Phase Change Materials Market By Type (Organic PCMs {Paraffin, Fatty Acids}, Inorganic PCMs {Salt Hydrates, Metallic Alloys}, Bio-based PCMs), By Encapsulation Technology (Micro-Encapsulation, Macro-Encapsulation, Hybrid Encapsulation), By Form (Powder, Granules, Liquids, Others), By Temperature Range (Below 0°C, 0°C - 10°C, 10°C - 30°C, Above 30°C), By Application: Building & Construction, Textiles, HVAC, Electronics, Transportation, Energy Storage, Healthcare, Packaging, Others) Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Phase Change Materials Market accounted for USD 2.38 Billion in 2024 and is expected to reach USD 15.4 Billion by 2035, growing at a CAGR of around 18.5% between 2025 and 2035. Phase change materials (PCMs) that the market is centered on work by altering their phase and creating or releasing thermal energy, normally taking the solid-liquid phase switch. These materials are applicable in TES and temperature control in some sectors, such as power, building construction, electronics, medical, and automotive industries. These materials also enable control of temperature, making energy consumption for heating or cooling minimal. Major factors behind this market include the growing emphasis on energy efficiency, expanding use of thermal management in electronics, and adding applications in renewable power system storage. However, bio-based PCMs for insulation purposes have also been coming to light as sustainability becomes an issue.

Report Scope:

Market Dynamics

Growing demand for energy-efficient and sustainable building materials

The increasing focus on escalating energy conservation in buildings and infrastructure is an important factor that promotes the PCM market. Due to the increased awareness of environmental impacts, more regulatory bodies and industries are encouraging more green-compliant building architecture and optimum energy consumption design. PCMs are suitable for use in buildings as they ensure indoor temperatures are well controlled, thus there is less demand for heating and cooling equipment. In insulation panels, wall boards, and windows, PCM triggers suck excessive heat during the day and release the heat at night, hence maintaining a steady internal climate and enhancing comfort for those inside the building. This trend is especially keen in the areas of the European world and North America where PCMs help to make investments compliant with energy conservation regulations and receive corresponding certifications like LEED. Furthermore, stakeholders with concerns for our planet’s well-being want sustainable homes; therefore, accelerating the need for PCM in buildings. Currently, when the use of sustainable construction materials is trending, PCMs are already integrated into contemporary environmentally friendly structures.

Increased adoption in thermal management for electronic devices

Advanced uses of PCMs for thermal control in electronic items are due to the rising application of thermal control in portable, efficient streaming gadgets. The shrinking size, greater processing power, and increased complexity of consumer electronics and industrial devices generate heat, which leads to decreased device life and performance. PCMs play the role of thermal energy storage media by effectively removing excessive heat and regulating the operating temperatures of the equipment to ensure its reliability.

In portable devices such as smartphones, Laptops, and data servers, PCMs protect against thermal harm while keeping thickness to a minimum, hence most suitable. It has also augmented the thermal management requirements as processing is continuous with the advent of 5G technology and IoT. PCMs help in enhancing thermal control to achieve higher device efficiency; such applications apply across the electronics industry and hence are crucial.

High costs associated with advanced PCM materials production

The major constraint to the market is the high costs incurred in manufacturing inherent superior Phase Change Materials (PCMs). The cost of producing PCMs, especially high-performance and encapsulated PCMs is relatively high since its production process entails several sophisticated procedures and requires specific materials. For instance, microencapsulation and nanoencapsulation involve high technological inputs and extensive quality control mechanisms to guarantee the efficiency and stability of the PCMs which will propel the prices up. Furthermore, Biodegradable and environmentally friendly PCMs, even though they are renewable resource-based and often require sophisticated extraction procedures, are slightly expensive.

These higher costs reduce the feasibility of PCM-based systems hence restraining their use in most economical markets. That is why small and medium-sized companies may face difficulties in using these materials despite their obvious energy-saving characteristics. Therefore, the PCM industry struggles to strike a compromise between product R&D and affordability to extend the boundaries of the target audience and cover as many application areas as possible with new-generation PCMs.

Emerging bio-based PCMs for eco-friendly energy storage solutions

Bio-based Phase Change Materials (PCMs) are used around the world due to the growth in the need to use sustainable energy materials. These PCMs, which are bio-based on renewable resources such as plant-based oils and fatty acids, differ from conventional synthetic PCMs in the sense that they are environmentally friendly. Bio-based PCMs are good heat storage mediums and would decrease the use of fossil fuels, thus favoring the sustainable development plans of the world. More commonly, they are incorporated in construction products, refrigeration, insulation, and perishable goods and food packaging, for thermostatic purposes with no negative effects on the environment.

Moreover, bio-based PCMs help in achieving green building certification in aspects of energy and carbon performance. Continuous advancement in encapsulation and material stability is further enhancing their performance and durability, which qualifies them to be used in long-lasting systems. Due to the ongoing trend of replacing conventional materials with their bio-based equivalents, such as bio-based PCMs, industries seeking to optimize energy costs present a high-growth opportunity.

Innovations in encapsulation technologies for enhanced PCM performance

Novelties currently emerging in encapsulation technologies are extending the capabilities of Phase Change Materials (PCMs). An encapsulation process normally consists of enveloping PCMs within protective shells or matrix, which slows down thermal conductivity and hinders PCMs from leaking or separating during phase changes between liquid and solid state. Higher levels of micro- and nano-encapsulation enable the incorporation of PCMs into composite structures and thin films, thereby increasing product opportunities in electronics, clothing, and construction. These technologies also improve thermal conductivity and thermal conductivity rates, hence improving the performance of PCMs in that aspect of temperature control. Encapsulation retains PCM thermal performance at high temperatures and prolongs PCM service life in energy storage applications and building insulation. With these innovations, PCMs can solve the problems of links for high-performance applications and develop an energy-saving trend in various industries.

Industry Experts Opinion

“The use of phase change materials is growing rapidly in energy storage, particularly in building and textile applications. By integrating PCMs, we can manage temperature fluctuations and reduce the overall energy consumption of structures, which is critical for energy-efficient building practices.”

• David R. Meyers, Vice President of Engineering at Outlast Technologies

Segment Analysis

Based on type, organic PCMs attract users because of the properties and ease of handling them in contrast with other types of PCMs. Paraffin is the most used organic PCM as it exhibits favorable thermal characteristics, high heat of fusion, and nontoxicity and can be used in building insulation, textile, and packaging applications. Fatty acids are on the other hand, increasing in demand in several initiatives due to their environmentally friendly and biodegradable nature in sustainable practices in construction and other civil engineering applications.

Encapsulated inorganic PCMs, salt hydrates, and metallic alloys are used for specific purposes because of their high energy storage capacity. Salt hydrates are cheap but may experience problems such as supercooling, problems that can be solved by modern methods of encapsulation. A metallic alloy is used for various electronics and energy storage systems because of this property, coupled with its ability to endure conditions of high temperature and pressure. Bio-based PCMs are receiving considerable attention because they are made from renewable sources, which are beneficial for firms operating in industries concerned with sustainability such as the healthcare and packaging industries.

Based on application, the building and construction industry, particularly in regulating the temperature within insulating materials minimizes heating and cooling costs. Likewise, textiles adapt PCMs to garments and materials, presenting them as warm and comfortable to wear clothing or bedding. PCMs in HVAC applications are applied to enhance temperature stability within premises, enhancing energy utilization in air conditioning and heating. PCMs play the role of protecting batteries, electric vehicles, and consumer electronics from overheating. The application of PCMs in energy storage systems such as those allied with photovoltaic solar energy and renewable energy storage is increasing. PCMs have undergone the health care sector to regulate temperature-sensitive medical products in health facilities, and the packaging industry through cold chain storage for pharmaceuticals and food products.

Regional Analysis

Europe leads the Phase Change Materials (PCM) market because of the shift towards energy-efficient buildings and environmentally conscious regulation standards the region holds. Similarly, the building and construction market has been very active in using PCMs across Europe, with an emphasis on general energy-efficient buildings in the existing buildings, thus boosting demand for PCMs in insulation and thermal storage applications. Also, covering the aspect of advanced automotive and electronics industries, Europe dominates the PCMs market for thermal management in electric vehicles (EVs) and consumer electronics. Factors such as key market players and governmental policy support for environmentally friendly building materials continue to strengthen Europe’s stronghold.

The Asia-Pacific region is expected to dominate the growth of the market for PCM due to increasing industrialization, urbanization, and increasing infrastructure development projects. Countries such as China, India, and Japan already spend a lot of money on building technologies designed to manage PCMs that control temperature and conserve energy. Besides, the electronics and automotive industries are rapidly growing in the region, and they generate immense interest in PCM-based thermal management systems as the automobile industry shifts towards electric vehicles. The increasing focus on renewables, and thermal energy storage equally stimulate the market because Asia-Pacific authorities continue to support environmental protection policies and look for improved energy storage solutions as demand continues to grow rapidly.

Competitive Landscape

The structure of the Phase Change Materials (PCM) market is quite saturated: it comprises both international and domestic manufacturers and suppliers of various types of pocket energy storage and thermal management solutions. Although many players, including Croda International Plc, Honeywell International Inc., and Henkel AG & Co. KGaA, control the market, new upcoming PCMs have significant opportunities and challenges in utilizing advanced and bio-based technologies and sectors such as construction, electronics, and cold chain logistics. PCM suppliers are also paying more attention to the R&D of new waveforms with high energy density along with long-term thermal stability improvements in encapsulation technologies. Joint ventures, alliances, mergers, and acquisition strategies are integrated to increase the market share and to cope with the increasing demand for sustainable thermal management solutions. In the case of sustainability trends, some emerging PCMs are environmentally friendly, more reliant on renewable sources, and energy-efficient that respond to industries powering down their emission outputs. This competition is fostered by innovation, projected compliance with regulatory standards, and growing demand for products that can be tailored to a wide range of uses.

Phase Change Materials Market, Company Shares Analysis, 2024

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Recent Developments:

• In March 2023, BioLife Solutions launched Ultraguard, the first-ever non-toxic, non-hazardous, and non-flammable -70°C phase change material (PCM) for ultra-low temperature (ULT) protection. Currently, ultraguard is used for two applications, a temperature holdover where ULT freezers are without power and another in benchtop biological material storage, an alternative to dry ice.
• In October 2022, Shanghai Polytechnic University researchers announced the development of a new efficient phase change microcapsules for storing solar energy. The newly designed microcapsule demonstrated enhanced heat transfer, storage properties, and high-performance photothermal conversion.

Report Coverage:

By Type

• Organic PCMs
  • Paraffin
  • Fatty Acids
• Inorganic PCMs
  • Salt Hydrates
  • Metallic Alloys
• Bio-based PCMs

By Encapsulation Technology

• Micro-Encapsulation
• Macro-Encapsulation
• Hybrid Encapsulation

By Form

• Powder
• Granules
• Liquids
• Other

By Temperature

• Below 0°C
• 0°C - 10°C
• 10°C - 30°C
• Above 30°C

By Application

• Building & Construction
• Textiles
• HVAC (Heating, Ventilation, and Air Conditioning)
• Electronics
• Transportation
• Energy Storage
• Healthcare
• Packaging
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• Croda International Plc
• Sasol
• Henkel AG & Co. KGaA
• Cryopak
• Merck KGaA
• Pluss Advanced Technologies Pvt. Ltd
• PureTemp LLC
• Teappcm
• Rubitherm Technologies GmbH
• Cold Chain Technologies
• Global E Systems
• PCM Products Ltd
• Climator Sweden AB
• Laird Technologies, Inc.
• Honeywell International Inc.
• Phase Change Solutions

 

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