Phase Change Materials Market CAGR of 18.5% Expected by 2034

Overview

New York, NY – June 05, 2025 – The Global Phase Change Materials (PCM) Market is experiencing robust growth, driven by increasing demand for energy-efficient and sustainable solutions. Valued at USD 1.0 billion in 2024, the market is projected to reach USD 5.5 billion by 2034, growing at a CAGR of 18.5% from 2025 to 2034.

In 2024, Inorganic Phase Change Materials (PCMs) commanded a leading market share of over 56.3%, driven by their exceptional thermal conductivity, non-flammable nature, and ability to withstand high operating temperatures compared to organic PCMs. Encapsulated PCMs dominated the market in 2024, securing a 67.9% share.

Their widespread adoption is attributed to their ability to be seamlessly integrated into systems without leakage or degradation risks. The Building & Construction sector led the PCM market in 2024, capturing a 36.7% share, fueled by growing demand for energy-efficient buildings and stringent regulations aimed at reducing energy consumption.

Key Takeaways

• Phase Change Materials (PCM) Market size is expected to be worth around USD 5.5 billion by 2034, from USD 1.0 billion in 2024, growing at a CAGR of 18.5%.
• Inorganic PCM held a dominant market position, capturing more than a 56.3% share.
• Encapsulated Phase Change Materials (PCMs) held a dominant market position, capturing more than a 67.9% share.
• Building & Construction held a dominant market position, capturing more than a 36.7% share.
• Europe emerged as the leading region in the Phase Change Materials (PCM) market, holding a dominant share of 43.9%, with the market valued at approximately USD 0.4 billion.

How Growth is Impacting the Economy

• The PCM market is significantly influencing the global economy. PCMs are driving job creation in manufacturing, research, and installation sectors, particularly in construction and logistics. Their use in energy-efficient buildings reduces operational costs, enabling businesses and households to save on energy expenses, thus boosting disposable income. In regions like Europe, PCM adoption aligns with policies like the European Green Deal, fostering investments in sustainable infrastructure.
• This stimulates economic activity through government incentives and private-sector innovation. The rise in cold chain logistics, fueled by e-commerce, supports the pharmaceutical and food sectors, ensuring product integrity and reducing waste. Additionally, advancements in PCM technology encourage R&D investments, spurring economic growth in high-tech industries. As PCMs enable energy conservation, they contribute to lower carbon emissions, aligning economic progress with environmental goals, creating a sustainable economic impact globally.

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Strategies for Businesses

• Businesses can capitalize on the PCM market by investing in R&D to develop cost-effective, high-performance PCMs, focusing on advanced encapsulation techniques. Partnering with construction firms to integrate PCMs into green buildings can tap into the demand for sustainable infrastructure. Targeting cold chain logistics with tailored PCM solutions for pharmaceuticals and food can address e-commerce growth.
• Marketing campaigns emphasizing energy savings and compliance with regulations will attract eco-conscious clients. Additionally, expanding into emerging markets like Asia-Pacific, where urbanization drives demand, can boost market share. Collaborating with governments on energy efficiency incentives ensures alignment with regulatory trends, enhancing competitiveness.

Report Scope

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Key Market Segments

By Type

• In 2024, Inorganic Phase Change Materials (PCMs) commanded a leading market share of over 56.3%, driven by their exceptional thermal conductivity, non-flammable nature, and ability to withstand high operating temperatures compared to organic PCMs. Materials like salt hydrates and metallics are extensively utilized in building and construction, HVAC systems, and cold chain logistics due to their reliable heat storage capabilities. Their robust thermal cycling stability makes them well-suited for large-scale industrial uses. With industries prioritizing safe and efficient energy storage, inorganic PCMs are expected to maintain strong demand in 2025, particularly in regions emphasizing energy conservation and sustainable infrastructure.

By Form

• Encapsulated PCMs dominated the market in 2024, securing a 67.9% share. Their widespread adoption is attributed to their ability to be seamlessly integrated into systems without leakage or degradation risks. Encapsulation, whether micro or macro, ensures structural stability and consistent performance across repeated thermal cycles. This form is highly valued in textiles, construction, electronics, and refrigeration for its cleanliness, precise temperature regulation, and ease of use. In 2025, the demand for encapsulated PCMs is projected to rise as manufacturers increasingly seek compact, efficient thermal energy solutions for industrial and consumer applications.

By Application

• The Building & Construction sector led the PCM market in 2024, capturing a 36.7% share, fueled by growing demand for energy-efficient buildings and stringent regulations aimed at reducing energy consumption. PCMs are incorporated into wallboards, roofing, insulation panels, and flooring to regulate indoor temperatures by absorbing daytime heat and releasing it at night, significantly lowering reliance on active heating and cooling systems. This trend is expected to persist into 2025 as developers, both residential and commercial, prioritize sustainable solutions to meet green building certifications and achieve long-term energy savings.

Regional Analysis

• In 2024, Europe held a commanding 43.9% share of the PCM market, valued at approximately USD 0.4 billion. This dominance is driven by the region’s focus on energy efficiency, sustainability, and strict regulations to curb carbon emissions in sectors like construction, automotive, and cold chain logistics. European nations have widely adopted PCMs, particularly in green building projects, where they enhance thermal regulation in insulation materials.
• The European Union’s push for climate neutrality, under initiatives like the European Green Deal, has spurred demand for PCMs through incentives and funding for energy-efficient construction and retrofitting. For instance, Germany’s Energy Saving Ordinance (EnEV) promotes PCM use by enforcing stringent energy standards. Additionally, Europe’s pharmaceutical and food sectors are increasingly adopting PCM-based cold chain solutions to ensure product integrity during transport, further driven by the growth of e-commerce and demand for temperature-sensitive goods.

Recent Developments

1. BASF SE

• BASF has expanded its Micronal PCM portfolio, focusing on energy-efficient building solutions. The company introduced advanced microencapsulated PCMs for smart textiles and thermal energy storage in construction. BASF is also collaborating with HVAC manufacturers to integrate PCMs for better temperature regulation. Their innovations aim to reduce carbon footprints in urban infrastructure.

2. Climator Sweden AB

• Climator launched ClimSel C28, a bio-based PCM for sustainable cooling in packaging and buildings. The company is enhancing PCM applications in cold chain logistics, ensuring longer thermal protection for pharmaceuticals. Climator also partnered with European research institutes to develop next-gen PCMs for renewable energy storage.

3. Cold Chain Technologies

• The company introduced PCM-based gel packs with extended temperature stability for pharmaceutical logistics. Their PolarPack solutions now feature eco-friendly, non-toxic PCMs, improving vaccine and biotech product safety during transport. Cold Chain Technologies is also optimizing PCM performance for last-mile delivery.

4. Croda International Plc

• Croda developed bio-based PCMs under the “Cithrol” brand for cosmetics and textiles, offering sustainable temperature regulation. They also enhanced Phase Change Slurries (PCS) for industrial cooling applications. Croda’s innovations focus on reducing energy consumption in manufacturing processes.

5. Cryopak

• Cryopak expanded its PCM-based thermal packaging for food and pharmaceuticals, introducing Flexible PCM panels for better cold chain efficiency. Their TempArmor line now includes recyclable PCM solutions, supporting sustainability in logistics. Cryopak is also integrating IoT for real-time temperature monitoring

Conclusion

The Phase Change Materials (PCM) market. PCMs are transforming construction, logistics, and electronics with energy-efficient solutions. Europe leads, while Asia-Pacific grows rapidly. Businesses can thrive by innovating and partnering in sustainable sectors. PCMs are key to green goals, ensuring strong market growth and a sustainable future.

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