Share

Globally, the European market for PCMs held the largest revenue share, of around 40%, in 2021. The inclination toward the adoption of eco-friendly materials is expected to boost the PCM industry in the region. European regulatory associations, such as the Scandinavian Federation of Heating, Ventilation, and Sanitary Engineering Associations in Denmark, Finland, Iceland, Norway, and Sweden (SCANVAC), took several initiatives to develop and promote efficient building mechanical solutions and raise awareness about PCM applications.

PCM Is also Preferred in HVAC Systems

The HVAC systems category held the second-largest market share, of around 30%, in 2021, based on application. This is because PCM installation reduces temperature fluctuations. HVAC with PCM helps maintain a more consistent temperature and eliminates thermal discomfort caused by temperature changes.

In addition, experts discovered a link between a worker’s performance and the impression of thermal comfort as a result of changing temperatures. The increased air temperatures have a negative impact on the productivity and performance of workers. There is an increase in working performance when the working temperature is around 20o C. Temperatures exceeding 23o C, on the other hand, result in a drop in productivity. With PCMs, HVAC systems may be able to maintain a constant temperature around the comfort zone for longer periods of time, without wasting more energy.

Organic Is the Most Demanding Material Type

The organic category held the largest revenue share in the phase change materials market in 2021, owing to the benefits of organic-based PCMs (paraffins), such as chemical stability over many heating and freezing cycles, high heat of fusion, non-reactive to most materials of encapsulation, and compatible with almost all materials. The accessibility of paraffin at a wide range of temperatures is the major reason for its suitability as an energy storage medium. Also, paraffin-based PCM is known as waxy solid paraffin, which is a safe, reliable, non-corrosive, and inexpensive material.

Market Players Involved in Product Launches to Gain Competitive Edge

The market is fragmented, with the presence of several major players. In recent years, they have been involved in product launches, in order to stay ahead of their competitors. For instance, in January 2020, Sumitomo Chemical Co. Ltd. launched HEATORAGE, a resin heat storage material, which has been adopted in a sheet-type PCM.

Key Players in the Market Are:

• Cold Chain Technologies Inc.
• Croda International Plc
• Microtek Laboratories Inc.
• Sumitomo Chemical Co. Ltd.
• Sasol Limited
• PureTemp LLC
• Henkel AG & Company KGAA
• Honeywell Electronic Materials
• Phase Change Materials Products Ltd.
• Rubitherm Technologies GmbH

Phase Change Materials Market Size Breakdown by Segment

The study offers comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Type

• Organic
• Hygroscopic Materials
• Inorganic

Based on Application

• Building and Construction
• HVAC Systems
• Energy Storage Management
• Cold Chain and Packaging
• Textiles

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa