DALLAS — The global phase change material (PCM) market is forecast to grow from $460 million in 2013 to $1.15 billion by 2018, increasing with a compound annual growth rate (CAGR) of 20.1 percent during this period, according to a report from MarketsandMarkets. PCM has the ability to capture and reuse wasted ambient energy, and has a variety of applications including HVAC.

The increasing demand for energy-saving and environmentally-friendly technology is driving the growth of the PCM market, says the report. The development of new products and market shift towards bio-based phase change material is expected to increase demand in the future. With new and improved products, suppliers can provide more application-specific solutions and, thus, boost demand.

The different types of PCM are organic, inorganic, and bio-based which are made from paraffin, salt hydrates, and plant oil or animal fat, respectively. Each type of PCM can have a variety of products with different temperature ranges targeting different applications. Organic PCM offers maximum revenue while bio-based PCM is expected to have the highest growth rate during the next five years. Reduction in prices is expected to drive the bio-based PCM market.