Thermal Energy Storage Market By Technology (Sensible Heat Storage, Latent Heat Storage, Thermochemical Storage), By Application (District Heating & Cooling, Concentrated Solar Power (CSP), Industrial Heating, Building Heating & Cooling), By End-User (Residential, Commercial, Industrial), By Storage Material (Water, Molten Salt, Phase Change Materials (PCMs), Concrete), By Deployment Type (On-grid, Off-grid); Global Insights & Forecast (2024 - 2030)

As per Intent Market Research, the Thermal Energy Storage Market was valued at USD 4.7 Billion in 2024-e and will surpass USD 14.3 Billion by 2030; growing at a CAGR of 20.4% during 2025 - 2030.

The thermal energy storage (TES) market is experiencing significant growth due to the increasing demand for efficient energy storage solutions, particularly in the context of renewable energy adoption and energy efficiency. TES systems allow for the storage of excess thermal energy produced during peak periods and its release when demand is higher, making them essential for integrating renewable energy sources like solar and wind. With the global shift toward cleaner energy and the growing need for reliable and flexible energy storage solutions, the TES market is expected to grow substantially. The increasing focus on reducing greenhouse gas emissions and improving energy resilience has further accelerated the adoption of TES technologies, which are being integrated into a variety of sectors, including industrial, residential, and commercial applications.

Among the different technologies used in thermal energy storage, sensible heat storage is the most widely adopted due to its simplicity and cost-effectiveness. This method involves storing heat by raising the temperature of a storage medium, such as water or concrete, and releasing it when needed. Sensible heat storage systems are commonly used in a variety of applications, including district heating and cooling, industrial heating, and building heating and cooling. One of the primary advantages of sensible heat storage is its ability to store large amounts of thermal energy at relatively low costs compared to other technologies. The ease of integration with existing infrastructure and the availability of materials like water and concrete for use in storage systems further contribute to the widespread use of sensible heat storage in both residential and industrial applications.

Sensible Heat Storage is Largest Due to Cost-Effectiveness and Simple Integration

Sensible heat storage continues to dominate the thermal energy storage market due to its cost-effectiveness, straightforward implementation, and ability to store large amounts of thermal energy at a relatively low cost. The technology works by using common materials like water, concrete, or molten salt to store heat, making it a preferred option for both large-scale and small-scale applications. Its ability to store heat at different temperature levels also provides flexibility, making it suitable for a wide range of uses, from district heating systems to residential applications.

The adoption of sensible heat storage systems is particularly prominent in the district heating and cooling sector, where it is used to store excess heat produced by central plants and distribute it to buildings during colder periods. Additionally, the growing interest in concentrating solar power (CSP) systems, which rely on thermal storage for energy production, has further driven the adoption of sensible heat storage. As the demand for energy-efficient solutions increases across various industries, sensible heat storage is expected to maintain its position as the largest subsegment within the TES market.

Molten Salt Leads the Storage Material Segment Due to High Efficiency and Versatility

In the storage material segment, molten salt is gaining prominence as the leading choice for thermal energy storage due to its high efficiency, heat retention properties, and versatility in a wide range of applications. Molten salt has a high specific heat capacity and can store heat for extended periods without significant heat loss, making it ideal for large-scale energy storage solutions. This characteristic is particularly beneficial for applications such as concentrated solar power (CSP) plants, where molten salt is used to store excess thermal energy generated by solar collectors and release it when needed.

Molten salt-based thermal storage systems are often employed in industrial heating applications as well, where consistent and reliable heat is required. These systems can be integrated with renewable energy sources, enabling more efficient energy usage and helping to balance the intermittent nature of solar and wind energy. With the increasing deployment of CSP systems and the growing focus on renewable energy, molten salt is expected to remain a leading material in the thermal energy storage market, particularly in large-scale commercial and industrial applications.

Residential Sector to Lead the End-User Market as Focus Shifts to Energy Efficiency

The residential sector is expected to be one of the fastest-growing end-user segments in the thermal energy storage market. As consumers become more energy-conscious and seek ways to reduce energy costs, the adoption of TES systems in residential buildings is on the rise. Residential thermal storage systems, particularly those using sensible heat storage technologies, enable homeowners to store excess heat produced by renewable energy systems, such as solar panels, and use it during times of high demand or when the renewable source is not generating power. This leads to cost savings, better energy efficiency, and reduced reliance on the grid.

In addition to energy cost savings, residential TES systems contribute to reducing carbon footprints, as they help maximize the use of renewable energy. Governments and regulatory bodies in many regions are offering incentives and subsidies for the adoption of energy-efficient systems, further boosting the demand for TES in residential buildings. As energy storage technologies become more accessible and affordable, the residential sector is expected to play a significant role in the growth of the thermal energy storage market.

Asia-Pacific to Lead the Market Due to Rapid Urbanization and Energy Efficiency Initiatives

Asia-Pacific is expected to dominate the thermal energy storage market, driven by rapid urbanization, industrialization, and growing energy efficiency initiatives across the region. Countries like China and India are increasingly investing in renewable energy infrastructure, and thermal energy storage plays a critical role in enabling reliable energy supply from renewable sources. With the region's large-scale solar projects and increasing adoption of sustainable energy solutions, the demand for TES systems is rising significantly.

Furthermore, the increasing focus on reducing energy consumption and improving the energy resilience of cities has led to a surge in thermal storage projects, particularly in countries with high renewable energy potential. As governments in Asia-Pacific continue to prioritize renewable energy integration and energy efficiency, the region is expected to remain a key player in the global thermal energy storage market. The growing trend toward sustainable urban development, combined with the rapid adoption of renewable technologies, will continue to drive the demand for TES systems in the coming years.

Competitive Landscape and Key Players in the Thermal Energy Storage Market

The thermal energy storage market is highly competitive, with several key players leading the development and deployment of innovative storage technologies. Companies such as Siemens, Abengoa Solar, and SolarReserve are at the forefront of developing molten salt-based TES systems, particularly for use in concentrated solar power plants. Additionally, companies like Calmac, Ice Energy, and Ice Energy Systems focus on sensible heat storage technologies for building heating and cooling applications.

The competitive landscape is shaped by a combination of technological innovation, cost-efficiency, and strategic partnerships. As demand for renewable energy solutions continues to grow, leading players are investing in research and development to improve the efficiency and scalability of TES systems. Additionally, the increasing collaboration between renewable energy providers and thermal storage companies is expected to further enhance the market dynamics, ensuring that TES technologies can meet the evolving energy demands of both residential and commercial sectors. As governments around the world continue to promote renewable energy integration, the competitive environment in the TES market will remain dynamic, with players working to meet the increasing demand for reliable and efficient energy storage solutions.

Recent Developments:

• EnergyNest AS announced the completion of its first commercial thermal energy storage installation in December 2024, improving energy efficiency for a large industrial client.
• Xtreme Power, Inc. launched a new thermal energy storage solution that enhances the efficiency of renewable energy plants in November 2024.
• SolarReserve secured funding for the development of a large-scale molten salt-based thermal energy storage facility in October 2024.
• Ice Energy unveiled a new ice-based thermal storage system designed for residential applications in September 2024.
• Doosan Heavy Industries & Construction expanded its thermal energy storage portfolio with the introduction of a new phase change material-based system in August 2024.

List of Leading Companies:

• Abengoa Solar
• Xtreme Power, Inc.
• EnergyNest AS
• SolarReserve
• CSP Services
• Ice Energy
• Phase Change Energy Solutions
• Calmac Manufacturing Corporation
• STELAR Thermal Energy Storage
• Doosan Heavy Industries & Construction
• Siemens AG
• BrightSource Energy
• Schneider Electric
• Green Energy Storage
• TESS, Inc.

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