Global Thermal Energy Storage Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

The global thermal energy storage (TES) market is segmented by technology, material, application, and end-user, reflecting the diverse range of solutions and applications within the industry.

In terms of technology, thermal energy storage systems are categorized into three main types: sensible heat storage, latent heat storage, and thermochemical heat storage. Sensible heat storage systems store thermal energy by raising or lowering the temperature of a storage medium, such as water or rocks, without changing its phase. Latent heat storage systems, on the other hand, utilize phase change materials (PCMs) to store energy by absorbing or releasing heat during a phase transition, such as melting or freezing. Thermochemical heat storage systems involve storing energy through reversible chemical reactions, enabling high energy density and long-term storage capabilities.

The choice of material is critical for thermal energy storage systems, with various options available depending on the application requirements and temperature range. Common materials include molten salts, chilled water, hot water, ice, and phase change materials (PCMs). Molten salts, such as a mixture of sodium nitrate and potassium nitrate, are widely used in concentrated solar power (CSP) plants for sensible heat storage due to their high heat capacity and thermal stability. Chilled water systems are commonly employed in district cooling applications, while ice storage systems are utilized for peak load shifting in air conditioning systems.

In terms of application, thermal energy storage finds widespread use in power generation and heating & cooling systems. In power generation, TES technologies play a crucial role in enhancing the efficiency and reliability of renewable energy sources, such as solar and wind power. For example, in CSP plants, thermal energy storage allows for dispatchable power generation by storing excess heat during sunny periods and releasing it to generate electricity when needed. In heating & cooling applications, thermal energy storage systems enable load shifting, demand management, and energy efficiency improvements in district heating and cooling networks, HVAC systems, and industrial processes.

The end-user segment of the thermal energy storage market encompasses utilities, commercial, and industrial sectors. Utilities utilize thermal energy storage systems to optimize grid stability, manage demand fluctuations, and integrate renewable energy sources into the power grid. Commercial buildings, including office complexes, shopping malls, and hotels, deploy thermal energy storage for space heating, cooling, and hot water supply, reducing energy costs and carbon emissions. Industrial facilities, such as manufacturing plants, food processing facilities, and data centers, implement TES technologies to improve process efficiency, manage energy demand, and reduce operational expenses.

Global Thermal Energy Storage Segment Analysis

In this report, the Global Thermal Energy Storage Market has been segmented by Technology, Material, Application, End User, and Geography.

Global Thermal Energy Storage Market, Segmentation by Technology

The Global Thermal Energy Storage Market has been segmented by Technology into Sensible Heat Storage, Latent Heat Storage, and Thermochemical Heat Storage.

Sensible heat storage is a method of thermal energy storage that relies on the specific heat capacity of a storage medium. This approach involves storing heat by increasing or decreasing the temperature of a material without changing its phase. Typically, the storage medium is housed within insulated storage tanks to minimize heat loss and maintain thermal efficiency.

Among the various storage mediums available, molten salt stands out as the most widely used and commercially viable option. Molten salt exhibits exceptional thermal properties, making it an ideal choice for sensible heat storage applications. Its high specific heat capacity allows it to absorb and release large amounts of thermal energy efficiently. Additionally, molten salt demonstrates excellent thermal stability, ensuring reliable performance over extended periods.

Molten salt finds extensive use in a wide range of commercial and industrial applications due to its versatility and effectiveness. It has become a cornerstone of thermal energy storage systems, with molten salt-based projects comprising over 50% of operational thermal energy storage installations worldwide. This widespread adoption underscores the trust and confidence placed in molten salt as a reliable and effective heat storage medium.

One of the key advantages of sensible heat storage technology, particularly when utilizing molten salt, is its cost efficiency, especially at scale. Large-scale thermal energy projects benefit from economies of scale, resulting in lower overall costs per unit of stored energy. This cost-effectiveness makes sensible heat storage an attractive option for utilities, industrial facilities, and commercial applications seeking to optimize energy management and reduce operational expenses.

Global Thermal Energy Storage Market, Segmentation by Material

The Global Thermal Energy Storage Market has been segmented by Material into Molten Salt, Chilled Water, Heat, Ice, and Others.

Molten salts have emerged as the predominant storage medium for thermal energy storage due to their exceptional properties, including high boiling points and volumetric heat capacities. These attributes make them highly efficient at storing and releasing thermal energy over extended periods.

In practical applications, thermal energy stored in molten salts can be utilized when needed to generate electricity through a process involving a steam generator. When energy demand arises, the molten salt is pumped from the storage tanks into the steam generator. In the steam generator, the high temperature of the molten salt is used to boil water, producing steam. This steam then drives a turbine connected to a generator, which converts the mechanical energy into electricity.

This process of utilizing molten salts for thermal energy storage and electricity generation offers several advantages. Firstly, the high boiling points of molten salts ensure that they remain in a liquid state even at elevated temperatures, allowing for efficient heat transfer and storage. Additionally, their high volumetric heat capacities enable them to store large amounts of thermal energy within a relatively small volume, making them suitable for compact storage systems.

The use of molten salts in thermal energy storage systems contributes to the integration of renewable energy sources, such as solar and wind power, into the electricity grid. By storing excess energy generated during periods of high renewable energy production, molten salt-based storage systems enable the dispatch of electricity during periods of peak demand or when renewable energy generation is limited.

Global Thermal Energy Storage Market, Segmentation by Application

The Global Thermal Energy Storage Market has been segmented by Application into Power Generation and Heating & Cooling.

Thermal energy storage (TES) systems integrated into concentrating solar power (CSP) plants offer a transformative solution to address the intermittency of solar resources and enhance the economics of solar energy generation. By storing excess thermal energy during periods of intense sunlight, TES systems enable CSP plants to extend their operating hours and deliver electricity when solar radiation is insufficient, such as during cloudy weather or at night. This capability not only enhances the reliability of solar power generation but also reduces the levelized cost of energy (LCOE) by optimizing the utilization of available resources.

During peak solar hours, when sunlight is abundant, TES systems collect and store thermal energy using a variety of storage mediums, such as molten salts or phase change materials. This stored energy can then be dispatched during periods of low solar irradiance or high energy demand, effectively shifting the delivery of power to times of higher value. By decoupling energy production from solar radiation availability, TES systems enable CSP plants to operate continuously and provide grid stability without relying on fossil fuel backup.

The integration of TES into CSP plants not only improves the economic viability of solar energy but also enhances the overall performance and reliability of energy systems. By mitigating the mismatch between energy supply and demand, TES systems contribute to grid stability and reduce the need for conventional backup power sources. Additionally, TES enables CSP plants to participate in electricity markets more effectively by offering flexible dispatch capabilities and firm capacity, further strengthening the integration of renewable energy into the grid.

Thermal energy storage plays a vital role in energy conservation by enabling the efficient use of renewable resources and reducing reliance on non-renewable energy sources. By storing excess energy during periods of low demand or high renewable generation and releasing it when needed, TES systems help optimize energy production and consumption patterns, thereby minimizing waste and maximizing resource utilization. This promotes sustainability and contributes to the transition to a cleaner, more resilient energy future.

Global Thermal Energy Storage Market, Segmentation by End User

The Global Thermal Energy Storage Market has been segmented by End User into Utilities, Commercial, and Industrial.

Thermal energy storage (TES) systems are increasingly integrated into electric utility plants as an effective demand-side management strategy. These systems utilize ice or chilled water technologies to store thermal energy in tanks during off-peak hours, when electricity demand is low. By doing so, TES systems enable utilities to shift customers' power demand to off-peak hours, thus reducing the strain on the grid during peak periods and minimizing the need for additional power plants.

The principle behind TES in utility plants is simple yet impactful: during times of low electricity demand, typically at night or during weekends, excess electricity is used to produce ice or chill water, which is then stored in insulated tanks. When demand peaks during the day, especially during hot summer months or periods of extreme weather, the stored thermal energy is used to meet the increased demand for electricity. This allows utilities to avoid or delay the activation of additional power plants, which are typically more expensive to operate and may contribute to environmental concerns.

One of the key benefits of incorporating TES systems into utility plants is their ability to support time-of-day pricing strategies. Many utilities offer differential pricing to their customers, selling electricity at a lower rate during off-peak hours to encourage load shifting and better utilize existing infrastructure. TES systems complement this pricing model by enabling customers to consume electricity during cheaper off-peak periods while still meeting their energy needs during peak hours.

By leveraging TES for demand-side management, utilities can achieve several important objectives. Firstly, they can improve grid reliability and stability by reducing peak demand and avoiding overloading of transmission and distribution networks. Secondly, TES systems help utilities optimize their generation mix and reduce reliance on expensive peaker plants, thereby lowering operational costs and improving overall efficiency. Finally, TES contributes to energy conservation and environmental sustainability by promoting more efficient use of electricity resources and reducing emissions associated with peak power generation.

Global Thermal Energy Storage Market, Segmentation by Geography

In this report, the Global Thermal Energy Storage Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Thermal Energy Storage Market Share (%), by Geographical Region, 2023

The global thermal energy storage (TES) market displays regional variations driven by factors such as technological advancements, policy frameworks, energy demand patterns, and industrial development.

In North America, particularly in the United States and Canada, the TES market is characterized by a strong emphasis on renewable energy integration, grid modernization, and energy efficiency initiatives. These efforts are driven by government incentives, such as tax credits and renewable portfolio standards, which encourage the adoption of TES technologies to support clean energy deployment and mitigate greenhouse gas emissions. Additionally, the region's mature industrial base and robust research and development infrastructure contribute to innovation and market growth in TES applications across various sectors, including power generation, buildings, and industrial processes.

Europe represents another significant market for TES systems, driven by ambitious climate and energy targets set by the European Union (EU) to achieve carbon neutrality by 2050. Countries such as Germany, Spain, and the United Kingdom lead the region in TES deployment, leveraging advanced technologies and supportive policies to integrate renewable energy sources, improve energy security, and reduce dependency on fossil fuels. Moreover, the region's focus on energy transition and sustainability fosters collaborations among industry stakeholders, research institutions, and policymakers to drive innovation and market expansion in TES applications, including district heating and cooling, grid stabilization, and industrial processes.

In the Asia-Pacific region, rapid urbanization, industrialization, and economic growth drive the demand for TES solutions to meet the region's burgeoning energy needs while addressing environmental challenges. Countries like China, Japan, South Korea, and India are investing in TES technologies to enhance energy security, reduce air pollution, and optimize energy use across diverse sectors. Furthermore, supportive government policies, technological advancements, and increasing investments in renewable energy infrastructure drive market growth in TES applications, including concentrated solar power (CSP), solar heating and cooling, and energy storage for microgrids and off-grid communities.

Latin America presents emerging opportunities for the TES market, particularly in countries like Brazil, Mexico, and Chile, where renewable energy deployment is on the rise. The region's abundant solar and wind resources, coupled with supportive regulatory frameworks and investment incentives, create a conducive environment for TES deployment in renewable energy projects, grid integration, and industrial applications. Additionally, the region's focus on energy access and sustainability drives innovation and market expansion in TES solutions tailored to local needs and conditions.

This report provides an in depth analysis of various factors that impact the dynamics of Global Thermal Energy Storage Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Key players in Global Thermal Energy Storage Market include

• BrightSource Energy Inc.
• Aalborg CSP A/S
• Abengoa SA
• Baltimore Aircoil Company
• Burns & McDonnell
• SaltX Technology Holding AB
• SolarReserve LLC
• Terrafore Technologies LLC
• Trane Technologies plc

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis