Rapid Growth of Phase Change Materials Market Projected at 18.5% Through 2034
The global Phase Change Materials (PCM) market is on an upward trajectory, with projections indicating a growth from approximately USD 1.0 billion in 2024 to around USD 5.5 billion by 2034, reflecting a CAGR of roughly 18–20% over the next decade. This growth is particularly significant in the Building & Construction sector, where PCMs are increasingly being utilised for thermal regulation, energy saving, and sustainability.
In Europe, the regional market for PCMs is expected to be a key player, driven by the strong regulatory push for energy-efficient buildings, ambitious net-zero targets, and incentive policies. Europe's share in the global PCM market was 43.9% in 2024, valued at approximately USD 0.4 billion.
Inorganic PCMs, such as salt hydrates, are preferred in construction for their advantages like high latent heat and non-flammability, aligning well with stricter European energy efficiency and green building regulations. The demand for inorganic PCMs is anticipated to grow steadily as manufacturers and construction firms adopt innovative thermal management solutions to comply with EU directives on building performance.
While exact Europe-specific growth figures for inorganic PCMs alone are not available, given the global market size and construction sector growth trends, it is reasonable to project that the European inorganic PCM segment will grow at a comparable or slightly higher rate than the global market due to regional policy incentives and advanced building technology adoption.
In 2025, the demand for encapsulated PCMs is projected to rise as manufacturers increasingly seek compact, efficient thermal energy solutions for industrial and consumer applications. This trend is evident in the expansion of companies like Croda International Plc, BASF SE, and Cryopak, who are developing and introducing encapsulated PCMs for various sectors, including textiles, construction, electronics, and refrigeration.
The integration of inorganic PCMs in building materials, such as wallboards, concrete, and insulation, is anticipated to grow steadily. This is reflected in the efforts of companies like Climator Sweden AB, who have launched bio-based PCMs for sustainable cooling in packaging and buildings.
The PCM market's influence on the global economy is significant, driving job creation, reducing operational costs, and fostering investments in sustainable infrastructure. As Europe continues to prioritise energy-efficient and sustainable construction solutions, the inorganic PCM market in the Building & Construction sector is expected to witness robust growth from 2025 to 2034.
- The rapid growth of the inorganic PCM segment in Europe's construction industry is partly attributed to its alignment with stricter energy efficiency and green building regulations, driving investments in renewable-energy technology.
- As the demand for encapsulated PCMs rises in Europe, particularly in industrial and consumer applications, the finance sector is anticipated to play a crucial role in facilitating these investments, favoring renewable-energy initiatives and sustainable infrastructure projects.
- In the future, data-and-cloud-computing technology can be instrumental in monitoring and optimizing the performance of PCM-based thermal management solutions across various sectors like construction, helping enhance energy efficiency, reduce energy bills, and contribute to the overall sustainability goals of businesses and regions.
