Thermal Energy Storage Market

The global thermal energy storage market size was valued at around USD 5.84 billion in 2023 and is expected to rise from USD 6.42 billion in 2024 to reach USD 13.87 billion by 2032, growing at a CAGR of 10.1% over the forecast period (2024–2032).

Thermal Energy Storage (TES) is a technology that stores thermal energy, which can later be used for heating, cooling, or power generation. The system captures heat or cold energy for use when demand exceeds supply or when lower-cost energy is available. The global thermal energy storage market is gaining traction due to increasing demand for sustainable and energy-efficient solutions. TES systems play a critical role in balancing energy demand and supply, particularly in renewable energy systems like solar power. By storing excess thermal energy, these systems enable power plants and industrial facilities to operate more efficiently, reducing reliance on non-renewable energy sources.

The global thermal energy storage market is projected to experience steady growth, rising from USD 6.42 billion in 2024 to USD 13.87 billion by 2032, at a CAGR of 10.1%. Factors such as the increasing adoption of renewable energy, advancements in TES technology, and growing energy efficiency initiatives are key drivers behind the market’s expansion over the forecast period.

Thermal Energy Storage Market Latest Trends

One of the latest trends in the thermal energy storage market is the increasing adoption of molten salt technology for energy storage, especially in solar thermal power plants. Molten salt technology is being widely used due to its efficiency in storing high-temperature heat, which can be converted into electricity during peak demand periods. The technology’s ability to support solar energy systems and provide a reliable and cost-effective energy storage solution is driving its adoption globally.

Another emerging trend is the integration of TES systems with renewable energy projects. Governments and private sector companies are investing in TES to complement wind, solar, and hydropower installations, enabling these renewable sources to supply energy consistently, even when the sun is not shining or the wind is not blowing. TES enhances the reliability of renewable energy systems by storing surplus energy for later use, creating a more balanced and efficient grid.

Driving Factors

One of the main driving factors of the thermal energy storage market is the growing demand for renewable energy sources. As global awareness of climate change and the need to reduce carbon emissions grows, renewable energy is becoming a significant focus for governments and organizations. TES plays an essential role in storing surplus energy from renewable sources like solar and wind, enabling energy to be dispatched when demand is high and ensuring a consistent power supply.

Another driving factor is the rising need for energy-efficient solutions across industries. Many industrial processes, including power generation and HVAC systems, require thermal energy. TES systems allow businesses to optimize their energy use by capturing and storing heat during off-peak hours and using it when energy demand peaks. This improves energy efficiency, reduces operational costs, and enhances sustainability.

Thermal Energy Storage Market Analysis by Product

In 2024, the sensible heat storage segment held the largest market share at 45.5%. This can be attributed to its increasing application in solar thermal systems and large-scale HVAC systems. The technology’s ability to store energy for extended periods without performance degradation makes it an attractive option for various industries.

The thermochemical heat storage segment is forecasted to grow at the fastest CAGR of 12.9% during the forecast period. This segment’s growth is driven by its high energy density, which makes it suitable for long-term storage solutions. The technology captures energy through chemical reactions, which can be reversed when the energy is needed, making it highly efficient and sustainable.

Thermal Energy Storage Market Analysis by Technology

Molten salt technology accounted for the largest market share (32.5%) in 2024 and is expected to see substantial growth. This technology is widely used in solar thermal power projects where molten salt is utilized to store heat, which can later be converted into electricity. Its high efficiency and scalability make it a preferred choice for large-scale applications.

Ice-based technology is expected to experience rapid growth during the forecast period. This method uses ice to store energy, which can be used for cooling applications in commercial and residential buildings. Its high energy density and ability to provide consistent cooling make it a popular option for HVAC systems.

Thermal Energy Storage Market Regional Insights

Europe is expected to maintain its leadership in the thermal energy storage market, holding a significant share of 32.5% in 2024. The region’s dominance is driven by its extensive adoption of TES systems for district heating, cooling, and renewable energy projects. Countries like Spain and Germany have been at the forefront of deploying TES systems, particularly in solar power plants, where thermal storage helps smooth the supply of electricity.

The Asia-Pacific region is projected to exhibit the fastest growth, with a CAGR of 18.5% during the forecast period. Rapid industrialization, urbanization, and growing energy demand in countries like China, India, and South Korea are fueling investments in TES technologies. The need for reliable energy storage in regions with growing renewable energy infrastructures and unstable grids is a key factor driving market expansion.

Thermal Energy Storage Market Competitive Landscape

The thermal energy storage market is highly competitive, with major players focusing on technological innovations and expanding their product portfolios. Companies are forming strategic partnerships and engaging in mergers and acquisitions to strengthen their market presence and improve their energy storage solutions.

Top Players in the Thermal Energy Storage Market

1. Abengoa Solar
2. BrightSource Energy
3. Burns & McDonnell
4. CALMAC
5. Cryogel Thermal Energy Storage
6. DN Tanks
7. EDF Renewables
8. EnergyNest
9. Evapco
10. Goss Engineering
11. Ice Energy
12. Infinia Corporation
13. Johnson Controls
14. Kelvin Thermal Technologies
15. NRG Energy
16. Promethean Power Systems
17. SolarReserve
18. Steffes Corporation
19. TESVOLT
20. Viking Cold Solutions

Thermal Energy Storage Market Recent Developments

• April 2024: Finnish company Polar Night Energy secured €7.6 million in a funding round to expand its sales and research teams and enhance its thermal energy storage technology.
• April 2024: MN8 Energy LLC raised USD 325 million through a private placement to expand its solar power operations.
• April 2024: NTPC invited participation in a 50MW CSP project with a thermal energy storage system to ensure power supply during non-solar hours.

Report Metric Details

Thermal Energy Storage Market Segmentation

By Product

1. Sensible Heat Storage
2. Latent Heat Storage
3. Thermochemical Heat Storage

By Technology

1. Molten Salt Technology
2. Electric Thermal Storage Heaters
3. Solar Energy Storage
4. Ice-based Technology
5. Miscibility Gap Alloy Technology

By Region

1. 1. North America
      • USA
      • Canada
   2. Europe
      • Germany
      • Spain
      • France
      • UK
      • Rest of Europe
   3. Asia Pacific
      • China
      • India
      • Japan
      • South Korea
      • Rest of Asia-Pacific
   4. Latin America
      • Brazil
      • Rest of Latin America
   5. Middle East & Africa (MEA)
      • GCC Countries
      • South Africa
      • Rest of MEA

ThermalEnergy Storage Market

Global Thermal Energy Storage Market

Thermal Energy Storage Market Size

Thermal Energy Storage Growth

Thermal Storage Technologies

Molten Salt Technology

Sensible Heat Storage Market

Latent Heat Storage

Renewable Energy Storage

Energy Storage Solutions