ADVANCED PHASE

CHANGE MATERIAL (PCM)

MARKET
GLOBAL FORECAST (2010 – 2015)
By
MarketsandMarkets
Advanced Phase Change Material (PCM) Market Global Forecast
(2010 ­ 2015)

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Copyright © 2010 MarketsandMarkets

All Rights Reserved. This document contains highly confidential information and is the sole
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Advanced Phase Change Material (PCM) Market Global Forecast
(2010 ­ 2015)

1 MARKET OVERVIEW

A phase change material (PCM) has the ability to store and release large amount of
heat/energy while maintaining constant temperature. Unlike other insulation materials, PCM on
reaching its melting point (temperature at which it changes phase; solid to liquid), absorbs
large amount of heat and releases its stored latent heat with solidification. PCMs are also
known as latent thermal storage materials. PCMs have a tremendous potential to fulfill the
growing need of energy for cooling and heating applications across various industries including
construction, commercial refrigeration, textiles, packaging and others. Increasing use of the
passive technology of PCM is also expected to boost the global efforts for conserving energy in
the wake of fast depleting fossil fuels. The PCM manufacturers and research institutes are
working towards integrating PCMs in different applications to increase their commercial
viability. However, effective integration of PCMs in the end products and increasing awareness
of environment friendly attributes of PCMs remain a challenging task.

1.1 PCM BUSINESS ARCHITECTURE

Phase change materials play a major role in stabilizing the temperature of the immediate
environment, while enhancing thermal comfort along with reducing green house gas (GHG)
emission. Major PCM manufacturers such as BASF and Rubitherm obtain purified raw material
(paraffin for organic based PCM and salt hydrates for inorganic based PCM) from companies
like Chevron, and Shell and manufacture PCMs by formulating these raw materials with
different crystallization agents. Subsequently, processes such as macro encapsulation or micro
encapsulation integrate these PCMs in the end products.

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Advanced Phase Change Material (PCM) Market Global Forecast
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FIGURE XX

PCM BUSINESS ARCHITECTURE

Encapsulation
Product developments

Target consumers
• Textile manufacturers
Marketing strategies

• Builders
Business PCM • Pharmaceutical companies
Process Manufacturers

Material suppliers
Collaborations &
license agreements (crude oil refineries)

Source: MarketsandMarkets

The PCM market is expected to see an influx of innovative products for use in various
applications. However, lack of awareness is a major challenge. To increase awareness about
the efficacy and environment friendly qualities of the PCMs, several key players have entered
into commercial partnerships with end-users such as architects, builders, and textile
manufacturers and organize conferences pertaining to the PCM market. A very interesting fact
that emerged from our discussion with the various key players in the market is that currently
the companies are not looking at each other as competitors as their major objective is to
increase awareness about the PCMs in the end-user market. According to the established
players, a new company that enters the PCM market helps increase awareness of the PCM
products. Almost all the major players have got together and created quality standards (for the
PCMs) for effective penetration of the products in the market. BASF, Rubitherm, SGL, Emco
and others have come together to form a quality standard RAL in the European market.

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Advanced Phase Change Material (PCM) Market Global Forecast
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1.2 FACTORS INFLUENCING MARKET GROWTH

The figure below depicts major factors influencing the market growth of the PCMs. Phase
change materials are temperature stabilizing energy saving products, which store heat for
transformation to other forms such as electricity. Thus, energy saving (power efficiency) is the
main driver for the market. The second attribute that is influencing the market is the
environment friendliness of the PCM products. For example, effective use of PCMs in the
building and construction sector can significantly eliminate the requirement for traditional
generators, heaters and coolers and therefore help in reducing emission of green house gases.
PCM is also gaining more and more attention as there are strict regulations in Europe and the
U.S. over the reduction of green house gases.

FIGURE XX

GLOBAL PCM MARKET DYNAMICS

Priority

Energy
Lack of saving
awareness

Environment-
High friendly
price

Range of
Opportunity for applications
low cost providers

Negative Factors influencing the market Positive

Source: MarketsandMarkets

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Advanced Phase Change Material (PCM) Market Global Forecast
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Other important factors affecting market growth are low maintenance, long operating life and
innovative applications. Low maintenance and long operating life of PCMs reduce operating
costs for the consumers. New applications and product developments in the PCM market is
expected to increase penetration of PCM products in almost all sectors.

However, lack of awareness and high price are negatively impacting the market. Consumption
of PCM products is low as the market does not have a complete understanding of the wide
ranging benefits of these products. This has resulted in increased marketing budgets of the
companies and that in turn has increased the price of PCM products. Though, with increasing
awareness levels, the market is expected to grow exponentially also resulting in prices coming
down in the near future. The market also suffers from integration issues (of PCM in end
products) due to limitations of the existing raw materials such as paraffin and salt hydrates
(discussed in great detail in the PCM raw materials chapter). However, companies such as
BASF have come up with innovative integration technologies such as microencapsulation to
enhance the integration capabilities of PCMs into end products.

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Advanced Phase Change Material (PCM) Market Global Forecast
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2 PCM APPLICATIONS

2.1 BUILDING AND CONSTRUCTION

Building and construction forms a major PCM application market due to the increasing cooling
needs of buildings, and the trend in the construction industry towards modern, lightweight
architecture. The use of PCM in building applications has been commercialized only recently;
but the application market has already grown larger than the older segments of cold storage
and transportation.

FIGURE XX

BUILDING AND CONSTRUCTION PCM MARKET SHARES,

BY UNITS OF PRODUCTION (2009)

Others
xx%

Salt hydrates
xx%

Paraffin
xx%

Source: MarketsandMarkets

Salt hydrate-based PCMs command a xx% share of the building and construction PCM market.
These PCMs are mainly used in macroencapsulated forms in ceilings, blocks, flooring, and
others applications of the building and construction industry. Rubitherm and SGL are the major
suppliers of these types of PCMs. BASF supplies microencapsulated paraffin-based PCMs for
building and construction applications. The company commands more than xx% of the
paraffin-based PCM market for modular building and construction applications.

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Advanced Phase Change Material (PCM) Market Global Forecast
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TABLE XX

GLOBAL PCM-BASED BUILDING & CONSTRUCTION

APPLICATION MARKET, BY GEOGRAPHY
2008 – 2015 ($MILLION)

CAGR%
Region 2008 2009 2010 2015
(2010 - 2015)

Americas xx xx xx xx xx

EMEA xx xx xx xx xx

APAC xx xx xx xx xx

Total xx xx xx xx xx

Source: MarketsandMarkets

The global PCM based building and construction application market, is expected to grow from
$xx million in 2009 to $xx million in 2015, at an estimated CAGR of xx% from 2010 to 2015.

While PCM is used in building applications for both cooling and heating purpose, our estimates
suggest that by 2020, cooling would require more energy than heating. MarketsandMarkets
estimates that in the next five years, Europe alone will require 1010 GW (giga watt) of electrical
power to support additional cooling needs.

Approximately 1 million ton of PCM is required in a daily cycle to produce 2 to 3 GW of

electrical power. Building applications are thus expected to offer huge growth potential once
the market is ready to use PCMs at such a large scale. MarketsandMarkets estimates that it
would take 10 to 15 years for the large scale adoption of PCM as a building material.

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Advanced Phase Change Material (PCM) Market Global Forecast
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TABLE XX

COMPARATIVE ANALYSIS: PCM FOR BUILDING/

CONSTRUCTION APPLICATIONS

Companies Material Properties

BASF, Waxes such as paraffin are suitable for construction

Rubitherm, applications by flexibly adjusting their melting
National Paraffin temperature. However, to remove the direct contact of
Gypsum, Celcon material with construction chemicals; materials first
H+H, Henkel need to encapsulate with suitable ingredients.

These are hygroscopic that allows them to trap

Salt
Rubitherm humidity. Due to this the water content and melting
hydrates
point varies. Thus not suitable for long term use.

Water because of its temperature transition at 00C and

N.A. Water
1000C is not suitable for construction applications

Source: MarketsandMarkets

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Advanced Phase Change Material (PCM) Market Global Forecast
(2010 ­ 2015)

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