Thermal Energy Storage Market Set to Surge to USD 50.57 Bn by 2032

Published Date : 14 May 2024

The global thermal energy storage market size was evaluated at USD 23.48 billion in 2023 and is expected to attain around USD 50.57 billion by 2032, growing at a CAGR of 8.90% from 2023 to 2032. The increasing demand for heating and cooling applications for smart infrastructure is anticipated to drive the growth of the thermal energy storage market.

Thermal Energy Storage Market Size and Growth Rate From 2023 to 2032

Market Overview

The thermal energy storage market deals with the storage of heat energy or energy from cold air, water, or ice. This method is built into advanced technologies that enhance energy solutions like hydro and solar. The increasing commercialization of CSP plants, increasing demand for electricity during peak hours, rising demand for thermal energy storage systems in HVAC, growing need for energy efficiency, and shifting preference towards renewable energy generation such as concentrated solar power is anticipated to drive the growth of the market.

The increasing desire for improved energy efficiency coupled with ongoing energy usage efforts are driving the enhancement of market growth. In addition, increasing environmental concerns, together with the rising integration of thermal energy storage for power generation, especially in green buildings, are further expected to drive the growth of the thermal energy storage market during the forecast period.

Potential construction cost savings fuel market growth

A properly designed and planned thermal storage system often offers lower costs in addition to lower energy costs and lower energy use. This is due to the smaller related infrastructure and smaller equipment requirements, which is possible with the extra costs of the thermal storage tank. The cooling production equipment cost is much less, and the building and electrical infrastructure supporting the cooling equipment is also lower, potentially more than balancing the country cost of the thermal storage system, therefore producing a non-storage system vs. net capital cost savings. In addition, lower maintenance costs, reduced energy costs, and reduced on-peak energy demand are further anticipated to drive the growth of the thermal energy storage market.

However, thermal energy is almost impossible to store in any transferred form or form in any other form that may restrain market growth. The very high amount of thermal energy storage is very unsafe and dangerous for humans. The high quantity of thermal energy in power plants needs a slow supply of combustibles. These create several environmental concerns because of the other dangerous gases and the production of greenhouse gases. The heated water utilized in thermal energy storage power plants can disturb the ecology and hurt the lives in the water. These major restraining factors may hinder the growth of the market.

Thermal Energy Storage Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 23.48 Billion
Projected Forecast Revenue by 2032 USD 50.57 Billion
Growth Rate from 2023 to 2032 CAGR of 8.90%
Largest Market Europe
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Thermal Energy Storage Market Top Companies

  • LIME
  • Honeywell
  • NTPC
  • CB&I (McDermott)
  • DC Pro Engineering
  • Sunwell Technologies
  • Fafco
  • Evapco Inc.
  • Turbine Air Systems
  • DN Tanks
  • Steffes Corporation
  • Goss Engineering
  • Dunham Bush
  • Cadwell Energy
  • Cryogel
  • Cristopia Energy
  • Baltimore Air Coil Technology
  • MAN Energy Solutions
  • Calmac
  • BrightSource Energy
  • SolarReserve
  • Burns & McDonnell
  • Abengoa Solar

Recent Development by NTPC

  • In April 2024, a 3D rendering concentrated solar-plus-thermal storage tender was launched by NTPC by utilizing molten salt technology for energy storage. With a thermal energy storage system, this tender solution developed a 50 MW concentrated solar power project.

Regional Insights

Europe dominated the thermal energy storage market in 2023. The rising net zero carbon reduction targets and increasing technological advancements in several technologies are anticipated to drive market growth in Europe. Germany and Russia are the emerging countries in Europe. Germany has the largest market in Europe. Germany is the leading country in renewable energy development. The government of Germany has a target for renewable energy to address a high percentage of electricity demand. Onshore, offshore wind power and solar power are the major pillars of renewable energy production in Germany. These are the major factors that are anticipated to drive the growth of the market in Europe.

North America had the second-largest share of the thermal energy storage market in 2023. The increasing research and development activities in energy storage systems and increasing positive outlook towards renewable-based power generation are anticipated to drive the growth of the market in North America. The U.S. and Canada are emerging countries in North America. The U.S. has the major market share in the market of thermal energy storage.

There are various top thermal energy storage projects in the U.S., including Sandia National Laboratories Solar Thermal Facility-Molten Salt Energy storage system has a 1,000,000kW storage capacity, Morro Bay battery energy storage system has a 2,400,000kWh storage capacity, Willow Rock Compressed Air energy storage system has 40,000.000kWh capacity, Daggett solar power facility-battery energy storage system has 450,000kW storage capacity and FPL Manatee energy storage center-battery energy storage system has 9000,000kWh storage capacity. These major projects use lithium-ion battery storage technology for better energy efficiency. Some projects use compressed air storage technology. These are the major factors, and top projects are expected to drive the growth of the thermal energy storage market in North America.

  • For instance, in December 2023, Gates-backed fourth power pilots' thermal storage launched thermophotovoltaic cells-based high-density thermal energy storage. This technology was ten times cheaper than lithium-ion batteries and based on a U.S. company’s personalized liquid metal heat transfer system.

Market Potential and Growth Opportunity

Increasing advanced functional materials

Advanced functional materials are considered crucial in thermal energy storage. Research on improving advanced materials that can be released and stored at higher temperatures and more efficiently, including thermochemical storage materials and high-temperature phase change materials, would be needed. In addition, extensive research will be utilized to develop advanced thermal storage technologies, including thermoelectric generators, thermal batteries, and latent heat storage systems, to improve the cost-effectiveness and efficiency of thermal energy storage systems.

Advanced heat exchangers with unique designs that can move heat more smoothly between fluids at high temperatures will play an important role in the rapid commercialization of thermal energy storage technologies. Machine learning and artificial intelligence will be adopted to optimize the management and control of conversion systems and future thermal energy storage, making them more cost-effective and efficient. These are the advanced opportunities driving the growth of the thermal energy storage market in the coming future.

Thermal Energy Storage Market News

  • In April 2024, to store and improve green energy, the world’s first energy storage project using molten hydroxide was launched by Danish company Hyme Energy. The project was called Molten Salt Storage – Moss. The facility stores renewable energy when production dips and is generated during peak periods.
  • In July 2023, in Denmark, Kyoto launched its first thermal energy battery and successfully connected to the local grid its full-scale molten salt thermal energy system. Kyoto offered an update that the first commercially launched Heatcube was made with a storage discharge load of 4 MW and a capacity of 18 MWh.

Market Segmentation

By Technology

  • Latent
  • Thermochemical
  • Sensible

By Storage Material

  • Molten salts
  • Water
  • Phase change materials
  • Others

By Application

  • Process Heating and Cooling
  • Power Generation
  • District Heating and Cooling

By End-User

  • Utilities
  • Residential & Commercial
  • Industrial

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