The global Thermal Energy Storage Market is estimated to be valued at US$ 5.13 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Thermal energy storage systems help store thermal energy for future use. Thermal energy can be stored in the form of heat or cold. Technologies used for thermal energy storage include molten salts, chilled water, water, phase change materials (PCMs), and soluble salts. Thermal energy storage allows shifting energy demand and balancing energy production. It helps reducing reliance on fossil fuels and maximizing renewable energy generation by storing excess heat and cold for later use.
Market Overview:
Thermal energy storage technologies are useful for buildings and power plants using renewable energy sources like solar power and wind energy. They help improving grid reliability and flexibility by time shifting renewable energy to periods of peak demand. Thermal energy can be stored and delivered for space cooling, process heating, and domestic hot water needs. Thermal energy storage aids improving efficiency of combined heat and power systems and waste heat recovery systems. It is gaining traction due to rising emphasis on carbon neutrality and sustainable infrastructure development.
Market key trends:
One of the key trends in the market is increasing investment in latent heat thermal energy storage (LHTES) due to its higher energy density compared to sensible heat storage. Renewable resources like solar and geothermal are driving the adoption of LHTES around the world. Greater focus on reducing emissions is also propelling the commercialization of novel thermal storage materials for applications in smart buildings and electric vehicles. Rising deployment of concentrated solar power plants paired with thermal energy storage is another major trend expected to accelerate the growth of the global market over the forecast period.
Porter’s Analysis
Threat of new entrants: The thermal energy storage market requires huge capital investments to set up new storage facilities and associated infrastructure. This high barrier to entry restricts new companies from entering this market easily.
Bargaining power of buyers: Buyers have moderate bargaining power in this market due to availability of multiple technology and supplier options. However, switching costs limit their bargaining power.
Bargaining power of suppliers: Technology providers and component makers have moderate-to-high bargaining power due to differentiated technologies and lack of substitutes. This enables them to influence prices to some extent.
Threat of new substitutes: No direct substitutes currently exist for thermal energy storage. Alternative renewable energy sources like solar PV pose a potential threat but require significant technological advances to substitute thermal energy storage directly.
Competitive rivalry: The presence of numerous global players makes this a highly competitive market. Companies compete based on technology innovation, cost reduction, and expansion to new applications.
Key Takeaways
The Global Thermal Energy Storage Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing demand for renewable energy sources. Thermal energy storage helps address the intermittency issues associated with solar and wind power generation.
Regional analysis: Asia Pacific dominates the global thermal energy storage market, accounting for over 35% share in 2023, led by China. Rapid industrialization and growing focus on renewable energy in China, India and Southeast Asian countries are driving the regional market. Europe is the second largest market driven by stringent regulations regarding carbon emissions.
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. Key players are focusing on new product launches and partnerships to gain leadership position in this growing market. For instance, BrightSource has partnered with Chevron to commercialize its solar thermal technology across various markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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