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The thermal energy storage market size is valued to increase by USD 2.88 billion, at a CAGR of 9.61% from 2023 to 2028. Increasing demand for CSP will drive the thermal energy storage market.
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Thermal energy storage (TES) markets encompass various applications, including waste heat recovery and peak shaving, offering significant business advantages. For instance, TES systems in peak shaving applications can reduce energy costs by up to 20%, enabling businesses to mitigate demand charges and improve return on investment (ROI) (Source: International Energy Agency). Insulation materials play a crucial role in TES systems, enhancing material durability and improving heat exchanger efficiency by up to 15% (Source: National Renewable Energy Laboratory). Geothermal energy storage and latent heat storage are essential TES technologies. Cost-effectiveness analysis reveals that geothermal energy storage can provide thermal energy at a lower cost than traditional fossil fuel-based power plants (Source: Energy Storage Association). In addition, thermochemical storage and phase change materials enable efficient charge-discharge cycles, contributing to grid stability improvement and the integration of renewable energy sources. Temperature stratification modeling and heat pump integration are essential for optimizing thermal storage systems' performance. These strategies enhance energy density and efficiency metrics, ensuring system reliability and reducing thermal losses. Safety regulations and control strategies are also critical considerations, ensuring the safe and efficient operation of thermal storage systems in various industries, such as industrial process heat and power-to-heat systems. Solar thermal power and concentrated solar power benefit from thermal storage systems, enabling the production of electricity during peak demand hours while minimizing environmental impact. Overall, thermal energy storage systems play a vital role in improving business outcomes, enhancing energy efficiency, and ensuring grid stability.
The significant surge in demand for Concentrated Solar Power (CSP) technology serves as the primary market driver.
The increasing demand for renewable energy sources represents a significant market trend. A growing number of consumers and businesses are turning to renewable energy as a preferred energy source.
The increasing demand for energy storage from alternate sources, driven by efficiency considerations, poses a significant challenge to the industry's growth trajectory.
The thermal energy storage industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The molten salt energy storage segment is estimated to witness significant growth during the forecast period.
The market continues to evolve, driven by advancements in waste heat recovery, insulation materials, and geothermal energy storage. Peak shaving applications and material durability are key focus areas, with cost-effective analysis of charge-discharge cycles, thermal stratification modeling, and heat pump integration shaping market trends. Heat exchanger efficiency, energy density, and energy efficiency metrics are crucial performance indicators. Thermochemical storage, latent heat storage, and phase change materials are transforming the landscape, with solar thermal power and thermal losses influencing grid stability improvement.
The Molten salt energy storage segment was valued at USD 2.87 billion in 2018 and showed a gradual increase during the forecast period.
Molten salt energy storage (MSES) dominates the market, accounting for over half of the global share, due to its use in large-scale solar plants, such as Concentrated Solar Power (CSP), for producing electricity around the clock. In CSP plants, MSES, like sodium nitrate and potassium nitrate, is heated by reflecting sunlight to temperatures up to 1,022 degrees Fahrenheit (550 degrees C), enabling energy storage and efficient power generation.
Europe is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The European market is experiencing significant growth due to the increasing adoption of renewable energy sources in the region. Governments are offering incentives and implementing regulations to accelerate the transition towards clean energy, leading to the installation of numerous renewable energy farms. By 2030, the European Union aims to source approximately 42% of its energy from renewable sources. Thermal energy storage plays a crucial role in the efficient utilization of renewable energy, particularly solar and wind, by storing excess energy during off-peak hours for use during peak demand periods.
This results in operational efficiency gains and cost reductions for energy providers and consumers. According to recent reports, the European market is projected to grow at an impressive rate, with installations increasing by over 20% annually. This growth is driven by the need to address energy storage challenges and maximize the utilization of renewable energy sources.
Customer Landscape of Thermal Energy Storage Industry
Companies are implementing various strategies, such as strategic alliances, thermal energy storage market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Abengoa SA - This company specializes in thermal energy storage solutions, featuring parabolic trough technology for clean energy generation and molten salt storage capabilities.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Thermal Energy Storage Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
164 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.61% |
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Market growth 2024-2028 |
USD 2.88 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
9.41 |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
"Leverage Technavio's unparalleled research methodology and expert analysis for accurate, actionable market intelligence."
The thermal energy storage (TES) market encompasses various technologies designed to store thermal energy for later use. Two primary categories are sensible heat storage using molten salts and latent heat thermal energy storage (LHTES) using phase change materials (PCMs). Sensible heat storage systems maintain a constant temperature throughout the storage medium, while LHTES systems rely on the phase change properties of PCMs to absorb or release heat. Advanced thermal energy storage materials, such as metal hydrides in thermochemical energy storage, offer enhanced performance and efficiency. In the context of solar power plants, TES systems play a crucial role by providing energy stability and enabling the integration of intermittent renewable power sources. Modeling of thermal stratification in TES tanks and heat exchanger design optimization are essential for ensuring system efficiency and reliability. Life cycle cost analysis is a critical business function in the TES market, as it helps companies compare various storage options based on the total cost of ownership. TES integration with heat pumps and industrial processes is another significant application, allowing for waste heat recovery and improved building energy efficiency. Grid-scale TES systems enable power grid stabilization and improved operational planning by balancing electricity supply and demand. Control algorithm design and thermal storage system reliability and safety are essential considerations for TES market players. Optimization of thermal energy storage systems and performance evaluation metrics are crucial for assessing system efficiency and competitiveness. Environmental impact assessment and economic analysis are essential aspects of the TES market. For instance, a study comparing various TES technologies found that molten salt storage systems had a lower carbon footprint than LHTES systems, offering a competitive edge in the market. In summary, the TES market offers diverse applications and technologies, each with unique advantages and challenges. Effective modeling, optimization, and cost analysis are essential for businesses to make informed decisions and compete in this growing market.
What is the expected growth of the Thermal Energy Storage Market between 2024 and 2028?
USD 2.88 billion, at a CAGR of 9.61%
What segmentation does the market report cover?
The report is segmented by Technology (Molten salt energy storage and Phase change material), End-user (Industrial, Residential and commercial, and Utilities), and Geography (Europe, North America, APAC, Middle East and Africa, and South America)
Which regions are analyzed in the report?
Europe, North America, APAC, Middle East and Africa, and South America
What are the key growth drivers and market challenges?
Increasing demand for CSP, Rising demand from alternate sources of energy storage due to efficiency rate
Who are the major players in the Thermal Energy Storage Market?
Abengoa SA, Acciona SA, ARANER, Baltimore Aircoil Co., BrightSource Energy Inc., Burns and McDonnell, Caldwell Energy Co., CALMAC, Comfort Systems USA Inc., CRYOGEL, DN Tanks Inc., Dunham-Bush Holding Bhd, EnergyNest, EVAPCO Inc., Goss Engineering, HTS, McDermott International Ltd., SENER GRUPO DE INGENIERIA SA, Steffes LLC, and Thermofin
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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