Global Phase Change Cooling Market Outlook
Revenue, 2024
$216M
Forecast, 2034
$1.04B
CAGR, 2025 - 2034
17.0%
The Phase Change Cooling industry revenue is expected to be around $252.7 million in 2025 and expected to showcase growth with 17.0% CAGR between 2025 and 2034. The rapid rise in popularity highlights the growing importance of phase change cooling in today's tech world. The growth of this market is being driven by factors such as the increasing need for energy cooling options data centers aiming for better thermal regulation and concerns about the environmental effects of conventional cooling methods. This technology is highly favored for its capability to keep temperature levels steady resulting in improved reliability and durability of devices and structures. This has led to a surge in demand, for this cooling solution.
Exploring the details of phase change cooling involves utilizing the phase transitions of specific materials to either absorb or release heat in order to regulate a consistent temperature level effectively. This unique functionality makes it suitable for a range of uses including computer systems and data centers as well as applications, in renewable energy storage and electric vehicle batteries. Lately there has been a rise in the demand for phase change cooling solutions due to the trends in making electronic devices smaller and advancements in materials science that require efficient cooling solutions, for high performance computing systems.
Market Key Insights
- The Phase Change Cooling market is projected to grow from $216.0 million in 2024 to $1.04 billion in 2034. This represents a CAGR of 17%, reflecting rising demand across Data Center Cooling, EV Battery Cooling and Industrial Process Cooling.
- Outlast Technologies Inc., Laird Thermal Systems, Croda International Plc. are among the leading players in this market, shaping its competitive landscape.
- U.S. and Germany are the top markets within the Phase Change Cooling market and are expected to observe the growth CAGR of 16.3% to 23.8% between 2024 and 2030.
- Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 12.8% to 17.7%.
- Transition like Adapting to Renewable Energy is expected to add $32 million to the Phase Change Cooling market growth by 2030.
- The Phase Change Cooling market is set to add $822 million between 2024 and 2034, with industry players targeting Automotive & Food & Beverage End-User Industry projected to gain a larger market share.
- With Growing it industry, and Advanced space avionics, Phase Change Cooling market to expand 381% between 2024 and 2034.
Opportunities in the Phase Change Cooling
The integration of phase change cooling systems in healthcare and biomedical research settings also represents an advancement. Maintaining the integrity of samples and delicate pharmaceutical items frequently necessitates extremely cold environments. Phase change cooling systems offer temperature regulation capabilities that make them a popular option, within this sector.
Growth Opportunities in North America and Asia-Pacific
Phase change cooling is a established technology in the North American market and is commonly used in industries like electronics and automotive sectors as well as data centers due to its effectiveness in cooling processes efficiently and reducing energy consumption demands. The market expansion in this region can be attributed to the IT infrastructure and a growing need for energy efficient solutions. There is competition among leading companies striving to leverage technological progressions and unique product strategies to seize opportunities, for growthIn North America's market scenario today is the increasing demand for power control in data centers. This demand has led to the necessity for cooling methods such, as phase change cooling.
The Asia Pacific region shows promising growth opportunities for the phase change cooling market in industries such as electronics and agriculture food sectors due to urbanization. An expanding middle class population that seek advanced cooling solutions that are energy efficient The competition in this market is intense with both local and global companies competing for a share of the market Increased use of technology and emphasis, on energy efficient cooling systems are driving forces in this market. The focus shifting towards eco technologies and the support from government initiatives, for energy preservation is influencing the market trends and fuel growth in this region.
Market Dynamics and Supply Chain
01
Driver: Growing IT industry, and Shifting Focus towards Energy Efficiency
The rapid expansion of the IT industry has also created a demand for effective cooling solutions in the extensive hardware setups of servers. Phase change cooling technology is also highly favored in the realm of IT infrastructure, for its efficiency and ability to safeguard against thermal issues. Factors that are also fueling its market expansion. Given the increasing worries about energy use and its effects on the environment attention has also turned to energy saving cooling options. Phase change cooling stands out as an energy choice because it can also absorb and release heat more rapidly than conventional cooling methods promptly propelling its acceptance, in the marketplace.
With the increasing frequency of space missions comes a growing demand for avionic systems that produce a substantial amount of heat due to their high power output levels. To address the heat dissipation challenge the use of phase change cooling methods is also favored for its excellent thermal conductivity and minimal pressure drop. This technology plays a role in facilitating heat transfer management and consequently contributes to the expansion of the market, in this sector.
02
Restraint: High Initial Investment
Investment in phase change cooling technology can be expensive. May hinder market expansion efforts due to the high costs associated with acquiring top notch phase change materials . This upfront investment could discourage buyers such as small and medium sized businesses particularly those with limited budgets to operate within constraints of their financial plans. Despite the long term advantages in terms of energy savings and sustainability that offer a lucrative return on investment the initial cost outlay might pose a challenge, for new entrants looking to enter the market scenario affecting overall demand and market dynamics.
03
Opportunity: The Rise of Phase Change Cooling in Data Centers and Automotive Industry Innovations
The expansion of cities and the improvements in internet infrastructure globally have increased the need for data centers to handle the growing demand for services efficiently and effectively. This shift opens up opportunities for phase change cooling systems to shine as they play a crucial role in keeping data centers cool and running smoothly by absorbing heat using special materials that provide consistent cooling for server racks in a stable environment conducive, to optimal performance.
The increasing necessity of management systems in electric cars presents a significant opportunity for the implementation of phase change cooling solutions that can support the growing popularity of electric vehicles and advancements in battery technology. The use of phase change cooling technology plays a role in regulating the temperature levels, within battery packs to ensure safety and optimize performance as the electric vehicle market continues to expand rapidly.
04
Challenge: Technological Complexities
One important factor arises from the intricate technology linked to phase change cooling systems. PCMs operate by undergoing heating and cooling processes. Effectively utilizing this technology requires accurate supervision and monitoring. These intricacies call for a level of knowledge and experience with the technology that may not only be accessible to every user ranging from ordinary consumers to industrial participants. This challenge in embracing the technology consequently impacts market trends by limiting the opportunities for expansion, within the phase change cooling industry.
Supply Chain Landscape
1
Raw Material Suppliers
DuPontHoneywell International
2
Component Manufacturers
Parker ChomericsPolyScience
3
System Manufacturers
Laird TechnologiesModine Manufacturing
4
End Users
Data CentersAutomotiveElectronics Manufacturing
1
Raw Material Suppliers
DuPontHoneywell International
2
Component Manufacturers
Parker ChomericsPolyScience
3
System Manufacturers
Laird TechnologiesModine Manufacturing
4
End Users
Data CentersAutomotiveElectronics Manufacturing
Use Cases of Phase Change Cooling in Data Center & EV Battery
Data Center Cooling : Phase change cooling is commonly utilized in data centers to provide an efficient and economical alternative to conventional air conditioning systems. This method involves the use of phase change materials that absorb and release energy as they transition between solid and liquid states. Industry leaders such, as IBM and Microsoft rely on phase change cooling to regulate server heat generation resulting in notable energy savings and enhanced operational efficiency.
EV Battery Cooling : Phase change cooling is essential for electric vehicle battery cooling as lithium ion batteries in cars produce a significant amount of heat when charging and discharging cycles occur The use of phase change cooling systems is common among major manufacturers such as Tesla and BYD This technology plays a crucial role, in regulating battery temperatures to enhance longevity and performance.
Industrial Process Cooling : In the sector as well as in process cooling applications phase change cooling is highly advantageous for companies engaged in manufacturing processes like plastics production pharmaceutical manufacturing and food processing They rely on efficient cooling methods to regulate process temperatures effectively Utilizing phase change materials with their excellent latent heat absorbing properties helps companies such, as Unilever and Pfizer to control their temperature sensitive operations efficiently.
Recent Developments
Lately there has been a growing demand for cooling solutions across different sectors which has led to the advancement and acceptance of phase change cooling systems in various industries. These systems are recognized for their temperature regulation features and are widely used in areas such as data centers, electronics and HVAC systems in today's market environment. A notable trend, in the market is the merging of phase change cooling with energy sources.
December 2024 : CoolTech introduced a range of phase change cooling systems that boast improved energy efficiency ratings. These systems aim to deliver top notch cooling performance while consuming energy.
October 2024 : PhaseChange Solutions teamed up with E Tech Global to incorporate their cooling systems into the powerful servers manufactured by E Tech.
August 2024 : CoolTech Inc., a player in advanced cooling technology solutions for industries worldwide has initiated an innovative research initiative to investigate new materials, for phase change cooling that might bring significant advancements to industrial cooling systems in the near future.
Impact of Industry Transitions on the Phase Change Cooling Market
As a core segment of the S&E Technology industry,
the Phase Change Cooling market develops in line with broader industry shifts.
Over recent years, transitions such as Adapting to Renewable Energy and Increasing Demand in Electronics have redefined priorities
across the S&E Technology sector,
influencing how the Phase Change Cooling market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Adapting to Renewable Energy
The worldwide shift to using energy sources is having a big impact on the phase change cooling sector these days Countries are putting in a lot of money into solar and wind power solutions and sustainable cooling methods are becoming more important Phase change cooling relies, on the heat absorbed or released when a substance changes its state it offers an effective and environment friendly option compared to conventional air conditioning systems A good example of this shift is the growing use of phase change cooling in data centers to keep temperatures stable while cutting down energy usage In the telecom sector well PCM cooling solutions are employed in isolated and edge telecom towers to prolong the life of delicate electronic devices while boosting energy efficiency and cutting down on operational expenses.
02
Increasing Demand in Electronics
In today's age of miniaturization electronic parts are getting smaller and more condensed causing an increase in heat production. Phase change cooling methods play a role, in ensuring the proper cooling of these tiny devices especially in portable gadgets and high end computing systems.