Phase change Materials Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2032)

Phase change Materials Market Size

Phase change Materials Market Trends & Growth Drivers

Increase in Emphasis on Green Construction Drives Market

• 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.

Growing Demand in Space Cooling Offers Opportunities

• 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 USD 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.

Lack of Awareness and High Costs Hamper Market Growth

• The biggest restraints for the phase change materials market are the lack of awareness of these materials and their high costs.
• As they are an emerging technology, a handful of customers in major industries know of their ability to optimize energy transfer and reduce power bills.
• Additionally, phase-change materials are expensive as their development requires extensive R&D and processing expertise.
• Moreover, the staff at industrial facilities might need to be trained on these new materials, which raises operational costs.
• Even the existing infrastructure might require overhauling and upgrades to be compatible with new technologies.

Phase change Materials Market Analysis

Application Analysis

The building and construction category accounts for the largest phase change materials market revenue share, of around 35%, in 2024. 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.

The cold chain and packaging category is projected to witness the highest CAGR, of more than 17, in the coming years. 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.

The report offers insights into these applications:

• Building and Construction (Largest Category)
• HVAC
• Energy Storage
• Cold Chain and Packaging (Fastest-Growing Category)
• Textiles
• Others

Type Analysis

The organic category holds the largest revenue share in the phase change materials market in 2024, and it is also expected to witness the highest CAGR, of 16%, over the forecast period. This is owing to the benefits of organic 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.

The following types are analyzed in the report:

• Organic (Largest and Fastest-Growing Category)
• Hygroscopic Materials
• Inorganic
• Others

Regional Analysis

Globally, the European market for PCMs holds the largest revenue share, of around 40%, in 2024. 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.

APAC is the fastest-growing market, with an expected CAGR of 18%, during the forecast period. This is attributed to the growth of the construction industry on account of the burgeoning population. The resulting urbanization drives the demand for ready-to-eat food and fresh produce, thus propelling the emphasis on efficient cold chains. The population rise also propels the demand for space heating and cooling, for which phase change materials are being increasingly used.

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.

We have studied the below-mentioned regions and countries:

• North America
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe (Largest Regional Market)
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Regional Market)
  • China (Largest Country Market)
  • India (Fastest-Growing Country Market)
  • Japan
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Phase change Materials Market Share

• The market is fragmented, with the presence of several major players, who provide a variety of materials for different applications.
• Since these materials are not cost-intensive to develop, local and regional players enjoy good business.
• Additionally, the regulations on these materials are not standard, which allows even companies with low R&D expertise to operate.

Phase Change Materials Market News

• In August 2024, Cold Chain Technologies LLC and VPL Rx entered into a partnership to offer pharmaceutical shippers reliable thermal packaging solutions, economical shipping options, seasonal pack-out guidance, exportable metrics, and real-time tracking. All these functionalities will be integrated into the VPL Rx platform.
• In July 2024, Sumitomo Chemical Co. Ltd. completed the construction of MEGURU, its new research and innovation center at its Chiba site in Sodegaura City. The new facility will house the company’s petrochemical, super engineering plastics, polymer research, and functional chemical R&D teams.
• In April 2024, Cartesian AS delivered a Thermal Box to a REMA 1000 supermarket in Norway. The system, which is compatible with a range of phase change materials, was integrated into the supermarket’s CO2-based refrigeration apparatus.