Anticipated Compound Annual Growth Rate (CAGR) of 18.5% for Phase Change Materials Market by 2034
The Phase Change Materials (PCM) market is poised for substantial growth, projected to reach an impressive USD 5.5 billion by 2034, growing at a compound annual growth rate (CAGR) of 18.5% from 2025 to 2034 [3].
In 2024, the Building & Construction sector led the PCM market, capturing a 36.7% share [1][2]. Notably, Inorganic PCMs commanded a leading market share of over 56.3% in the same year [4]. Encapsulated PCMs also held a dominant market position, capturing more than a 67.9% share in 2024 [6].
Europe emerged as the leading region in the PCM market, holding a dominant share of 43.9% in 2024, valued at approximately USD 0.4 billion [7]. Asia-Pacific is also growing rapidly in the PCM market.
The growth in the PCM market is primarily driven by the increasing demand for energy-efficient thermal management solutions across industries such as building & construction, electronics, automotive, and HVAC (heating, ventilation, and air conditioning) [8]. The need for improved thermal regulation and energy conservation is also a significant factor, particularly in applications like temperature-sensitive packaging, refrigeration, and temperature-controlled logistics [8].
Expansion in sectors such as healthcare, especially for temperature-sensitive pharmaceuticals and biologics that require stable environments during transportation and storage, is another key driver [8]. Growing environmental concerns and government policies pushing for sustainable and energy-saving materials also favor PCM adoption [8].
Technological advancements in PCM formulations enabling better performance, durability, and integration into diverse products further contribute to the market growth [8]. For instance, Climator Sweden AB launched ClimSel C28, a bio-based PCM for sustainable cooling in packaging and buildings [2]. BASF SE expanded its Micronal PCM portfolio, focusing on energy-efficient building solutions [2].
Businesses can capitalize on the PCM market by investing in R&D to develop cost-effective, high-performance PCMs, focusing on advanced encapsulation techniques [9]. Partnering with construction firms to integrate PCMs into green buildings can tap into the demand for sustainable infrastructure [10].
Cold Chain Technologies introduced PCM-based gel packs with extended temperature stability for pharmaceutical logistics [5]. Croda International Plc developed bio-based PCMs under the "Cithrol" brand for cosmetics and textiles [6]. Cryopak expanded its PCM-based thermal packaging for food and pharmaceuticals, introducing Flexible PCM panels [6].
The PCM market is significantly influencing the global economy, driving job creation, reducing operational costs, and fostering investments in sustainable infrastructure [11]. Businesses can thrive by innovating and partnering in sustainable sectors, as PCMs are key to green goals and ensuring strong market growth and a sustainable future.
- Investments in the renewable-energy industry can be supplemented by investing in the data-and-cloud-computing sector, as the latter is crucial for optimizing and managing renewable energy sources efficiently.
- As the PCM market expands, there is a growing need for finance to fund research and development in the technology industry, aiming to improve the performance and integration of PCMs into diverse products.
- With the increasing adoption of PCMs in various sectors such as building & construction, electronics, automotive, and HVAC, there is potential for the growth of the renewable-energy industry, as PCMs contribute to energy conservation and thermal management solutions.
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