The global phase change material market is projected to generate $7,206.2 million revenue by 2030, advancing at a CAGR of 16.8% during 2021–2030. Key factors driving the industry include the escalating growth in the construction and packaging industries and the surging emphasis on green constructions.
The COVID-19 pandemic had a negative impact on the phase change material (PCM) sector. Several industries, manufacturing units, infrastructure projects, and mining operations were shut down or on hold, as the supply and demand chain was disrupted during the crisis time. Also, the price of raw materials used to manufacture PCM fluctuated, which hampered the market growth. However, with the reopening of economies, the demand for PCMs is increasing.
The organic category held the largest market share, of around 45%, in 2021, based on type. This is primarily due to the demand for paraffin is high, as it is used as a commercial organic heat storage PCM, and it does not react with common chemical reagents. Also, the popularity of organic PCMs is increasing because they have less supercooling, high heat of fusion, and stable behavior, and are widely available and comparatively less costly. Further, these PCMs ecologically harmless.
Whereas, the inorganic category is predicted to grow at the highest CAGR, of around 18%, during the forecast period. This can be attributed to its characteristics, including a wide range of melting temperatures, which make it useful for a variety of applications. Moreover, inorganic PCMs are often associated with high latent heat, stable chemical composition, and thermal stability. They are generally non-toxic and less flammable than organic, which make them a preferable alternative for applications like construction and building materials.
Moreover, the building and construction application category accounted for the largest share, of 35%, in the phase change material market in 2021. This is mainly because combining building materials with PCMs is a cost-effective solution to boost the thermal energy storage capacity of construction elements. Wallboards, floors, roofs, concrete, and other sections are all combined with PCMs to increase the building's thermal performance.
Geographically, Europe holds the largest share in the market, owing to the high economic growth rate, followed by heavy investments across industries such as oil & gas, automotive, infrastructure, chemical, and electronics. Also, the presence of various key companies, including Croda International Plc, Climator Sweden AB, Ciat Group, Phase Change Materials Products Ltd., and Rubitherm Technologies GmbH, is driving the regional market growth.
Whereas, the APAC market is predicted to grow at the highest CAGR in the coming years. This can be primarily because countries such as China and India have begun to use PCMs in a variety of industries, including packaging, transportation, construction, and shipping. As the number of urban households in these countries rises, so does the need for air conditioners, presenting the potential use of PCMs in the HVAC industry of the region.
The major players operating in the phase change material 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., and Rubitherm Technologies GmbH.