Advanced Phase Change Materials Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2025-2034)

The global advanced phase change materials market reached a value of USD 2.30 billion in 2024. The industry is expected to grow at a CAGR of 16.90% during the forecast period of 2025-2034 to attain a value of USD 10.97 billion by 2034.

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

Rising trend of sustainability, usage in cold chain logistics, and rising applications in the automotive and aerospace sector are some major trends aiding the market growth.

July 2024

Researchers from the University of California in the United States announced that they are developing high-end nanoscale optical imaging techniques which can offer useful insights into advanced materials such as phase-change materials.

May 2024

Oak Ridge National Laboratory have developed a new technology with phase change materials for keeping food refrigerated and reducing carbon emissions by 30%.

April 2024

Scientists from Beijing Normal University have developed building shielding for electronic devices with the use of multifunctional composite phase change materials (PCMs) to improve their performance, boosting the advanced phase change materials market expansion.

July 2023

The Rodnight Partnership, a UK-based company, announced its partnership with Pluss Advanced Technologies in India for increasing the availability of MiraCradle', neonatal cooling device in the Middle East, Africa and Southeast Asia markets. This device uses advanced phase change material (PCM) technology for inducing therapeutic hypothermia among newborns.

Rising Trend of Sustainability

The rising usage of advanced phase change materials (APCMs) in energy-efficient building materials for regulating indoor temperatures is a prominent trend of advanced phase change materials market. Favourable government regulations and initiatives supporting energy-saving standards such as LEED certifications also promote sustainability in the construction sector and boost the demand for APCMs. For instance, the Energy Policy Act (EPAct) of the USA promote the adoption of green building practices by offering tax incentives for commercial buildings that have achieved set energy efficiency standards. The Energy Conservation Building Code (ECBC) in India is another prominent standard which was developed by the Bureau of Energy Efficiency for setting minimum energy performance standards for commercial buildings. These standards state that the ventilation, well-established HVAC, lighting, and electrical systems, among other crucial factors of a building, must meet the energy efficiency standards mandated by the code.

Growing Usage of Advanced PCMs in Electronics

The rising trend of miniaturisation in electronics has boosted the demand for advanced thermal management systems which can cool off electronic devices. APCMs are finding rising usage in thermal management systems in smartphones, tablets, and laptops, among others, to prevent heat in the device from becoming more critical and damaging. The rise of the consumer electronics sector has boosted the demand of advanced phase change materials market. As per the report by Invest India, the export of electronics from the country witnessed a growth rate of 37.31% from July 2023 to July 2024. As per the GfK-NielsenIQ data, the online sales of high-end consumer electronics items were growing faster than in stores in India. For instance, products such as laptop sales increased by 7% online, which created an ample demand for APCMs.

Usage in Cold Chain Logistics

APCMs are finding growing applications in cold chain logistics for providing optimal and controlled temperatures for perishable goods, especially in the pharmaceutical and food and beverage sectors. In 2021, In 2021 North America accounted for around 49.1% of pharmaceutical sales whereas Europe accounted for around 23.4% of the sales across the world. The Brazilian, Chinese and Indian markets for the pharmaceutical sectors also witnessed a growth rate of 11.7%, 6.7% and 11.8% between 2016 and 2021, driving the demand for cold chain logistics. In 2026, global food production is expected to reach around USD 4.5 trillion in net worth with companies such as Walmart being the leading grocers across the world. As per the advanced phase change materials industry analysis, these positive trends in both the food and pharmaceutical sectors have boosted cold chain logistics, consequently fuelling the demand for APCMs.

Rising Applications in the Automotive and Aerospace Sector

Thermal regulation is a crucial factor in the automotive and aerospace sectors which have boosted the demand for efficient APCMs. In vehicles, these materials are used for battery temperature management and improving battery life and performance, whereas in aircraft it used for regulating cabin temperatures and improving energy efficiency during flight. In 2023, the US aerospace sector generated USD 955 billion in sales, which was 7.1% more compared to the previous year, creating lucrative advanced phase change materials market opportunities. In 2023, electric car sales witnessed a growth rate of 35% year-on-year across the world with the total number of electric cars on the road to 26 million. In 2022-2023, India witnessed an increase in sales of passenger cars, utility vehicles, vans, and commercial vehicles, among others, supported by subsidies and increased income, which fuelled the demand for APCMs.

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.

Advanced Phase Change Materials Industry Segmentation

"Advanced Phase Change Materials Market Report and Forecast 2025-2034" offers a detailed analysis of the market based on the following segments.

Market Breakup by Type

• Organic PCM
• Inorganic PCM
• Bio-Based PCM

Market Breakup by Form

• Encapsulated
• Non-Encapsulated

Market Breakup by Application

• Building and Construction
• Packaging
• HVAC
• Textiles
• Electronics
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

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.

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 designed for demanding industrial applications. Their products are widely used in the logistics, automotive, and construction sectors.

Croda International

It is a global leader in speciality chemicals, with a significant presence in sustainable technologies. In the PCM space, Croda provides bio-based and eco-friendly PCMs used in energy storage, construction, and textiles.

Other major market players are PCM Products, among others.

The comprehensive 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.