The global thermal energy storage market size was estimated at USD 21.66 billion in 2022 and is projected to surpass around USD 50.57 billion by the year 2032, growing at a notable CAGR of 8.9% during the forecast period 2023 to 2032.
The development in renewable energy technologies was facing a major challenge owing to the finances and policy uncertainties. These challenges have intensified due to the outbreak of the COVID-19 pandemic. This pandemic has significantly affected the global growth of the renewable power capacity. During the COVID-19 crisis there has been a major decline in the renewable energy capacity. Due to major delays in the construction activities as the supply chain was disrupted mainly due to the lockdown in China and all the other major economies. Recently the renewable energy capacity has increased as there was a resumption in the delayed projects. The market should rebound and there shall be positive results during the forecast period.
Increasing demand for electricity due to the increased commercialization increased use of electricity during the peak hours and a demand for heating and cooling applications in the smart infrastructure are all leading to a growth in this market. The growth will be supplemented by many supportive government policies in the developed as well as the developing nations for renewable energy technologies. Many countries across the globe are making investments in renewables which is an important part which acts as a stimulus for the growth of this market in different economies.
Investments in solar and wind is creating jobs reducing emissions and fostering innovation. In order to reduce the carbon emissions in the energy sector to cap the global climate change it's the most important goal of many governments. It has led to an increase in the energy efficiency of the electric grids which are able to achieve reduced carbon dioxide emissions. By the year 2022 the Government of India it's targeting to install 175 gigawatts of renewable energy capacity. This energy will come from a wind, biopower solar and hydro power.
Similarly, the Spanish government is also aiming to add 157 gigawatts of renewable energy capacity by the year 2030. The use of thermal energy storage provides better reliability reduced investment, increase in the overall efficiency add reduction in the running costs and economic operations. A speedy growth of the decentralized renewable energy technologies will also drive the market.
Report Scope of the Thermal Energy Storage Market
|Market Size in 2023||
USD 23.48 Billion
|Market Size by 2032||
USD 50.57 Billion
|Growth Rate from 2023 to 2032||CAGR of 8.9%|
|Forecast Period||2023 to 2032|
|Segments Covered||Technology, Storage Material, Application, End User, and Geography|
|Companies Mentioned||BrightSource Energy Inc., SolarReserve LLC, Caldwell Energy, Cryogel, Steffes Corporation, Abengoa SA, Terrafore Technologies LLC, Ice Energy, Baltimore Aircoil Company|
On the basis of technology, the sensible heat storage segment shall contribute largely to the growth of the market during the forecast period. Thermal energy storage which is in the form of sensible heat depends on the specific heat of a storage medium. The storage William it's captain storage tanks which have high thermal insulation. Molten salt is the most widely used commercial heat storage medium. It has a large number of industrial as well as commercial applications. Molten salt have excellent thermal properties.
In about 50% of the operational thermal energy projects molten salts are used till date. The sensible heat storage technology is extremely cost efficient.
Storage Material Insights
On the basis of the storage material, the molten salt segment is expected to grow well during the forecast period. Molten salts are commonly used as they have higher boiling points. Salt is pumped into her steam generator which boils water spins a turbine and generates electricity when there is a need for energy.
The power generation segment on the basis of application is expected to be the largest contributor during the forecast period. Storage of the thermal energy in concentrating solar power plants will be helpful in overcoming the intermittency of the solar resource as it will be able to provide power for extended periods of time. Energy can be captured during the sunshine hours and it can be stored for its delivery to facilitate the plant output during unfavorable weather conditions.
The working of the solar thermal power plant can be extended even when there is no solar radiation. It will reduce the need to burn fossil fuels. Energy storage will not only reduce the gap between supply and demand but it will also improve the reliability and the performance of the energy systems and play an extremely important role in conserving energy.
The utility segment is expected to have the largest market share. This system makes use of chilled water technologies or ice for storing the thermal energy in tanks for the future use. The energy is stored in the tanks when it is not used during the off-peak hours. It helps in meeting the demand during the peak hours. Many customers are able to avail the power which is available on the time of the day pricing depending upon the peak hours. Energy is sold to the customers at a lower price during the off-peak hours.
The industrial segment is also expected to grow as there is an increase in the spending on infrastructure development. Increased use of large quantities of hot water in these industries will boost the segment growth. Thermal energy plans are utilized to generate electricity energy to meet the demand of the residential and commercial sectors. There is a use of home storage units to store the thermal energy to provide for the residential and commercial buildings as and when required.
Thermal Energy Storage Market Share, By Region, 2022 (%)
|Regions||Revenuie Share in 2022 (%)|
European countries are making attempts to meet the net zero carbon reduction targets. European nations are making efforts to shift from the coal fired power generation to the other enable energy generation sources are supporting the from coal fired power generation to renewable energy generation.
North American region shall have the second largest revenue due to the positive outlook towards renewable based power generation. Increased research and development activities in the energy storage systems shall help in the growth of the market. In the developing nations like China India Japan Indonesia Malaysia and South Korea there is a rapid growth in population and organization. These developing nations have many fundamental infrastructure systems. Owing to these reasons the Asia Pacific region is expected to grow during the forecast period.
Key Market Developments
In August 2021, a new prototype technology for thermal energy storage was introduced by the researchers at the National Renewable Energy Laboratory, U.S. This system uses silica sand as the storage medium. The cost effective storage medium can prove to be a new technology which can be installed in small modular structures in many nations to supply heat and electricity.
Segments Covered in the Report
By Storage Material
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