Thermal Energy Storage Market will grow at highest pace owing to increasing focus on renewable energy integration
3 Apr, 2025
Thermal energy storage involves technologies that help store thermal energy for later use in heating and cooling applications. Thermal energy storage is used by concentrating solar power plants, waste heat recovery systems, and other renewable energy plants to store excess heat for use when power demand is high. It helps balance energy demand and supply from intermittent renewable sources like solar and wind power. The key advantages of thermal energy storage include reduced utility bills, lowering peak electricity demand charges, and backup power supply during power outages. The growing demand for continuous power supply along with focus on integration of renewable energy is fueling the adoption of thermal energy storage solutions globally. The Global Thermal Energy Storage Market is estimated to be valued at US$ 1.5 billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2030. Key Takeaways Key players operating in the thermal energy storage are Calmac, DN Tanks, Abengoa Solar, Burns & McDonnell, and FAFCO among others.Calmac and DN Tanks dominate the market with their diversified product portfolio and vast global presence. The rising Thermal Energy Storage Market Demandand cooling applications from the commercial, residential, and industrial sectors is a major factor contributing to the growing adoption of thermal energy storage solutions. The increasing focus on renewable energy projects is further fueling market growth. Recent technological advancements in thermal energy storage materials such as phase change materials and chemical reactions-based storage are helping improve storage capacity and system efficiency. Innovations in areas such as thermo-chemical energy storage are also expected to boost market opportunities over the forecast period. Market Trends - Latent heat storage dominating the technology segment: Latent heat storage systems that use phase change materials are witnessing higher preference over sensible and thermochemical heat storage due to higher energy density and isomorphism properties. - Growing usage in residential sector: With increasing awareness, thermal storage is finding increasing residential applications for solar hot water, radiant floor heating among others. This is expected to drive residential sector demand over the forecast period. Market Opportunities - Rising focus on retrofitting: Increasing focus on retrofitting of existing building infrastructure with thermal storage solutions presents significant growth prospects. - Emergence of large-scale district heating projects: Growing popularity of sustainable large-scale district heating and cooling projects are expected to boost demand for bulk thermal storage systems. Impact of COVID-19 on Thermal Energy Storage Market Growth: The COVID-19 pandemic has adversely impacted the growth of the thermal energy storage market globally. During the pandemic, lockdowns were imposed by various governments to curb the spread of the virus which disrupted the supply chain and halted manufacturing activities. This led to decline in demand from end use industries like power generation and district heating & cooling which are major application areas of thermal energy storage systems. Projects were delayed or postponed due to challenges in procurement of components from overseas locations. Movement restrictions also hampered on-site installation and commissioning works. However, post pandemic the demand is expected to surge significantly as industries restart operations and projects resume work. Governments across regions are promoting renewable energy integration to power generation grids for which thermal storage plays a crucial role by enabling shift of solar and wind power to peak demand hours. Integration of TES with Concentrating Solar Power plants, district heating systems and waste heat recovery from thermal power stations will pick up pace. Incentives and funding under economic stimulus packages for green recovery will boost sustainable energy infrastructure development including thermal energy storage facilities. Adoption of hybrid renewable-thermal storage systems is likely to grow for round the clock renewable power supply with stability. North America Thermal Energy Storage Market: North America currently accounts for the largest share of the global thermal energy storage market in terms of value. U.S. dominates the region's TES industry. Presence of major international players and technological advancements have propelled the market growth. Rising focus on integration of renewables into power grids and growing demand for clean energy from commercial sector are major drivers for thermal storage adoption. States like California are pioneering in commercializing concentrated solar power plants integrated with molten salt TES for dispatchable solar power generation. Increasing investments in renewable heating and district cooling infrastructure present growth opportunities going forward. Fastest Growing Region for Thermal Energy Storage Market: Asia Pacific region is poised to grow at the fastest pace during the forecast period. Rapid industrialization and urbanization, rising energy demands especially from emerging economies like India and China along with initiative to reduce carbon footprint are fueling the adoption of thermal energy storage. Strong government support to scale up renewable capacity and push for cleaner alternatives to conventional power generation will aid the market expansion. Growing interest in heating and cooling applications in commercial and residential buildings also provides lucrative prospects. Incentives provided by governments for renewable hybrid projects with storage under utility-scale programs will significantly contribute to regional market growth.
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups.
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