Thermal Energy Storage Market Analysis and Global Forecast 2021-2034

Thermal Energy Storage Market Overview

The Thermal Energy Storage Market size accounted for USD 45.71 Billion in 2023 and is estimated to account for 46.58 Billion in 2024. The Market is expected to reach USD 60.78 Billion by 2034 growing at a compound annual growth rate (CAGR) of 6.78% from 2024 to 2034. Systems that store thermal energy for later use, providing greater energy management and efficiency, are part of the Thermal Energy Storage (TES) market. Sensible heat storage, latent heat storage, and thermochemical storage are the three main types of TES technology. These systems are widely used in many different applications, such as building cooling systems, industrial operations, and district heating. The industry is driven by the need for grid stability, energy saving programs, and the growing need for renewable energy sources. Lower energy prices, peak load shifting, and improved integration of sporadic renewable energy sources are some of the main advantages of thermal energy storage. The TES market is anticipated to increase greatly in the upcoming years as governments and companies place a greater emphasis on sustainability.

Global Thermal Energy Storage Market Synopsis

Global Thermal Energy Storage Market Dynamics

The major factors that have impacted the growth of Thermal Energy Storage are as follows:

Drivers:

⮚     Technological Advancements

Innovation in the market is being driven by ongoing research and development in thermal energy storage technologies. Phase change materials (PCMs) and improved insulation are two examples of improved materials that increase the capacity and efficiency of TES systems. These developments improve the performance and dependability of TES solutions, increasing customer attractiveness. lower energy costs, peak load shifting, and improved integration of sporadic renewable energy sources are some benefits of thermal energy storage. The TES market is anticipated to increase greatly in the upcoming years as governments and companies place a greater emphasis on sustainability.

Restraint:

• High Initial Capital Costs

The significant upfront cost of installing TES systems is one of the main obstacles preventing their broad implementation. Even while prices have been dropping recently, advanced TES technologies can still be expensive up front, especially for large-scale installations. This may discourage possible investors and restrict smaller companies’ or projects’ access to the market.

Opportunity:

⮚     Growing Demand for Renewable Energy Integration

The global transition towards renewable energy sources, particularly solar and wind, presents a unique opportunity for TES. As these sources are intermittent, the ability to store excess thermal energy during peak production times is crucial for ensuring a reliable energy supply. TES systems can effectively balance energy supply and demand, making them invaluable in energy grids increasingly dominated by renewables. This integration not only enhances grid stability but also maximizes the utilization of clean energy, contributing to sustainability goals.

Thermal Energy Storage Market Segment Overview

By Technology

Based on the Technology, the market is segmented based on Sensible Heat Storage, Latent Heat Storage, Thermochemical Storage. Sensible Heat Storage typically dominates, primarily due to its established technology, lower costs, and widespread application in various industries, including district heating and industrial processes. This method is favored for its simplicity and efficiency in storing thermal energy using materials like water and concrete.

By Storage Material

Based on the Storage Material, the market has been divided into Water, Molten Salts, Phase Change Materials, Others. Water segment generally dominates due to its cost-effectiveness, availability, and efficiency as a storage medium for a variety of applications, including district heating and cooling systems. Water-based systems are widely utilized for their simplicity and reliability in storing thermal energy.

By Application

Based on Application, the market has been divided into Power Generation, District Heating & Cooling, Process Heating & Cooling. District Heating & Cooling segment typically dominates due to its widespread application in urban areas for efficient energy management and the growing demand for sustainable heating and cooling solutions. This segment benefits from the integration of renewable energy sources and government initiatives promoting energy efficiency.

Global Thermal Energy Storage Market Regional Analysis

Based on region, the market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. The area of North America is anticipated to dominate the market for the usage of Thermal Energy Storage, followed by those in Asia-Pacific and Europe.

Thermal Energy Storage North America Market

North America dominates the Thermal Energy Storage market due to several factors. The thermal energy storage market in Europe was valued at USD 11.58 billion in 2021 and is anticipated to increase at a substantial compound annual growth rate (CAGR) throughout the course of the study. Numerous thermal energy storage devices, which are utilized for power generation, district heating and cooling, water heating, and space heating, are characteristic of the area. In addition, the thermal energy storage market in Germany had the most market share, while the thermal energy storage market in the UK had the highest rate of growth in the European Union.

Thermal Energy Storage Asia Pacific Market

The Asia-Pacific region has been witnessing remarkable growth in recent years. From 2022 to 2030, the thermal energy storage market in Asia-Pacific is anticipated to develop at the fastest compound annual growth rate (CAGR). The primary drivers of regional progress are the quick development of renewable energy sources and growing investments in ecologically friendly cooling technologies. Furthermore, the thermal energy storage market in China commanded the most market share, while the thermal energy storage market in India grew at the quickest rate in the Asia-Pacific area.

Competitive Landscape

The competitive landscape includes key players (tier 1, tier 2, and local) having a presence across the globe. Companies such as Abengoa, Burns & McDonnell, SOLARRESERVE, BrightSource Energy, and Calmac are some of the leading players in the global  Thermal Energy Storage Industry. These players have adopted partnership, acquisition, expansion, and new product development, among others as their key strategies.

Key Market Players:

• Abengoa
• Burns & McDonnell
• SOLARRESERVE
• BrightSource Energy
• Calmac
• MAN energy solution
• Goss Engineering
• Steffes Corporation
• DN tanks
• Turbine Air Systems

Key development:

August 2021: A new prototype technology for thermal energy storage was introduced by researchers at the National Renewable Energy Laboratory, US. This system uses silica sand as the storage medium. The cost-effective storage medium is a new technology that can be installed in small modular structures in many nations to supply heat and electricity.

Scope of the Report

Global Thermal Energy Storage Market, by Technology

• Sensible Heat Storage
• Latent Heat Storage
• Thermochemical Storage

Global Thermal Energy Storage Market, by Storage Material

• Water
• Molten Salts
• Phase Change Materials
• Others

Global Thermal Energy Storage Market, by Application

• Power generation
• District Heating & Cooling
• Process Heating & Cooling

Global Thermal Energy Storage Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

Parameters	Indicators
Market Size	2034: USD 60.78 Billion
CAGR (2021-2034)	6.78%
Base year	2023
Forecast Period	2021-2034
Historical Data	2021 (2017 to 2020 On Demand)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Technology, Storage Material, Application
Geographies Covered	North America, Europe, Asia-Pacific, South America, Middle East, Africa.
Key Vendors	Abengoa, Burns & McDonnell, SOLARRESERVE, BrightSource Energy, Calmac, MAN energy solution, Goss Engineering, Steffes Corporation, DN tanks, Turbine Air Systems
Key Market Opportunities	·       Huge demand for thermal energy storage in CSP
Key Market Drivers	·       Growing government initiatives for thermal energy storage system Increasing demand for thermal energy storage in HVAC

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Thermal Energy Storage market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Thermal Energy Storage market historical market size for the year 2022, and forecast from 2021 to 2034
• Thermal Energy Storage market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Thermal Energy Storage market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.