Phase Change Materials Market

Increasing Adoption of Phase Change Materials in the Building and Construction Industry to Surge Demand

Phase change materials are widely used in roofs, floors, walls, and other building materials in the building & construction industry. Such materials can lower the temperature variations, resulting in betterment related to human comfort and decreasing the energy consumption of buildings due to their ability to release and absorb energy in/from the environment. Among all the activities engaging in significant energy consumption, one of the main sectors in some countries is related to buildings.

According to the International Energy Agency (IEA), the building & construction segment accounts for almost 30% of the total energy consumption and yields about 30% of the total carbon dioxide emissions. The stringent government regulations for reducing greenhouse gas emissions is expected to boost the phase change materials market growth during the forecast period.

2024: Climatic released a new line of phase change materials designed for improved thermal management in building and energy storage applications.   PCM Products - 2023: PCM Products launched advanced phase change materials with enhanced heat storage and release capabilities for electronics and construction.

Accordingly, the growing adoption of the product in the interiors of the construction permits soaking and emitting heat in the room at any given time. PCMs are economical and broadly used to reduce internal air temperature variations in building applications, particularly lightweight constructions. Plasterboards and wallboards are appropriate components and are considered ideal for the internalization of PCMs. The use of PCMs in building materials is advantageous, specifically in incredibly cold and hot climates, where the energy needed to maintain the internal conditions of buildings at a comfortable level can attain substantial consumption levels.

PCMs can also be added to conventional and alveolar bricks and have also been included in the concrete layer inducted under the flooring systems.

By incorporating it into a floor, favorable effects are acquired as a large amount of energy is lost from the floor due to heat transfer to the ground. Other emerging solutions include placing of PCMs in sunshades and windows. In such applications, a PCM must fill the frame, layer, glass, or any other hollow part, such as the cavity of the shutters. The building & construction industry needs high-performance materials that are strong, lightweight, high-performance, durable, and versatile.

The quality and performance of building materials need to be extremely consistent; as a result, the demand for phase change materials is increasing for infrastructural development. Therefore, rapid urbanization, economic growth and bolstering of infrastructural projects, and extensive application of phase change materials in the building & construction sector are said to drive the market.

The Global Phase Change Materials Market Industry experiences a notable surge in demand driven by the increasing emphasis on energy efficiency across various sectors. Governments worldwide are implementing stringent regulations aimed at reducing energy consumption and greenhouse gas emissions. For instance, the adoption of phase change materials in building construction enhances thermal management, leading to reduced energy costs. This trend is expected to contribute to the market's growth, with projections indicating a market value of 1.22 USD Billion in 2024. As energy efficiency becomes a priority, the Global Phase Change Materials Market Industry is likely to expand significantly.

By Region, the Phase Change Materials market industry study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. Europe Phase Change Materials Market accounted for USD 516.22 million in 2021 and is expected to exhibit a 18.84% CAGR during the study period. This is attributed to presence of many companies in Europe that manufacture, and supply phase change materials are expected to provide optimistic growth.

Further, the major countries studied are the U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: PHASE CHANGE MATERIALS MARKET SHARE BY REGION 2021 (%)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

North America Phase Change Materials Market accounts for the second-largest market share dueto the high investment for phase change material market across the region. North America is likely to grow as long-term energy costs are expected to climb, making PCMs an appealing investment in new buildings. Furthermore, the US Phase Change Materials Market retained the greatest market share due to expansion of its manufacturing facilities and increasing distribution network across the country. Other environmentally sensitive construction markets, such as those in hot climes are also likely to rise.

The growth in the region is attributed to the growth of the building & construction industry in the Canada Phase Change Materials Market will exhibit significant expansion in the North American region.

The Europe Phase Change Materials Market is expected to grow at a significant CAGR from 2022 to 2030. This is owing to presence of many companies in Europe that manufacture and supply phase change materials are expected to provide optimistic growth. The Germany Phase Change Materials Market is predicted to expand, owing to stronger building energy efficiency laws (the European Union approved a binding legislative resolution in 2007 to reduce carbon emissions by 20% while concurrently improving energy efficiency by another 20% by 2020) and the desire to minimize operating costs are driving growth in Germany.

Increased knowledge of the benefits of advanced PCM and the level of commercialization of advanced PCM in in Italy Phase Change Materials Market, Europe is expected to have the greatest growth rate in the market.

Asia-Pacific Phase Change Materials Market is expected to emerge as the fastest-growing regional market due to various factors such as shifting manufacturing base from western countries to Asia-Pacific; strong economic development; and expansion of end-use industries including textile, electrical and electrical electronics, healthcare, building & construction, and others. China Phase Change Materials Market and India Phase Change Materials Market are anticipated to dominate the Asia-Pacific market over the forthcoming years. China's healthcare industry has risen quickly, allowing it to move from a pharmaceutical manufacturing base to a vital R&D hub.

Major market players have large production bases and advanced manufacturing facilities at the domestic and international levels. Furthermore, the key players in the phase change materials market are focusing on growth strategies such as developing technologies for PCM products, patent, etc on a level to gain a maximum share of the market. Acquisition is the most common growth strategy adopted by most of the participants.

One of the primary business strategies adopted by manufacturers in the Phase Change Materials Industry to benefit clients and expand the Phase Change Materials Market sector is to manufacture locally to reduce operating costs.

Croda International Plc (Croda) is a holding company for a group of companies that manufactures a diverse range of chemicals and chemical products, including oleochemicals and industrial chemicals. It supplies products to companies specializing in personal care, pharmaceutical, plastics, food processing, nutrition, fire prevention, engineering, and automotive industries.

Sasol is a integrated chemicals and energy company. It produces oil and chemical products. The company offers products such as automotive lubricants, greases, cleansers, fuels, polymers, and specialty gases.