Advanced Phase Change Material Market, By Product (Paraffin phase change material, Salt Hydrate phase change material, and Other phase change material), By Application (Building and Construction, Energy Storage, Electronics, Heating, Venting and Cooling, and Others), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Trends, Analysis and Forecast till 2034

Advanced phase change material market size was valued at USD 2.1 Billion in 2024 and is expected to reach USD 6.7 Billion by 2034 growing at a CAGR of 12.3%.

Advanced phase change materials represent state-of-the-art development in managing heat technologies. They boast a unique capability to store and release enormous amounts of energy by phase transition between the solid, liquid, or gaseous states. These materials are designed to absorb and release latent heat during their phase change, usually from solid to liquid and vice versa, around a specific temperature. This property helps APCMs keep an almost invariable temperature throughout the transition, making them very effective and efficient regulators in tamping changes in temperature for any given environment. The growing demand for effective energy methods in building and construction drives interest in developing APCMs. In such situations, they are applied to store thermal energy to decrease heating and cooling loads and enhance energy efficiency in buildings.

Furthermore, they have been put to use in the textile industry so that APCMs have been embedded in fabrics to adjust body temperature as environmental conditions change to provide comfort and superior performance in sportswear, medical garments, and outdoor wear. APCMs have thermal management system applications in the automotive and aerospace sectors to maintain operating temperatures of batteries, electronic components, and other critical systems within their optimal operating temperature range, offering improved reliability and service life for these technologies. Its importance has grown even more regarding global health challenges in this application, where the safe and efficient distribution of vaccines and medicines is crucial. Other applications of APCMs now and in the future include advanced thermal insulation, the temperature-stabilizing property of which is expected to save energy greatly in refrigeration and heating systems.

Continuous material science development has further encouraged interest in studying APCMs. New generations of phase change materials have been developed with higher thermal conductivity, durability, and environmental sustainability. For instance, the involvement of nanoparticles in developing phase change materials improves their thermal properties, hence serving high-performance applications. The shift toward sustainable and biodegradable materials has called for developing bio-based phase change materials that offer ecological alternatives to conventional petroleum-based materials.

Key Drivers of Target Market:

Growing Demand for Energy Efficiency

• The push for energy efficiency across diverse industries is a significant driver in adopting Advanced Phase Change Materials. With many industries, not to mention governments, aiming to cut down on energy consumption and reduce environmental impact, APCMs present a good solution to enhancing thermal management systems. These materials can absorb and store excess heat during peak energy periods and then release it when needed, hence stabilizing temperatures and reducing the need for additional heating or cooling. An excellent example of an application is in the construction industry: APCMs are used for indoor building temperatures by using the material, hence reducing the need for and dependency on HVAC systems and, subsequently, a reduction in energy bills and carbon emissions. Similarly, in the renewable energy sector, the APCMs increase the efficiency of thermal solar systems by storing excess energy from the sun, which is released when the sun is unavailable, guaranteeing continuity in supply. Because of increased energy costs and a rise in stringent environmental regulations, APCMs have been facing increased demand that will accelerate their development and adoption in varied applications.

Rising Demand from Pharmaceuticals and Diagnostics

• Continuous improvement in material science is another major driver in the growth of APCM. This is achieved as researchers and manufacturers develop new forms of PCMs with improved properties regarding higher thermal conductivity, great durability, and enhanced compatibility with other materials. For example, adding nanoparticles to APCMs has made advanced materials support enhanced thermal management, making them suitable for high-performance applications in electronics, aerospace, and automotive. Besides, increasing attention is being given to green and sustainable APCMs, among which are bio-based phase-change materials whose feedstock represents renewable resources and shows lower environmental impact than traditional ones based on petroleum. With these innovations, APCMs have further widened the range of their applications and, in this respect, become more appealing to industries that have green technologies.

Restrains:

High Production Cost

• The main barrier in the APCM market is the high production cost that characterizes these advanced materials. Most of the manufacturing processes in APCMs, especially those involving specialty additives or nanoparticles, are costly; these eventually make the end products at an increasing cost to both the consumer and businesses. That high cost is a significant barrier to wide-scale adoption, mainly in cost-sensitive industries or regions with a limited financial incentive to invest in energy-efficient technologies. For instance, the construction industry, where cost per square foot is a critical factor, may need more than the higher price of the APCM-enhanced materials to use them in large-scale projects. With consumer electronic pricing at a highly competitive level, adding APCMs for temperature management may be challenging, particularly for entry-level applications. Consequently, production methods and materials development leading to an economical solution for deploying APCMs at reasonably affordable prices is still a needed research and development task.

Opportunities:

Rapidly Growing Electric Vehicle Markets

• One of the most promising opportunities for APCMs is in the rapidly growing electric vehicle markets. As the rest of the world gears toward green transportation, this demand has risen for electric vehicles. Thus, extremely efficient thermal management solutions are in great demand. Overheating, if not managed properly, may reduce the life span of such batteries and can even be hazardous. The APCMs are one innovative way wherein extra heat is absorbed in cases of rising battery temperature and released during dropping temperatures. All this thermal regulation helps maintain the battery within its operating temperature range, increasing efficiency and prolonging its lifespan.

The market is segmented based on Product Type, Application, and Region.

Product Type Insights:

• Paraffin Phase Change Material: Paraffin-based PCMs are among the most used owing to their high latent heat storage capacity and relatively low price. Paraffins are hydrocarbons whose molecular structure allows them to store and release significant amounts of energy during their phase change, usually from solid to liquid and vice versa. These materials are more broadly applied in applications that involve moderate temperature control, such as building insulation and packaging. It is because of its chemical stability, which is non-acidic as well, and the fact that encapsulation is easy, further makes them favorable for industries needing dependable and economical thermal management solutions. However, paraffin PCMs exhibit low thermal conductivity and may limit applications where the heat transfer rate needs to be high.
• Salt Hydrate Phase Change Material: Another popular class of PCMs is made from salt hydrates, which have higher thermal conductivity than paraffins, thus allowing much better heat transfer. The phase change in salt hydrates occurs through the process of absorption and release of water of crystallization, thus allowing the material to absorb and release heat. These materials, such as energy storage systems or other industrial processes, are used where more efficient thermal management is needed. Salt hydrates are relatively cheaper than the organic types like paraffin but may easily undergo supercooling and phase segregation problems. These factors adversely impact their performance over long periods; however, these issues have been surmounted recently with the latest advancements in material science.
• Other Phase Change Materials: It involves several PCMs, like fatty acids and esters, and bio-based materials; these have recently gained considerable attention owing to their environmental advantages. For example, fatty acids are easily biodegradable and nontoxic, hence finding a place in such applications as sustainable building material and personal care products. Bio-based PCMs are obtained from renewable resources and thus provide a greener alternative to traditional PCMs, fitting the increasing sustainability trend. Other PCMs, such as eutectic mixtures and composites, serve critical heat management applications, like electronics or high-performance batteries. Varieties in this category present customized solutions in several industries where standard paraffin and salt hydrate PCMs may be inappropriate.

Application Insights:

• Building and Construction: Among large areas of consumption of the PCMs are in building and construction, accordingly for energy-saving buildings. It is intended that these materials should be integrated into building materials like wallboards, flooring, and roofing, which will regulate indoor temperatures by absorbing excess heat during the day and releasing it at night. This dramatically reduces the need for heating and cooling systems due to thermal regulation, saving so much energy while improving the comfort of the occupants. This is one part of the global trend to develop green buildings and sustainable urbanization; therefore, it is a fast-growing segment of the market for PCMs.
• Energy Storage: Energy storage is one of the major fields of application for PCMs within renewable energy. The PCMs in thermal energy storage systems capture and store excess energy produced through solar or wind power during peak production periods. During lows in production, for example, at nighttime or when there is no wind, stored energy is released to ensure a stable, continuous supply of energy. The application of PCM in energy storage systems increases the efficiency and reliability of renewable sources; therefore, PCMs are crucial in the route to sustainable energy solutions. This is a very important application as the world moves towards reducing dependence on fossil fuels.
• Electronics: Electronic devices and electronic components use PCMs to manage emitted heat. With trends toward high-powered and compact electronics in recent years, demand for an effective thermal management solution has gradually increased. Therefore, PCMs are integrated into heat sinks, thermal interface materials, and enclosures to absorb and dissipate the heating effectively and prevent overheating to improve performance and increase durability within electronic components. Reliability may be guaranteed for devices operating in their optimal temperature range. Thus, such fields may be emphasized where this application plays an important role, including supercomputing, telecommunications, and consumer electronics.
• Heating, Venting, and Cooling (HVAC): Therefore, PCMs have found more and more applications in HVAC for higher efficiency and operating cost cut. Applying PCMs in HVAC can store excess thermal energy during periods of low demand, releasing it in peak demand to decrease the load on heating and cooling systems. That way, better temperature regulation is ensured with lower energy use by either a commercial building or an industrial facility. Interest in using PCMs in HVAC systems is increasing within the general drive to provide improved energy efficiency in the operation of buildings while simultaneously reducing greenhouse gas emissions.
• Others: Others describe using PCMs in specific applications such as health care, automotive, and textiles. In health care, examples of PCMs' applications include medical devices for cold chain logistics and temperature-sensitive packaging with the view of pharmaceuticals and biologics being stored and transported at the right temperatures. Within the automobile industry, it finds application in battery thermal management systems to extend performance and safety in electric vehicles. Apart from this, PCMs are incorporated into textiles and clothes so that temperature regulation can be performed effectively from extremely cold to hot environments for the greater comfort of humans. This category reflects the increasing versatility of PCMs since new applications continue to emerge across different industries.

Regional Insights

• North America: The North American region, particularly the US and Canada, places great emphasis on energy efficiency and sustainability, thus driving the market of APCM. Constructionist industries are thereby a major contributor to the market due to the more significant usage of APCMs in green building projects to enhance energy efficiency and decrease heating and cooling costs. Thermally manageable APCMs find applications, apart from the built environment, in the region's high-performance electronics and energy storage sectors. Government regulations and grants toward energy-efficient technologies strongly boost the market. Additionally, North America hosts many of the key players in the APCM market, fostering innovation and furthering the reach of the materials into new applications.
• Asia Pacific: The Asia Pacific Region is the largest consumer and the fastest-growing market for APCM. The Asia-Pacific region is driven by aggressive industrialization and urbanization, with energy-efficient solutions as the background for this trend. Major markets like China, Japan, and India are investing heavily into constructing energy-efficient buildings and infrastructure. It is also tipped to be one of the major adopters of APCMs in the electronic industry, where thermal management solutions are highly demanded by quite a few industries, such as consumer electronics, telecommunication, and data centers. This, combined with the growing focus on renewable energy in China and India, propels the demand for APCMs in energy storage systems. The automotive sector significantly contributes to the market, especially in Japan and South Korea, where APCMs are used in electric vehicle batteries for thermal management. There is strong governmental support in the Asia Pacific for energy efficiency programs, coupled with higher investments in research and development activities.
• Europe: Europe is a key market for APCMs, driven by Stringent environmental regulations in Europe, coupled with a grave focus on sustainability, are the key drivers for APCMs. In fact, the European Union's commitment to cutting carbon emissions and improving the energy efficiency of buildings has really woken up the construction industry to the mass adoption of APCMs. Countries like Germany have led the integration of APCMs into building material and energy storage systems. The automotive industry was the other sector that greatly influenced driving, especially for battery management in electric vehicles. Increasing the share of renewable energy sources in Europe attracts additional interest in using APCMs in thermal energy storage systems, which significantly increases the efficiency of solar and wind energy projects. This market is also supported by active research and development. European companies and institutions are involved in developing APCM's state-of-the-art technologies.
• Latin America: The Latin American APCM market is supported by the emphasis of this region on improving energy efficiency and sustainability in building construction, and it has been growing consistently. Brazil and Mexico lead from the front, where APCM adoptions are rising rapidly both in residential and commercial buildings to decrease energy consumption and enhance thermal comfort. The region also shows APCM potential in renewable energy projects, especially in the solar thermal energy storage system. However, economic issues and/or a lack of understanding of the benefits of APCM might act as a growth inhibitor in some markets.
• Middle East and Africa: The Middle East & Africa region is also an emerging market for APCM, but it holds tremendous potential, considering the strong climate conditions in the region and the rising energy efficiency. Construction is booming in countries like the United Arab Emirates and Saudi Arabia, among all the GCC countries, fueling the demand for APCM due to the increased usage of energy-efficient building materials to combat extreme temperatures and reduce cooling costs. In addition, the rapid increase in the renewable energy sector in this region, especially in solar power, creates opportunities for APCM application in thermal energy storage. South Africa is also considered a market, but there is only an increase in interest in energy-efficient solutions for solving the country's energy problems. However, this regional market is plagued with many drawbacks, including a minimal infrastructure, low economic ability to invest, and lesser awareness regarding APCM technologies. In spite of these issues, the increasing thrust on sustainability and energy efficiency is expected to drive future market growth in the Middle East & Africa region.

Advanced Phase Change Material Market Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the target market report based on Product Type, Application, and Region.

Segmentation:

By Product Type:

• Paraffin Phase Change Material
• Salt Hydrate Phase Change Material
• Other Phase Change Material

By Application:

• Building and Construction
• Energy Storage
• Electronics
• Heating
• Venting and Cooling
• Others

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of Middle East & Africa

The key players operating the Advanced Phase Change Material Market include BASF, Honeywell, Croda International, Climator Sweden AB, Entropy Solutions, Phase Change Energy Solutions, Rubitherm Technologies, Outlast Technologies, Laird PLC, Cryopak, Sasol, Henkel, Pluss Advanced Technologies, PCM Products Ltd, Advansa, Dow Chemical Company, E. I. du Pont de Nemours and Company, Microtek Laboratories, Chemours, and RGEES LLC.

• On July 10, 2024, It was announced that the BASF German-based phase change material production facility-one of the world's largest chemical companies will be extended due to increasing demand from European countries for building materials that are efficient in energy. This new facility would further extend production for various advanced phase-change materials applied in areas from building insulation to thermal energy storage systems. The decision underpins its commitment to BASF in responsible support of sustainable building and carbon reduction across the region.
• On August 18, 2024, Honeywell, a global leader in advanced materials, introduced its latest range of ultra-high-performance phase change materials targeted at the electronics industry. The designed advanced phase change materials will deliver unparalleled thermal management for high-power electronic devices, including data centers and 5G infrastructure. These new materials enhance these devices' performance and life through proper heat dissipation management. This is a development in continuation of Honeywell's broader initiative to find solutions to the increasing thermal management challenges presented by a world in an ever-shrinking electronic package to deliver powerful performance.

• BASF*
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Honeywell
• Croda International
• Climator Sweden AB
• Entropy Solutions
• Phase Change Energy Solutions
• Rubitherm Technologies
• Outlast Technologies
• Laird PLC
• Cryopak,
• Sasol
• Henkel
• Pluss Advanced Technologies
• PCM Products Ltd,
• Advansa
• Dow Chemical Company
• E. I. du Pont de Nemours and Company
• Microtek Laboratories
• Chemour
• RGEES LLC.

“*” marked represents similar segmentation in other categories in the respective section.