Phase Change Materials (PCM) Market Size, Share and Trends 2025 to 2034

Throughout the world, countries are adopting PCM faster because of outward pressures on energy franchising and sustainability, with several countries mandating stricter energy-efficiency and sustainable construction programs. Also, increasing demand for electric vehicle cooling batteries and thermal regulation in electronics infrastructure adds to the ongoing deployment of phase change materials in primary global markets.

Government-supported clean energy initiatives, such as the various Department of Energy initiatives for thermal storage implementation in the United States, and the various EU Horizon funding opportunities for research in order to develop safer, longer-lasting, and bio-based formulation of PCM, product improvements are being routinely advanced in thermal stability and performance.

With a strong mandate from sustainability agendas, institutional, national, and global goals, PCM use is being pursued in green buildings, low-carbon logistics, and recyclable cold-chaining systems. Increasing corporate commitment to ESG and national climate agendas is leading industries to pivot toward phase change materials solutions to reduce energy use, demand, and greenhouse gas emissions.

The Energy Performance of Buildings Directive in the EU, as well as other federally driven US efficiency standards, national regulatory standards, and global compliance carbon regulatory standards, are rapidly supporting PCM development as the mandates for meeting continued improvement of thermal performance and energy savings to commercial landscapes.

Macro-encapsulated PCMs: This segment represents the majority of the phase change materials (PCM) market at approximately 66% in 2024 because they integrate easily with building materials like wallboards, ceiling tiles, flooring panels, and container-based thermal units. They represent the greatest volume of capsules, as they provide consistent thermal buffering, low installation complexity, and strong mechanical property stability. Macro-encapsulated phase change materials are widely implemented in construction, cold-storage modules, and thermal-comfort product markets. They leverage established manufacturing processes and the long service life of macro-encapsulated PCMs, which are highly durable through repetitive heating–cooling cycles.

Micro-encapsulated PCMs: This segment is growing the fastest due to the dispersion properties of the microcapsules within coatings, textiles, gypsum boards, composites, cellular packaging, and battery compartment components. Their small capsule dimensions facilitate a quicker thermal response to passive temperature changes and enable more precise temperature control within products while maintaining overall structural properties. The fastest growth of micro-encapsulated phase change materials is occurring in categories such as smart textiles, temperature-adaptive paints, advanced building materials, and thermal layers within EV batteries, in part due to advanced polymer shells for microcapsules and microcapsules with high cycling stability.

Building & Construction: This segment constituted ~39.7% of the phase change materials (PCM) market application as energy-efficient buildings become dependent on PCM-related insulation boards, PCM-related gypsum panels, and PCM-related floor/roof systems to maintain indoor thermal comfort. Such materials mitigate the cooling or heating load on HVAC systems, improve thermal comfort for occupants, and help drive lower-energy residential buildings, commercial spaces, and existing and green building retrofits through broad-scale adoption.

Thermal Energy Storage: This segment is the fastest-growing in the market as thermal applications are slowly transitioning, with district heating and demand-side response needing compact thermal storage or buffers. Phase change materials enable peak-shaving thermal storage, solar-thermal thermal storage, and short-duration grid storage, and are attractive to utilities, new industrial facilities, and new technology groups needing single-point or high-energy-density storage to mitigate temperature excursion events, especially at stable operating temperatures.

Electronics & Thermal Management: This segment is steadily growing across data centers, electric vehicle battery packs, consumer electronics, and power modules. The demand for reliable passive thermal management in cooling solutions is driven by the need to address thermal spikes, extend device component life, and dimensional design constraints. PCMs transient thermal load reduction, such as in high-performance computing, telecom, electric, and industrial maintenance-free electronics, is driving adoption.

Medium-temperature PCMs (0-200°C): This segment is the most dominant due to their alignment with the operating temperature ranges of most industry, building, and energy-storage applications. Their compatibility enables HVAC optimization, solar-thermal buffering, and temperature control at the equipment level. Furthermore, strong coupling with construction materials and building- or industrys heat-recovery and process-heat activities strengthens medium-temperature phase change materials as the leading temperature class in commercial and utility-scale applications.

Low-temperature PCMs (<0°C): This segment is poised for rapid growth driven by increased cold-chain logistics, growing demand for pharmaceutical shipping, and the need for temperature-sensitive food preservation solutions. Their ability to maintain sub-zero conditions without mechanical refrigeration is more energy efficient, and the expanding vaccine distribution network, e-commerce grocery delivery expansions, and demand for off-grid cooling solutions continue to push this temperature range into the commercial space.

High-temperature PCMs (>200°C): This segment is also growing rapidly as concentrated solar power plants, industrial waste-heat recovery, and next-generation thermal batteries are in high demand. High-temperature materials can store heat at higher temperatures and be integrated into grid balancing, heat processes, or time-shifting for renewable-energy applications. Lastly, as decarbonizing heavy industry becomes a focus, the long-duration, high-efficiency thermal storage space is another important area for high-temperature PCMs.

Over the Asia Pacific region, considerable urbanization, construction, and awareness of energy-efficient buildings are driving the uptake of condition-responsive PCM materials for buildings. In China, India, and other developing countries, PCM are being investigated in an effort to manage peak loads related to HVAC and stabilize indoor temperature variation. Research literature has found that PCM can be incorporated into building envelopes or building elements (such as bricks) to delay indoor peak temperature. At the same time, phase change materials are being deployed for solar-thermal or cold-chain applications, and particularly in warm climatic countries for passive latent-heat storage. A significant portion of academic work has also explored numerical modelling of the microcapsule distribution of phase change materials to adapt PCM properties to local climate conditions.

China Phase Change Materials (PCM) Market Trends

The reason for Chinas leadership in this field is the sheer scale of construction, the government-sponsored emphasis on sustainable urban infrastructure and strong connections between academia and industry. The academic literature generated by Chinese researchers is significant and includes experimental and numerical studies focused on phase change materials included in building elements, especially for retrofit construction and new low-carbon buildings.

Research institutes such as Tsinghua University, Southeast University and the Chinese Academy of Building Research are conducting large-scale investigations on PCM-enhanced concrete panels, PCM embedded floor systems and thermal energy storage composites designed for high-density urban climates. These studies are often linked to government programs promoting green building standards and smart city development, which accelerate testing and field deployment. The rapid expansion of residential, commercial and industrial construction across China provides ample pilot sites, allowing phase change materials technologies to transition from laboratory evaluation to real-world integration more quickly than in many other regions.

The use of PCMs is growing in North America, specifically in the U.S., due in part to buildings and high-tech industries. Academic studies indicate that, when used as part of a building envelope, PCMs can significantly reduce both peak thermal loads and indoor temperature fluctuations. In terms of technology, phase change materials microcapsules are already used in textiles, electronics, and device thermal management, which implies a range of applications. A well-known example is Outlast Technologies, based in the U.S., which develops clothing with microencapsulated PCMs embedded in fabrics to control body temperature. The combination of the development of novel phase change materials (PCMs) and the presence of building-science laboratories is stimulating regional growth in the use of PCMs.

The U.S. is a large market for phase change materials because of their diverse uses in building insulation, cold chain logistics, and thermal energy storage. The U.S. has focused on energy efficiency, green building, and renewable installations. Also, PCM formulation technology has advanced, allowing engineers to regulate temperature using PCMs more effectively. Government programs that support energy savings and green building performance improvements contribute to conditions that will make the U.S. a leading market for phase change materials use in North America.

Produces Micronal microencapsulated paraffin PCMs designed for building materials such as gypsum boards and plasters. These phase change materials stabilize indoor temperatures and reduce energy consumption for heating and cooling.

Offers DuPont Energain PCM panels and sheets used in building envelopes to reduce HVAC load peaks. The materials increase thermal inertia, improving energy efficiency and occupant comfort.

Manufactures CrodaTherm bio-based phase-change materials used in textiles, refrigerated transport, and cold-chain systems. These sustainable PCMs support precise temperature regulation across diverse applications.

Supplies paraffin, salt-hydrate, and high-temperature PCMs under its RT, SP, and RTHC product families. The company serves thermal energy storage, HVAC, automotive, and industrial process markets.

Provides 100 percent bio-based PCMs under the PureTemp brand for packaging, apparel, medical transport, and renewable energy storage. The company specializes in environmentally friendly PCM formulations.

Offers Thermocules microencapsulated PCMs integrated into fibers, foams, and coatings for adaptive thermal-regulating textiles. Products are used in apparel, bedding, footwear, and protective gear.

Produces ClimSel PCM gels and pouches designed for pharmaceutical and food cold-chain logistics. Their reusable products maintain stable temperatures during transport and storage.

A UK-based supplier offering organic, salt-hydrate, and eutectic PCMs for thermal energy storage projects. The company also provides system-design services for engineered temperature-control solutions.

Provides reusable phase change materials refrigerants, gel packs, and temperature-controlled containers for pharmaceutical and biologics logistics. Their PCM solutions support validated cold-chain performance.