Thermal Energy Storage Market Research Report By Technology (Molten Salt Storage, Water Thermal Storage, Phase Change Materials, Ice Storage), By Storage Capacity (Less than 100 MWh, 100-500 MWh, 500-1000 MWh, More than 1000 MWh), By Application (District Heating, Industrial Processes, Concentrated Solar Power, Building Heating and Cooling), By Material Used (Concrete, Steel, Natural Materials, Composite Materials) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035

Global Thermal Energy Storage Market Overview:

As per MRFR analysis, the Thermal Energy Storage Market Size was estimated at 4.76 (USD Billion) in 2023. The Thermal Energy Storage Market Industry is expected to grow from 5.15 (USD Billion) in 2024 to 12 (USD Billion) by 2035. The Thermal Energy Storage Market CAGR (growth rate) is expected to be around 8.01% during the forecast period (2025 - 2035).

Key Thermal Energy Storage Market Trends Highlighted

The thermal energy storage market is experiencing notable trends driven largely by the increasing demand for renewable energy solutions and the need for energy management systems. Governments worldwide are introducing policies and incentives to promote renewable energy adoption and energy efficiency, which includes the integration of thermal energy storage systems. This shift toward sustainability is a key market driver, as countries aim to reduce carbon emissions and improve energy reliability. 

The rising need for grid stability and energy transition has led to advancements in thermal storage technologies, thereby creating opportunities for new developments in materials and system design. Furthermore, recent developments indicate heightened attention towards the incorporation of thermal storage into already existing energy systems, such as in district heating and cooling, which improves energy efficiency. 

With the focus on sustainability in the world, industries are investing more in thermal storage systems as these are now considered a key elements for managing the supply-demand equilibrium in power grids. Emerging regions where access to energy is still developing offer great opportunities to be captured. These regions could use the implementation of thermal energy storage systems to sustainably aid in the development of their infrastructure.

Additionally, innovations in phase change materials and other advanced technologies present opportunities for enhanced performance and cost reduction, further driving market growth. Overall, these trends illustrate a dynamic and evolving global landscape in the thermal energy storage market, where both challenges and opportunities coexist.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Thermal Energy Storage Market Drivers

Rising Demand for Renewable Energy Sources

The Thermal Energy Storage Market Industry is experiencing significant growth due to the increasing demand for renewable energy sources. Governments around the world are investing heavily in renewable energy infrastructures, such as solar and wind, which necessitates effective energy storage solutions. According to the International Renewable Energy Agency, renewable energy capacity has grown by 260% over the past decade. 

This shift towards renewables is expected to lead to a growing need for thermal energy storage systems that can store excess energy generated during peak sunlight or wind conditions for use during low-generation periods. Established players like Siemens and General Electric are actively developing technologies that integrate thermal energy storage with renewable energy solutions, indicating a clear trend towards the harmonization of these industries, which will enhance market opportunities significantly.

Supportive Government Policies and Incentives

Government initiatives aimed at promoting energy efficiency and sustainability are driving the market for thermal energy storage solutions. Various programs and subsidies aimed at reducing carbon emissions and enhancing energy storage capabilities are being rolled out globally. For instance, the United States Department of Energy has announced various funding opportunities to support the research and deployment of advanced energy storage technologies, including thermal systems. These investments are projected to catalyze the growth of the Thermal Energy Storage Market Industry, providing businesses with the incentives they need to innovate and invest in newer technologies.

Increased Focus on Energy Management and Sustainability

Corporate and industrial entities are increasingly prioritizing energy management and sustainability within their operations, which is contributing to the growth of the Thermal Energy Storage Market Industry. According to a report by the United Nations, global energy efficiency could be enhanced by 30% by 2030, while critical organizations, such as the World Resources Institute, emphasize the importance of integrating sustainable practices into business models.

As companies implement strategies to reduce their carbon footprints, thermal energy storage systems offer an efficient way to manage energy use. Major corporations like Google and Microsoft are committing to sustainability goals, pushing for systems that support renewable energy consumption, thereby accelerating demand for thermal energy storage solutions.

Thermal Energy Storage Market Segment Insights:

Thermal Energy Storage Market Technology Insights

The Thermal Energy Storage Market showcases a robust growth trajectory within the Technology segment, reaching a valuation of 5.15 USD Billion by 2024 and further expanding to 12.0 USD Billion by 2035. This growth is driven by increasing demands for energy efficiency and the need for storage solutions that support renewable energy integration. The overall market reflects a Compounded Annual Growth Rate (CAGR) of 8.01 from 2025 to 2035, highlighting a strong trend towards adopting advanced thermal energy storage methods. Within the Technology segment, various forms of energy storage are evident, each maintaining its unique significance in the market. 

Molten Salt Storage stood as a key player, with a valuation of 1.25 USD Billion in 2024, expected to grow robustly to 3.0 USD Billion by 2035. This technology is pivotal due to its ability to store large quantities of thermal energy efficiently and its utility in concentrating solar power plants, thereby enabling a consistent energy supply. Water Thermal Storage, valued at 1.4 USD Billion in 2024 and anticipated to reach 3.5 USD Billion by 2035, plays a significant role in stabilizing energy demand and reducing peak load in various applications, including commercial buildings, thus driving market expansion. 

Phase Change Materials, which was at a valuation of 1.2 USD Billion in 2024 and projected growth to 2.8 USD Billion by 2035, hold importance in energy conservation as they can absorb and release thermal energy, enhancing building energy efficiency. Ice Storage, which was initially valued at 1.3 USD Billion in 2024, is forecasted to reach 2.7 USD Billion by 2035, being utilized effectively in cooling applications across multiple sectors, including commercial and industrial environments. These segments not only dominate the Thermal Energy Storage Market data but also emphasize the evolving landscape of energy solutions. 

The growing interest in sustainability, coupled with technological advancements in thermal storage, underpins the opportunities available within this robust market. The significant rise across these technologies indicates a collective shift towards optimizing energy usage and supporting renewable energy sources effectively. The growth trajectories of each technology illustrate the expanding role thermal energy storage will play in the overall energy landscape globally, which also aids in transitioning towards a more sustainable energy future while reducing carbon footprints.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Thermal Energy Storage Market Storage Capacity Insights

The Thermal Energy Storage Market, particularly in the Storage Capacity segment, projected a value of 5.15 billion USD in 2024. This segment has been classified into various capacities, such as Less than 100 MWh, 100-500 MWh, 500-1000 MWh, and More than 1000 MWh, each addressing different energy needs. The category of Less than 100 MWh serves smaller applications, making it crucial for residential and small commercial energy storage solutions. The 100-500 MWh range is significant as it supports medium-scale projects, providing a balanced approach to energy management.

Meanwhile, the 500-1000 MWh segment is gaining traction, given its importance for large commercial and industrial applications that require robust energy solutions. More than 1000 MWh is the most significant segment, playing a dominant role in utility-scale projects and further driving the market's growth. Overall, this segmentation not only underscores the diverse nature of energy storage needs but also reveals emerging trends focused on sustainable energy solutions, leading to increased demand across all categories in the coming years.

Thermal Energy Storage Market Application Insights

The Thermal Energy Storage Market is poised to exhibit substantial growth within its Application segment, reflecting the increasing demand for energy efficiency and sustainability. In 2024, the market reached a value of 5.15 USD Billion and is expected to expand further, indicating a robust interest in innovative energy solutions. Key applications such as District Heating are gaining traction as cities and communities strive to reduce their carbon footprints while providing reliable heat distribution. Industrial Processes are also crucial, as many sectors look to optimize energy usage and lower operational costs.

Concentrated Solar Power remains significant, allowing high-temperature thermal energy storage that enhances energy generation and flexibility. Building Heating and Cooling is a growing application due to rising energy costs and the need for effective climate control solutions. These applications not only demonstrate the versatility of thermal energy storage solutions but also highlight their contribution toward sustainable energy goals on a global scale. With a collective push towards renewable energy sources and smarter energy management, the Thermal Energy Storage Market is expected to play an essential role in achieving energy security and environmental sustainability.

Thermal Energy Storage Market Material Used Insights

The Thermal Energy Storage Market focuses significantly on various materials used, including Concrete, Steel, Natural Materials, and Composite Materials. The market was valued at 5.15 USD Billion in 2024, demonstrating robust growth potential. The choice of materials plays a crucial role in the effectiveness of thermal energy storage systems, influencing efficiency and longevity. Concentrating Solar Power, widely utilized for its durability and thermal mass, is pivotal in large-scale applications, while Steel's high thermal conductivity makes it suited for rapid energy release methods.

Natural Materials, leveraging environmentally friendly options, hold increasing appeal amidst sustainability trends. Composite Materials, known for their strength and lightweight properties, are typically preferred in specialized applications, enhancing system performance. Together, these materials contribute to the overall growth of the Thermal Energy Storage Market, supporting advancements in energy management and efficiency strategies within diverse industries worldwide. With these insights, various stakeholders aim to capitalize on emerging opportunities and tackle challenges associated with material selection and application in the evolving landscape.

Thermal Energy Storage Market Regional Insights

The Thermal Energy Storage Market is showing promising growth across various regions, with an overall market valuation expected to reach 5.15 USD Billion in 2024. Among the regions, North America led with a significant valuation of 1.7 USD Billion in 2024, projected to grow to 4.0 USD Billion by 2035, making it a dominant force due to its advanced infrastructure and focus on renewable energy. Europe followed closely, which increased from a valuation of 1.3 USD Billion in 2024 to 3.0 USD Billion in 2035, largely attributed to regulatory support for clean energy initiatives.

The Asia-Pacific (APAC) region, valued at 1.2 USD Billion in 2024, is anticipated to expand to 2.8 USD Billion by 2035, driven by rapid industrialization and increasing demand for energy in emerging economies. In contrast, South America and the Middle East and Africa (MEA) are smaller markets, starting at 0.5 USD Billion and 0.45 USD Billion in 2024, respectively, but they offer growth opportunities due to the rising need for sustainable energy solutions in these regions. With a strong Compound Annual Growth Rate projected at 8.01 from 2025 to 2035, the Thermal Energy Storage Market showcases diverse dynamics influenced by these key regions' investments in technology and energy security.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Thermal Energy Storage Market Key Players and Competitive Insights:

The Thermal Energy Storage Market has gained significant traction as the demand for energy storage solutions continues to grow in response to the increasing reliance on renewable energy sources. Competitive insights into this market reveal a landscape marked by innovation and strategic initiatives aimed at enhancing energy efficiency, reducing costs, and ensuring grid stability. Companies in this sector are actively developing advanced thermal energy storage technologies that cater to a diverse array of applications, including district heating, concentrated solar power, and industrial processes. 

As stakeholders strive to overcome challenges related to energy supply and demand management, competition among market participants intensifies, compelling them to focus on research and development investments, partnerships, and comprehensive service offerings that address the needs of various end-users. Tessera Solar Panels has positioned itself as a prominent player in the Thermal Energy Storage Market, particularly through its commitment to advancing solar thermal technologies. Leveraging its expertise in solar energy solutions, Tessera Solar emphasizes the development of integrated storage systems that ensure energy reliability and efficiency. The company benefits from its strong focus on innovation and the ability to deliver cost-effective and scalable thermal energy storage solutions. By aligning its technology with growing global sustainability goals, Tessera Solar enhances its market presence and strengthens its competitive edge. The firm’s strategic partnerships with leading industry stakeholders further 

bolster its capabilities, allowing it to provide tailored energy solutions that meet the demands of an evolving energy landscape.UTC Power, an established entity within the Thermal Energy Storage Market, focuses on providing innovative energy storage solutions that cater to both commercial and industrial applications. The company is known for its advanced thermal energy storage systems, which are designed to optimize energy consumption and reduce operational costs. UTC Power has solidified its market presence through key products and services that enhance thermal efficiency and support renewable energy integration. 

The company’s strengths lie in its commitment to R&D, which has led to a portfolio of reliable and efficient technologies. Additionally, UTC Power is engaged in strategic mergers and acquisitions to expand its footprint in the global market while seeking synergies that enhance its product offerings. Through such initiatives, UTC Power continues to strengthen its position as a leader in the thermal energy storage sector, providing critical solutions that align with the need for sustainable energy practices worldwide.

Key Companies in the Thermal Energy Storage Market Include:

• Tessera Solar


• UTC Power


• Bell and Gossett


• Toshiba Energy Systems


• Abengoa


• CPS Energy


• Steag Energy Services


• EnergyNest


• Hitecprod


• GreenFire Energy


• MHI Thermal Systems


• Magma Energy


• Storfinity


• SolarReserve

Thermal Energy Storage Market Industry Developments

The Thermal Energy Storage Market has been experiencing significant developments recently, with companies like Abengoa and Toshiba Energy Systems actively engaging in expanding their capabilities. Notable advancements in technology and increasing investments in renewable energy infrastructure have contributed to growth in market valuation. For instance, in August 2023, EnergyNest announced the successful implementation of its thermal energy storage solutions in several large-scale projects, showcasing the viability of its technology. Furthermore, Growth in the demand for energy resilience amid fluctuating energy prices has been noted, driving investment towards integrating thermal energy storage systems. 

As for mergers and acquisitions, in September 2023, CPS Energy finalized a strategic partnership with Hitecprod to enhance its thermal storage capabilities, which was notably recognized by industry analysts as a move to bolster its sustainability efforts. The year 2022 also saw significant momentum when Bell and Gossett expanded their product line to include innovative thermal storage solutions. Overall, the momentum in the Thermal Energy Storage Market reflects an eagerness for sustainable, efficient energy solutions aligning with global energy transition goals.

Thermal Energy Storage Market Segmentation Insights

Thermal Energy Storage Market Technology Outlook

• Molten Salt Storage


• Water Thermal Storage


• Phase Change Materials


• Ice Storage

Thermal Energy Storage Market Storage Capacity Outlook

• Less than 100 MWh


• 100-500 MWh


• 500-1000 MWh


• More than 1000 MWh

Thermal Energy Storage Market Application Outlook

• District Heating


• Industrial Processes


• Concentrated Solar Power


• Building Heating and Cooling

Thermal Energy Storage Market Material Used Outlook

• Concrete


• Steel


• Natural Materials


• Composite Materials

Thermal Energy Storage Market Regional Outlook

• North America


• Europe


• South America


• Asia Pacific


• Middle East and Africa

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	4.76 (USD Billion)
MARKET SIZE 2024	5.15 (USD Billion)
MARKET SIZE 2035	12.0 (USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	8.01% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Tessera Solar, UTC Power, Bell and Gossett, Toshiba Energy Systems, Abengoa, CPS Energy, Steag Energy Services, EnergyNest, Hitecprod, GreenFire Energy, MHI Thermal Systems, Magma Energy, Storfinity, SolarReserve
SEGMENTS COVERED	Technology, Storage Capacity, Application, Material Used, Regional
KEY MARKET OPPORTUNITIES	Increasing renewable energy integration, Growing demand for energy efficiency, Advancements in storage technologies, Expanding district heating networks, Supportive government policies and incentives
KEY MARKET DYNAMICS	growing renewable energy adoption , increasing energy efficiency regulations , rising demand for grid stability , declining technology costs , enhanced heat storage solutions
COUNTRIES COVERED	North America, Europe, APAC, South America, MEA