Phase Change Materials Market Report 2026

The phase change materials market size has grown rapidly in recent years. It will grow from $2.17 billion in 2025 to $2.56 billion in 2026 at a compound annual growth rate (CAGR) of 18.1%. The growth in the historic period can be attributed to growth of renewable energy installations, expansion of construction activities, rising need for temperature-controlled logistics, early adoption of latent heat storage systems, availability of organic and inorganic pcms.

The phase change materials market size is expected to see rapid growth in the next few years. It will grow to $4.84 billion in 2030 at a compound annual growth rate (CAGR) of 17.3%. The growth in the forecast period can be attributed to increasing investments in energy-efficient buildings, rising adoption of electric vehicles thermal management, expansion of cold chain infrastructure, growing focus on renewable energy storage solutions, increasing use of advanced encapsulation technologies. Major trends in the forecast period include increasing adoption of thermal energy storage systems, rising use of pcms in building materials, growing deployment in cold chain packaging, expansion of pcm applications in electronics cooling, enhanced focus on energy efficiency.

The growing adoption of renewable energy is expected to drive the phase change materials market in the coming years. Renewable energy refers to energy sources that are not exhausted through use and can be naturally replenished within a human lifetime. Phase change materials are utilized in renewable energy systems to store and release thermal energy, thereby improving system efficiency and supporting sustainability goals. For example, in June 2023, according to the International Energy Agency (IEA), a France-based energy organization, net additions of distributed photovoltaic (PV) renewable electricity capacity increased to 136.2 GW in 2023 from 107.4 GW in 2022, while utility-scale PV capacity rose from 112.6 GW in 2022 to 150.8 GW in 2023. Consequently, the rising adoption of renewable energy is contributing to the growth of the phase change materials market.

Major companies operating in the phase change materials market are introducing innovative ultra-low temperature solutions to ensure backup temperature security and provide alternatives to dry ice. Ultra-low temperature solutions refer to systems and technologies designed to maintain temperatures far below conventional freezing levels. For instance, in March 2023, BioLife Solutions Inc., a US-based supplier of class-defining cell and gene therapy solutions, launched Ultraguard, the first -70°C phase change material that is non-toxic, non-hazardous, and non-flammable. This PCM delivers ultra-low temperature protection and can function as a backup during power outages in ultra-low temperature freezers, as well as a benchtop storage option for biological materials, offering a viable alternative to dry ice.

In October 2024, Sunwin Industry Group Co., Ltd., a China-based manufacturing and textile design company, acquired Outlast Technologies for an undisclosed sum. Through this acquisition, Sunwin sought to integrate its broad manufacturing and distribution strengths with Outlast’s expertise in proactive thermal management, aiming to boost innovation, broaden its product offerings, and accelerate global market expansion. Outlast Technologies GmbH is a Germany-based technology company specializing in the development of advanced temperature management and phase change material solutions for textiles and related applications.

Major companies operating in the phase change materials market are Rubitherm Technologies GmbH, PCM Products Ltd., Phase Change Energy Solutions Inc., Puretemp LLC, Pluss Advanced Technologies Ltd., Entropy Solutions LLC, Outlast Technologies Inc., Climator Sweden AB, Cryopak Industries Inc., Cold Chain Technologies LLC, Phase Change Materials Products Ltd., Henan Shijixiang Enterprise Co. Ltd., Smart Materials Corporation, Advanced Cooling Technologies Inc., Thermal Energy System Specialists LLC, Laird Technologies Inc., Microtek Laboratories Inc., Encapsys LLC, AdvanSource Biomaterials Corporation, Insolcorp Ltd.

Europe was the largest region in the phase change materials market in 2025. The regions covered in the phase change materials market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the phase change materials market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The phase change materials consist of paraffin, nonparaffin, salt hydrates, metallic alloys, and plant-based materials. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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