Thermal Energy Storage Market Size - By Storage Material (Water, Molten Salt, PCM), By Technology (Sensible Heat, Latent Heat, Thermochemical), By Application, By End User & Forecast, 2024 – 2032

Thermal Energy Storage Market Size

Thermal Energy Storage Market was valued at USD 47.5 billion in 2023 and is estimated to grow at a CAGR of 6.7% from 2024 to2032, driven by the growing adoption of renewable energy sources, such as solar and wind. Thermal energy storage systems help mitigate the intermittent nature of these renewable sources by storing excess energy during periods of low demand and releasing it when needed. Continuous innovations in materials and storage methods are enhancing the efficiency and capacity of thermal energy storage systems.
 

TES systems contribute to improved energy efficiency by reducing peak demand, lowering energy costs, and enhancing the performance of heating, ventilation, and air conditioning (HVAC) systems. They are increasingly being adopted in commercial and industrial applications to optimize energy use. Supportive government policies and incentives aimed at promoting clean energy and energy efficiency are boosting the adoption of TES systems. Regulations encouraging the integration of renewable energy sources and the reduction of carbon emissions are particularly influential.
 

Thermal Energy Storage Market Trends

Thermal energy storage systems are being increasingly deployed in district heating and cooling networks. These systems enhance the flexibility and reliability of heating and cooling services, making them more sustainable and cost-effective. The industrial sector is adopting TES systems to manage process heating and cooling loads, improve energy efficiency, and reduce operational costs. Industries such as chemicals, food and beverage, and manufacturing are notable adopters. The integration of TES systems with smart grids is becoming more prevalent. This integration allows for better demand-side management, enhanced grid stability, and the ability to absorb and store surplus renewable energy, making energy systems more resilient.
 

Thermal Energy Storage Market Analysis

The molten salt segment is set to exceed a value of USD 84.3 billion by 2032. CSP plants use molten salt TES systems to store thermal energy collected during daylight hours, which can then be used to generate electricity during periods of low solar irradiance or after sunset. This ability to provide dispatchable power is a significant driver of the molten salt TES market.
 

The power generation application is anticipated to grow at a CAGR of more than 6.2% through 2032. Some of the key parameters for increasing penetration of thermal energy storage in power generation include increased renewable energy integration, advancements in storage technology, demand for grid stability, and supportive government policies promoting efficient and reliable energy storage solutions.
 

Asia Pacific thermal energy storage market is projected to reach USD 42.7 billion by 2032. The deployment of concentrated solar power (CSP) plants is increasing, with molten salt TES systems being a key component. Countries with high solar irradiance, such as China and India, are leading in CSP developments. The rising energy demand in Asia-Pacific countries is driving the adoption of TES systems to enhance grid stability, manage peak loads, and improve overall energy efficiency. Rapid urbanization and industrialization contribute significantly to this increased demand.

The U.S. thermal energy storage market is poised for significant growth, driven by technological advancements, increasing renewable energy integration, and supportive government policies. While challenges remain, ongoing research, investment, and the trend towards hybrid energy storage solutions are expected to propel the market forward, making TES a critical component of the nation's energy infrastructure.
 

Thermal Energy Storage Market Share

Companies like Siemens Gamesa, McDermott, and Steffes, LLC lead the thermal energy storage industry due to their extensive experience and strong industry reputation. Their established credibility and trust in their products are complemented by a strong emphasis on innovation. This focus enables them to offer advanced technologies and solutions that effectively meet a diverse array of customer needs.
 

Thermal Energy Storage Market Companies

Eminent players operating in the thermal energy storage industry include:

• Abengoa S.A.
• Baltimore Aircoil Company
• Burns & McDonnell
• Caldwell Energy Company
• CALMAC
• Deepchill Solutions Inc.
• DN Tanks
• Dunham-Bush Limited
• EVAPCO, Inc.
• FAFCO, Inc.
• Goss Engineering, Inc.
• McDermott
• New BrightSource, Ltd.
• Siemens Gamesa Renewable Energy, S.A.
• Steffes, LLC
   

Thermal Energy Storage Industry News

• In October 2022, Abengoa received the Renewable Energy Award for the Noor 1 project, which involves the construction of three solar fields, each with a capacity of 200 MW, for the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. The project is currently in the commissioning phase, with Abengoa responsible for the technical design and engineering of the heat transfer fluid (HTF) system and the fabrication of collectors for the three parabolic trough plants within the solar park.
   
• In August 2021, Steffes has expanded its manufacturing operations in the Southeast U.S. with the acquisition of a facility in Shelby, North Carolina, representing an investment of USD 20.9 million. This expansion in Cleveland County enhances the company’s capabilities with advanced metal fabrication technologies and services, boosting its OEM product production and broadening its customer base across the region.
   

This thermal energy storage market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume & revenue in MW & USD Million from 2021 to 2032, for the following segments:

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Market, By Storage Material

• Water
• Molten Salt
• PCM
• Other

Market, By Technology

• Sensible Heat
• Latent Heat
• Thermochemical

Market, By Application

• Power Generation
• District Heating & Cooling
• Process Heating & Cooling

Market, By End User

• Residential & Commercial
• Utilities
• Industrial

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • Spain
  • Italy
  • Sweden
  • Greece
• Asia Pacific
  • China
  • India
  • Australia 
• Middle East & Africa
  • UAE
  • South Africa
  • Morocco
  • Israe 
• Latin America
  • Chile