Home > Energy And Power > Thermal Energy Storage Market |2021-26| Trends, Analysis & Covid-19 Impact
Straits Research

Thermal Energy Storage Market

Thermal Energy Storage Market: Information by Storage Material (Water, PCM), Technology (Sensible Heat, Latent Heat), Application (Power Generation), End-Use, and Region — Forecast till 2026

Table of Content Download Sample

Market Snapshot

market snapshot
Base Year:
Study Period:
10 %
Fastest Growing Market:
Asia Pacific
Largest Market:
Middle East And Africa

Global Statistics Representing Thermal Energy Storage Market Scenario

The thermal energy market was valued at over USD 3 billion in 2018 and is expected to witness significant gains at an approximate CAGR of 10% during the forecast period, 2019–2026.

Thermal Energy Storage Devices to Gain Importance on Account of Their Storage Capacity & Efficiency

The energy saved and stored in thermal energy storage systems can be utilized later, a characteristic that is likely to result in the exponential growth of this market in the coming years. These devices are highly efficient and simple to use as a mode of energy transfer. They temporarily hold energy in a cold or hot form for use at a later stage. Thermal energy storage systems aid in reducing carbon emission and energy consumption and maintaining energy demand during peak hours. The economic effects of these systems are solely dependent on the type of material used in the manufacture of these devices. Thermal energy storage devices find a wide range of applications in thermal power plants, solar plants, combined power and heat plants, and process industries.

Eminent Measures Against Global Warming to Promote TES Market at a Global Level

The growth of the energy sector is expected to be driven by the rising adoption of sustainable energy sources and an uptick in the demand for continuous energy supply. Montreal Protocol and the Paris Treaty are some of the measures which are considered as a conscious effort taken by authorities around the world to restrict the ill-effects of global warming. These trends are likely to be some of the primary factors responsible for the growth of the global thermal energy market during the forecast period. Increasing usage of renewable energy sources, combined with an increase in the need for concentrating solar power (CSP), is likely to trigger the market growth.

On the flip side, additional costs related to the use and installation of thermal energy storage systems, lack of awareness about storage technology, and the need for highly-skilled labor required for maintaining and installing these systems are likely to restrict the growth of this market to a certain extent. Thermal energy storage (TES), when paired with concentrated solar power (CSP), provides grid stability and is usually used in combination with both conventional fuels and TES. Government initiatives and support for promoting the use of energy-efficient devices are likely to remain an essential aspect of the growth of this market.

Key Drivers

  • Increasing focus on sustainable energy generation such as concentrated solar power
  • Growing demand for energy storage in HVAC (Heating Ventilation & Air-Conditioning)
  • Government initiatives promoting the use of energy-efficient systems

Key Restraints

  • Considerable shortcoming in technical knowledge related to thermal energy storage
  • Lack of skilled labor
  • Interconnection barriers in high-grid applications
  • High initial investments, owing to high setup cost

Key Opportunity

Growing demand for concentrating solar power (CSP)

Intended Audience

  • Battery Storage Manufacturers
  • Raw Material Suppliers
  • Suppliers, Distributors, and Dealers of Thermal Energy Storage Devices
  • Potential Investors
  • Research and Development Institutes
  • Tank and Chiller Manufacturers for Thermal Energy Storage
  • Consulting Companies in the Energy Sector
  • Environmental Associations
  • Investment Banks
  • Thermal Energy Storage System Providers
  • Regional Renewable Energy Associations

Segmental Analysis

Molten Salt-based Thermal Energy Storage Systems Pegged to Register the Highest Growth Rate

Based on storage material, the market is further segmented into the water, molten salt, and PCM. The molten salt-based thermal energy storage segment is expected to witness considerable growth, due to the ability of these devices to store a large amount of energy and deliver dispatchable and stable power. Volumetric heat capacity and high boiling point, in combination with low vapor pressure, are among the important parameters that are likely to hike the systems’ adoption rate.

Sensible Heat Technology to Propel Market Growth Due to its Widespread Application Across Cooling and Heating Systems

Based on technology, the market is segmented as sensible heat, thermochemical, and latent heat. The sensible heat segment is likely to hold the highest market share, owing to an increase in the demand for solar systems combined with the application of this technology across cooling and heating systems. Sensible heat technology is used to perform discharging operations for innumerable cycles. Completely reversible charging – the key feature of this technology – will propel its adoption rate. The latent heat technology segment is anticipated to witness an exponential growth rate, owing to the technology’s high storage density.

Rapid Urbanization – A Key Factor Driving Market Growth

Based on the application, the market is segmented into district heating and cooling, process heating and cooling, and power generation. Power generation is likely to dominate this market, owing to the increasing demand for constant and uninterrupted power supply from remote rural areas. Furthermore, rapid urbanization is expected to upsurge the need for renewable power generation, which is further expected to cement the dominance of this segment.

Based on end-use, the market is divided into residential and commercial, industrial, and utility. The residential and commercial end-user segment is likely to have a dominant market share with the highest growth rate. Rapid growth in the urban population is expected to result in exponential growth in construction activities, which is expected to stimulate the growth of this market. For instance, the share of urban population to the global community was over 55% of the total population in the year 2018, World Bank. There have been considerable refurbishment and replacement activities across residential and commercial establishments, which will positively affect the demand for thermal energy storage devices. Additionally, there has been a substantial rise in investments, which will aid in modernizing power generation and electric infrastructure to enhance the development of grid systems, which is likely to observe exponential growth in this sector shortly. 

Regional Analysis

Middle East & Africa – A Substantial Consumer Base for Thermal Energy Storage Systems

Concentrated solar power (CSP) technologies have great potential to meet the national goals of affordable, secure, and clean energy for economies situated in the Middle East & Africa. The countries lying in the MENA belt (the Middle East and North Africa) are likely to propel the market to a considerable extent. MENA is considered to have some of the best solar resources in the world. These solar resources are likely to last longer than its oil and gas wells, and resources have the potential to generate a considerable amount of energy while mitigating environmental damages due to greenhouse gas emissions. Significant developments have been taking place in this region in terms of CSP which could lead to an increase in demand for thermal energy storage devices. For instance, the 500 MW Noor CSP complex in Morocco is by far the most advanced and the most significant investment in MENA. Furthermore, the region has a presence of economies such as Nigeria, South Africa among other nations, which is likely to be among the most prominent consumer base for this market.

Long-Term Purchase Agreements with MEA, PEA, and EGAT to Spur Growth of APAC’s TES Market

Asia-Pacific is likely to grow at the highest rate owing to the initiatives undertaken by governments in the region. Furthermore, increasing energy usage, coupled with a growing population, is also one of the driving factors leading to the growth of this market. Traditional energy sources such as oil and gas have been rapidly exhausting, and economies such as India, China, Thailand, and Malaysia are always in need of energy to propel their manufacturing and trading activities. For instance, the Thailand electricity-generating sector is considered to be among the most secure businesses in the economy owing to the long-term purchase agreements with three state utilities Metropolitan Electricity Authority (MEA), Provincial Electricity Authority (PEA) and Electricity Generating Authority of Thailand (EGAT). Furthermore, the country witnessed solar installations of around 3GW, which is a significant milestone and is likely to contribute to the growth potential of Asia Pacific.

Canadian Government to Declare a Financial Incentive Plan for Energy Upgrades in Industrial and Commercial Sectors

North America, owing to its various energy conservation and renewable energy generation program, is likely to have a notable market share during the forecast period 2019–2026. For instance, in September 2018, the Canadian Government had updated its ‘Commercial Energy Conservation Program,’ which is a financial incentive plan through which tax rebates of approximately USD 15,000 are granted for energy upgrades in the industrial and commercial sectors.

European Commission to Emphasize Low-Carbon Technologies With ‘Strategic Energy Technology’ Plan

Europe is another region that is prominently taking proactive measures for setting up a framework to aid in using eco-friendly energy generation means. For instance, in September 2015, the European Commission had laid out Strategic Energy Technology (SET), which aims at accelerating the development and deployment of low-carbon technologies.

Key Players

Companies involved in this market include 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, and Axiom Energy.

Key Developments

  • Burns & McDonnell, in December 2016, acquired Azco, Inc., an industrial contractor. The two companies have previously worked together on numerous projects and were also involved in manufacturing combustion turbine generators for the Empire Riverton Powerplant in Kansas, U.S.
  • In May 2016, EON SE, NextEra Energy Resources, and Tucson Electric Power entered into a long-term agreement for constructing two large energy storage systems, with approval from the Arizona Corporation Commission in the U.S.

Report Scope

Report Metric Details
Market Size USD 3 billion in 2018
Historical Data 2015-2016
Base Year 2017
Forecast Period 2018-2026
Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered by Storage Material (Water, PCM), Technology (Sensible Heat, Latent Heat), Application (Power Generation), End-Use
Geographies Covered North America, Europe, Asia-Pacific, LAME and Rest of the World
Key Companies Profiled/Vendors 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, and Axiom Energy.
Key Market Opportunities Rising Demand For Thermal Energy Storage In Energy And Power Industry

Thermal Energy Storage Market Segmentation

By Storage Material

  • Water
  • Molten salt
  • PCM

By Technology

  • Sensible heat
  • Latent heat
  • Thermochemical

By Application

  • Power generation
  • District heating & cooling
  • Process heating & cooling

By End-Use

  • Residential & commercial
  • Industrial
  • Utility

By Region

North America

  • u.S.
  • Canada
  • Mexico


  • Germany
  • France
  • Italy
  • u.K.
  • Spain
  • Russia
  • Poland
  • Rest of Europe


  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Vietnam
  • Indonesia
  • Malaysia
  • Singapore
  • Rest of APAC

South America

  • Brazil
  • Argentina
  • Colombia
  • Rest of Latin America


  • Saudi Arabia
  • UAE
  • Iran
  • Kuwait
  • Tanzania
  • South Africa
  • Rest of MEA

Frequently Asked Questions (FAQs)

The Global Thermal Energy Storage Market was valued at around USD 3 billion in 2018 at a CAGR of 10% during the forecast period.
Molten Salt segments is expected to be leading segments in Thermal Energy Storage Market during the forecast period.
In 2018 Global Thermal Energy Storage Market was valued at USD 3 billion in 2018.
CALMAC Manufacturing Corp., Abengoa Solar S.A., Ice Energy Technologies, Inc., DN Tanks, Inc., SolarReserve, LLC are the top players in Thermal Energy Storage Market.
Rapid Urbanization are the key factor expected to drive the Thermal Energy Storage Market during forecast period.
Price Starts From

Purchase Benefits

  • Eligible for a free updated report next year
  • Completely customizable scope
  • 30% discount on your next purchase
  • Dedicated account manager
  • Query resolution within 24 hours
  • Permission to print the report
Want to learn more about recent trends and data ?
They Already Trust Us :
LG Electronics
Need Assistance?
+1 646 480 7505 (U.S.)
+44 208 068 9665 (U.K.)
Looking For Custom Report ?

Report Benefits

  • Develop business strategies by understanding the trends shaping and driving the Market.
  • Drive revenues by understanding the key trends, innovative products and technologies, market segments, and companies likely to impact the Market in the future.
  • Formulate effective sales and marketing strategies by understanding the competitive landscape and by analysing the company share of market leaders.
  • Identify emerging players with potentially strong product portfolios and create effective counter-strategies to gain a competitive advantage.
  • Track sales in the global and country-specific Market.
  • Organize your sales and marketing efforts by identifying the market categories and segments that present maximum opportunities for consolidations, investments and strategic partnerships.
Check Our License Options :
Report Snapshot

As featured on :

Trusted by Fortune 500
Over 30000+ subscribers