Phase Change Materials Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Product (Paraffin, Salt Hydrates, Eutectics, Non-Paraffin, Others), By Application (Building and Construction, Heating Ventilation and Air Conditioning (HVAC) Systems, Energy Storage Management, Commercial Refrigeration, Cold Chain and Packaging, Textiles, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.36 Billion
CAGR (2026-2031)	5.81%
Fastest Growing Segment	Paraffin
Largest Market	Europe
Market Size (2031)	USD 3.31 Billion

Market Overview

The Global Phase Change Materials Market will grow from USD 2.36 Billion in 2025 to USD 3.31 Billion by 2031 at a 5.81% CAGR. Phase Change Materials are substances that absorb or release latent heat during a phase transition to maintain temperatures within a precise range. The market is propelled by the robust expansion of the pharmaceutical cold chain and stringent building energy codes that demand passive temperature regulation. These fundamental drivers are distinct from temporary trends as they stem from critical infrastructure needs and long-term regulatory compliance regarding carbon footprint reduction.

One significant challenge hindering broader adoption is the high initial cost of advanced encapsulation techniques required to prevent leakage and ensure durability. This economic barrier often limits application to high-value sectors despite the operational savings. According to the Global Cold Chain Alliance, in 2025, the total temperature-controlled capacity operated by its members worldwide expanded to 8.16 billion cubic feet. This substantial infrastructure growth indicates a widening addressable market for phase change solutions in logistics and storage applications.

Key Market Drivers

Rising Demand for Energy-Efficient and Green Building Construction is a primary catalyst for the phase change materials market. These materials are increasingly integrated into building envelopes, such as wallboards and roofing, to enhance thermal mass and reduce reliance on active HVAC systems. This application is crucial for meeting sustainability certifications like LEED, which prioritize passive energy conservation beyond minimum code requirements. According to the U.S. Green Building Council, January 2025, in the 'Top 10 States for LEED' report, the leading ten U.S. states alone certified 1,437 LEED projects totaling over 414 million gross square feet in 2024. Such extensive development of certified green infrastructure necessitates advanced thermal regulation solutions, directly driving the adoption of macro-encapsulated phase change products to stabilize indoor climates and minimize peak energy loads.

Growing Application in Electric Vehicle Battery Thermal Management represents a rapidly expanding high-performance segment for these materials. Manufacturers utilize phase change compounds to absorb excess heat generated during rapid charging and discharge cycles, preventing thermal runaway and extending battery lifespan without the weight penalty of liquid cooling systems. This demand is scaling in parallel with the global shift toward electromobility. According to the International Energy Agency, April 2024, in the 'Global EV Outlook 2024', global sales of electric cars were projected to reach 17 million units in 2024, creating a massive addressable market for onboard thermal management components. Broader investment in energy-smart technologies reinforces this trajectory across all sectors. According to the International Energy Agency, in 2024, global investment in energy efficiency for end-use sectors like buildings and transport was expected to reach USD 660 billion.

Download Free Sample Report

Key Market Challenges

The high initial cost associated with advanced encapsulation techniques serves as a primary obstruction to the expansion of the Global Phase Change Materials Market. Producing robust shells that prevent leakage and ensure long-term durability requires complex manufacturing processes, which inherently drives up the capital expenditure for producers. These elevated production costs are transferred to the final price, rendering phase change materials economically unviable for cost-sensitive applications such as standard residential building materials or general-purpose shipping. As a result, the technology remains largely restricted to high-value sectors like pharmaceuticals where the return on investment justifies the premium.

This economic limitation directly hampers the industry's ability to achieve the volume necessary for mass market penetration. The disparity between potential demand and actual deployment highlights this stunted growth caused by price barriers. According to the Long Duration Energy Storage Council, in 2024, the global installed capacity of long-duration storage technologies was limited to 115 gigawatts, a figure that drastically trails the 1,500 gigawatts needed by 2030. This data illustrates how significant cost barriers are preventing thermal energy storage solutions from scaling adequately to meet broader infrastructure demands.

Key Market Trends

The accelerating transition to bio-based and biodegradable PCM formulations is fundamentally reshaping the market's material supply chain. Manufacturers are increasingly substituting conventional petroleum-derived paraffins with plant-based alternatives to mitigate volatility in fossil fuel prices and address heightened flammability concerns in logistics and construction. This shift is further driven by corporate sustainability mandates that require raw materials to possess lower embodied carbon profiles while maintaining high latent heat storage capacity. Demonstrating this industry-wide pivot toward renewable feedstocks, Croda International Plc revealed in its 'Sustainability Impact Report 2024', published in March 2025, that 56% of its total organic raw material volume was derived from bio-based origins during the fiscal year 2024. This substantial reliance on botanical sources underscores the growing commercial viability of green phase change solutions in replacing traditional petrochemical products.

Advancements in microencapsulation technology are simultaneously unlocking new high-value applications within the textile and apparel sectors. Innovations in shell material stability and thermal conductivity now allow phase change materials to be seamlessly integrated into fibers without compromising fabric breathability or durability during wash cycles. These technical improvements are critical for the activewear and bedding markets, where consumers demand superior thermoregulation to manage body heat fluctuations effectively. Highlighting the performance leaps in this domain, Fibre2Fashion reported in November 2024, in the article 'Outlast Technology Increases Effusivity by 60% for Enhanced Cooling and Comfort', that the latest integration of temperature-regulation technology into textiles increased the material's effusivity—its ability to exchange heat—by up to 60% compared to standard fabrics. Such significant gains in thermal transfer efficiency directly drive the adoption of encapsulated PCMs in mass-market functional clothing.

Segmental Insights

The paraffin segment represents the fastest-growing category in the Global Phase Change Materials Market, primarily due to its high heat storage capacity and chemical stability. These materials are increasingly adopted in the construction sector to meet strict energy efficiency standards established by authorities such as the European Commission. Paraffin waxes provide consistent performance over repeated thermal cycles without degrading and remain non-corrosive to container materials. Consequently, their durability and compatibility make them the preferred choice for sustainable building applications and thermal energy storage systems globally.

Regional Insights

Europe leads the Global Phase Change Materials Market primarily due to strict environmental regulations and established energy efficiency goals. The European Union actively enforces the Energy Performance of Buildings Directive, which mandates improved thermal regulation in residential and commercial infrastructure. This legislative support encourages the construction sector to integrate phase change materials to minimize energy consumption. Furthermore, the robust demand for temperature-controlled solutions in the pharmaceutical and logistics sectors supports regional market growth. These factors collectively ensure a sustained preference for these materials across major European economies.

Recent Developments

• In June 2025, PLUSS Advanced Technologies formed a strategic partnership with Ecodome Logistics to deploy reusable, IoT-enabled cold-chain boxes throughout India. This collaboration utilized validated phase change material technology to ensure the safe transport of temperature-sensitive pharmaceuticals and biologicals. The initiative aimed to reduce vaccine wastage and decrease carbon emissions compared to single-use Styrofoam packaging. The companies introduced a pay-per-use model to make reliable temperature-controlled logistics accessible to pharmaceutical manufacturers. This joint effort supported the country's climate targets and enhanced the security of the healthcare supply chain through improved shipment visibility.
• In November 2024, Outlast Technologies announced a collaboration with Svenska Aerogel to develop a temperature-regulating textile solution incorporating Quartzene material. This partnership combined phase change materials with aerogel technology to create advanced fibers with enhanced thermal insulation and flame-retardant properties. The companies filed a patent for this innovation, targeting applications in bedding, protective clothing, and outdoor apparel. This strategic cooperation aimed to address technical challenges associated with integrating porous aerogels into textile fibers. The initiative was intended to improve the performance of thermal management products and expand their application in the global textile market.
• In February 2024, va-Q-tec launched the Thermal Coat, a thermal management solution utilizing gelled phase change materials for the air and sea freight sectors. This product was developed to coat temperature-sensitive pharmaceutical goods directly, offering a space-saving alternative to traditional packaging methods. The system provided up to 24 hours of autonomous temperature integrity without external energy, protecting vaccines and bio-pharmaceuticals from extreme ambient conditions. The company highlighted that the gelled PCM composition eliminated the need for liquid substances, rendering the solution leak-proof and significantly lighter for logistics operations, thus improving efficiency in the pharmaceutical supply chain.
• In January 2024, Armstrong World Industries introduced Ultima Templok, a ceiling panel solution that integrated phase change material (PCM) technology into mineral fiber designs. This product launch addressed the need for reduced energy consumption and carbon emissions in commercial buildings by passively regulating indoor temperatures. The company reported that these panels could lower energy costs by up to 15% while improving thermal comfort for occupants. The development followed the acquisition of specific PCM manufacturing assets, enabling the manufacturer to incorporate thermal mass directly into their ceiling systems to support enhanced building efficiency and sustainability goals.

Key Market Players

• Henkel AG & Co. KGaA
• Honeywell International.Inc.
• Croda International Plc
• PureTemp LLC
• Laird Limited
• Rubitherm Technologies GmbH
• PCM Products Ltd
• Climator Sweden AB
• Shin-Etsu Chemicals Co., Ltd.
• Dongguan Guo Heng plastic technology co., LTD

By Product	By Application	By Region
Paraffin Salt Hydrates Eutectics Non-Paraffin Others	Building and Construction Heating Ventilation and Air Conditioning (HVAC) Systems Energy Storage Management Commercial Refrigeration Cold Chain and Packaging Textiles Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Phase Change Materials Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Phase Change Materials Market, By Product:

• Paraffin
• Salt Hydrates
• Eutectics
• Non-Paraffin
• Others

• Phase Change Materials Market, By Application:

• Building and Construction
• Heating Ventilation and Air Conditioning (HVAC) Systems
• Energy Storage Management
• Commercial Refrigeration
• Cold Chain and Packaging
• Textiles
• Others

• Phase Change Materials Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE