The global thermal energy storage market promises substantial rewards for technology adopters over the next decade. With increases in renewable energy capacity and demand for heating/cooling systems, opportunities abound for companies able to store excess thermal energy for later use.
The global Thermal Energy Storage Market is estimated to be valued at US$ 5.67 Billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Introduction to the Market
Thermal energy storage (TES) involves capturing heat or coolth when it is abundantly available and keeping it stored for future use when needed. With rising demand for efficient energy solutions, TES plays a crucial role in shifting peak loads and integrating renewable energy sources into the grid.
Market Size & Scope
The global thermal energy storage market has been growing steadily driven by the increasing adoption of solar thermal power plants and rising demand for heating and cooling applications globally. Key players operating in the market include BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns & McDonnell, Inc., and DC Pro Engineering.
Competitive Landscape
The TES market remains fairly competitive with the presence of both established global players and local manufacturers. Major companies are focusing on partnerships, new product launches, and mergers & acquisitions to gain a competitive edge and expand their regional presence. Strategic collaborations with technology companies are also on the rise to enhance product functionality.
Market Trends
Some of the key trends observed in the global thermal energy storage market include growing adoption of phase change materials (PCMs) owing to their high latent heat storage capacity, increasing preference for molten salt as a viable storage medium for concentrating solar power (CSP) plants, and rising demand for thermo-chemical storage systems for low-temperature applications.
Market Dynamics
The global thermal energy storage market is expected to grow substantially over the forecast period, driven by the increasing installation of renewable energy power plants worldwide. Governments across countries are supporting the development of renewable capacity through various incentives and policies. Furthermore, rapid urbanization and rising demand for space heating/cooling propel the integration of
Future Outlook
The thermal energy storage market is expected to witness significant growth over the forecast period from 2024 to 2031 driven by increasing demand for efficient energy storage solutions and focus on renewable integration. With advancements in technology, phase change materials are likely to replace conventional storage mediums leading to higher energy densities. These materials can effectively store and discharge thermal energy on demand for various applications like building heating and cooling. Governments across regions are also promoting policies to boost renewable adoption through incentives which will create ample opportunities for thermal storage systems in the coming years. Manufacturers are continuously investing in R&D to develop advanced and cost-effective products. New and efficient storage techniques like biosand-based reservoirs, underground aquifer storage, and molten salt storage tanks are likely to gain traction and enable round-the-clock renewable power generation.
SWOT ANALYSIS
- Strength: Thermal energy storage provides cost effective energy time-shifting capabilities and helps optimize the overall energy system.
- Weakness: High initial investment and limited storage capacities.
- Opportunity: Increasing policies supporting renewables and energy efficiency present an opportunity for the thermal energy storage market to grow.
- Threats: Fluctuating fossil fuel prices and availability of substitutes may impede the demand growth.
Market Drivers
- Growing adoption of solar thermal technologies – Concentrated solar power plants paired with thermal energy storage are being set up on a large scale globally to meet the increasing electricity demand.
- Stringent regulations promoting sustainable energy – Favorable policies and regulations supporting renewable integration and energy savings are a major driver for thermal energy storage systems worldwide.
- Rising focus on distributed energy resources – The small scale commercial and residential thermal storage solutions are gaining traction with an aim to improve energy access through stored solar heat.
Opportunity
Increasing investments in renewable energy present a major growth opportunity for the thermal energy storage market. Massive solar and wind power projects are being developed across regions which will drive the demand for energy storage technologies to overcome generation intermittency issues. Advanced storage mediums allowing high energy densities at lower costs can effectively store surplus renewable energy for off-peak usage. This will improve asset utilization of renewables. Further, building level storage solutions synchronized with HVAC systems offer opportunities to improve energy efficiency in the commercial sector. Policy push for zero energy buildings and net zero carbon targets are likely to boost the uptake of thermal energy storage systems in the coming years.
Key Takeaways
Growing demand for sustainable energy solutions: With heightening environmental concerns, the trend towards clean energy adoption is gaining momentum worldwide. Thermal storage helps maximize renewable usage and complement intermittent resources, meeting an important need.
Global expansion of renewables market: Aggressive capacity addition of solar and wind farms in major markets like China, US, India, European nations is paving the way for thermal energy storage systems
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
