Thermal Energy Storage Market Size (2024 - 2029)

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 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).