Global Advanced Phase Change Materials Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2024-2032)

Advanced Phase Change Materials Industry Overview

Phase change materials (PCMs) refer to materials, which can absorb, store as well as release significant quantities of energy during the transformation process because of their specific structure. As they freeze and absorb vast amounts of heat from the atmosphere during their melting, they generate energy in the form of latent heat. The latent heat transition could be performed in various phase changes such as solid-gas, solid-solid, and solid-liquid. Such materials can improve sustainable energy production by saving excess energy for subsequent use.

The ever-growing construction industry, particularly in developing economies, due to rapid urbanisation, inflating disposable incomes, as well as rapid population growth, is expected to propel the growth of the advanced phase change materials industry. The rising demand for advanced phase change material is being driven by the substantial growth in the number of construction activities, as they have high heat storage capacity. Another significant growth-inducing trend is the rise in the demand for economical methods to improve the thermal efficiency of building structures.

Advanced Phase Change Materials Market Growth

The growing adoption of green buildings owing to the rising environmental issues also boosts the growth of the advanced phase change materials market. In addition, an increase in energy usage has been observed at the global level. Since the advanced phase change material helps to save energy, they are commonly used in applications including heating, ventilation and air conditioning, cooling, and storage. In addition, new revolutionary versions like vegetable-based phase change materials are gaining attention because they are not harmful and are environmentally friendly.

The increasing shift towards renewable energy sources, such as solar and wind power, is boosting the need for effective energy storage systems. PCMs are used in thermal energy storage systems to store excess energy generated from renewable sources, which can then be used when energy demand is high.

Key Trends and Developments

Advanced Phase Change Materials Market Trends

Advanced PCMs are being integrated into heating, ventilation, and air conditioning (HVAC) systems to improve energy efficiency and regulate temperature more effectively. The trend towards energy-efficient and sustainable HVAC solutions is increasing the adoption of PCMs in both residential and commercial settings.

Governments worldwide are introducing policies and regulations aimed at improving energy efficiency and reducing carbon emissions. These regulations are encouraging the adoption of sustainable technologies, including PCMs, across various industries. Government incentives and sustainability targets are expected to accelerate the use of PCMs in various applications, supporting overall market growth.

Advanced Phase Change Materials Market Restraints

The high cost of the production of advanced phase change materials (APCMs) is one of the main challenges in the market. Encapsulation techniques are used in APCMs to enhance their stability and effectiveness, which increases the overall production cost. APCMs can also face technical challenges such as issues of leakage or degradation over time, especially in critical weather conditions, which may reduce their usage in harsh conditions and can add to the maintenance costs in the long term.

APCMs, especially inorganic and synthetic ones can cause issues related to recycling and safe disposal and can negatively impact the advanced phase change materials demand forecast. In 2023, the total waste generated across the world was 2.1 billion tons of municipal solid waste (MSW) which is expected to increase to 3.8 billion tons by 2050, with a large amount of it being hazardous waste such as synthetic APCM with the USA generating the most amount of waste followed by China.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Advanced Phase Change Materials Industry Segmentation

Advanced Phase Change Materials Market Share

By Type Insights

Organic PCM is the leading type in the global advanced phase change materials market share. Organic PCMs are mainly obtained from carbon-based compounds such as paraffins and fatty acids and find usage in thermal energy storage applications.  Organic PCMs also have the ability to store and release large amounts of energy during phase transitions. 

Bio-based PCM is expected to witness a CAGR of 18.9% in the forecast period as they are biodegradable in nature and have a smaller carbon footprint. They can meet the demands of specific temperature ranges by modifying the chemical composition of the base materials, making them extremely useful. 

By Form Insights

Based on form, encapsulated PCMs are dominating the overall industry and are witnessed to have a CAGR of 18.6% in the coming years. As per the advanced phase change materials market dynamics and trends, the encapsulation process prevents the PCM from leaking or degrading during multiple thermal cycles and enhances its long-term performance. Encapsulated PCMs can also be tailor-made to meet specific temperature ranges for different building materials. 

By Application Insights

The application sector is being led by the building and construction sector, accounting for the largest market share and contributing to the advanced phase change materials industry revenue. Advanced PCMs are used to enhance temperature control and reduce heat and cooling loads as they can reduce a building's ambient temperature by around 4–5°C. Between July to September 2023, India's construction sector witnessed a growth of 13.3% compared to the same period in 2022 and is expected to reach around USD 1.4 trillion by 2025, which offers a positive landscape for APCMs in the country.

Read more about this report - REQUEST FREE SAMPLE COPY IN PDF

Advanced Phase Change Materials Market Regional Insights

North America Advanced Phase Change Materials Market Analysis

The growth in North America is primarily driven by the expansion of the construction and HVAC sectors. With the region’s harsh climate, the demand for effective HVAC systems is high. Additionally, the residential sector's focus on energy-efficient building materials has fuelled the adoption of advanced PCMs. Increased use of modern construction techniques is also boosting the advanced phase change materials demand growth. 

As per the Associated General Contractors of America, there were around 919,000 construction establishments in the USA in the 1st quarter of 2023 with structures worth USD 2.1 trillion every year, which has created a significant demand for APCMs.

Asia Pacific Advanced Phase Change Materials Market Drivers

The APAC region is expected to exhibit a CAGR of 21.9% between 2024 to 2032, whereas India was expected to witness a CAGR of 25.1 % in the forecast period. This is the fastest-growing region in the PCM market due to rapid urbanisation and industrialisation, especially in countries such as China and India. 

The construction of sustainable buildings, increased energy consumption, and favourable government initiatives to promote green technologies are also boosting the advanced phase change materials demand. Furthermore, local production of PCMs is increasing and the cost of these materials is falling, making them more accessible in wide range of applications.

Europe Advanced Phase Change Materials Market Growth

Europe is the leading regional market for advanced phase change materials, accounting for the majority of the market share. The advanced phase change materials market value in the region is growing due to the strict regulations of the governments to minimise greenhouse gas emissions. The increasing application of phase change material in various end-use sectors including automotive, is boosting the growth of the industry further in these regions. 

Moreover, the growing use of the product in the HVAC sector for increasing energy savings is likely to propel the industry growth further. For instance, the EU has set a target to reduce its total energy consumption by 11.7% by 2030. 

Latin America Advanced Phase Change Materials Market Trends

Brazil is expected to exhibit a CAGR of 19.2% during the forecast period, boosting the advanced phase change materials market revenue in the region. The market in Latin America is also growing, albeit at a slower pace compared to other regions, due to factors such as the expanding manufacturing base, rising disposable incomes, and growth in the electronics sector.  However, the region still relies on imports, which could slow the market's expansion.

Middle East and Africa Advanced Phase Change Materials Market Dynamics

The regional market growth is mainly driven by Saudi Arabia which is expected to exhibit a CAGR of 2.4% between 2024 to 2032. In the MEA region, growth is somewhat slower compared to other regions due to the lack of advanced manufacturing hubs. However, the demand for energy-efficient solutions, particularly in the construction and electronics sectors is driving modest growth of the advanced phase change materials industry. The hot climate in many parts of this region further increases the demand for effective temperature regulation, further boosting the demand for advanced PCMs.

Competitive Landscape

The report gives a detailed analysis of the following key players in the global advanced phase change materials market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds. Companies are focusing on developing encapsulated PCMs, which improve durability and efficiency in thermal management systems. These advancements are critical for applications in electronics cooling, building insulation, and renewable energy storage. They are also working on bio-based PCMs derived from renewable materials like fatty acids to cater to industries seeking sustainable products.

Outlast Technologies

The company specialises in thermally adaptive materials, particularly in phase change materials (PCMs), originally developed for NASA. Outlast is best known for its microencapsulated PCMs, which are widely used in textiles and apparel to regulate temperature.

Climator

Climator is a key player in the advanced phase change materials market, with a focus on high-temperature PCMs ...

Croda International

It is a global leader in speciality chemicals, with a significant presence in sustainable technologies. In the...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Other major market players are PCM Products, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

Innovative Advanced Phase Change Materials Startups

Several startups are offering Bio-based advanced PCMs that reduce the carbon footprint in applications such as refrigeration and construction. They are also emphasising the use of energy-efficient PCMs in smart buildings and HVAC systems, aligning with global sustainability goals. Some new companies in the advanced phase change materials market are expanding their applications across sectors such as healthcare, automotive, and electronics and providing PCM products that enhance temperature control for vaccines, highlighting their important role in cold chain logistics.

Phase Change Energy Solutions (USA)

It is a USA-based startup specialising in bio-based PCMs that are designed for energy storage and thermal management. Their BioPCM® product line uses non-toxic, plant-based materials, offering a sustainable alternative to traditional, petroleum-based PCMs. The company’s products are integrated into building materials, HVAC systems, and refrigeration to improve energy efficiency by storing and releasing heat during temperature fluctuations.

PLUSS Advanced Technologies (India)

Based in India, PLUSS is focused on thermal energy storage solutions through the development of advanced PCM products. Their flagship product, SAVEnrg®, offers high thermal stability and is designed for sectors such as healthcare, logistics, and construction. PLUSS Advanced Technologies is one of the leaders in providing PCM solutions in developing countries, where energy efficiency is becoming increasingly critical.