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The thermal energy storage market size is forecast to increase by USD 2.88 billion at a CAGR of 9.61% between 2023 and 2028. The report includes historic market data from 2018-2022. The market experiences increasing demand for renewable energy sources, driven by factors such as their growing utilization in smart cities and smart buildings, as well as shifts in the energy mix. These trends reflect evolving priorities towards sustainability and efficiency in energy consumption. With the rise of renewable energy and its integration into urban infrastructure, the market anticipates continued growth opportunities, aligning with the global push towards cleaner and more sustainable energy solutions.
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Growing demand for renewable energy sources is the primary market trend shaping the market. Renewable energy is hailed for its clean, inexhaustible nature, devoid of greenhouse gas emissions. Anticipated global electricity demand growth of 60%-70% by 2040, coupled with fluctuating fossil fuel prices, is poised to spur renewable energy adoption. Geothermal power, expanding notably in countries like Indonesia and Kenya, exhibits a 2% global capacity rise in 2020.
Furthermore, wind energy is projected to meet 10%-15% of global electricity needs by 2020, with onshore wind capacity expected to grow by 839 gigawatts by 2023. Solar photovoltaic services lead absolute generation growth, with distributed solar PV capacity forecasted to surge over 250% by 2024. These trends, driven by benefits like emission-free baseload power, are set to propel the market growth during the forecast period.
The molten salt energy storage (MSES) segment dominates the market, notably in concentrated solar power (CSP) plants, ensuring uninterrupted electricity production. MSES utilizes a salt mix heated by sunlight to generate electricity or store energy for later use.
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Furthermore, with minimal temperature loss, MSES allows extended hold durations and can operate for over three decades without salt mix replacement. This, coupled with its eco-friendly nature, aligns with the increasing demand for clean energy technologies, driving market growth.
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Europe is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Europe's market is poised for significant growth, driven by the region's emphasis on renewable energy adoption. Government incentives and EU renewable energy targets are spurring investments in clean energy infrastructure. By 2030, the EU aims to source 42.5-45% of its energy from renewables, up from the current 22%. Notably, countries like Sweden lead in renewable energy share. Thermal energy traction in district energy heating, offering energy savings and reduced emissions. With strong vendor presence and early adoption in countries like Spain, Germany, and the UK, Europe is poised for substantial market expansion.
The market encompasses various sectors, including CSP plants (Concentrated Solar Power plants), catering to heating & cooling applications. With a focus on renewable power capacity addition, ongoing construction activities face challenges like supply chain disruptions. However, investments in renewables drive growth, particularly in solar and wind technologies, aligning with Paris Climate targets to reduce carbon emissions. Technologies like heat storage (TES) systems and HVAC enhance energy efficiency and support a clean energy future. Innovations in the thermal energy storage business ensure cost-effective storage of energy, bolstering the power generation industry and enabling renewable power generation for seasonal energy storage and energy security methods. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for CSP is the key factor driving the market. Concentrated Solar Power (CSP) systems are revolutionizing thermal energy storage, enabling the harnessing and storage of solar energy for later use. CSP employs various solar collectors like parabolic troughs and solar power towers to concentrate sunlight onto receivers, generating high temperatures. Thermal energy storage, often utilizing molten salt, captures and stores excess solar energy, enhancing system flexibility and efficiency.
Furthermore, companies like Acciona SA offer CSP solutions with thermal energy storage capacities, ensuring reliable electricity generation even during adverse weather conditions. This has spurred new CSP installations, where thermal energy storage serves as the primary energy storehouse method due to its resilience and cost-effectiveness. Consequently, the market is set for substantial growth during the forecast period.
Operating inefficiencies of MSES in CSP systems is the major challenge that affects the market expansion. While MSES is widely used in concentrated solar power (CSP) systems, it faces operational challenges. Maintaining molten salt above its solidification temperature is crucial to prevent energy loss, necessitating additional equipment for temperature regulation. Chemical incompatibility and low thermal conductivity further slow heat transfer in MSES systems.
Additionally, MSES CSPs require substantial water for cooling, posing environmental concerns in arid regions with limited water resources. Spillage, caused by sunlight missing the receiver, presents another issue, impacting tower size and storehouse capacity. These challenges hinder the growth of the market, emphasizing the need for innovative solutions to address operational constraints and environmental impact.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The market is thriving with the surge in renewable electricity capacity and global renewable energy installed capacity. Technologies like solar generation, wind generation, and CSP generation are driving demand for thermal energy storage, especially with battery storage and pumped-storage hydropower. Innovations in lithium-ion batteries and sensible heat storage are enhancing grid reliability and supporting decentralized renewable energy. Phase change material (PCM) and thermo-chemical storage (TCS) are revolutionizing energy storehouse alternatives, aligning with carbon reduction targets and heating and cooling applications. Further, boiling points and volumetric heat capacities are essential factors in understanding the efficiency of ice or chilled water technologies, which, when integrated with demand-side management strategies and utility off-peak hours, can help optimize energy consumption and reduce costs, particularly when considering time-of-day pricing and Europe's installed CSP capacity.
Further, the market is experiencing rapid growth driven by factors such as increasing electrification rate and industrial bulk consumption. Innovations in distributed storage systems utilizing molten salt technology are reducing the cost of thermal energy storage technologies. Technologies like concentrating solar power (CSP) plants address the intermittency of solar resource while battery energy storage systems support solar power generation applications. Organizations like IRENA and projects like the VS1 CSP project are shaping the landscape, emphasizing renewable energy generation and novel energy storage systems. Additionally, advancements in oil and gas operations, including the development of swellable packers, contribute to enhanced well integrity and operational efficiency. These technologies play a crucial role in maintaining wellbore integrity and facilitating oil and gas production in North America, both onshore and offshore, driving growth in the regional market during the forecast period.
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Market Scope |
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Report Coverage |
Details |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.61% |
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Market Growth 2024-2028 |
USD 2.88 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
9.41 |
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Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 30% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Abengoa SA, Acciona SA, ARANER, Baltimore Aircoil Co., BrightSource Energy Inc., Burns and McDonnell, Caldwell Energy Co., CALMAC, Comfort Systems USA Inc., CRYOGEL, DN Tanks Inc., Dunham-Bush Holding Bhd, EnergyNest, EVAPCO Inc., Goss Engineering, HTS, McDermott International Ltd., SENER GRUPO DE INGENIERIA SA, Steffes LLC, and Thermofin |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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