Phase Change Materials Market Size, Share & COVID-19 Impact Analysis, By Type (Organic, Inorganic, & Eutectic), By Application (Building & Construction, HVAC, Thermal Energy Storage, Cold Chain Packaging, Textiles, Electronics and Others), and Regional Forecast, 2020-2027

The global phase change materials market size was USD 1,157.6 million in 2019 and is projected to reach USD 4,174.8 million by 2027, exhibiting a CAGR of 21.0% during the forecast period. Europe dominated the phase change materials market with a market share of 38.3% in 2019.

Phase change materials are substances that, during phase change, have a high capacity to store and release a large amount of energy in the form of latent heat. Energy radiation is emitted when material changes its phase (physical state), while its temperature is kept constant. It is necessary to bring the latent heat into use. During an energy crisis scenario, it is necessary to make effective use of existing energy supplies. PCMs are known as latent heat storage units. The increasing construction of green buildings is expected to boost the growth of the market.

COVID-19 Impact: Supply Chain Disruption in the Building & Construction Sector to Hamper Growth

In the construction sector, China and India are among the predominant countries growing at a substantial pace. The growing demand for building & construction equipment has decreased rapidly due to the onset of coronavirus in the region. The imminent lack of workforce and supplies is affecting the building & construction sector significantly. Moreover, several construction projects have been terminated by the government of many countries to manage expenditures.

The lockdown situation currently prevalent in several countries is likely to continue to hamper the residential and the commercial sectors due to the impact on supply chain and logistics. The rising raw material prices, the shutdown of manufacturing units, and reduced labor force are the main factors that are likely to hamper the growth of the overall market.

Europe is one of the top manufacturers and users of organic and inorganic PCM. The second coronavirus wave impacted several European countries and contributed to a decrease in construction activities. These factors are expected to restrict the market growth in the forthcoming years.

PHASE CHANGE MATERIALS MARKET TRENDS

Increase in Global Energy Consumption to Boost Market Growth

The global energy demand is increasing rapidly, and the high consumption of fossil fuels leads to higher emissions of greenhouse gases, particularly carbon dioxide (CO2). These gases contribute to heavy environmental impacts such as the degradation of the ozone layer, global warming, and climate change. The construction industry accounts for more than 30 percent of global energy demand. Moreover, the industry is a contributor to over 30 percent of total CO2 emissions, according to the International Energy Agency (IEA).

The evolving preference for living and comfort needs across regions experiencing fluctuating temperatures is driving the energy demand. As a result, energy conservation in buildings is the primary focus of energy policy at regional, national, and international levels. In the manufacturing industries, the development of novel building materials capable of enhancing energy usage in buildings is gaining traction. Therefore, PCMs are perceived as valuable instruments to boost energy efficiency and maximize energy savings.

PHASE CHANGE MATERIALS MARKET GROWTH FACTORS

Increasing Adoption of PCMs in Building Materials to Surge Demand

PCMs are used in walls, floors, roofs, or other building materials (such as shutters and windows) across housing infrastructure. In building systems, the bulk applications involve wallboards or adding the substance into a concrete or mortar matrix.

The integration of building materials (passive building systems) to change their thermal properties has proved to be the most important application. An optimal way to improve the thermal energy storage ability of building components is to combine them with PCMs. Wallboards, doors, roofing, concrete, and other materials are combined with increasing the building's thermal efficiency. The most common solution for implementing PCMs in houses is the inner side of the building envelope. Thus, the increasing adoption of the product in the interiors of the construction allows to absorb and release heat in the room at any given time.

Wallboards or plasterboards are suitable components for the incorporation of phase change materials. They are affordable and extensively used to minimize internal air temperature variations in building applications, especially lightweight constructions.

PCMs have been included in the concrete layer placed under the floor in some applications. Their panels have further been used as an overlay to replace the floor. By integrating it into a floor, advantageous effects are obtained because a large amount of energy is usually lost from the floor due to heat transfer to the ground.

Regulations for Reduction of Greenhouse Gas Emissions to Aid Growth

Global warming and changing climate patterns are major environmental concerns. According to Europa, EU GHG emissions have reduced by 19% relative to 1990 levels in 2017, marking an absolute decline of 935 million tons of CO2 equivalents, placing the EU on track to reach its 2020 goal of lowering GHG emissions by 20% by 2020 and 40% by 2030 compared to 1990.

Along with the European Union, the Kyoto Protocol has set binding carbon mitigation goals for 37 developing countries and economies in transition. This has led to a 5 percent drop in pollution levels from 2008 to 2012 compared to 1990.

The CRC Energy Efficiency Program 2007 in the United Kingdom is a mandatory carbon emissions reduction scheme that extends to large public and private sector energy-intensive entities. The scheme is expected to reduce carbon emissions by 1.2 million tons annually by 2020.

Thus, the regulations for reducing greenhouse gas emissions is expected to boost the global phase change materials market growth during the forecast period.

RESTRAINING FACTORS

Technical Issues & Corrosive Nature of Product to Hamper Market Growth

Poor thermal conductivity and high cost are some of the drawbacks. Moreover, the problem caused by supercooling and phase isolation contributes to thermal cycling loss and reducing the material's life cycle. Such problems may limit their ability in construction applications that require long-life systems. Low thermal conductivity slows down the rate at which heat from the building is transmitted or absorbed, affecting the comfort of the occupants and the system's performance.

PHASE CHANGE MATERIALS MARKET SEGMENTATION ANALYSIS

By Type Analysis

Organic Segment to Remain Dominant

Organic phase change materials are naturally occurring bi-products of petroleum that have a certain temperature of phase-change. They contain fatty acids and paraffin and have the highest growth rate. Moreover, they are chemically and thermally stable and have little or no subcooling. This is expected to drive segmental growth in the forthcoming years.

The inorganic segment consists of hydrated salt solutions made from natural water salts that are engineered. The chemical composition of salts varies accordingly. In the mixture, the appropriate phase-change temperature is reached. To minimize phase-change salt separation and supercooling, special nucleating agents are applied to the mixture of salt hydrates.

By Application Analysis

Building & Construction Segment to Hold Largest Market Share

PCMs have potential applications in many sectors such as construction, automotive, aerospace, and others.

In the building industry, the uses of the product are infinite. They can be integrated from the roof to floors and further to electrical equipment into any aspect of the house. Additionally, they can retain latent heat in the solid-liquid phase shift of a substance to minimize rapid temperature variations within internal environments.

Phase change materials (PCMs) capture an enormous amount of wasted energy produced each time a boiler, water heater, or air conditioner restarts. Additionally, it cycles through to meet or sustain its target temperature when installed into an HVAC device's infrastructure.

REGIONAL PHASE CHANGE MATERIALS MARKET ANALYSIS

The market in Europe stood at USD 443.4 million in 2019. The region is likely to dominate and hold a considerable position in the global market in the forthcoming years. This is attributable to the strong influence of stringent government regulations, construction activities, and consumer spending. The growing construction industry is likely to drive the market. Furthermore, the increasing demand for the product in cold chain & packaging and building & construction is expected to boost the demand.

The market in North America is expected to showcase exponential growth owing to the increasing adoption of advanced building techniques and the growing demand for HVAC systems across the residential sector. The cold weather conditions in the region require good HVAC systems, which eventually propels the demand for the advanced phase change materials.

China accounted for more than 50% share of the Asia Pacific market in 2019. The country is a major production hub for building & construction and cold chain packaging industries. India has a large number of construction activities, which will drive the market in the country.

The market in Latin America is mainly import-based and is expected to showcase sluggish growth due to reduced construction activities. The main factors driving demand are increasing manufacturing bases, consumer disposable incomes, and improving living standards in emerging economies such as Brazil and Mexico. Furthermore, in Latin America, there is a substantial development in the electronics industry, which positively affects the demand.

The Middle East & Africa is expected to experience sluggish growth due to the poor infrastructural facilities and few electronic manufacturing hubs.

KEY INDUSTRY PLAYERS

Strategic Planning in terms of Product Launches by Companies to Strengthen Their Market Share

The market is fragmented in nature with the presence of various major players and some global and regional small-and-medium-sized players worldwide. Many companies are competing on the basis of the offered product quality and the technology used for the manufacturing of phase change materials. Major players are involved in mergers and acquisitions, developing infrastructure, expanding their manufacturing facilities, and investing in research and development activities. Moreover, they are looking for opportunities to integrate vertically across the value chain.

LIST OF KEY COMPANIES PROFILED IN PHASE CHANGE MATERIALS MARKET:

• Global E Systems (Netherlands)


• PCM Products Ltd (United Kingdom)


• PURETEMP LLC (United States)


• Climator Sweden AB (Sweden)


• Croda International Plc (United Kingdom)


• Sasol (South Africa)


• Laird Technologies, Inc. (United States)


• Honeywell International Inc. (United States)


• Phase Change Solutions (United States)


• Cold Chain Technologies (United States)


• Other Key Players

KEY INDUSTRY DEVELOPMENTS:

• July 2019 – In July 2019, a microencapsulated form of bio-based phase change material was introduced by Croda International. This product can control temperatures in bedding, mattresses, automotive interiors, clothing, and other applications.


• January 2019 – In January 2019, PureTem LLC, a leading consumer and industrial applications provider, announced the development of a fabric coating. The company reports that the product proves to be an efficient buffer against ambient temperature swings.

REPORT COVERAGE

The global phase change materials market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and applications. Also, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market over recent years. This report includes historical data & forecasts revenue growth at global, regional, and country levels and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation