Phase Change Material (PCM) Market

Phase Change Materials Market Size (2023-2028)

Phase Change Materials Market was worth US$ 1.9 billion in 2022 and is anticipated to increase with a CAGR of 17.5% during (2023-2028)

Phase-change materials bounce between liquid and solid states, storing, releasing, and absorbing heat. Because they can store huge amounts of thermal energy as latent heat during phase transition, they are also referred to as latent heat storage materials. Moreover, the primary factor includes increasing growth of the building and packaging industries which further propels the global phase change materials market growth during 2022 - 2027. PCMs are utilized in various applications in the construction sector, including solar water heating, room heating/cooling, and waste heat recovery systems. Growing investments in the construction industry worldwide, together with the use of phase-change materials in HVAC (Heating, Ventilation, and Air Conditioning) applications, are expected to drive demand for phase-change materials over the forecast period. Furthermore, the packaging industry is expected to see significant revenue growth over the forecast period.

For example, Croda International and Laird International make and commercialize phase change materials made entirely of renewable agricultural resources rather than crude oil or petroleum. In addition, bio-based PCMs are in great demand for temperature-controlled packaging, particularly in the pharmaceutical industry, and manufacturers want to advertise their products in packaging that won't harm the product and is biodegradable.

Phase Change Materials Market Drivers and Restraints:

The expanding innovations in the worldwide PCM market share will bring significant revenue gains during the projection period. With the advent of encapsulation technologies, the market has seen a variety of novel ways to include PCM in various products. The process of encapsulating Phase Change Materials (PCM) into final products such as building materials, textile fibers, and other materials is known as PCM encapsulation. Advanced PCM integration into the final product includes microencapsulation and macro encapsulation. The extensive use of phase change materials with varied melting temperatures and diverse forms ranging from fibers to raw powder has come from the increased popularity of these encapsulation types.

During the review period, these creative market developments and continuous investments by experienced firms are expected to bring up new opportunities. The market for phase change materials is expected to increase as a result of technological advancements. The phase change material market in Europe and North America is defined by substantial expertise and understanding. In addition, emerging economies are seeing fast expansion in their markets. In both developed and emerging countries, advanced technology, technological innovation, and the implementation of new systems are increasing the demand for better products.

Based on the study by the Global Alliance for Buildings and Construction, the global building and construction business attributes for 36% of global final energy use, and progress toward the United Nations' sustainable development goals (SDGs) will lead to more construction, with energy intensity per square meter in buildings needing to improve by 30% by 2030. It will be required to utilize phase change materials to store part of the energy used during construction to meet the energy requirements and boost efficiency. The phase change materials market will be substantially supported by expansion in the building and construction sector and demand for energy storage. In addition, the demand for phase change materials that can maintain package temperature by changing phase from liquid to solid and vice versa is increasing because of an increase in the shipping and transit of food products that must be stored in cold temperatures.

On the other hand, material compatibility, pricing, and availability are the primary restraints in the phase change materials market, which reduces the market size. Furthermore, PCM packaging producers are having difficulty developing leak-proof materials. Water-based phase change materials, on the other hand, meet the criteria. Moreover, efforts have been made in the R&D industry to increase the quality of PCM to improve energy efficiency.

PHASE CHANGE MATERIALS MARKET REPORT COVERAGE:

Phase Change Materials Market Segmentation: 

 By Type:

• Organic PCM

• Inorganic PCM

• Bio-based PCM

Based on type, organic PCM dominates the global phase change material market during the forecast period because of its strong thermal conductivity, non-flammability, high latent heat of fusion, and low cost. Inorganic PCMs are majorly utilized in thermal energy storage, HVAC, cold chain & packaging, and refrigeration & equipment.

On the other hand, organic PCM is likely to experience an increasing CAGR in the next six years. Since these are bi-products of petroleum that occur naturally and also contain a certain temperature of phase-change. Moreover, these comprise paraffin and fatty acids and also contain the highest growth in the upcoming years.

By Application:

• Cold chain & packaging

• Building & construction

• Thermal energy storage

• Electronics

• Textiles

• Refrigeration & Equipment

• Others

The building and construction sector had a market share of nearly 23%, based on the application. The phase change materials market in the building and construction industry is expected to benefit from increased investments in research & development activities and emerging innovations in macro and microencapsulation. In the building and construction industry, appropriate thermal energy storage devices have a lot of promise for energy conservation. PCMs are also commonly used in construction materials using a variety of ways. Immersion, direct integration, microencapsulation, encapsulation, and shape-stabilization are some of the most often utilized procedures. In the future years, the PCM market will be boosted by increased product applications in building and construction activities.

By Product:

• Paraffin

• Non-paraffin

• Salt hydrates

• Eutectics

Based on product, paraffin accounted for the largest share in the global phase change materials market in terms of revenue and is predicted to increase its CAGR during the forecast period. This is because paraffin has a high mass storage density and melts and solidifies uniformly with little or no sub-cooling. Moreover, their thermal conductivity is quite low. Because paraffin has high latent heat, strong thermal properties, and is chemically and thermally stable, they offer melting temperature ranges suited for various applications. Because of its outstanding properties, such as non-corrosion, thermal and chemical stability, and low undercooling, paraffinic hydrocarbons are more commonly utilized in textiles than other PCMs. In addition, due to its low water solubility, paraffin is widely utilized in construction materials, with melting enthalpies ranging from 150 to 220 KJ/kg.

Phase Change Materials Market Regional Analysis: 

• North America 

• Europe 

• Asia Pacific 

• Latin America 

• The Middle East and Africa 

Europe is predicted to have the largest PCM market share throughout the projection period based on value and volume because of the increasing need for PCM in applications including cold chain & packaging and building & construction. Furthermore, strict rules aimed at reducing greenhouse gas emissions (GHG) is another factor contributing to its expansion.

The phase change material materials market in North America is anticipated to have significant growth during 2022 - 2027. This is primarily due to the strict government regulations, consumer spending, and construction activities. Moreover, the increasing construction sector is anticipated to propel the phase change materials market in North America.

In the Asia Pacific region, China attributes for almost 50% of the phase change material’s market share during 2022 - 2027. China is the primary production hub for the construction industries and moreover, India has a huge amount of construction activities which further drives the phase change materials market growth in Asia Pacific in the upcoming years.

Impact of COVID-19 on Phase Change Materials Market:

The worldwide epidemic has impacted almost every domain of the global economy. The worldwide supply chain disruptions are expected to negatively impact the PCM market in the building and construction industry. The industry is heavily reliant on expanding the construction and HVAC industries. Across the world, China comprises of largest manufacturing and construction sectors. However, China's construction efforts have been hampered by strict lockdowns in the country's major provinces. Due to the advent of the COVID-19 pandemic, demand for phase change material in the building and construction and HVAC sectors has decreased in the first quarter of this year.

Recent Developments in the Phase Change Materials Market:

• Croda International has invented a biodegradable phase change material namely CrodaTherm 21. It is useful for protecting goods in specialized thermal containers and also uplifts the efficiency of HVAC applications. It is also treated as a non-corrosive and sustainable alternative to more dangerous paraffin and salt hydrate phase change materials on the market.

• Microtek Laboratories Inc. of Dayton, United States, has agreed to buy BASF's Micronal Phase Change Material (PCM) business. Intangible assets and inventories are included in the deal.

Phase Change Materials Market Key Players:

The companies covered in the report include:

• Henkel

• Cryopak

• BASF SE  

• Entropy Solutions LLC

• Laird Plc

• Sasol

• The Dow Chemical Company

• Croda International Plc