Phase Change Materials in Thermal Management Market

Phase Change Materials in Thermal Management Market Size

The global phase change materials in thermal management market was estimated at USD 1.47 billion in 2024. The market is expected to grow from USD 1.59 billion in 2025 to USD 3.25 billion in 2034, at a CAGR of 8.3%, according to the latest report published by Global Market Insights Inc.

• Phase Change Materials (PCM) in thermal management refers to an industry focus on development and supply of materials that absorb, store, and release thermal energy, thereby regulating temperature, during phase transitions (such as melting and solidifying). These materials are used in diverse sectors, including electronics, automotive, and building systems, for energy efficiency improvement and maintaining suitable operating temperatures by effectively managing heat flow.
  
• The PCM market in thermal management is gaining importance owing to the increasing requirements for good management of heat across diverse industries. Due to this increasing need for temperature control, PCM technologies are being accepted worldwide.
  
• Technological advancements, such as microencapsulation and nano-enhancement of phase change materials (PCMs), have immensely improved their performance, durability, and ease of integration. These advances help optimize thermal storage capacity and stability, paving the way for better PCM adoption in various sectors.
  
• Microencapsulated PCMs find their predominant application in electronic components for overheating protection, while nano-enhanced PCMs provide better thermal conductivity for automotive applications.
  

Phase Change Materials in Thermal Management Market Trends

• Microencapsulation technology is the one of key driver in the advancement of PCM applications as various industries are using these materials to overcome challenges like leakage and thermal stability. Advanced encapsulation techniques allow easy integration of PCMs in different substrates like textiles, construction materials, and electronics without compromising structural integrity, which broadens their applicability and marketability significantly.
  
• Similarly, nano-enhanced PCMs are another emerging trend that demolishes the barriers of traditional thermal conductivity by nanoparticles, including graphene, carbon nanotubes, and metal oxides. Such enhancement in the heat transfer efficiency would render PCMs ideally suited for high-performance applications, for example, in aerospace, automotive, and in cooling solutions for electronics, where fast and efficient thermal management is essential.
  
• One emerging application area which is extending the frontiers of PCM applications beyond the conventional markets is wearable technology. The incorporation of PCMs into textile products would deliver such innovative solutions as personal comfort and protection in the controlled regulation of temperature, propelled by the advancements of flexible encapsulation technologies, which can be used here while preserving the function but ensuring durability and flexibility in the wearables.
  
• These hybrid systems that synergize passive PCM thermal storage with active cooling technologies emerging now will effectively combine the advantages that come with both systems to offer optimum thermal management solutions in that they can significantly reduce peak temperatures and subsequently improve battery thermal regulation – sights that reflect increasing innovation in integrating PCMs with the conventional cooling methods for improving overall system efficiency, and this is all happening right now.
  
• Additionally, advanced application of manufacturing and processing techniques is gradually making high-performance PCMs cost-competitive and supporting their widespread commercial adoption. Improved ways of producing shape-stabilized and macro-encapsulated PCMs is one of the key factor for affordable, effective thermal management solutions in price-sensitive sectors like construction and automotive.
  

Phase Change Materials in Thermal Management Market Analysis

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The phase change materials in thermal management industry by material type is segmented into organic PCMs, inorganic PCMs, bio-based PCMs and composite and enhanced PCMs. Organic PCMs holds the largest market size USD 662 million in 2024.

• The organic phase conversion materials (PCMs) dominate the market because of their advanced thermal properties, high latent heat storage capacity, and chemical stability, which makes them highly suitable for applications in electronics cooling as well as regulation of building thermal conditions. Among these, paraffin-based PCM are in demand because of their versatile melting points provide use in various applications. Fatty acids and alcohols are gradually receiving attention for some specific applications that require special improvements on thermal cycling stability, especially for automotive and electronics applications. The supply chain has been established in the organic PCM segment since it is produced at lower costs while advanced formulations with additives boost thermal conductivity while decreasing supercooling to increase scope of application.
  
• Inorganic PCMs primarily salt hydrates and metallic alloys are generally gaining importance because of their thermal conductivity along with high energy density, rendering them applicable in systems demanding rapid heat transfer. Calcium chloride and sodium sulfate are the principal salts used in thermal management systems utilizing salt hydrates. In contrast, biobased-phase change materials (biobased PCMs) are the fastest-moving segment, propelled by trends toward sustainability and environmental compliance, offering renewable alternatives with similar thermal performance. Composite PCMs comprise several materials such as polymers and ceramics collectively, thus enhancing thermal and mechanical performance, addressing leakage prevention, and improved heat transfer all of which further cater their application in specialized thermal management systems.

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Based on application, the phase change materials in thermal management market is segmented into electronics cooling, building & construction, automotive, battery thermal management, textiles & wearables and cold chain & logistics. Electronic cooling holds highest of the market value of USD 574 million in 2024.

• Electronics cooling dominates the market, due to growing demand for device miniaturization and increasing power densities. Buffering transient heat and leveling temperatures between the different processors, power electronics, and LED systems are effectively managed by phase change materials. Advanced microencapsulated PCMs are uniquely designed to be easily integrated into components, such as printed circuit boards and heat sinks, without compromising either their electrical or mechanical performances. Additionally, PCM-based thermal interface materials are making high-performance computing and data center applications whereby peak thermal loads are managed with reduced energy consumption compared to traditional cooling methods.
  
• The building and construction area constitute one major application area of increasing regulations on and initiatives towards energy efficiency and green building. PCMs incorporated into building materials also passively regulate the thermal environment by decreasing energy expenditure through heating, ventilation, and air conditioning while maintaining good indoor climates. In automotive, the main PCM applications include managing battery function and improving cabin comfort in electric vehicles, and about battery life and safety, it achieves stabilization of temperatures during and after charging and discharging. Emerging areas like textiles and wearables are opening up PCM applications into smart fabrics for personal thermal comfort. Passive temperature control solutions for the cold chain and logistics applications will continue improving efficiency in transporting and storing temperature-sensitive goods.
  

Based on form factor, the phase change materials in thermal management market is segmented into bulk & raw PCMs, microencapsulated PCMs, macroencapsulated PCMs and shape-stabilized PCMs. Autolytic hydrolysis accounts for USD 617 million in 2024.

• For application, bulk and raw PCM’s are dominating the market because of their cost effectiveness and design flexibility. Their high thermal capacity and suitability for very large applications like building thermal storage and industrial systems make them the preferred choice. Such a continuous rise is indicative of strong demand and a reliance on bulk PCMs for scalable, effective thermal management solutions.
  
• Microencapsulated PCMs are gaining momentum since they can be easily integrated into most substrates, such as textiles, electronics or construction materials. Encapsulation works immiscibly to safeguard leakage and enhances the stability to thermal cycling to warrant application feasibility in space-limited environments such as electronics cooling or automotive systems.
  
• Macroencapsulated PCMs are uses in areas requiring higher thermal capacities with easier handling and installation, such as in HVAC and industrial cooling. Shape-stabilized PCMs offer phase change functionality, complemented by structural support that prevents leakage risks and thus enables use in building materials and automotive components with essential mechanical strength.
  

Based on end use industry, the phase change materials in thermal management market is segmented into construction & building materials, electronics & semiconductors, automotive & transportation, energy & utilities, aerospace & defense, healthcare & pharmaceuticals. Electronics & Semiconductors accounts for USD 574 million in 2024.

• The electronics and semiconductors industry is the largest market due to the increase in complexity of the devices and demand regarding efficient thermal management systems. With the expanding data centers and booming consumer electronics market, maintaining optimal temperatures has become absolute necessity. Phase change materials (PCMs) find extensive applications in this sector regarding enhancing the reliability of devices and their overheating, which further encourages innovation and growth.
  
• Another important frontier for market development is the Construction & Building Material sector, enhanced by the current thrust on environment-sustainable and energy-efficient buildings globally. PCM management in room temperatures affords significant reduction in the energy consumption significantly well with many stringent environment regulations and green building initiatives. Likewise, these developments in house phenomena have been witnessed across other sectors like Automotive & Transportation, Energy & Utilities, Aerospace & Defense, and Healthcare & Pharmaceuticals. All have been driven towards improving thermal management technologies because of advances in electric vehicles, renewable energy, aerospace technology, and more sensitive medical storage requirements.
  

Based on Temperature Range, the phase change materials in thermal management market is segmented low temperature (-50°C to 15°C), comfort range (15°C to 32°C), medium temperature (32°C to 100°C), high temperature (100°C to 800°C). Medium temperature leads the market, and accounts for market value for USD 765 million in 2024.

• Medium-temperature PCMs are growing the strongest in demand due to their applications in cooling electronics, electric vehicles, and energy storage systems. These are the materials that manage moderate heat loads and are thus important for applications such as high-performance batteries, power electronics, and industries that require stable and efficient thermal regulation. Comfort Range PCMs are also growing steadily on the merits of their applications in building materials and smart textiles to enhance their energy efficiency and indoor climate control, thus aligning sustainability goals in both construction and consumer goods.
  
• Low Temperature PCMs are steadily gaining importance in cold chain logistics that include pharmaceutical and food transport, where conditions below freezing must be maintained. The worldwide expansion of temperature-sensitive supply chains further encourages their adoption. Unfortunately, High Temperature PCMs are dipping down mostly because of complex material requirements and few cost-effective options for extreme heat applications. Their use remains mainly in specialized industrial applications, where other competing technologies are also preferred.

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North America Phase Change Materials in Thermal Management Market

The U.S. phase change materials in thermal management industry accounted for USD 378 million in 2024.

• The market in the U.S. shows a significant growth due to federal initiatives and a well-established industrial base. Government programs promote energy efficiency in buildings and encourage the adoption of PCM technologies. The advanced electronics and automotive sectors drive demand for effective thermal management solutions. Title 24 Building Energy Efficiency Standards in California also require better thermal performance to promote PCM application in residential and commercial construction projects. These all together have set the U.S. at the forefront of PCMs adoption, where innovation and regulatory support continually drive market growth.
  
• North America will continue to remain strong in the PCM market propelled due to mature ecosystem of research with energy-efficient mandates and expanding demand across end use segments such as construction, electronics, and electric vehicles. The U.S. and Canada having a high concentration of PCM producers with advanced research and development for thermal management. Adoption of PCMs in commercial and residential projects is seeing a surge with green building standards, sustainability targets, and heightened interest in energy storage technologies. At the same time, the EV and data center industries are creating increased demand for thermal solutions: cementing North America's position as a major hub of PCM deployment and innovation.
  
  

Europe Phase Change Materials in Thermal Management Market

The market in the Germany is expected to experience significant and promising growth from 2025 to 2034.

• The Europe Phase Change Materials (PCM) in Thermal Management market finds itself on the verge of significant expansion in the next decade due to increased uptake across the main industries. This includes construction, automotive, and electronics. Energy efficiency, sustainability, and regulatory compliance are the main areas of focus in the region, which in turn drive the demand for advanced thermal management solutions.
  
• The strongest stepping stones of PMCs development will be Germany, having an industrial base, strong interest in green technologies, and the likely support of the regulatory agencies for their promotion. Increased awareness about carbon foot-printing and energy consumption improvement in the buildings and transport sector is further boosting the market growth in Europe.
  
  

Asia Pacific Phase Change Materials in Thermal Management Market

The market in China is expected to experience significant and promising growth from 2025 to 2034.

• The thermal management market for the phase change materials (PCM) in the Asia Pacific is expected to see massive growth between 2025 and 2034, mostly parallel with the scope of industrialization, urbanization, and enhancement for energy efficiency measures in the region. The growth in the field depends largely on PCMs being demanded by a rapidly expanding construction, electronics, and automotive sector in China, all needing innovative thermal management solutions.
  
• China is showing immense growth in the PCM market because of the very strong government support provided to green building codes as well as energy saving regulations. The large-scale investments by the country in infrastructure development alongside the rising consumer consciousness concerning energy efficiency materials generate fertile grounds under which the adoption of PCM shall thrive. In addition, active research and development efforts have been put on by local manufacturers to adapt PCM products according to distinct climatic and industrial requirements, making China a significant contributor to market growth in the Asia Pacific region.
  
  

Middle East Asia Phase Change Materials in Thermal Management Market

UAE market is expected to experience significant and promising growth from 2025 to 2034.

• The Middle East Asia Phase Change Materials (PCM) in Thermal Management market is expected to show growth from 2025 to 2034, which is catered by increasing investments in infrastructure projects, smart buildings, and sustainable energy solutions across the region. With rising temperatures and requirements cooling technologies in residential, commercial, and industrial sectors, PCMs find their relevance in thermal management. Governments then emphasize energy-efficient materials adoption, reducing the total energy consumption while meeting the ambitious sustainability goals, thus paving the way for PCM market development.
  
• Specifically, the UAE market appears to be forecasted for substantial and promising growth during this period owing to its rapid urbanization coupled with strong government initiatives aimed at promoting green building standards as well as projects in renewable energy. Its pledge towards carbon emission reductions and energy efficiency enhancements through innovative building materials renders this country a key market segment for phase change materials. Further, partnerships among local industries and international PCM manufacturers will aid in establishing technological advancement and wider acceptance, thus cementing the UAE's position as a leader in the Middle East Asia thermal management market.
  
  

Latin America Phase Change Materials in Thermal Management Market

Brazil is expected to experience significant and promising growth from 2025 to 2034.

• The phase change materials (PCM) in thermal management market of Latin America is expected to grow as industries in the region acknowledge more the advantages of regulating temperature for better performance and energy efficiency. Unlike some other regions wherein construction activities dominate PCM demand, Latin America’s expansion is also attributed to the agricultural sector and the cold chain of logistics, wherein temperature regulation is paramount. Other contributors are diverse applications for reducing energy consumption and enhancing sustainability- which are the unique niches of PCM integration-given the tropical climate of the region with temperature variations.
  
• Brazil emerges as one of the major markets in Latin America, with most investments geared towards modernizing the energy infrastructure and its industrial processes. Innovations in food storage, pharmaceuticals, and transportation are generating substantial interest in PCMs, which help maintain stable temperatures and reduce reliance on traditional cooling solutions.
  

Phase Change Materials in Thermal Management Market Share

Phase change materials in thermal management industry are moderately consolidated with players like Croda International Plc, Entropy Solutions Inc. / PureTemp LLC, Honeywell International Inc., Phase Change Material Products Limited (PlusICE), Rubitherm Technologies GmbH, holding 45.5% market share.

• In thermal management, the PCM market is rapidly being driven by the need for innovative and energy-efficient solutions supporting sustainability and regulatory compliance. Thus, leading competitors strengthened their market position through long-term research and development investments tilted toward the formulation of advanced PCM formulations that guarantee an environmentally friendly thermal regulation. Continuous innovation allows these companies to monetize the ever-growing global demand for sustainable technologies, especially for the construction, electronics, automotive, and industrial segments.
  
• The demand for energy-efficient solutions in various industries, namely, construction, electronics, automotive, and textiles is leading the growth of thermal management PCM market. Since PCMs absorb, store, and release heat during phase transition, they can control temperature, which helps achieve energy savings.
  
• PCM market is becoming increasingly competitive as companies actively strive to offer advanced materials designed with tailored thermal requirements while addressing environmental and regulatory considerations.
  
• They are also focused on innovative options and compliance to develop a range of multifunctional solutions for enlarged application needs. For example, value added by integrating upon PCMs, coatings, or building materials to provide additional benefits like moisture resistance, durability, or easy installation augments their value proposition.
  
• This multifunctional approach improves overall thermal efficiency and enables the meeting of complex demands for construction, automotive, and electronics industries wherein the product is expected to perform under varying environmental conditions reliably.
  

Phase Change Materials in Thermal Management Market Companies

Major players operating in the phase change materials in thermal management industry are:

• AeroSafe Global
• Advanced Cooling Technologies Inc.
• Axiotherm GmbH
• Climator Sweden AB
• Climate Change Materials
• Cold Chain Technologies
• Croda International Plc
• Cowa Thermal Solutions
• Datum Phase Change
• Entropy Solutions Inc./PureTemp LLC
• Honeywell International Inc.
• i-TES
• Microtek Laboratories Inc.
• Mesa Laboratories Inc.
• Nanolope
• Outlast Technologies LLC
• Pelican BioThermal
• Phase Change Energy Solutions
• Phase Change Material Products Limited (PlusICE)
• Pluss Advanced Technologies Pvt. Ltd.
• PCM Energy Pvt. Ltd./Teappcm
• Rubitherm Technologies GmbH
• Salca BV
• Sonoco ThermoSafe
• Sunamp
• Tetramer Technologies
• va-Q-tec
• Cryopak Industries Inc.
  

Rubitherm Technologies GmbH is the pioneer in the PCM field in the early 1990s. The company focuses its competence on organic and inorganic phase change materials designed for a wide range of thermal management applications in HVAC systems, temperature-sensitive transport, automotive battery cooling, and textiles. The company's know-how in encapsulation technology enables the materials to exhibit a high degree of long-term stability and reliability, qualities that support Rubitherm Technologies' signature as a trusted supplier for the industries that require precision thermal regulation.

Honeywell International Inc. is a diversified global technology company with a strong chemical materials portfolio covering sustainable phase change materials for thermal management applied in electronics, automotive, and construction sectors. Since their technologies are equally innovative and sustainable, Honeywell finds a prominent position in the burgeoning PCM thermal management market.

Croda International Plc is a specialty chemicals company from the UK supplying bio-based PCMs under the CrodaTherm™ brand for thermal regulation and energy storage enhancement. Their focus on sustainable and high-performance solutions dovetails perfectly with the growing demand for eco-friendly PCMs for thermal management applications.

Phase Change Material Products Limited (PlusICE) is a UK company that offers a wider range of phase change material products, including encapsulated solutions and passive cooling systems customized for the building, transportation, and logistics industries. PlusICE also plays a key role in the PCM thermal management market by providing customizable energy-saving thermal solutions.

Entropy Solutions Inc. (PureTemp LLC) is a US-based manufacturer of 100% renewable, bio-based phase change materials sourced from natural raw materials. Innovative and sustainable PCMs of PureTemp are highly used in construction, textiles, and healthcare industries, making it one of the strong players in the eco-friendly segment of the thermal management market.

Phase Change Materials in Thermal Management Industry News

• In April 2024, Pluss Advanced Technology, has announced the launch of its form-stable phase change material (PCM) at LogiPharma 2024. The new organic 2°C to 8°C PCM is set to transform pharmaceutical logistics by providing unmatched versatility and ensuring the highest level of product safety during transportation and storage.
  
• On March 1, 2023, BioLife Solutions launched Ultraguard as the first non-toxic, non-flammable phase-change material (PCM) which can be used for ultra-low-temperature backup cooling and as an alternative to dry ice for the storage of biologics at -70°C. Ultraguard addresses critical temperature needs in biopharma by providing emergency back-up during power outages or a safer and more cost-effective method of benchtop storage.
  

The phase change materials in thermal management market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Million and volume in terms of kilo tons from 2021–2034 for the following segments:

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Market, By Material Type

• Organic PCMs
  • Paraffin waxes
  • Fatty acids
  • Non-paraffin organics
• Inorganic PCMs
  • Salt hydrates
  • Metallic alloys
  • Eutectic salts
• Bio-based PCMs
  • Vegetable-based compounds
  • Natural fatty acids
• Composite & enhanced PCMs
  • Nano-enhanced
  • Graphite-enhanced
  • Metal foam composites

Market, By Application

• Building & construction
  • HVAC systems
  • Wallboard & gypsum
  • Concrete & structural
  • Insulation & building
• Electronics cooling
  • Semiconductor thermal
  • Data center cooling
  • Consumer electronics
  • Power electronics cooling
• Battery thermal
  • Electric vehicle battery
  • Grid energy storage
  • Portable device batteries
• Automotive
  • Engine thermal
  • Cabin comfort
  • EV thermal
• Textiles & wearables
• Cold chain & logistics

Market, By Form Factor

• Bulk & Raw PCMs
• Microencapsulated
  • Polymer-shell Encapsulation
  • Inorganic Shell Encapsulation
• Macroencapsulated
  • Container-based
  • Panel & Tube
• Shape-Stabilized
  • Porous Support
  • Composite Matrix

Market, By End Use Industry

• Construction & building materials
• Electronics & semiconductors
• Automotive & transportation
• Energy & utilities
• Aerospace & defense
• Healthcare & pharmaceuticals

Market, By Temperature Range

• Low Temperature PCMs (-50°C to 15°C)
• Comfort Range PCMs (15°C to 32°C)
• Medium Temperature PCMs (32°C to 100°C)
• High Temperature PCMs (100°C to 800°C)

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East & Africa