Thermal Energy Storage Market

Thermal Energy Storage Market Is Estimated To Witness High Growth Owing To Increasing Demand For Renewable Energy Sources And Growing Focus On Energy Efficiency

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Market Overview:

The thermal energy storage market is witnessing significant growth due to increasing demand for renewable energy sources and a growing focus on energy efficiency. Thermal energy storage systems play a crucial role in storing excess energy generated from renewable energy sources such as solar and wind. These systems efficiently store heat or cold energy and release it as and when required, thereby ensuring a consistent and reliable energy supply. The utilization of thermal energy storage systems contributes to reducing carbon emissions and promoting sustainable energy practices. Various industries such as power generation, commercial buildings, and district heating and cooling systems are adopting thermal energy storage systems to optimize their energy consumption and reduce operating costs.

Market Dynamics:

The driving factors for the growth of the thermal energy storage market include the increasing adoption of renewable energy sources, government initiatives promoting energy efficiency, and the need for reliable and sustainable energy storage solutions. The shift towards clean energy sources and the integration of renewable energy into the grid demand efficient storage solutions, which can be fulfilled by thermal energy storage systems. Additionally, the growing demand for sustainable cooling solutions and the rising focus on reducing peak power demand are driving the adoption of thermal energy storage systems in various sectors. Furthermore, the development of advanced materials and technologies for thermal energy storage systems is expected to create lucrative opportunities in the market. Overall, the thermal energy storage market is poised for substantial growth in the coming years.

The global Thermal Energy Storage Market Size is estimated to be valued at US$ 4.65 billion in 2023 and is expected to exhibit a CAGR of 10.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Segment Analysis

The thermal energy storage market can be segmented into two main types: sensible heat storage and latent heat storage. Sensible heat storage is currently the dominating segment in the market. This is because sensible heat storage systems are easier to operate and have a lower installation cost compared to latent heat storage systems. Sensible heat storage systems store thermal energy by heating or cooling a solid or liquid medium, such as molten salt or water, which can be used later to generate electricity or provide heating/cooling. These systems are widely used in solar thermal power plants and are increasingly being adopted in commercial and residential buildings for space heating and cooling purposes.

PEST Analysis

Political: Government policies and regulations supporting renewable energy and energy storage technologies are driving the growth of the thermal energy storage market.

Economic: The increasing demand for renewable energy and the need for grid stabilization are creating opportunities for the thermal energy storage market.

Social: Growing awareness about the environmental impact of conventional energy sources is shifting consumer preference towards renewable energy and energy storage solutions.

Technological: Advancements in thermal energy storage technologies, such as phase change materials and advanced heat exchangers, are enhancing the efficiency and effectiveness of energy storage systems.

Key Takeaways

The global thermal energy storage market is expected to witness high growth, exhibiting a CAGR of 10.3% over the forecast period (2023-2030). This growth is primarily driven by the increasing adoption of renewable energy sources, such as solar and wind, which require efficient energy storage solutions. The market is also benefiting from government initiatives and favorable policies promoting renewable energy and energy storage technologies.

In terms of regional analysis, North America is the fastest-growing and dominating region in the thermal energy storage market. This is attributed to the rising demand for renewable energy, strict environmental regulations, and favorable government policies in the region. Europe is also a significant market for thermal energy storage, driven by the increasing investments in renewable energy projects and the need for grid stabilization.

Key players operating in the thermal energy storage market include BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A., Burns & McDonnell, Inc., and DC Pro Engineering. These companies are actively engaged in research and development activities to enhance the efficiency and reliability of thermal energy storage systems. They are also focusing on strategic partnerships, collaborations, and new product launches to gain a competitive edge in the market.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it