Global Thermochromic Materials Market - 2022-2029

Market Overview

The global thermochromic materials market reached US$ XX million in 2021 and is expected to record significant growth by reaching up to US$ XX million by 2029, growing at a CAGR of 7.2% during the forecast period (2022-2029).

Thermochromism refers to a material's ability to change color due to a temperature change. The word is based on the thermos, meaning temperature and chromic, meaning color. Thermochromic materials can change their color depending on a wide range of temperatures. They can be created using liquid crystals, metal compounds or semiconductor compounds.

Market Dynamics

The increasing demand for smart packaging across various industries drives global thermochromic materials demand. However, the higher cost of thermochromic materials is a significant market restraint.

Increasing demand for smart packaging across various industries

Smart packaging has become popular recently due to the rapid advancement of technology. Preserving the authenticity of genuine products has been one of the major uses of smart packaging. Many businesses have adopted smart packaging to protect authenticity due to the rise in counterfeiting rates in recent years.

Reversible thermochromic materials are used in smart packaging to create subtly changing vivid color combinations that are unique and unlikely for imitators to imitate. In tamper-proof packaging, thermochromic materials have also been widely used. The seal is made of irreversible thermochromic material, which permanently changes color when tampering is attempted.

Smart packaging is becoming increasingly prevalent for the long-distance delivery of frozen foods and fresh produce. The packaging contains thermochromic material, which subtly changes color when a specific temperature is reached to signal the possibility of product spoilage. Since thermochromic materials are an essential component of many smart packaging materials, the demand for smart packaging is a major factor in expanding the global thermochromic materials market.

The food industry and cold chain distribution have significantly contributed to smart packaging due to shifting consumer demands for healthier, safer, higher-quality products. The products could be concealed from the effects of the environment, their quality or safety could be predicted and they could communicate with the consumer as a marketing tool.

Higher cost of thermochromic materials

A technological field that is rapidly developing is thermochromic materials. To create new thermochromic materials, one only needs to understand chemistry and materials thoroughly. In order to create a suitable research division, businesses must hire hundreds of skilled workers at competitive wages. Additionally, the use of advanced machinery and equipment is necessary for the research and development process, which increases the expense.

It takes years to develop new thermochromic materials because different configurations and parameters must be checked and the material's behavior must be assessed at various temperatures. Before the product can be sold, it must also receive approval from several regulatory bodies. The manufacturing process for thermochromic materials is distinct from other materials, which drives up the cost. The respective fact is expected to hamper the market growth over the forecast period.

COVID-19 Impact Analysis

The coronavirus (COVID-19) pandemic has been a public health concern since December 2019. COVID-19 was declared a pandemic by the World Health Organization in March 2020, affecting 213 countries and territories worldwide. Several countries, including China, India, France, Spain, Denmark, Italy, Austria, New Zealand, Poland, UK and the Czech Republic, have placed harsh economic restrictions. Over a third of the world's population is quarantined during this pandemic.

Thermochromic materials were in high demand for healthcare, pharmaceuticals, e-commerce and grocery delivery, partially making up for decreased demand from industrial clients. Consumers' desires have compounded this trend to hoard and their frantic purchasing of medicines, food, beverages and home-care essentials. However, the market for thermochromic materials in nonfood and premium goods suffered as stores were forced to close and consumers began to reduce spending.

The COVID outbreak caused disarray in most industrial markets as governments implemented lockdown measures globally. The demand for construction and associated markets, such as the thermochromic materials market, sharply fell as the global GDP fell dramatically and sales in the manufacturing sector fell precipitously. The outbreak caused a decrease in demand for thermochromic materials in roof coating applications. However, in the post-COVID market landscape, manufacturers' government initiatives and strategic actions are projected to increase the global thermochromic materials market.

Segment Analysis

The global thermochromic materials market is classified based on type, material, application and region.

A wide variety of color choices and easy application boost the demand for liquid crystals in the global thermochromic materials market

Leuco dyes are more frequently employed on textiles in the design disciplines and are available in various forms, including dispersion (ink concentrate/pigment), powder or plastic pellets. The ingredients used in organic leuco dye mixes are frequently utilized because they exhibit color transition characteristics when exposed to various temperatures.

Typically, leuco dye-based thermochromic materials consist of a matrix component, an electron acceptor (developer) and a chromogenic substance that donates electrons (leuco dye) (solvent). The most prevalent chromogenic substances that donate electrons are phenylmethane and fluoran derivatives with a lactone ring moiety. When the lactone ring is closed, these so-called leuco dyes or colorants are colorless or weakly yellow-colored. Additionally organic leuco dye combinations are utilized in medical, packaging, printing and coating because they are strong, long-lasting and affordable compared to other materials. Its suitability for usage in various applications results from these attributes, which is the main driver of its market expansion throughout the anticipated timeframe.

Thermochromic materials made of leuco dyes are specialized dynamic materials that change color when heated or cooled. The majority of the time, they are combined with other pigments. The base pigment's color and the pigment blended with leuco dyes change as a result. Leuco dyes can be found in several forms, including dispersion (ink concentrate/pigment), powder or plastic pellets and they turn colorless as their temperature rises. Although they are utilized in other fields, these are more frequently used on textiles in the design disciplines. However, inks have been produced for different printing or coating techniques and bath dyeing methods. They are frequently screen-printed with the proper binder systems. Other methods of application are transfer and spray coating. Thermochromic plastic goods can be made and extruded as masterbatches when combined with other polymers.

Due to the product's availability in various forms, experimentation with combining it with various binders, coatings and polymers can be applied in more intriguing or experimental ways to a wider variety of materials. Leuco dyes are used for various purposes, including bath toys, novelties, flying discs, consumer items and fabrics, where temperature response precision is not essential. Additionally, battery state indicators employ them.

Geographical Analysis

The increasing acceptance of green building codes and increased infrastructure spending by the governments allow Asia-Pacific to dominate the regional segment of the global thermochromic materials market

Asia-Pacific has shown the fastest growth for thermochromic material in 2021, predominantly due to the increasing adoption of green building codes and increased infrastructure spending by the governments of India and China. Many roof coatings in the region utilize thermochromic materials for signaling the complete drying of the coating. Asia-Pacific has a well-developed chemical industry that manufactures roof coatings, with China, India, Taiwan and South Korea among the leading players.

In the past few years, thermochromic pigments have been increasingly used in the textile industry and manufacturing novelty products. Furthermore, along with the rising demand for materials in the automotive industry in Japan, it is expected to play a vital role in the market growth in the region. For instance, the National Bureau of Statistics reported that, in 2021, businesses operating above a certain scale produced 23.54 billion garments, an increase of 8.4% from the previous year and their total retail sales increased by 14.2% from 2020 China. Furthermore, According to the Press Information Bureau, India's domestic textile and apparel manufacturing is valued at US$ 140 billion, including US$ 40 billion in textile and apparel exports. According to the commerce ministry, the government has set an export target of US$ 100 billion over the following five years, up from US$ 34 billion (2019-20). Experts have noted that India, a major participant in the textile industry, has the potential to expand its influence in this market significantly. Thus, growing investment in the textile industry has increased thermochromic color research and is used in textiles for various purposes.

Competitive Landscape

The global thermochromic materials market is enormous and is becoming increasingly competitive due to the presence of significant players such as Matsui International, Inc., OliKrom, LCR Hallcrest LLC, Chromatic Technologies Inc., Gem'Innov, Eptanova S.R.L, Smarol Industry Co., Ltd., Kolortek Paints, Hali Pigment Co., Ltd. and New Prisematic Enterprise Co., Ltd. The market is fragmented and market players employ market tactics such as mergers, acquisitions, product launches, contributions and collaborations to gain a competitive advantage and recognition.

LCR Hallcrest LLC

Overview: LCR Hallcrest is a major market player and producer of color-changing materials worldwide, specializing in the development and production of labels, inks and raw materials, as well as the micro-encapsulation of liquid crystal compounds. Various thermochromic, hydrochromic and photochromic chemicals developed by LCR are also available as printing inks, labels and plastic concentrate.

LCR Hallcrest also manufactures temperature-sensitive, color-changing graphic technology and specializes in creating and microencapsulating liquid crystal mixtures and designing and producing thermometer labels and color-changing pigments, inks and paints. The company is family-owned and was founded in 1974.

Product Portfolio:

• Thermochromic and conductive ink: The product's electrical circuit and the color-changing thermochromic display that measures battery capacity are printed on a thin, flexible plastic strip.

Key Development:

• On January 13, 2021, SpotSee, a world leader in connectivity and supply chain condition monitoring solutions, announced its acquisition of TMC Hallcrest and LCR Hallcrest, two of the world's top temperature monitoring tools and indicators producers.

Why Purchase the Report?

• Visualizing the global thermochromic materials market segmentation based on type, material, application and region and understanding key commercial assets and players.
• Identify commercial opportunities in the global thermochromic materials market by analyzing trends and co-development.
• Excel data sheet with numerous data points of thermochromic materials market-level with four segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players

The global Thermochromic Materials market report would provide approximately 61 tables, 60 figures and almost 211 pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies