Thermal Energy Storage Systems Market Size

Thermal Energy Storage Systems Market Size

The thermal energy storage systems market was valued at USD 54.4 billion in 2024 and is estimated to grow at a CAGR of 5.6% from 2025 to 2034. There is rising demand for the thermal energy storage system on account of the increasing demand for electricity. Escalating demand for electricity is steadily driving the demand for thermal energy storage systems. In 2024, the U.S. possessed an approximate electricity generation capability of about 1.3 million MW, or 1,250 gigawatts.
 

Sectors including power generation, chemical processing, food and beverages, and HVAC are increasingly integrating thermal energy management systems to improve energy efficiency and lower the cost of operations. The emergence of these sectors will significantly increase the level of electricity consumption, thus augmenting the global thermal energy storage systems market.
 

The major utility of thermal energy storage systems is to store excess energy generated during production peak times to be used when there is no renewable energy source available. This system helps to improve grid stability. The rise in demand for these systems can be attributed to increasing energy production from wind and solar sources. In 2023, U.S. witnessed the significant growth in solar capacity by approximately 17,000 MW.
 

Concentrated solar power (CSP) plants are major users of TES, particularly in regions like the Middle East, North Africa, and the southwestern U.S. where sunlight is abundant. Molten salt-based TES systems are widely integrated into CSP plants to enable round-the-clock electricity generation. Innovations in phase change materials (PCMs), molten salts, and thermochemical storage solutions are enhancing the efficiency and storage capacity of TES systems.
 

Concentrated solar power (CSP) plants are major users of TES, majorly in the Middle East, North Africa, and Southwestern parts of the United States. Those areas have much more sunlight as compared to other regions. Molten salts are now the TES material of choice for CSP plants as it facilitates electricity generation throughout the day. The TES system has storage solutions in PCMs, molten salts, and even thermochemical materials PCMs are revolutionizing efficiency standards and storage capabilities.
 

Governments globally are enacting harsh energy efficiency regulations including the EU’s Energy Efficiency Directive or the U.S. Department of Energy’s energy efficiency storage policies. These steps show that the governments are spending huge amounts of money in these sectors, and it is certainly going to boost the need for energy storage systems. The Europe, in 2023, invested more than 105 billion in renewable energy sectors.