Advanced Phase Change Materials Market (2026 - 2033)

Advanced Phase Change Materials Market Summary

The global advanced phase change materials market size was valued at USD 3.5 billion in 2025 and is projected to grow from USD 3.8 billion in 2026 to USD 6.7 billion in 2033, at a CAGR of 8.5% from 2026 to 2033. Europe dominated the market, accounting for a revenue share of 35.0% in 2025. The growth in demand for advanced phase change materials is projected to be high, driven by their effectiveness in construction projects. Other features, such as energy conservation and sustainability, also increase demand.

The growing awareness of the need to reduce greenhouse gas emissions, along with advancements in micro- and macro-encapsulation technologies, is driving industry growth. Advanced phase change materials (APCMs) are particularly significant in the construction sector because they can store and release thermal energy more efficiently during phase transitions. As efforts to conserve energy continue, the use of these materials in construction to build sustainable, environmentally friendly structures is expected to rise.

In addition, the growing number of electronic devices has heightened the demand for effective cooling systems. APCMs are considered ideal solutions for cooling electronic devices due to their efficiency. These materials are also being integrated into textiles to provide temperature regulation and thermal insulation in the textile manufacturing sector.

Moreover, APCMs can improve battery performance and ensure operational safety. When applied in electric and hybrid vehicles, these materials contribute to low energy consumption and high efficiency. The growing interest in electric and hybrid vehicles has further boosted industry demand for advanced phase-change materials for thermal management applications, fueling the development of new solutions.

Analyst Perspective

The advanced phase change materials market is experiencing steady growth, driven by increasing demand for energy-efficient solutions, rising adoption of thermal energy storage technologies, and growing interest in sustainable resource management. End-users are increasingly incorporating advanced phase change materials into buildings, HVAC systems, electronics, textiles, and energy storage applications due to their benefits in temperature regulation, energy conservation, and operational efficiency. The expanding focus on green buildings, renewable energy integration, and advanced thermal management is further supporting market growth. As demand for high-performance, reliable, and sustainable thermal solutions continues to rise, companies that focus on product innovation, performance enhancement, and application diversification will be well-positioned to capitalize on long-term growth opportunities.

Product Insights

In 2025, the paraffin segment accounted for over 45.0% of the global market share. Paraffin exhibits remarkable thermal storage capacity and freezes without supercooling. Paraffin stands out as it is chemically stable across multiple heating and freezing cycles, has a high heat of fusion, and is compatible with a wide range of structural materials used in encapsulation. For instance, in September 2025, Beam Global was granted a U.S. patent for its Smart Phase Change Composite (PCC) material designed for lithium-ion battery thermal management. The paraffin-based phase-change technology acts as a thermal switch, helping to regulate battery temperatures under extreme operating conditions and supporting the growing adoption of advanced thermal energy storage materials in electrification applications.

In addition, in December 2025, T-Global Technology launched TG-PCM095, an advanced paraffin-based phase change material engineered for high-power electronics, AI hardware, servers, and EV power electronics. Energy-efficient factors in the construction and building sectors increase paraffin use and are supported by government energy-saving policies. Also, a better understanding of materials science and technology leads to improvements in paraffin, resulting in better properties in end-use products.

The salt hydrates segment is expected to witness a significant CAGR from 2026 to 2033. Salt hydrate materials have become attractive and are often used as high-performance phase change materials for thermal energy storage due to their characteristics. For instance, in 2025, RUBITHERM continued expanding its portfolio of salt hydrate-based phase change materials for thermal energy storage applications in buildings and industrial systems. The company's SP and SP-LINE product families are specifically designed to provide efficient heat storage and temperature control across a wide range of operating conditions. Salt hydrates have a latent heat of fusion, moderate melting temperatures, excellent volumetric energy storage densities, and enhanced thermal conductivity compared with the other options. Numerous industries are now focusing on thermal management and waste heat recovery applications, and the need for salt hydrates is gradually increasing.

Application Insights

In 2025, the building and construction industry accounted for around 30.0% of the market share. The building & construction sector is expected to maintain its growth trajectory and account for a significant share of the market during the forecast period. For instance, in June 2025, Armacell inaugurated a new aerogel insulation manufacturing facility in India to produce its ArmaGel XG product range. Advanced insulation materials are designed to improve thermal efficiency in buildings and industrial infrastructure, highlighting the growing adoption of such materials in the construction sector. The need for power and energy savings is crucial for buildings to support long-term sustainability.

HVAC (Heating, Ventilation, Air-Conditioning) secured a notable share of worldwide revenue in 2025. New features incorporated into HVAC systems include the use of advanced phase-change material to store thermal energy during high-temperature periods and release it during low-temperature periods. For instance, in June 2025, Armstrong World Industries integrated its TEMPLOK Energy Saving Ceilings, which incorporate phase change material (PCM) technology, into the IES Virtual Environment software platform. The PCM-based ceiling system is designed to passively regulate indoor temperatures, reduce HVAC energy consumption, and improve building thermal performance, thereby supporting the growing use of phase change materials in HVAC applications. When used in air ducts, this technology helps control air temperature, thereby improving HVAC system efficiency.

Regional Insights

The advanced phase change material industry in Europe led the global market, accounting for over 35.0% in 2023. Europe’s position is also expected to improve in the coming years. The factors are mainly associated with developments and increasing demand in building & construction, textiles & apparel, automotive, pharmaceuticals, and other sectors. For instance, in September 2025, RUBITHERM Technologies introduced its PCM E28 building solution for energy-efficient buildings and thermal storage applications across Europe. The product is designed to improve indoor temperature regulation and reduce building energy consumption, highlighting the increasing deployment of advanced phase change materials in the region's construction sector.

North America Advanced Phase Change Materials Market Trends

The North America advanced phase change materials industry is expected to register a significant CAGR over the forecast period. The factors that shape market growth include awareness of sustainable standards and energy savings in the building and construction and electronics industries. For instance, in August 2025, Honeywell expanded the commercialization of its Solstice immersion cooling fluids for data centers, supporting high-performance computing and AI infrastructure. The technology utilizes phase-change cooling principles to enhance energy efficiency and heat dissipation, reflecting the growing adoption of advanced thermal management materials across North America.

Key Advanced Phase Change Materials Company Insights

The advanced phase change materials industry features a range of global, regional, and local players, making it a competitive market. Key companies in the advanced phase-change material market include BASF SE, DuPont, and Dow. Vendors in the market are focusing on increasing their customer base to gain a competitive edge in the industry. Therefore, key players are taking several strategic initiatives, such as mergers and acquisitions, and partnerships with other major companies.

Key Advanced Phase Change Materials Companies

The following key companies have been profiled for this study on the advanced phase change materials market:

• BASF SE

• ADVANSA Marketing GmbH

• Honeywell International Inc.

• Outlast Technologies

• DuPont

• PCM Energy Ltd.

• Rubitherm Technologies GmbH

• Dow

• Cryopak

• Climator Sweden AB

Recent Developments

• In March 2026, Coherent introduced Thermadite 800 Liquid Cold Plates for high-power computing applications. The solution utilizes advanced thermal management materials with thermal conductivity of up to 800 W/(m·K), supporting next-generation AI accelerators and high-performance computing systems that require efficient heat dissipation and thermal control.

• In June 2025, Armacell inaugurated a new aerogel insulation manufacturing facility in Pune, India, to produce its ArmaGel XG product range. The expansion increased the company’s production capacity for advanced thermal insulation materials used in industrial processing, energy management, and high-efficiency thermal applications.

• In March 2025, Chemours launched a full-scale commercial trial of its Opteon 2P50 two-phase immersion cooling fluid in collaboration with NTT DATA and Hibiya Engineering. The initiative aimed to accelerate the commercialization of advanced phase-change cooling technologies for high-performance data centers and AI infrastructure, reflecting the growing demand for efficient thermal management solutions in next-generation computing environments.

Advanced Phase Change Materials Market Report Scope

Advanced Phase Change Materials Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the global advanced phase change materials market report based on product, application, and region:

• Product Outlook (Revenue, USD Billion, 2021 - 2033)

  • Paraffin

  • Salt Hydrates

  • Others

• Application Outlook (Revenue, USD Billion, 2021 - 2033)

  • Building & Construction

  • Commercial Refrigeration

  • HVAC

  • Energy Storage

  • Shipping & Transportation

  • Others

• Regional Outlook (Revenue, USD Billion, 2021 - 2033)

  • North America

    • U.S.

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • India

  • Latin America

    • Brazil

  • Middle East & Africa