Phase Change Materials Market

Updated on : August 08, 2024

Phase Change Materials Market

The global phase change materials market is valued at USD 628 million in 2024 and is projected to reach USD 1,383 million by 2029, growing at 17.1% cagr from 2024 to 2029. Phase change materials are utilized for their unique ability to store and release large amounts of thermal energy during phase transitions, such as melting and solidification. This property allows them to effectively regulate temperatures in various applications, ranging from thermal management in building & construction, HVAC, cold chain & packaging, thermal energy storage, refrigeration & equipment, textiles, electronics to temperature-controlled in other applications.

Phase Change Materials Market Size, Dynamics and Ecosystem

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Phase Change Materials Market Dynamics

Driver: Use of phase change materials for peak load shifting

Phase change materials are emerging as a savvy solution for peak load shifting in various industries. By leveraging the unique ability of phase change materials to absorb and release large amounts of thermal energy during phase transitions, businesses can optimize energy consumption patterns. This technology enables the storing of excess energy during off-peak hours, when electricity rates are lower, and releasing it during peak demand periods, thus reducing reliance on expensive peak-time electricity. Implementing PCM-based peak load shifting strategies enhances operational efficiency, minimizes energy costs, and contributes to a more sustainable energy ecosystem, aligning with businesses' bottom-line goals and environmental stewardship initiatives.

Restraints: Lack of awareness of benefits of phase change materials

The lack of awareness regarding the benefits of phase change materials poses a significant restraint to their widespread adoption in various industries. Despite their potential to optimize energy usage, enhance thermal comfort, and improve sustainability, many businesses remain uninformed about phase change materials technology. This lack of awareness stems from limited education and outreach efforts, compounded by the complexity of understanding phase change materials applications and their potential advantages. As a result, decision-makers may overlook phase change materials solutions in favor of more familiar or conventional alternatives, missing out on opportunities for cost savings, efficiency gains, and environmental benefits that phase change materials technology can offer to their operations.

Opportunities: The rise in the need for cold chain logistics

The escalating demand for cold chain logistics presents a compelling opportunity for businesses across various sectors. As consumer preferences shift towards fresh and perishable goods, there's an increasing necessity for maintaining precise temperature control throughout the supply chain. This demand surge is particularly evident in industries like food, pharmaceuticals, and biotechnology. Businesses capable of offering robust cold chain logistics solutions stand to capitalize on this trend by ensuring product integrity, extending shelf life, and meeting stringent regulatory requirements. Moreover, catering to the growing global market for temperature-sensitive goods opens avenues for revenue growth, strategic partnerships, and differentiation in a competitive landscape.

Challenges: High cost of switching from conventional materials

The high cost of switching from conventional materials represents a significant challenge for businesses considering the adoption of alternative solutions, such as phase change materials. Transitioning from established materials to innovative phase change materials technology often involves substantial upfront investments in research, development, infrastructure, and retooling of manufacturing processes. Additionally, there may be expenses associated with staff training and reconfiguration of supply chains. Overcoming this challenge requires careful cost-benefit analysis, long-term planning, and effective change management strategies to justify and facilitate the transition to PCM-based solutions.

Phase Change Materials Market Ecosystem

Leading companies in this market include well-established phase change materials manufacturers. These businesses have been in business for a while and have an extensive range of products, pioneering technologies, and strong international sales and marketing networks. Top companies in this market include Honeywell International Inc. (US), DuPont de Nemours, Inc. (US), Croda International Plc (UK), Boyd Corporation (US), Sasol Limited (South Africa), Outlast Technologies LLC (US), Climator Sweden AB (Sweden), Rubitherm Technologies GmbH (Germany), PureTemp LLC (US), and Phase Change Solutions (US).

Phase Change Materials Market Segmentation & Geographical Spread

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“Based on type, inorganic was the second largest type for phase change materials in 2023, in terms of value.”

Inorganic segment being the second largest type in the phase change materials market in 2023 is their compatibility with high-temperature applications. Inorganic phase change materials exhibit robustness and resilience under extreme conditions, making them suitable for use in industries such as automotive, aerospace, and electronics, where elevated temperatures are common. Moreover, the reliability and predictable performance of inorganic phase change materials makes them appealing for critical applications where precise temperature control is essential for operational efficiency and product integrity. Additionally, the expanding adoption of inorganic phase change materials in emerging sectors like renewable energy storage and waste heat recovery further bolstered their market share in 2023.

“Based on application, cold chain & packaging was the second largest application for phase change materials  in 2023, in terms of value.”

The cold chain & packaging segment being the second largest application in the phase change materials market in 2023 is the increasing globalization of supply chains. As companies expand their operations globally, there is a growing need for efficient temperature-controlled logistics to ensure product quality and safety across long distances and diverse climates. PCM-based packaging materials offer a reliable solution to maintain stable temperatures during transit, reducing the risk of spoilage or damage to temperature-sensitive goods. Moreover, advancements in phase change materials technology have led to the development of tailored solutions that address specific requirements of different industries within the cold chain, further driving adoption and contributing to the segment's substantial market share in 2023.

“Europe is estimated to be the largest region in phase change materials market 2023, in terms of value.”

Europe's leadership in phase change materials market in 2023 can be attributed to its proactive approach towards mitigating climate change. The region's ambitious carbon reduction goals and stringent regulations aimed at promoting energy efficiency have accelerated the adoption of phase change materials solutions. Furthermore, strong government support through incentives and funding for research and development in sustainable technologies has fostered innovation and commercialization of phase change products. Additionally, Europe's well-established manufacturing infrastructure and extensive network of suppliers have facilitated the production and distribution of PCM-based solutions, further strengthening its position as the largest market for phase change materials in 2023. The region houses major phase change materials producing companies, such as Croda International Plc (UK), Climator Sweden AB (Sweden), and Rubitherm Technologies GmbH (Germany).

Phase Change Materials Market Players

The key players profiled in the report Honeywell International Inc. (US), DuPont de Nemours, Inc. (US), Croda International Plc (UK), Boyd Corporation (US), Sasol Limited (South Africa) among others, are the key manufacturers that holds major market share in the last few years. A major focus was given to collaborations, partnerships, and new product development due to the changing requirements of users across the world.

Phase Change Materials Market Report Scope

This report categorizes the global phase change materials market based on type, application, and region.

Based on type, the phase change materials market has been segmented as follows:

• Organic
• Inorganic
• Eutectic

Based on application, the phase change materials market has been segmented as follows:

• Building & Construction
• HVAC
• Cold Chain & Packaging
• Thermal Energy Storage
• Refrigeration & Equipment
• Textiles
• Electronics
• Others

Based on region, the phase change materials market has been segmented as follows:

• Asia Pacific
• North America
• Europe
• Rest of the World

Recent Developments

• In 2021, DuPont De Nemours, Inc. signed an agreement to acquire the performance materials segment of Laird Plc. This acquisition will strengthen the company’s market position and expand its global reach in the phase change material market.
• In 2021, Cold Chain Technologies announced their expansion in Europe and the Middle East & African regions with the opening of their new regional headquarters based in the Netherlands.
• In 2020, DuPont De Nemours, Inc. (US) and Cold Chain Technologies, Inc. partnered for global production, sales, distribution, and technical service of Tyvek Cargo Covers for life sciences. The partnership is expected to help the company cover the untapped market potential and new product opportunities that this partnership is expected to create. In addition, the partnership is expected to open the doors for the company to gain access to the best materials and technologies in the marketplace; and is expected to help the company to better serve its customers.

Frequently Asked Questions (FAQ):

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