Market Overview:

Global Thermal Energy Storage Market size accrued earnings worth approximately USD 25.6 Billion in 2023 and is predicted to gain revenue of about USD 52.9 Billion by 2032, is set to record a CAGR of nearly 8.4% over the period from 2024 to 2032.

Shifting preference towards renewable energy generation, including concentrated solar power, and rising demand for thermal energy storage (TES) systems in HVAC are among the key factors propelling the industry growth. Growing need for enhanced energy efficiency, coupled with continuing energy utilization efforts, will positively influence the thermal energy storage demand. For example, in September 2018, the government of Canada revamped a financial incentive program "Commercial Energy Conservation and Efficiency Program", providing rebates of up to USD 15,000 worth energy upgrades for commercial sector.

The market in the U.S. is expected to experience significant growth in the future years due to increasing thermal energy storage projects in the country. In 2018, for instance, the total 18 projects under construction around the world saw the U.S. account for 33% and the 1,361 total operational projects accounted for 41%. An increasing number of major industry players in the country would further boost TES market growth in the U.S.

U.S. Department of Energy (DoE) is concerned with checking thermal energy storage systems on safety and reliability, the cost-effectiveness of the energy storage system, and environmental laws and industry guidelines. It has also mentioned that Europe and Asia Pacific have relatively higher fractions of grid energy storage compared to North America. The requirement for a future with clean energy is compelling the governments of every country to initiate efforts toward development of innovative energy storage systems.

The primary challenge that has been faced by the thermal energy storage sector is the economical storage of energy. An important advance in this sector has been the use of lithium-ion batteries. These batteries show high energy density and long life of 500 deep cycles, i.e., the number of times they can be charged from 20% of their full capacity before witnessing any decline in their performance. They can also be utilized in electric vehicles, district cooling and heating, and power generation.

Market Drivers

• Rising Energy Demand and Efficiency Goals

The growth in the use of global energy has raised the demand for efficient energy storage, and it is on the rise that TES technologies have filled in and played this important role to achieve them. TES systems increase energy efficiency by storing surplus energy produced during low-demand periods and then releasing them during peak consumption periods. Therefore, energy waste decreases and supply and demand can be levelled through this process, and therefore, energy distribution will dependably become more sustainable. Further, TES systems also help to use renewable sources of energy, such as solar and wind energy, which generally produce energy in an intermittent manner. Thus, the extra energy produced at peak times can be stored, ensuring a stable energy supply when the production is low. This also supports energy conservation while working towards the sustainability of the world. As industries, utilities, and urban areas go out in search of smarter energy management solutions, the role of TES in improving efficiency as well as reducing waste energy becomes more critical.

Market Opportunities

• Expansion of Renewable Energy Projects

Rapid growth of solar thermal power plants and wind farms has brought major opportunities for the TES system to become highly important in levelling out the supply of energy. Solar and wind energy sources have an inherently stochastic nature since energy generation is primarily dependent on climatic conditions as well as on time-of-day, and its availability changes during the day. This hurdle is overcome by TES systems by storing the excess energy generated during the sunny or windy days and releasing it back into the system during periods of low generation or peak demand. This will surely enhance stable and reliable energy provision and thus avoid further dependence on fossil fuel-based backup systems. Besides, TES systems enhance the effectiveness and economics of renewable energy projects by maximizing utilization and minimizing waste. As the world continues to call for decarbonisation, integrating it with infrastructure for renewable energies is becoming highly important for having sustainable and resilient energy systems.

Market Restraining Factors

• High Initial Investment Costs

A lot of upfront cost is required in adopting TES systems; these include installation costs, material costs, and infrastructure development costs. Such a system usually has specific components, which may be as phase change materials or molten salts. Such components are bound to be of significant engineering and construction efforts toward incorporating them into existing energy systems. Although TES provides long term operational savings and efficiency benefits, high initial capital investment is a disincentive with price-sensitive markets where restrictions by budget constraints and associated financial risks play a major role. Lack of general awareness about the cost-benefit balance of TES further worsens hesitation among potential adopters. Governments and organizations in such markets may find it hard to focus on TES over more affordable energy solutions that are less sustainable. Addressing the cost barriers through subsidies or incentives or through technological innovation that reduces material and deployment costs will be of prime importance for large-scale expansion around the world for TES systems

Segmentation Analysis

The market scope is segmented because of by Product Type, by Application, by End-User, by Region.

By Technology

Based on the Technology of the market is segmented into Sensible Heat Storage, Latent Heat Storage, Thermochemical Storage.

The market for thermal energy storage is dominated by sensible heat storage, mainly because it is simple and cost-effective with a wide range of applications in heating and cooling systems. In sensible heat storage, thermal energy is stored by raising the temperature of a material, such as water, rocks, or molten salts, without changing its phase. For instance, in residential heating systems, water tanks store hot water for later use, which provides an efficient and accessible solution.

Latent heat storage uses phase-change materials to store energy during changes of phase, such as melting or freezing. Higher energy density translates to stable temperature that may be required in certain applications sensitive to temperature, like commercial buildings with ice storage, which generates ice during off-peak demand and melts it for cooling when the demand is high.

Advanced technology of Thermochemical Storage Energy is stored through reversible chemical reactions. The characteristic long-duration storage facility of this technology stores energy at a higher energy density. Salt hydrates are used in a thermochemical system in order to store heat generated from industrial purposes. Promising though, the application of this technology is less significant in terms of cost and complexity vis-à-vis sensible and latent heat storage.

By Material

Based on the Material of the market is segmented into Water, Molten Salts, Phase Change Materials (PCMs), Other Materials.

Water is the largest market leader in the TES sector due to its low price, ready availability, and its high specific heat capacity, thereby making it the most practical for sensible heat storage applications. Its application is massive in district heating and cooling and residential water heaters. For example, thermal storage tanks store hot water and are used in urban heating networks. It serves as a ready source of energy during peak hours, decreases operation costs, and helps save energy.

Another key material is molten salts, used in CSP plants for high-temperature energy storage. These salts can store heat very efficiently at temperatures above 500°C and then release it to generate electricity when the sun does not shine. For instance, CSP plants located in Spain and parts of the U.S. are using molten salts to extend the availability of energy after sunset.

These have high latent storage capacity, or energy storage associated with phase transitions of melting or solidification. Such materials are already being used to develop PCM cooling panels for building applications to cool commercial buildings.

Some other materials used are rocks and concrete, to name a few; even advanced composites have been used in niche areas such as process heating in some industries where reliability and thermal durability are crucial to a particular application.

Regional Snapshots

By region, Insights into the markets in North America, Europe, Asia-Pacific, Latin America and MEA are provided by the study. The revenue share in 2019 for the largest revenue generating market is that of Europe with a percentage share of 30.1% and the trend is going to remain that way for the next few years of the forecast period. Space heating, water heating, district heating and cooling, and power generation are applications using large amounts of thermal energy storage systems. The market in Spain alone accounts for a large share, mainly due to the sheer presence of TES-based projects in various operational in the country and the dominant players, one of which include Abengoa Solar.

The government of Europe has come up with a model which stores and distributes the energy as per the density of population in a specific region. This model is widely known as the European model. The federal government of Germany heavily invests in advanced research for the electrical energy storage field, pertaining to the storage field's use in solar panels utilized for residential purposes.

In 2019, North America held the second largest share of revenue as the demand during peak hours decreases the requirement for more extensive generation equipment. Increasing research and development towards energy storage systems along with the positive outlook of renewable based power generation will contribute to the U.S. market growth.

U.S. Market

The U.S. government is actively investing in renewable energy plants in order to achieve a future with sustainable energy. As stated in IEA, the government of the U.S. has provided multi-year extension on tax credits for installation and operation of energy plants employing renewable energy, such as concentrating solar power (CSP), and thermal energy storage stations. The supportive government environment policies for the installation and operation of renewable energy plants & power stations are thereby boosting the regional demand for thermal energy storage.

The New York Government has established a commercialization and test centre in Rochester called Battery and Energy Storage Technology, or NY-BEST. The facility measures 18,000 sq. ft. and coasted about USD 23 million. The facility includes a collaboration of Rensselaer Polytechnic Institute, Troy, and Cornell University, Ithaca, which pull their resources together for validating various forms of energy storage for residential & commercial use.

The Asia Pacific market is expected to grow at the highest CAGR of 14.3% over the forecast period. Developing countries, such as China, India, South Korea, Japan, Indonesia, and Malaysia, are experiencing high growth in urbanization and population. These developing countries have several unreliable power grids and basic infrastructure systems. This is expected to compel industry participants to invest in these nations and, therefore boost growth of installations of thermal energy storage and distribution grids.

The solar energy system capacity addition for 2017-18, in India is more than all of the other renewable and conventional types of energy sources in the region. Onshore wind energy also saw capacity increase in that year. It added 4.6GW by coal and 1.7GW by wind energy in the year 2017-18. The growing country will register growth in their thermal energy storage systems during the forecast period.

List of Companies Profiled

• BrightSource Energy Inc.
• SolarReserve LLC
• Abengoa SA
• Terrafore Technologies LLC
• Baltimore Aircoil Company
• Ice Energy
• Caldwell Energy
• Cryogel
• Steffes Corporation.

Report Coverage

The report will cover the qualitative and quantitative data on the Global Thermal Energy Storage Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations

Regional Analysis

By region, Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. Europe led the way in revenue share in 2021 with a share of 30.1%, and this trend is anticipated to continue throughout the projected period. The region is defined by its vast array of thermal energy storage devices, which are utilized for space heating, water heating, district cooling and heating, and power generating. Spain is the nation that contributes most to the expansion of the regional market because of the large number of TES projects which are now under development around the country and the presence of important enterprises like Abengoa Solar.

North America's revenue share in 2021 was the second highest due to a decrease in the need for larger generating equipment during peak hours. A favorable forecast for the production of electricity from renewable sources and a rise in R&D efforts for energy storage technologies will support the expansion of the U.S. market. To ensure a sustainable energy future, the US government is actively investing in renewable energy installations. The U.S. government has extended tax incentives for the construction and upkeep of energy facilities that use renewable energy, like thermal energy storage stations and concentrating solar power (CSP), for a period of years, according to the IEA. The need for thermal energy storage in the region is therefore increasing as a result of government environmental regulations that are supportive of the construction and operation of clean energy plants and power stations.

Thermal Energy Storage Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report:

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Reasons to Purchase:

• To gain insightful analyses of the Thermal Energy Storage market and have comprehensive understanding of the global market and its commercial landscape.
• Assess the production processes, major issues, and solutions to mitigate the development risk.
• To understand the most affecting driving and restraining forces in the market and its impact in the global market.
• Learn about the Thermal Energy Storage market strategies that are being adopted by leading respective organizations.
• To understand the future outlook and prospects for the Thermal Energy Storage market. Besides the standard structure reports, we also provide custom research according to specific requirements.

Research Scope of Thermal Energy Storage Market:

• Historic year: 2019- 2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Billion

Thermal Energy Storage Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: