The 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Thermal Energy Storage (TES) refers to technologies designed for the collection and storage of energy in the form of heat or cold. TES plays a vital role in smoothing out the intermittency associated with renewable energy sources such as solar and wind. Some common applications of TES technologies include space heating and cooling, waste heat recovery, and industrial processes. Large scale storage plants can also aid the integration of renewables into the grid by storing excess energy produced during periods of low demand.
The rising deployment of renewable energy sources around the world, especially solar and wind, is a major factor driving the growth of the thermal energy storage market. The intermittent nature of these resources necessitates robust energy storage solutions to ensure reliable supply to meet demand. TES technologies help store energy produced from renewables during off-peak periods and release it to match demand cycles.
Another factor boosting the market is stringent government policies and regulations regarding reduction of carbon emissions. Many countries have implemented mandatory renewable portfolio standards and incentives for clean energy utilization. This is encouraging greater investments in TES as a vital enabler for large-scale renewable integration. Advancements in phase-change material technologies and cost reductions are also augmenting the adoption of thermal storage systems across various applications.
Strength: Thermal energy storage has high storage capacity and allows shifting of energy from off-peak to peak hours. It provides reliable power and enables integration of renewable energy sources. Thermal energy storage technologies such as molten salt have high energy density and allow cost effective storage of large amounts of thermal energy.
Weakness: High initial investments are required to set up thermal energy storage systems. Limited availability of commercially viable and cost effective thermal storage technologies restrict market growth. Integration of thermal energy storage with existing infrastructure requires modifications and additional costs.
Opportunity: Increasing focus globally on renewable energy integration and development provides significant growth opportunities for thermal energy storage market. Growing demand for electric vehicles and increasing electric vehicle sales will augment demand for thermal energy storage.
Threats: Fluctuations in crude oil prices impact economics of thermal energy storage based power generation systems. Slow pace of policy framework formation for renewable energy targets threats market growth.
The Global Thermal Energy Storage Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing focus on integration of renewable energy sources.
The Asia Pacific region is expected to dominate the thermal energy storage market, growing at a CAGR of over 11% during the forecast period. Countries such as China, India are fastest growing markets due to rapid industrialization, growing population and urbanization. Europe and North America are also significant markets due to supportive regulatory policies and carbon reduction targets promoting renewable energy.
Key players content
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. BrightSource Energy leads the market with innovative solar thermal energy storage technology deployed at utility scale. EnergyNest and Ice Energy provide residential and commercial scale thermal energy storage solutions.