ADVANCED PHASE CHANGE MATERIALS MARKET ANALYSIS

Advanced Phase Change Materials Market Size and Trends

The advanced phase change materials market is estimated to be valued at USD 1.78 Bn in 2024 and is expected to reach USD 3.71 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 11.1% from 2024 to 2031.

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The market is driven by increasing demand for energy efficient construction materials and growing application of PCMs in the textile industry.  The advanced phase change materials market is expected to witness significant growth over the forecast period. This is attributed to growing awareness about green buildings and the need to reduce energy consumption. Phase change materials act as thermal energy storage mediums and help maintain optimum and consistent temperatures. Their increasing usage in textiles, construction, and other industries will boost demand to effectively manage temperature fluctuations and reduce energy costs.

Increasing demand from multiple end-use industries

The demand for advanced phase change materials is growing rapidly across various end-use industries like construction, transportation, packaging, and electronics. As these industries look for innovative ways to optimize energy usage and enhance efficiency, phase change materials are emerging as a viable solution.

In the construction sector, phase change materials are increasingly being integrated into building designs for passive thermal energy storage. When temperatures fluctuate, these materials absorb, store, and release large amounts of energy in the form of heat or cold, thereby helping regulate indoor temperatures passively without mechanical cooling and heating. This provides buildings with natural thermal buffering capabilities and minimizes heating/cooling load on HVAC systems. Several commercial and residential construction projects now specify phase change materials in wallboards and coatings to reduce energy costs.

Similarly, the transportation industry is focusing on phase change materials to improve thermal management in vehicle cabins. With rising demand for electric vehicles that run on batteries, efficient thermal regulation of battery packs and passenger compartments becomes crucial. Latent heat storage using phase change allows electric vehicles to maintain optimal operating temperatures. Even conventional vehicles can benefit from its use to quickly heat up or cool interior spaces. This, in turn, enhances passenger comfort while minimizing mechanical load on HVAC units.

Market Concentration and Competitive Landscape

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Stringent regulations regarding carbon emissions and energy efficiency

Governments around the world are implementing increasingly stringent regulations focused on lowering carbon emissions and enhancing building as well as vehicle energy efficiency. In response to climate change concerns, several nations have adopted policies targeting net zero carbon goals by upcoming deadlines. Compliance with such norms is necessitating the adoption of innovative sustainability solutions across different industry verticals.

Key Takeaways from Analyst:

The advanced phase change materials market holds significant opportunities for future growth driven by the increasing construction of green buildings and focus on energy efficiency. Phase change materials that can store and release thermal energy are finding widespread adoption in heating, ventilation, and air conditioning (HVAC) systems. The building and construction industry remains the largest end-use segment given stringent regulations regarding energy efficiency in developed markets across North America and Europe.

Higher costs compared to traditional insulation methods continue to restrain the broader adoption of advanced PCMs. But price points could come down with increased economies of scale as production volumes rise. Furthermore, ongoing research and development into new bio-based and microencapsulated materials will likely expand viable application areas in the coming years.

Among regions, North America accounted for the major share of the advanced phase change materials market and strong policy push for net-zero goals are expected to drive further installer projects. However, Asia Pacific has emerged as the fastest growing regional market with the rapid construction of green buildings in major economies like China, Japan, and India. Rising individual affluence is also translating to higher demand for thermal management especially in the textiles and protective clothing segments.

Market Challenges: High initial costs

One of the major factors hampering the growth of the advanced phase change materials market is the high initial costs associated with installing these advanced materials. Phase change materials have the ability to store and release large amounts of energy efficiently during the phase transition process, however, owing to the advanced technology and high-grade materials used, the upfront capital costs for implementing phase change material-based systems are quite high. This poses a major barrier, especially for price-sensitive end-use industries and consumers.

Market Opportunities: Integration of PCMs in textiles

The integration of Phase Change Materials (PCMs) in textiles offers huge potential that can drive advanced phase change materials market towards greater heights. PCMs have the unique ability to absorb and release large amounts of heat during phase transition. By embedding PCMs in fabrics through micro/nano-encapsulation techniques, the fabrics can either release stored heat to keep warm in winter or absorb excess heat to keep us cool in summer. This thermoregulatory functionality of PCM integrated textiles is finding widespread applications in clothing, bedding, upholstery, and curtains. As people seek durable and comfortable products that can regulate indoor thermal conditions passively, without active electronic devices, the demand for PCM integrated textiles is expected to grow steadily.

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Insights by product type: Superior thermal properties

In terms of product type, paraffin is expected to contribute 53.4% share of the market in 2024.  Paraffin is the largest and most widely used segment in the advanced phase change materials market due to its high latent heat of fusion and good thermal conductivity properties. Paraffin has a crystalline structure which allows it to undergo phase transition from solid to liquid at certain temperatures without considerable change in volume. This volume-stable and repeatable melting/freezing cycle gives paraffin excellent thermal energy storage capabilities.

Paraffin also offers cost effectiveness compared to other phase change materials. It is widely available from various natural petroleum sources at competitive prices. The established petrochemical industry ensures reliable supply chains for paraffin. Moreover, paraffin is non-toxic and maintains chemical stability over numerous heating/cooling cycles without deterioration in performance. These superior functional attributes along with affordable costs have made paraffin the preferred choice for applications such as building insulation and temperature regulated packaging.

Ongoing research aims to modify paraffin through adding nano-additives or forming composites with high thermal conductivity materials. Such developments could further enhance the latent heat capacity and thermal conductivity of paraffin to meet the evolving performance requirements of next-generation thermal management solutions. Sustained investments to utilize waste paraffin for reprocessing will also boost supply while reducing costs over the long term.

Insights by application: Growing demand for energy efficient buildings

Based on application, building and construction is expected to contribute 35.3% share of the market in 2024. The building and construction segment currently dominates the advanced phase change materials market due to robust growth in green building projects worldwide. Rapid urbanization and rising global population have significantly driven up the demand for new residential and commercial spaces with lower environmental impact.

Advanced PCMs play a vital role in improving the thermal insulation and energy storage capability of building envelopes. Their high latent heat helps moderate indoor temperatures without active mechanical systems, thereby enhancing occupant comfort while reducing overall energy consumption by up to 20%. Regulatory shifts towards net-zero energy standards have considerably accelerated the adoption of PCM-incorporated building materials like wallboards, ceiling panels, and thermal mass blocks. Retrofitting existing urban infrastructure with PCM retrofit systems allows retrofitting benefits to be availed without extensive structural modifications. This offers an economical means to upgrade the efficiency of aging building stock. Furthermore, advanced PCMs enable innovative building design flexibility to optimize the use of daylight and natural ventilation.

Regional Insights

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North America has established itself as the dominant regional market for advanced phase change materials globally. The region is expected to account for 35.5% of the market share in 2024. With the presence of major players and an established construction and industrial sector, the demand for advanced PCMs is the highest in the U.S. and Canada. Several government initiatives promoting green buildings and energy efficiency have also propelled the market growth. The region has several ongoing research and development activities for developing innovative phase change materials catering to different applications. The export of advanced PCMs from North America is also substantial. With growing construction activities worldwide focusing on sustainability, North American players are able to address global demand. The pricing of advanced PCM products in the region is amongst the highest due to ample demand and high profit margins North American companies operate with. The presence of related manufacturing infrastructure further consolidates North America's supremacy in the market.

The Asia Pacific region has emerged as the fastest growing market for advanced phase change materials. Rapid urbanization and industrialization have increased energy consumption manifold. While nations like China and India already account for a sizeable share, other Southeast Asian countries are also witnessing high economic growth. The need for sustainable buildings and efficient HVAC systems has surged the demand for advanced temperature regulating materials. At the same time, government initiatives to reduce carbon footprint and transition to green technologies have created a conducive environment for PCM producers in the region. With growing indigenous production and import of advanced PCMs, the Asia Pacific market is positioned for accelerated expansion during the coming years. The overall costs of advanced PCMs are also declining in the region with increasing local presence of global market leaders. This makes such materials accessible to a wider set of applications.

Market Report Scope

Advanced Phase Change Materials Industry News

• In 2021, CUMI (Carborundum Universal Limited) finalized its acquisition of PLUSS Advanced Technologies Pvt. Ltd. This acquisition is viewed as a strategic business expansion move for both the companies.
• In 2021, ISU Chemicals Co. Op. Ltd., a company based in South Korea, recently booked its membership in the worldwide organization, ‘Quality Association PCM,’ ensuring being contributive in sustainable development initiatives and growth
• In 2021, Brickworks along with Western Sydney University invested in boosting innovations in heat storage phase change materials to enhance the thermal properties of construction products mainly concrete roof tiles

*Definition: The advanced phase change materials market involves the research and development of innovative phase change materials (PCMs) that can store and release large amounts of energy efficiently during the process of melting and solidifying. These advanced PCMs are being designed for applications like building insulation, textiles, thermal energy storage, solar thermal power generation, and cooling systems of electric vehicles. They tend to have improved thermal reliability, higher energy storage density, and melt at temperatures closer to room temperature compared to conventional PCMs.

Market Segmentation

•  Product Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Paraffin
  • Salt Hydrates
  • Others
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
• • Building and construction
  • Commercial Refrigeration
  • HVAC
  • Energy Storage
  • Shipping and Transportation
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • E.I. du Pont de Nemours & Company
  • BASF
  • Advansa B.V.
  • Honeywell International
  • Cryopak
  • Dow Building Solutions
  • Phase Change Products Pty Ltd.
  • Climate Sweden AB
  • Salca BV
  • Rubitherm Technologies GmbH
  • AI Technology Inc.
  • Boyd Corporation
  • Cold Chain Technologies
  • Croda International PLC
  • Henkel Ag & Company KGaA
  • Honeywell Electronic Materials
  • Microtek Laboratories Inc.
  • Pluss Advanced Technologies
  • Puretemp LLC
  • Sasol Limited.