Market Overview:

According to a new report by IMIR Market Research on Global Thermal Energy Storage Market was valued at approximately USD 5.7 Billion in 2023. Over the course of the forecast period (2024–2031), the market is expected to develop at a compound annual growth rate (CAGR) of 9.45%, reaching a value of USD 9.74 Billion by 2031.

The market is growing due to a number of factors, including a shift in consumer preferences toward renewable energy sources like concentrated solar power and an increase in the need for thermal energy storage (TES) devices in HVAC systems. The market for thermal energy storage will be positively impacted by the ongoing attempts to maximize energy consumption and the growing need for improved energy efficiency. For example, the Canadian government amended its "Commercial Energy Conservation and Efficiency Program" in September 2020, offering cash incentives up to $15,000 for energy renovations in the commercial sector.

Thermal energy storage systems are assessed by the U.S. Department of Energy (DoE) based on their cost-effectiveness, safety, and compliance with industry and environmental standards. Additionally, it was mentioned that compared to North America, Europe & the Asia Pacific region had higher percentages of grid energy storage. Governments everywhere are working to create cutting-edge energy storage technologies as the need for renewable energy in the future grows.

Energy storage at a reasonable cost is the main issue facing the thermal energy storage industry. The application of lithium-ion batteries has been a significant development in this field. These batteries are known for their high energy density and long lifespans—500 deep cycles, or how many full charges from 20% to 100% can be made of them before performance starts to decline. They can also be used in power generating, district heating and cooling, and electric cars.

The COVID-19 pandemic lockdown led to a temporary prohibition on import and export, as well as manufacturing and processing activities across a range of businesses and electrical utilities. This reduced consumer demand for power. Furthermore, it is anticipated that the pandemic will hinder market growth due to a halt in the installation and construction of fresh electric utility infrastructures, energy-efficient power plants, grid networks, and other power plants due to a shortage of labor and an increase in the demand-supply gap. The market growth for thermal energy storage decreased as a result in 2020's second, third, and fourth quarters. The worldwide economy is anticipated to strengthen with the start of COVID-19 immunization in several economies, which led to a rebound in the thermal energy storage market after the second quarter of 2021.

Market Dynamics:

Market Drivers-

Increasing Demand for Energy Storage Solutions

• The thermal energy storage market is being driven by the increasing demand for energy storage solutions from various industries. As global energy demand rises, technologies that can efficiently and stably preserve electricity are becoming increasingly important. Thermal storage devices offer an economically viable means of boosting the overall dependability and effectiveness of energy systems by storing excess energy generated during off-peak hours and releasing it during periods of high demand. Grid-scale storage of energy, commercial buildings, manufacturing processes, and residential heating and cooling systems are just a few of the many uses for these systems. The need for thermal energy storage solutions is anticipated to increase in response to growing emphasis on reliability of the grid, energy security, and flexibility; this will propel market expansion in the thermal energy storage industry.

Integration of Renewable Energy Sources

• The connection of energy from renewable sources, such wind and solar energy, to the electrical grid. The production of renewable energy is by its very nature sporadic and variable, based on the weather and the time of day. By storing extra energy when it is plentiful and releasing it when need exceeds supply and alternative energy production is low, thermal energy storage devices significantly reduce the fluctuation of renewable energy. This maximizes the use of renewable energy resources, enhances grid stability, and permits better matching of energy supply and demand. The integration of heat storage with renewable energy sources is anticipated to fuel market expansion in the Thermal Energy Storage Market as governments around the world set ambitious targets for renewable energy installations and try to minimize carbon emissions.

Market Trends-

Integration with Renewable Energy

• the growing use of thermal energy storage devices to facilitate the integration of energy from renewable sources like wind and solar energy. The production of renewable energy is by its very nature sporadic, reliant on variables such as daylight availability and meteorological conditions. By storing excess energy during times of high generation and releasing it during times of high demand or low renewable energy production, thermal energy storage provides a way to reduce the fluctuation of renewable energy. As a result, grid stability is improved, demand and supply of energy can be more closely matched, and the overall efficiency of renewable energy sources is raised. As governments and utilities around the world seek to reduce carbon emissions and increase the amount of renewable energy in the energy mix, it is anticipated that the need for thermal energy storage systems for the incorporation of renewable energy will increase, driving industry trends in the thermal energy storage market.

Adoption of Innovative Storage Technologies

• The growing usage of cutting-edge storage methods, such as phase change materials (PCMs), molten saltwater, and thermochemical storage, is propelling the market in thermal energy storage. Higher energy density, better thermal performance, and longer-lasting storage capacities are just a few of the advantages that these cutting-edge storage technologies have over conventional sensible heat storage systems. Phase change substances, for instance, can store energy well with little temperature swings because they can shift from a solid to a liquid or vice versa while absorbing or exchanging latent heat. In contrast, systems that store thermal energy at excessive temperatures for lengthy periods of time make use of the large thermal conductivity of molten salts. Thermochemical storage systems have a high energy density and are scalable because they store and release heat energy through chemical reactions.  The adoption of these technologies is anticipated to increase as research and development activities continue to advance them and bring down costs, hence influencing the market conditions in the Thermal Energy Storage Market.

Market Restraining Factors-

High Initial Investment Costs

• The substantial upfront cost associated with putting thermal energy storage devices into place. Technologies for storing thermal energy require complex infrastructure and machinery, such as control systems, heat exchangers, insulation, and storage tanks. When it comes to large-scale thermal energy storage projects that serve commercial or industrial enterprises, the initial expenses of designing, engineering, acquiring, and installing these components can be high. The precise specifications of every project, such as site parameters, system capacity, and connection with preexisting infrastructure, might further raise the required investment amount. High initial investment costs, particularly in areas with limited access to government incentives or finance, may discourage prospective investors and project developers into pursuing thermal energy storage projects. The adoption of thermal energy storage technologies must be accelerated by addressing cost obstacles through technological breakthroughs, economies of scale, and financial incentives.

List of Companies Profiled:

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

Key Industry Developments:

• In March 2023, A significant energy storage project was developed in Germany by E.ON and RWE Renewables with the goal of utilizing excess renewable energy and supplying grid stability via battery storage.
• In May 2023, The Swedish battery company Northvolt has raised $2.75 billion to increase its manufacturing capacity and further the development of sustainable lithium-ion batteries for energy storage systems and electric cars.

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:

Thermal Energy Storage Market Segmentation Analysis:

By Product Type

• Sensible Heat Storage
• Latent Heat Storage
• Thermochemical Heat Storage

By Technology 

• Molten Salt Technology
• Electric Thermal Storage Heaters
• Solar Energy Storage
• Ice-based Technology
• Miscibility Gap Alloy Technology

By Application 

• Process Heating & Cooling
• District Heating & Cooling
• Power Generation
• Ice storage air-conditioning
• Others

By End-user 

• Industrial
• Utilities
• Residential & Commercial

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, UK, Italy, Spain, Russia, Rest of Europe)
• Asia-Pacific (China, India, Japan, ASEAN, Rest of Asia-Pacific)
• LAMEA (Latin America, Middle East, Africa)

The report also helps in understanding Global Thermal Energy Storage Market dynamics, structure by analyzing the market segments, and project the Global Thermal Energy Storage Market size. Clear representation of competitive analysis of key players by type, price, financial position, product portfolio, growth strategies, and regional presence in the Global Thermal Energy Storage Market make the report investor’s guide.

Global Thermal Energy Storage Market Segmentation Insights:

The market is divided into segments based on By Product Type, By Technology, By Application, By End-user.

By Product Type

Based on the Product Type of the market is Categorised into Sensible Heat Storage, Latent Heat Storage, Thermochemical Heat Storage.

In 2021, sensible heat storage generated the highest revenue share of 46.2%. This is explained by the growing need for solar thermal systems as well as their general applicability to large-scale HVAC systems. One of the technology's primary features that will further improve product penetration is the ability to charge and discharge in both directions for an endless number of cycles.

The category of thermochemical heat storage is predicted to increase at the fastest pace, with a CAGR of 13.8%, over the course of the forecast period. The heat that has been stored by the different media in this storage is released when a reverse reaction takes place between them. A higher energy density is provided by thermochemical storage systems compared to sensible or latent heat storage systems. Long-term storage is preferable with this type of heat storage since losses only occur during both the charging and discharging phases.

By Application

Based on the Application of the market is segmented into Process Heating & Cooling, District Heating & Cooling, Power Generation, Ice storage air-conditioning, Others.

The industrial segment topped all others in 2021 with a revenue share of 39.7%, and it is anticipated to maintain its dominance for the duration of the projection. Growing infrastructure development & establishment costs would necessitate more HVAC systems, which will propel the industrial market. Furthermore, the market will expand as more and more sectors of the economy that utilize large volumes of hot water for commercial purposes implement these systems.

The utilities segment is expected to grow at the fastest rate over the projection period. This industry includes public services like phone, broadband internet, transit, sewage, electricity, water, and natural gas. Thermal energy is used to deliver these public services at a very low cost. Thermal energy is extracted and converted into the necessary energy form in cogeneration plants.

In 2021, the market share of the residential as well as commercial segment was noteworthy. To meet the energy needs of the commercial and residential sectors, thermal energy plants are used to produce electrical energy. In order to store thermal energy and supply homes and businesses with the necessary heating and cooling capacity, electrical store heaters or home storage units are also utilized.

Regional Snapshots:

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: 2018-2022
• Base year: 2023
• Forecast: 2024 to 2031
• Representation of Market revenue in USD Million

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