Thermal Energy Storage Market Size
| Study Period | 2020 - 2029 |
| Market Size (2024) | USD 1.12 Billion |
| Market Size (2029) | USD 1.51 Billion |
| CAGR (2024 - 2029) | 6.25 % |
| Fastest Growing Market | Europe |
| Largest Market | Europe |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Thermal Energy Storage Market Analysis
The Thermal Energy Storage Market size is estimated at USD 1.12 billion in 2024, and is expected to reach USD 1.51 billion by 2029, growing at a CAGR of 6.25% during the forecast period (2024-2029).
The COVID-19 outbreak negatively impacted the market due to the industrial lockdowns and plummeted power demand in the power generation industry. The thermal energy storage industry players witnessed huge losses in their revenues. The ABENGOA company recorded a revenue of EUR 1,250 million for 2020, a 16% decline from EUR1,493 million in 2019. The thermal energy storage market is likely to boom in the future due to the increased demand for technology in the industrial sector for large-scale heating and cooling applications and the option for an eco-friendly method of saving energy for power generation during peak hours. However, the competition from other energy storage alternatives like battery energy storage is expected to hamper the market's growth in the future.
- The power generation application is expected to witness significant growth during the forecast period due to the growing adoption of concentrated solar power (CSP) technology with thermal energy storage systems.
- The research and innovation endeavors to diversify the scope of the technology by the industry players and government organizations create ample opportunities for the market. Very recently, the European Union allotted funds for the technological advancement of thermal energy storage under the Horizon 2020 program.
- Europe is likely to grow faster during the forecast period due to the high demand for seasonal energy storage.
Thermal Energy Storage Market Trends
Power Generation Expected to Witness Significant Growth
- The global installation of renewable power generation and energy security methods has accelerated the need for technologies like concentrated solar power (CSP) in solar power generation. These technologies are often used with thermal energy storage systems in the current scenario.
- The power generation through CSP sources is increasing significantly due to the increasing installation of CSP capacities globally. For instance, in 2022, the total installed CSP capacity was around 6.50 GW, which was 6.37 GW in 2021, as per IRENA. The growth in the technology application was witnessed in the industrial and commercial sectors. Several projects will be added to the solar CSP power generation portfolio, along with thermal energy storage systems.
- In January 2022, the Chinese government announced plans to build 11 CSP projects with thermal energy storage by 2024. The country's state-owned firms are expected to play a leading role in the upcoming projects in consortium with other industry players. They are gigawatt-scale mixed renewable energy projects to be added within two years.
- In June 2023, Vast Solar Pty awarded crucial engineering contracts for the VS1 CSP project in Australia to Worley. The project involves the construction of a 30 MW or 288 MWh CSP plant in Port Augusta, South Australia. This facility will utilize modular CSP tower v3.0 technology of Vast, intending to generate clean, dispatchable, and low-cost power with more than 8 hours of thermal energy.
- Due to these developments, the power generation segment is expected to occupy the largest market share during the forecast period.
Europe Expected to Witness the Highest Growth
- Europe has been installing various thermal energy storage systems for a decade in the urban districts of countries like Spain, Austria, and Northern and Central Europe. The major driver of such a strategic step is the high energy consumption during winters and exploring renewable ways of district heating.
- The region has planned even more large-scale thermal storage projects to meet the ever-growing seasonal and short-term storage demand, with most installations with molten salt technology and underground hot water tanks. They are expected to serve as multifunctional energy hubs for future district heating sources and other applications.
- In August 2022, Kyoto Group in Norway signed a letter of intent (LoI) with Glomma Papp, a cardboard manufacturer, to enter a supply agreement for Kyoto's thermal energy storage molten-salt-based solution, Heatcube. This system is expected to be commissioned in 2023.
- In January 2022, the European Union and the European Investment Bank chose Malta Inc., the grid-scale thermal energy storage provider, to execute the Sun2Store thermal energy storage project in Spain. It is a 1,000-MWh/ten-hour energy storage system combining pumped heat technology with molten salt. The project will likely be developed in partnership with Alfa Laval.
- Such developments are expected to boost the European thermal energy storage market significantly.
Thermal Energy Storage Industry Overview
The thermal energy storage market is moderately consolidated. Some of the key players (not in particular order) are BrightSource Energy Inc., Abengoa SA, Baltimore Aircoil Company, Terrafore Technologies LLC, and SR Energy.
Thermal Energy Storage Market Leaders
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BrightSource Energy Inc.
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Abengoa SA
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Baltimore Aircoil Company
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Terrafore Technologies LLC
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SR Energy
*Disclaimer: Major Players sorted in no particular order
Thermal Energy Storage Market News
- July 2023: Brenmiller Energy Ltd., a clean energy company that provides Thermal Energy Storage (“TES”) systems to global industrial and utility markets, announced that it has signed an agreement with Waaree Energies Ltd. to implement bGen™ TES in India. Under the terms of the agreement, Brenmiller and Waaree will jointly explore, develop, and deploy solar-powered Thermal Energy Storage (“TES”) systems in India, subject to entry into a definitive agreement.
- May 2023: Brenmiller inaugurated its first thermal energy storage gigafactory in Dimona, Israel. The factory is expected to reach a total annual capacity of 4 GWh by the end of 2023. The company has secured a USD 8 million credit facility from the European Investment Bank (EIB) to build the factory.
Thermal Energy Storage Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
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4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.1.1 Increasing Demand for Technology in the Industrial Sector for Large-scale Heating and Cooling Applications
- 4.5.1.2 Risising Demand for Energy Storage Systems
- 4.5.2 Restraints
- 4.5.2.1 Competition from Alternative Energy Storage Systems
- 4.6 Supply Chain Analysis
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4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitutes Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Molten Salt
- 5.1.2 Hot water
- 5.1.3 Other Types
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5.2 Application
- 5.2.1 Power Generation
- 5.2.2 Heating
- 5.2.3 Cooling
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5.3 Technology
- 5.3.1 Sensible Heat Storage
- 5.3.2 Latent Heat Storage
- 5.3.3 Thermochemical Heat Storage
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5.4 Geography
- 5.4.1 North America
- 5.4.1.1 United States
- 5.4.1.2 Canada
- 5.4.1.3 Rest of North America
- 5.4.2 Europe
- 5.4.2.1 Germany
- 5.4.2.2 France
- 5.4.2.3 United Kingdom
- 5.4.2.4 Rest of Europe
- 5.4.3 Asia-Pacific
- 5.4.3.1 China
- 5.4.3.2 India
- 5.4.3.3 Japan
- 5.4.3.4 South Korea
- 5.4.3.5 Rest of Asia-Pacific
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Rest of South America
- 5.4.5 Middle East and Africa
- 5.4.5.1 Saudi Arabia
- 5.4.5.2 United Arab Emirates
- 5.4.5.3 South Africa
- 5.4.5.4 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
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6.3 Company Profiles
- 6.3.1 BrightSource Energy Inc.
- 6.3.2 Aalborg CSP AS
- 6.3.3 Abengoa SA
- 6.3.4 Baltimore Aircoil Company
- 6.3.5 Burns & McDonnell
- 6.3.6 SaltX Technology Holding AB
- 6.3.7 Terrafore Technologies LLC
- 6.3.8 Trane Technologies PLC
- 6.3.9 SR Energy
- 6.3.10 Vantaa Energy
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Risisng Research and Innovation Endeavors to Diversify the Scope of the Technology
Thermal Energy Storage Industry Segmentation
Thermal energy storage is a technology that enables the transfer and storage of heat energy or energy from ice, water, or cold air. This method is integrated into new technologies that complement solar and hydroelectric power sources. The thermal energy storage applications can be applied in the following fields in concentrated solar power plants to supply dispatchable power even during the night: in thermal power plants to operate more and rapid load changes, to provide heat supply security in combined heat and power plants and to separate the heat and power generation temporarily, and to recover and utilize heat lost in process industries.
The thermal energy storage market is segmented by type, application, technology, and geography. By type, the market is segmented into molten salt, hot water, and other types. By application, the market is segmented into power generation and heating and cooling. By technology, the market is segmented into sensible heat storage, latent heat storage, and thermochemical heat storage. The report also covers the market size and forecasts for the thermal energy storage market across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD).
| Type | Molten Salt | |
| Hot water | ||
| Other Types | ||
| Application | Power Generation | |
| Heating | ||
| Cooling | ||
| Technology | Sensible Heat Storage | |
| Latent Heat Storage | ||
| Thermochemical Heat Storage | ||
| Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| Geography | Europe | Germany |
| France | ||
| United Kingdom | ||
| Rest of Europe | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Rest of Asia-Pacific | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East and Africa | Saudi Arabia |
| United Arab Emirates | ||
| South Africa | ||
| Rest of Middle East and Africa |
Thermal Energy Storage Market Research FAQs
How big is the Thermal Energy Storage Market?
The Thermal Energy Storage Market size is expected to reach USD 1.12 billion in 2024 and grow at a CAGR of 6.25% to reach USD 1.51 billion by 2029.
What is the current Thermal Energy Storage Market size?
In 2024, the Thermal Energy Storage Market size is expected to reach USD 1.12 billion.
Who are the key players in Thermal Energy Storage Market?
BrightSource Energy Inc., Abengoa SA, Baltimore Aircoil Company, Terrafore Technologies LLC and SR Energy are the major companies operating in the Thermal Energy Storage Market.
Which is the fastest growing region in Thermal Energy Storage Market?
Europe is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Thermal Energy Storage Market?
In 2024, the Europe accounts for the largest market share in Thermal Energy Storage Market.
What years does this Thermal Energy Storage Market cover, and what was the market size in 2023?
In 2023, the Thermal Energy Storage Market size was estimated at USD 1.05 billion. The report covers the Thermal Energy Storage Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Thermal Energy Storage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the innovative developments in the Thermal Energy Storage Market?
The innovative developments in the Thermal Energy Storage Market are a) Advancements in storage materials and technologies, such as the development of high-temperature phase change materials (PCMs) and advanced molten salt systems b) Growing focus on decentralized energy systems c) The use of thermal energy storage in conjunction with renewable energy microgrids
Thermal Energy Storage Industry Report
The thermal energy storage market is experiencing significant growth, driven by the demand for efficient and reliable energy storage solutions for power generation, district heating & cooling, and process heating & cooling. This growth is fueled by the need for electricity during peak hours, the commercialization of CSP plants, and heating & cooling applications in smart infrastructure. Sensible heat storage leads the technology segment, while molten salts are expected to see the fastest growth. Europe dominates the market share due to supportive renewable energy policies and CSP installations. Despite challenges from battery and pumped-storage competition, opportunities in the renewable sector's decentralization and innovations by major players are set to expand the market. High initial setup costs remain a barrier, but the sector is poised for further growth. For detailed market insights and forecasts, access a free report PDF download from Mordor Intelligence™ Industry Reports.
