Thermal energy storage involves capturing waste heat or solar thermal energy and storing it for later use. Thermal energy storage systems have applications in building heating and cooling, district heating and cooling and other industrial processes. It allows energy to be stored at high or low temperatures and discharged for hours or seasons to meet demand. Common thermal storage technologies include molten salt tanks, water tanks, pits, boreholes and phase change materials. Molten salt is widely adopted for large scale thermal energy projects as it has high energy density and heat transfer rates.
The global thermal energy storage market size is estimated to be valued at US$ 5.13 billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Growing demand for thermal energy storage systems is expected to be one of the key drivers for the market growth over the forecast period. Increasing applications of waste heat recovery through thermal energy storage help enhance energy efficiency and reduce energy costs. Rising focus on renewable energy integration and development of concentrated solar power plants that utilize thermal energy storage to deliver power after sunset is also fueling the demand. District heating and cooling plants increasingly rely on large scale thermal energy storage solutions to reduce operating costs and deliver energy more effectively.
Stricter emission norms and initiatives promoting clean energy are encouraging adoption of thermal energy storage systems to manage intermittent renewable power and optimize grid performance. Sustainable energy development goals of countries like ambition carbon neutral targets provide a conducive environment for thermal storage market. Declining prices of thermal storage technologies also contribute to the increased penetration of these solutions across various applications.
The global thermal energy storage market can be segmented based on technology, material, application, and region. Among technology, the sensible heat storage technology dominates the market due to its low cost and maturity. In sensible heat storage technology, large quantities of heat can be stored or withdrawn by raising or lowering the temperature of a storage medium like water, rocks, or concrete. Among material, phase change material dominates the market due to its ability to store larger amounts of heat energy per unit volume. Phase change materials can change their state from solid to liquid at a certain temperature. Among applications, utility based applications dominate the market as thermal energy storage helps reduce peak electricity demand and integrate renewable energy.
Political: Government support for renewable energy and carbon reduction policies drive the adoption of thermal energy storage technology. Economic: Thermal energy storage helps reduce electricity bills by shifting consumption to off-peak hours and enables cost-effective integration of renewables. Social: Rising global warming concerns and energy security issues are increasing focus on green technologies. Technological: Advancements in materials science facilitate development of high performance phase change materials with customized melting points.
Global Thermal Energy Storage Market Size is expected to witness high growth over the forecast period. The Asia Pacific region dominates the market currently due to strong growth in renewable energy sector in China and India. North America is also expected to grow at a high rate supported by favorable policies for renewable integration. Key players operating in the thermal energy storage market are BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns & McDonnell, Inc., and DC Pro Engineering. BrightSource Energy, Inc. is a leading provider of utility-scale solar thermal energy technology. EnergyNest AS builds seasonal heat storage solutions for buildings and district heating networks. Ice Energy produces electricity storage and load management systems using thermal energy storage technologies.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it