THERMAL ENERGY STORAGE MARKET ANALYSIS

The global thermal energy storage market size was valued at US$ 4.65 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 10.3% from 2023 to 2030. The global thermal energy storage market is expected to witness a significant growth during the forecast period. This is attributed to increasing adoption of renewable power generation and growing demand for HVAC thermal energy storage systems. Moreover, the rising concern over greenhouse gas emissions and increasing fuel prices are further expected to drive demand for advanced thermal energy storage systems.

Global Thermal Energy Storage Market: Regional Insights

Based on geography, the global thermal energy storage market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Regionally, Asia Pacific region is projected to dominate the global thermal energy storage market, as it has a huge population, rapidly developing economies, and extensive infrastructure systems. Furthermore, the rapid growth of the industrial sector in this region will support the thermal energy storage market. Also, increased investment in renewable energy and increasing demand for sustainable and environmentally-friendly products and services are further propelling regional market growth.

North America is expected to witness fastest growth in the near future over the forecast period owing to the presence of favorable policies and regulations in the region coupled with initiatives taken by the end use segments of thermal energy storage market majorly in the U.S. and Canada has driven the market growth in the region. Furthermore, initiatives taken by government to increase the use of clean energy technologies has also resulted to drive thermal energy storage market in the country.

Figure 1. Global Thermal Energy Storage Market, By Region, 2022

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Global Thermal Energy Storage Market Drivers:

Growing research &development activities is fostering TES market growth

Active Building Centre Research Program, directed by Swansea University, has recently been bestowed a £146,000 fund. The project is focusing on a technology capable of storing heat for days or even months, aiding the move toward net-zero. It also solves one of the key issues with renewable energy technologies, called intermittency: solar and wind power rely on weather conditions.

Favorable government policies and regulations to propel market growth

Many countries are drafting favorable policies for increase the adoption of thermal energy storages system. For instance, U.S. states such as California provides Federal Investment Tax Credit (ITC) and the Self Generation Incentive Program for installation of Ice based thermal energy storage technology in the state. In addition, in January 2018 New York regulators announced to set a target to deploy 1.5 GW and 3.0 GW of energy storage projects in the state by 2025 and 2030 respectively.

Global Thermal Energy Storage Market Opportunities:

Rapid urbanization across developing countries is expected to provide lucrative market opportunities over the forecast period. The Asia Pacific is the largest market for thermal energy storage with China and India being the key markets. The rapid urbanization and population expansion in these regions are expected to drive the market. Furthermore, the growing infrastructure development and establishment spending in these nations are also driving the market.

The rapid deployment of thermal energy storage systems for space heating, water heating and district heating and cooling applications is projected to serve major growth opportunities. Moreover, rise in demand for heating and cooling solutions, rapid expansion of the thermal energy storage industry, and presence of large business enterprises are further projected to provide market opportunities.

Global Thermal Energy Storage Market Trends:

Shift towards renewable energy generation is a trend

Several countries globally are shifting towards renewable energy generation and adopting thermal energy storage to meet their carbon reduction targets. In addition, governments, associations and universities are investing actively in R&D to come up with innovative thermal storage mediums that have a low or zero impact on the environment. In this regard, the emergence of new technologies like smart sensor, IoT and AI is expected to enhance the efficiency of thermal energy storage.

New product launch due to ongoing innovation is a recent trend

Key players are introducing novel product in TES due to ongoing innovation in the field. This will favor the market growth in the near future. For instance, in April 2023, Brenmiller has launch a 4 GW to 5 GW production line for its thermal energy storage systems, which use crushed rocks to retain heat that can be released as steam, hot water, or hot air. Thermal energy storage (TES) has shown great potential to contribute to the decarbonization of global heat and power.

Global Thermal Energy Storage Market Restraints:

Availability of alternate energy storage technologies to hinder market growth

Thermal energy can be stored in a variety of ways: by altering the way heat is absorbed or released, or by conducting chemical reactions that take advantage of thermal properties of certain materials. Common methods include latent and sensible heat (types of heat transfer), phase change materials, thermochemical conversion, and ice and chilled water storage. Hence, presence of substitute is expected to hamper the TES market growth.  

Lack of infrastructure and technicians &experts to restrict market growth          

A large-scale TES requires a dedicated site and a team of engineers to design, construct and operate. This can be difficult to coordinate and lead to inefficiency and cost overruns. Some TES systems require expensive insulation to ensure a constant temperature inside the storage tank, which can make them more costly to install and operate. Additionally, some TES systems are not designed to be compatible with a building's structure or HVAC system, which can make them less efficient.   

Figure 2. Global Thermal Energy Storage Market, By Technology, 2022

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Global Thermal Energy Storage Market Segmentation:

The global thermal energy storage market report is segmented into Type, Technology, Storage Material, Application, End User, and Region

Based on Type, the market is segmented into Sensible Heat Storage, Latent Heat Storage, and Thermochemical heat Storage. Out of which, sensible heat storage accounted for the largest share of the market in 2022, with the revenue share estimated to grow over the forecast period. This segment is anticipated to grow owing to its wide applicability across residential establishments and increased demand for solar thermal storage systems. The provision of reversible charging and discharging facility is also expected to foster the product penetration.

Latent heat storage segment is also expected to witness significant growth in the near future. The latent heat storage technology is another commonly used TES technology and accounts for a relatively large share of the market in 2021. In this technology, the storage medium is heated & cooled to increase its energy content.

Based on Technology, the market is segmented into Molten Salt Technology, Electric Thermal Storage Heater, Solar Energy Storage, Ice- Based Technology, Miscibility Gap Alloy Technology (MGA), and Others. The molten salt segment held the largest revenue share in 2022. It is primarily used to store heat collected from solar troughs and towers. It is also employed to store the energy generated by concentrated solar power (CSP) systems.

Electric Thermal Storage Heater segment is also expected to witness significant growth in the near future and this is owing to their low cost and financial incentives policy in some countries.   

Based on Storage Material, the market is segmented into Molten Salt, Phase Change Material, Water, and Others. Out of which, Molten Salt is expected to dominate the global market over the forecast period. These salts are used to store thermal energy for concentrated solar power and industrial settings applications.

Phase Change Material segment is also expected to witness significant growth in the near future and this is owing to their ability to store large amounts of energy. They have heat of fusion, and release & absorb energy during changing their phase from solid to liquid or vice versa

Based on Application, the market is segmented into Process Heating & Cooling, Process Heating & Cooling, Power Generation, Ice storage air- conditioning, and Ice storage air- conditioning. Out of which, Process heating & cooling is expected to dominate the global market over the forecast period because TES are widely used for process heating and cooling to change the physical and chemical properties of the preferred materials.

Power Generation segment is also expected to witness significant growth in the near future and this is owing to the growing awareness regarding energy efficiency and conservation in power generation sector.

Based on End User, the market is segmented into Industrial, Utilities, and Residential & Commercial. The utility segment is expected to remain the largest contributor in the TES market during the forecast period. This is owing to the incorporation of thermal storage systems in electric utility plants to reduce demand for more expensive, higher-temperature power plants during utility off-peak periods.

Residential & Commercial segment is also expected to witness significant growth in the near future and this is owing to the growing investments in renewable energy solutions and increasing government support to promote the adoption of TES technology.

Global Thermal Energy Storage Market: Key Developments

In March 2023, Brenmiller Energy Ltd. ("Brenmiller", "Brenmiller Energy”, a global marketer in thermal energy storage (TES), announced a milestone in the construction of its production facility in Dimona, Israel where the Company’s bGen TES modules are manufactured.

In March 2023, Rondo Energy, a provider of zero-carbon industrial heat, and Calgren Renewable Fuels, a producer of the world’s lowest carbon intensity (CI) biofuels, today announced the start of commercial operation of a 2MWh Rondo Heat Battery (RHB) at Calgren’s facility in Pixley, California. The Rondo Heat Battery captures intermittent renewable electricity, stores it at very high temperatures in brick materials, and delivers continuous industrial heat on demand.

Global Thermal Energy Storage Market: Key Companies Insights

The global thermal energy storage market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global thermal energy storage market are BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns & McDonnell, Inc., and DC Pro Engineering

*Definition: Thermal energy storage (TES) is an energy technology used to store and release heat. It can be used in a wide range of applications. It is often associated with solar heating systems, but it can also be applied to integrate intermittent renewable energies in district heating networks and to couple waste heat sources with heat pumps and combined heat and power (CHP) generators.