Segment Analysis of Thermally Expandable Microcapsules (TEMs) Market: Products, Applications, and End-Users for 2023-2028 Global and Regional Industry Status and Prospects

In Business Insights
September 27, 2025

The global Thermally Expandable Microcapsules (TEMs) market was valued at USD 180.2 million in 2023. The market is projected to grow from USD 202.5 million in 2024 to USD 320.8 million by 2028, exhibiting a CAGR of 12.2% during the forecast period.

Thermally Expandable Microcapsules (TEMs) are innovative polymeric materials consisting of a shell enclosing a volatile core, typically hydrocarbons, that expand significantly when exposed to heat. This expansion occurs between 80°C and 200°C, depending on the formulation, making them ideal for creating lightweight, foamed structures without traditional blowing agents. Produced via emulsion polymerization or similar processes, TEMs offer precise control over expansion ratios, density reduction, and mechanical properties. Because of their versatility, these microcapsules are integral to industries seeking sustainable, efficient solutions in foaming, printing, and protective coatings.

The market for TEMs, while specialized, holds substantial growth potential driven by increasing demand for lightweight materials in automotive and packaging sectors, advancements in eco-friendly printing technologies, and the need for safer handling in explosive applications. Furthermore, regulatory pushes toward reduced volatile organic compounds (VOCs) in paints and sealants are accelerating adoption. Regional dynamics, particularly in East Asia and Europe, underscore the market’s trajectory, with innovations in custom formulations addressing niche industrial challenges.

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Segmentation by Product Type

The TEMs market can be divided into four key product categories, reflecting variations in processing methods and performance characteristics that cater to diverse industrial needs.

1. Conventional Wet Type TEMs

Conventional wet type TEMs are produced through aqueous emulsion processes, resulting in microcapsules suitable for water-based formulations. These are widely used in applications requiring easy dispersion, such as paints and coatings, where they provide uniform expansion and foaming without compromising viscosity.

  • Market Insight: Conventional wet type TEMs form the foundational segment, appealing to cost-conscious manufacturers in the paints industry. Their straightforward integration into existing production lines keeps them relevant, though competition from dry alternatives is prompting gradual enhancements in stability. However, their sensitivity to moisture in storage remains a consideration for long-term supply chains.

  • Trend: In regions like Southeast Asia, where water-based paints dominate due to environmental regulations, wet type TEMs are seeing steady procurement for interior coatings and decorative finishes, balancing affordability with functional performance.

2. Modified Wet Type TEMs

Modified wet type TEMs incorporate additives like cross-linking agents to improve heat resistance and expansion control. These enhancements allow for higher processing temperatures, making them suitable for demanding environments such as synthetic paper production.

  • Market Insight: This segment is gaining traction in the printing sector, where precise foaming is essential for texture and opacity in synthetic papers. Demand is particularly strong from European manufacturers focused on sustainable packaging, as modified versions reduce material usage while maintaining durability.

  • Trend: With the rise of recyclable synthetic papers in e-commerce packaging, modified wet TEMs are being optimized for lower activation temperatures, enabling energy-efficient production and aligning with global sustainability goals.

3. Standard Dry Type TEMs

Standard dry type TEMs are isolated powders derived from wet processes but dried for direct incorporation into solvent-based or powder systems. They excel in applications like sealants, offering quick expansion and minimal residue during curing.

  • Market Insight: Standard dry TEMs serve as a versatile option for construction materials, particularly in joint sealants where ease of handling reduces labor costs. Their market share is stable, supported by established supply from key vendors like Kureha and Matsumoto Yushi-Seiyaku.

  • Trend: In North America, the shift toward dry dispersions for high-volume sealant production is evident, as they facilitate faster mixing and better shelf-life, addressing challenges in humid climates.

4. Advanced Dry Type TEMs

Advanced dry type TEMs feature specialized shells for enhanced mechanical strength and tailored expansion profiles, ideal for high-stakes uses like ceramics and slurry explosives. These often include functional groups for better compatibility with matrices.

  • Market Insight: As the fastest-growing product segment, advanced dry TEMs are driven by mining and ceramics industries requiring robust foaming agents. Their ability to withstand extreme conditions positions them for expansion in emerging markets like Oceania’s resource sectors.

  • Trend: Innovations from vendors such as DONGJIN SEMICHEM are focusing on nano-encapsulation techniques, scaling production to meet rising demands from Asia-Pacific ceramics manufacturers investing in lightweight composites.

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Segmentation by Application

Applications highlight the practical versatility of TEMs, leveraging their thermal expansion to innovate across sectors. Each use case exploits the microcapsules’ ability to create voids, reduce weight, or enhance textures, solving longstanding material challenges.

1. Paints

The paints industry represents the largest consumer of TEMs, utilizing them as foaming agents to achieve matte finishes, reduce gloss, and improve insulation properties in architectural and automotive coatings.

  • Insight: In water-based paints, TEMs enable low-VOC formulations by replacing traditional matting agents, thus meeting stringent environmental standards while maintaining aesthetic quality.

  • Trend: Europe’s push for green building materials is fueling demand, with TEM-infused paints gaining popularity in interior applications. The integration with 3D texturing techniques for decorative effects is also emerging, particularly in South Asia’s growing urban construction.

2. Synthetic Paper

Synthetic paper production employs TEMs to create porous structures that mimic traditional paper but offer superior durability, water resistance, and printability for labels and packaging.

  • Insight: By expanding during extrusion, TEMs reduce density and enhance opacity, allowing for thinner sheets that conserve resources without sacrificing performance.

  • Trend: As e-commerce booms in East Asia, synthetic paper with TEMs is accelerating adoption for sustainable alternatives to plastic films, with innovations in recyclable variants addressing circular economy demands.

3. Sealants

In sealants, TEMs provide expansion to fill gaps and improve flexibility, crucial for construction joints and automotive weatherstripping where adhesion and elasticity are paramount.

  • Insight: Dry type TEMs dominate here, enabling one-component systems that cure efficiently under heat, reducing application time and enhancing weather resistance.

  • Trend: Middle East construction projects are increasingly specifying TEM-enhanced sealants for high-temperature environments, while advancements in self-healing formulations promise longer service life in seismic zones.

4. Slurry Explosives

Slurry explosives use TEMs as sensitizers, expanding to create gas bubbles that improve detonation efficiency and safety during handling and transport in mining operations.

  • Insight: This application benefits from TEMs’ controlled expansion, minimizing premature reactions and allowing for lower explosive densities, which aligns with safety regulations in dense mining regions.

  • Trend: In Africa and South America, where mining expansion is rapid, advanced TEMs are being adopted to enhance blast precision, reducing environmental impact through optimized charge designs.

5. Ceramics

Ceramics incorporate TEMs to produce lightweight, porous structures for thermal insulation and filtration, expanding during sintering to form uniform pores without additives.

  • Insight: Though a smaller segment, ceramics offer growth potential in energy-efficient applications, where TEMs enable complex geometries in advanced refractories.

  • Trend: Europe’s focus on sustainable ceramics for hydrogen storage is driving experimentation with TEMs, while Asia-Pacific manufacturers scale production for automotive exhaust components.

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Segmentation by End-User

1. Printing and Packaging Manufacturers

Printing and packaging firms are the largest end-user group for TEMs, relying on them to develop innovative synthetic papers and lightweight labels that enhance product appeal and sustainability.

  • Insight: As consumer preferences shift toward eco-friendly packaging, TEMs help reduce material weight, lowering shipping costs and carbon footprints in global supply chains.

  • Trend: East Asia’s dominance in packaging production positions it as the key growth region, with integrations into digital printing presses boosting efficiency for high-volume runs.

2. Paints and Coatings Companies

Paints and coatings manufacturers utilize TEMs extensively for formulating advanced decorative and protective finishes, particularly in architectural and industrial settings.

  • Insight: The ability of TEMs to create textured surfaces without additional processing steps streamlines production, appealing to firms aiming to differentiate in competitive markets.

  • Trend: North American companies are leading in low-VOC innovations, with TEMs enabling compliant products for indoor air quality standards, amid rising residential renovations.

3. Explosives and Mining Companies

Explosives and mining operations employ TEMs to sensitize slurries, improving safety and performance in blasting activities across resource extraction sites.

  • Insight: By providing consistent bubble formation, TEMs reduce the risk of misfires, supporting larger-scale operations in challenging terrains like Oceania’s open-pit mines.

  • Trend: South America’s mining boom is accelerating TEM adoption, with vendors collaborating on custom grades for deep underground applications, emphasizing reliability.

4. Construction and Sealants Firms

Construction companies and sealant producers integrate TEMs to enhance joint fillers and membranes, ensuring durability in building envelopes and infrastructure.

  • Insight: Emerging as a vital segment, TEMs offer flexibility in curing, ideal for seismic-prone areas in South Asia, where infrastructure investments are surging.

  • Trend: Europe’s green building initiatives are promoting TEM-based sealants for energy-efficient facades, with pilot projects demonstrating superior thermal performance.

5. Ceramics and Composites Producers

Ceramics and composites manufacturers use TEMs to engineer porous materials for insulation and structural light weighting in aerospace and energy sectors.

  • Insight: Growth remains steady, as TEMs enable precise porosity control, though high costs limit widespread use; however, R&D in advanced composites is unlocking potential.

  • Trend: Middle East’s diversification into composites for oil and gas is sustaining demand, with custom TEM formulations supporting high-temperature filtrations.

The Thermally Expandable Microcapsules (TEMs) market is best understood through its segmentation landscape. By product type, the shift is toward advanced dry and modified wet types, driven by industries such as printing and mining. By application, paints dominate, but synthetic paper and slurry explosives are emerging as dynamic growth areas. By end-user, printing manufacturers lead, but construction firms and mining companies provide critical innovation momentum.

Read Full Report Here: https://www.24chemicalresearch.com/reports/202931/global-regional-thermally-expable-microcapsules-market-2023-2028-207

Download FREE Sample Report: https://www.24chemicalresearch.com/download-sample/202931/global-regional-thermally-expable-microcapsules-market-2023-2028-207