Phase Change Material Global Market Report 2022: Increasing Usage of Phase Change Material in Heating, Ventilation, and Air Conditioning Fuels Growth

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Apr 14, 2023, 10:15 ET

DUBLIN, April 14, 2023 /PRNewswire/ -- The "Phase Change Material Market, By Type, By Application and By Region Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.

The market for Phase Change Material (PCM) had a size of USD 526 million in 2021 and is expected to grow with a revenue compound annual growth rate (CAGR) of 14% during the forecast period.

Market growth is being driven by several key factors, including increased adoption of phase change materials for temperature control logistics and cold chain packaging, the growing use of phase change materials for thermal energy storage, and the increasing application of phase change materials in the construction and building sector.

The pharmaceutical cold chain transportation sector is expected to see significant growth potential for PCM due to regulatory requirements, such as the United States Food and Drug Administration (FDA) and strict code of federal regulations in the pharmaceutical industry.

In addition, the market is expected to experience further growth through innovation in product development. Many textile companies are now procuring phase change materials to manufacture dust-free and comfortable fabrics.

For instance, Asiatic Fiber Corporation (AFC), a Taiwan-based leading textile manufacturing company, has innovated a line of dust-free and comfortable fabrics exclusively to improve overall comfort. The company has upgraded its manufacturing line to produce various high-tech phase change materials that improve the quality of absorption and act as an insulating layer.

Many textile companies are also introducing PCM in the manufacturing of new high-quality, comfortable, and thermally insulated apparel. Furthermore, new product innovations are significantly generating demand for phase change materials in the market.

Market Dynamics

Increasing usage of phase change material in heating, ventilation, and air conditioning

Phase change materials have excellent temperature transfer capabilities, making them ideal for heating, ventilation, and air conditioning (HVAC) applications. The technology is designed to handle the entire heat load and has a proper heat absorption mechanism. Builders and real estate developers are increasingly utilizing PCM to make buildings and houses more energy-efficient and cost-effective.

Globally, a large number of real estate developers are investing in phase change materials for constructing green residential buildings. The International Finance Corporation (IFC) estimates that the construction of green buildings will generate around USD 24.7 trillion in investment opportunities by 2030, creating significant revenue growth potential for the PCM market.

Additionally, phase change materials have significant growth opportunities in the manufacturing of crossbar switches for computer architecture. Many leading semiconductor manufacturing companies, such as TSMC, SK Hynix, Samsung, and others, are incorporating phase change materials in photonic processes in semiconductor technology. This technology will be used to balance weights on chips using phase change materials, which can be monolithically incorporated in silicon photonic technologies. These technological advancements are driving the growth of the PCM market.

Lack of awareness among end-use industries and availability of alternative solution

Currently, only a few end-use applications have commercially introduced phase change material (PCM) products, as many are still in the innovation stage. Global demand for PCM is fragmented, resulting in only a handful of companies manufacturing PCM for selected applications. Many phase change materials are still in the product Research & Development (R&D) process, while companies are actively exploring various sales prospects for this product. As a result, there is a lack of awareness among end-users, which is a major restraint for the growth of the market.

Furthermore, many end-use industries are opting for Photovoltaic (PV)-powered thermoelectric cooling or insulation for various Business-to-Business (B2B) applications such as computer processors, portable food and beverage storage systems, and electronic cooling systems in heating, ventilation, and air conditioning applications.

Thermoelectric cooling is a less expensive alternative to conventional HVAC systems, especially when coupled with photovoltaic electricity, which is less expensive than conventional electricity in many parts of the world.

Key Takeaways

Type Outlook

The phase change material market has been segmented into three types:

organic PCM, inorganic PCM, and bio-based PCM. The organic PCM segment held the largest revenue share in 2021, primarily due to its superior insulating properties, which make it highly useful in energy and thermal insulation applications. Organic PCM can absorb a significant amount of latent heat during a phase change process within a specific temperature range. It is also utilized in the manufacturing of various textile and apparel products.

On the other hand, inorganic PCM offers a high heating insulation index value and commonly uses salt hydrates. It is highly adopted in thermal and electrical insulation applications owing to its insulation binding support. The use of inorganic PCM can significantly improve energy efficiency and sustainability, thereby addressing energy and environmental issues. These advantages are driving the growth of this segment.

Application Outlook

The phase change material market has been segmented into six applications:

building and construction, heating ventilation and air conditioning, shipping and transportation, electronics, textile, and others. Among these, the building and construction segment held the larger revenue share in 2021 due to the strong insulation properties of phase change materials, which can absorb or release heat energy at specific temperatures. Builders and developers are using phase change materials to reduce the electrical consumption of buildings.

Incorporating PCM into concrete can also strengthen the binding composition of the concrete and reduce energy consumption of buildings and houses, leading to revenue growth in this segment.

The heating, ventilation, and air conditioning segment accounted for a larger revenue share in 2021. PCM functions as a thermal energy storage system for storing latent heat in energy systems, and it optimizes heating, ventilation, and air conditioning systems via a Home Energy Management System (HEMS). As a result, it helps maintain a comfortable temperature profile and reduces energy consumption costs. PCM is widely used in HVAC systems to save energy and produce more efficient operational output.

Regional Outlook

In 2021, the European market had the largest share of revenue in the phase change material market, driven by significant demand from green building construction and development. The use of phase change materials in this region helps reduce energy consumption of HVAC equipment and save energy costs. The European Commission's renovation wave initiative is supporting growth in the market, with plans to renovate 35 million buildings to improve energy and resource efficiency by 2030.

Investment in low-carbon green construction technology is also accelerating market growth in Europe. In North America, the market had a steady revenue share in 2021, with the rapid adoption of phase change material in temperature-controlled pharmaceutical supply chains driving revenue growth.

The Asia Pacific market had a moderate revenue share in 2021, with the increasing use of phase change material in semiconductor and electronics manufacturing driving market growth in the region. Leading integrated circuits and semiconductor manufacturers are increasingly procuring PCM for manufacturing, and end-use industries are exploring the use of PCM to reduce greenhouse gas emissions, particularly as the Asia Pacific region accounts for 50% of global greenhouse gas emissions according to the Asian Development Bank (ADB).

Key Topics Covered:

Chapter 1. Market Synopsis

Chapter 2. Executive Summary

Chapter 3. Indicative Metrics

Chapter 4. Phase Change Materials (PCM) Market Segmentation & Impact Analysis
4.1. Phase Change Materials (PCM) Market Segmentation Analysis
4.2. Industrial Outlook
4.2.1. Market indicators analysis
4.2.2. Market drivers' analysis
4.2.2.1. Increasing adoption phase change materials in temperature control logistic and cold chain packaging
4.2.2.2. Increasing usage of Phase Change Material (PCM) in Heating, Ventilation, and Air Conditioning (HVAC)
4.2.3. Market restraints analysis
4.2.3.1. Lack of awareness among end-use industries
4.2.3.2. Availability of alternative solutions

Chapter 5. Phase Change Materials (PCM) Market By Type Insights & Trends

Chapter 6. Phase Change Materials (PCM) Market By Application Insights & Trends

Chapter 7. Phase Change Materials (PCM) Market Regional Outlook

Chapter 8. Competitive Landscape

Chapter 9. Company Profiles

Companies Mentioned

BASF SE
Microtek Laboratories Inc.
Thermo Fisher Scientific Inc.
Medifab Global Group
Integreon Inc.
Pluss Advanced Technologies B.V.
Thal Technologies
Sinomax USA Inc.
Rubitherm Technologies GmbH
Croda International Plc.
PureTemp LLC.

For more information about this report visit https://www.researchandmarkets.com/r/fg9dyk

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