Home Energy And Power Thermal Energy Storage Market Size, Share & Analysis 2031

Thermal Energy Storage Market

Thermal Energy Storage Market Size, Share & Trends Analysis Report By Storage Material (Water, Molten Salt, PCM, Others), By Technology (Sensible Heat, Latent Heat, Thermochemical), By Applications (Power Generation, District Heating and Cooling, Process Heating and Cooling), By End-User  (Residential and Commercial, Industrial, Utility) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SREP395DR
Study Period 2020-2032 CAGR 9.92%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD XX Billion
Forecast Year 2032 Forecast Year Market Size USD XX Billion
Largest Market Europe Fastest Growing Market Asia Pacific
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Market Overview

The global thermal energy storage market size was valued at USD 5.85 billion in 2023. It is estimated to reach USD 13.79 billion by 2032, growing at a CAGR of 9.92% during the forecast period (2024–2032). In recent years, there has been a surge in the demand for renewable energy owing to rising environmental concerns and depleting natural resources. As renewable energy is intermittent, there is a growing demand for thermal energy storage systems. TES is also used to store and provide cold energy for the air conditioning system during peak hours. The growing demand for ACs boosts the global market expansion.

Thermal energy storage (TES) refers to storing heat or cold energy for future use in diverse applications, including power generating, heating, and cooling. TES systems can decrease energy demand during periods of high usage, minimize carbon dioxide emissions, and lessen energy consumption for end users. TES systems are essential for improving energy systems' efficiency and adaptability, especially when integrating renewable energy sources and enhancing overall energy management.

Thermal energy storage systems can employ many technologies, including sensible, latent, and thermochemical, as well as diverse store materials, such as water, molten salt, and phase change material (PCM). TES systems are used in thermal and solar power plants to provide reliable power even at night and use heat in various industrial processes.


  • Sensible heat dominates the technology segment
  • Power generation dominates the application segment
  • Residential and commercial dominate the end-user segment
  • Europe is the highest shareholder in the global market

Market Dynamics

Global Thermal Energy Storage Market Drivers

Increasing Demand for Renewable Energy

An obstacle associated with renewable energy sources like solar and wind is their intermittent nature. The generation of solar electricity depends upon the availability of sunshine, while the generation of wind power relies on the wind speed. The energy generation from these sources varies throughout the day and may not coincide with periods of peak electricity demand. Therefore, the increasing incorporation of renewable energy sources requires efficient energy storage technologies, such as thermal energy storage, to tackle intermittent supply issues and promote a more sustainable and robust energy infrastructure.

Based on the International Energy Agency (IEA) analysis, renewable energy sources are projected to contribute to about 95% of the growth in worldwide power capacity by 2026. Among these sources, solar photovoltaic (PV) energy alone is expected to contribute more than half of the increase. The projected increase in renewable capacity from 2021 to 2026 is anticipated to be 50% greater than the increase observed from 2015 to 2020. This is propelled by enhanced backing from governmental policies and announcing more ambitious clean energy objectives before and during the COP26 Climate Change Conference. Therefore, the increasing need for renewable energy is projected to expedite the expansion of the global market.

Growing Demand for Cooling and Air Conditioning 

The increasing need for cooling and air conditioning in residential, commercial, and industrial sectors is another factor stimulating the growth of the Thermal Energy Storage (TES) market. TES systems store cold energy during low demand and release it during high demand to provide cooling and air conditioning services. This can result in a decrease in electricity usage and the cost of cooling and air conditioning systems, as well as a reduction in the peak load on the grid. Statista predicts that the global air conditioner market will produce a revenue of USD 67.32 billion by 2024. The market is expected to grow at a CAGR of 6.42% between 2024 and 2028.

Moreover, the International Energy Agency (IEA) predicts that by 2050, the number of air conditioners in buildings worldwide will increase to 5.6 billion, a significant rise from the current 1.8 billion. This surge in air conditioner usage will result in a threefold increase in global energy consumption attributed to air conditioners. To be more specific, within this specified period, a total of 10 air conditioners will be sold per second. This will generate a substantial demand for TES systems in the cooling and air conditioning industry.

Global Thermal Energy Storage Market Restraint

High Initial and Maintenance Cost

The significant initial and maintenance expenses associated with TES systems pose a key obstacle to the growth of the TES market. TES systems necessitate significant upfront expenditure for installation, in addition to ongoing expenses for maintenance and operation. Moreover, the cost of TES systems is contingent upon several aspects, including the specific technology employed, the system's dimensions, the storage material utilized, and geographical placement. The typical price range for TES systems is between USD 50 and USD 100 per kWh, which varies based on the specific technology and storage material. The exorbitant expense of TES systems may dissuade certain prospective users, particularly in underdeveloped nations where energy affordability and accessibility are limited.

Global Thermal Energy Storage Market Opportunities

Expansion of Production Facility

The leading market participants in the TES market are prioritizing expanding their manufacturing facilities to satisfy the continuously growing demand for renewable energy sources. For instance, in September 2023, RayGen, a startup utilizing an innovative high-temperature thermal energy storage technology, inaugurated a 50MWh plant in Victoria, Australia. The plant is integrated with solar photovoltaic (PV) systems. The company's recently launched project combines a 4MW ground-mount solar PV array with 2.8MW/50MWh energy storage. This system is claimed to provide a cost-effective solution for making renewable energy available on demand rather than relying on the availability of sunlight or wind.

Additionally, in May 2023, Brenmiller Energy, a thermal energy storage company in Israel, opened a factory to achieve an annual production capacity of 4GWh by the end of 2023. According to the company, this is the world's first gigafactory. The company has inaugurated its thermal energy storage gigafactory in Dimona, Israel, stating that it would serve as its main manufacturing center. The production lines are projected to achieve maximum capacity by the end of the year, enabling the annual manufacture of 4GWh of Brenmiller's bGen modules. Such factors are projected to generate opportunities for market expansion.

Regional Analysis

Europe Dominates the Global Market

Based on region, the global thermal energy storage market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Europe is the most significant global thermal energy storage market shareholder and is expected to expand substantially during the forecast period. Europe is experiencing rapid growth in the TES market due to the rising need for energy storage and grid stability. This growth is driven by strict environmental rules and policies that promote renewable energy and energy efficiency. Europe exhibits a significant prevalence of renewable energies such as wind and solar power, necessitating the implementation of TES systems to balance these energy sources' intermittent and fluctuating characteristics. According to preliminary projections from the European Environment Agency (EEA), around 22.5% of the energy consumed in the European Union (EU) in 2022 was derived from renewable sources. Moreover, participants in the European market are engaged in various strategic endeavors such as mergers and acquisitions, expansions, fundraising, and the development of new products, among others, to augment their market dominance.

For instance, in August 2023, Kraftblock, a German startup specializing in thermal energy storage, obtained funds to expedite the expansion and commercialization of its innovations. Kraftblock successfully concluded a Series B investment round, securing a total of USD 21.99 million from six investors. Notable participants in this round include Shell Ventures and Finindus, a Belgian venture capital firm that receives partial funding from steel manufacturer Arcellor Mittal. Moreover, around the same time, Kyoto Group, a business specializing in thermal energy storage technology, initiated practical trials of a 4MW power-to-heat system that utilizes molten salt in Denmark. The device, with a storage capacity 18MWh, is built on the unique technology Heatcube developed by the Norway-based business. Therefore, considering the reasons above, Europe is expected to be at the forefront of the global thermal energy storage market in the foreseeable years.

The Asia-Pacific region is expected to experience the highest growth rate due to the proactive measures implemented by governments in the region. Moreover, the rising energy consumption and population size propelled the market's expansion. Furthermore, the global participants partner with domestic counterparts to establish their regional presence. For instance, in July 2023, Brenmiller Energy Ltd., a clean energy company specializing in Thermal Energy Storage (TES) systems for industrial and utility markets, announced the signing of a Memorandum of Understanding (MoU) with Waaree Energies Ltd., India's leading solar panel manufacturer. The purpose of this agreement is to introduce bGen™ TES technology in India. This announcement signifies Brenmiller's foray into the Indian market. Therefore, these factors contribute to the growth of the regional market.

Report Scope

Report Metric Details
By Storage Material
  1. Water
  2. Molten Salt
  3. PCM
  4. Others
By Technology
  1. Sensible Heat
  2. Latent Heat
  3. Thermochemical
By Applications
  1. Power Generation
  2. District Heating and Cooling
  3. Process Heating and Cooling
By End-User 
  1. Residential and Commercial
  2. Industrial
  3. Utility
Company Profiles CALMAC Manufacturing Corp. Abengoa Solar S.A. Ice Energy Technologies Inc. DN Tanks Inc. SolarReserve LLC Burns & McDonnell Brightsource Energy Inc. Baltimore Aircoil Company Cryogel Thermal Energy Storage Dunham- Bush Holding Bhd Goss Engineering Steffes Corporation TAS Energy Evapco Inc. FAFCO Sunwell Technologies Finetex ENE Inc. McDermott International Inc. Caldwell Energy Axiom Energy
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turky Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global thermal energy storage market is bifurcated into storage material, technology, application, and end user.

Based on storage material, the global thermal energy storage market is segmented into water, molten salt, PCM, and others.

Molten salt is the predominant and optimal storage medium for Concentrated Solar Power (CSP) facilities due to its ability to retain high-temperature heat and minimize heat dissipation. The molten salt-based thermal energy storage segment is projected to experience significant expansion, owing to the capacity of these devices to store a substantial quantity of energy and provide reliable and consistent power on demand. The systems' acceptance rate is projected to increase because of the combination of volumetric heat capacity, high boiling point, and low vapor pressure, which are key parameters.

Based on technology, the global thermal energy storage market is bifurcated into sensible heat, latent heat, and thermochemical. 

The sensible heat segment is the most significant contributor to the market. Sensible heat technology pertains to the transfer of thermal energy that induces a modification in temperature without any alteration in the phase of the substance being considered. In other words, it refers to the transfer of heat that causes a quantifiable alteration in the temperature of a substance, such as increasing the temperature of air or water. Moreover, sensible TES systems utilize temperature adjustments in storage materials, such as water, molten salt, or rocks, to store heat or cold energy. The sensible heat sector is expected to dominate the market due to the rising demand for solar systems and the widespread use of this technology in cooling and heating systems.

Based on application, the global thermal energy storage market is bifurcated into power generation, district heating and cooling, and process heating and cooling. 

The power generation segment dominates the global market. Thermal Energy Storage (TES) is essential for improving the efficiency and dependability of power generation systems. The primary and significant use of TES systems is in power generation. These systems can produce reliable and sustainable grid power while decreasing reliance on fossil fuels. TES makes load shifting easier by storing extra energy during low demand and releasing it during high demand. This aids in optimizing the functioning of power plants and diminishing the requirement for supplementary generating capacity to fulfill peak demand. TES systems enhance thermal energy utilization efficiency, mitigating greenhouse gas emissions and minimizing the environmental impression of power generation.

Based on end-users, the global thermal energy storage market is bifurcated into residential and commercial, industrial, and utilities. 

The residential and commercial segment owns the highest market share. The residential and commercial end-user segment is expected to exhibit the most significant pace of growth. The anticipated surge in urban population is projected to lead to a significant increase in construction activity, hence driving the expansion of this market. In 2018, the urban population accounted for more than 55% of the world population, according to the World Bank. Significant refurbishment and replacement efforts in residential and commercial premises will positively impact the demand for thermal energy storage devices. Moreover, there has been a significant increase in investments, which will support the modernization of power generation and electric infrastructure to promote the advancement of grid systems, leading to a projected exponential expansion in this sector shortly.

Market Size By Storage Material

Recent Developments

Top Key Players

CALMAC Manufacturing Corp. Abengoa Solar S.A. Ice Energy Technologies Inc. DN Tanks Inc. SolarReserve LLC Burns & McDonnell Brightsource Energy Inc. Baltimore Aircoil Company Cryogel Thermal Energy Storage Dunham- Bush Holding Bhd Goss Engineering Steffes Corporation TAS Energy Evapco Inc. FAFCO Sunwell Technologies Finetex ENE Inc. McDermott International Inc. Caldwell Energy Axiom Energy Others

Frequently Asked Questions (FAQs)

What is the growth rate for the Thermal Energy Storage Market?
Thermal Energy Storage Market size will grow at approx. CAGR of 9.92% during the forecast period.
Some of the top industry players in Thermal Energy Storage Market are, CALMAC Manufacturing Corp., Abengoa Solar S.A., Ice Energy Technologies Inc., DN Tanks Inc., SolarReserve LLC, Burns & McDonnell, Brightsource Energy Inc., Baltimore Aircoil Company, Cryogel Thermal Energy Storage, Dunham-Bush Holding Bhd, Goss Engineering, Steffes Corporation, TAS Energy, Evapco Inc., FAFCO, Sunwell Technologies, Finetex ENE Inc., McDermott International Inc., Caldwell Energy, Axiom Energy, etc.
Europe has been dominating the Thermal Energy Storage Market, accounting for the largest share of the market.
The Thermal Energy Storage Market has seen the most substantial growth rate in Asia Pacific.
The global Thermal Energy Storage Market report is segmented as follows: By Storage Material, By Technology, By Application, By End-Use

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