NEW YORK — The global phase change material (PCM) market was valued at $563.5 million in 2014 and is expected to reach $1.67 billion by 2020, showing a compound annual growth rate of 19.9 percent, according to a report from Mordor Intelligence LLP.
The global PCM industry is witnessing high growth due to increasing applications, technological advancements, and growing concern over environmental regulations on reduction of greenhouse gas emissions. With the growing global focus on energy conservation, phase change materials are expected to play a pivotal role in the near future. They are being used in such applications as HVAC, refrigeration, building and construction, and energy storage, among others.
Europe is the largest market and is also expected to see the highest growth over the next five years. North America ranks second in terms of market size and is closely followed by Asia Pacific. New and better products from suppliers, and improved macro- and micro-encapsulation techniques which will eventually decrease PCM prices, will create new opportunities in the PCM market.
Because of competition being low in this market, companies are trying to increase awareness of advanced PCM products and their advantages, which remains the major challenge for the industry. New product development is the preferred strategy adopted by the major players. With new products, companies can widen or even generate new markets for advanced PCM.
The growing construction industry in emerging countries such as India, Brazil, China, Russia, and South Africa is expected to boost the demand for these products over the next couple of years.
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Publication date: 10/6/2015