Thermal Energy Storage Market Summary
As per MRFR Analysis, the Global Thermal Energy Storage Market was valued at 4.76 USD Billion in 2023 and is projected to grow to 12 USD Billion by 2035, reflecting a CAGR of 8.01% from 2025 to 2035. The market is driven by the rising demand for renewable energy solutions and supportive government policies promoting energy efficiency. Key technologies include Molten Salt Storage, Water Thermal Storage, and Phase Change Materials, each contributing to the market's expansion.
Key Market Trends & Highlights
The thermal energy storage market is evolving with significant trends and opportunities.
- Thermal Energy Storage Market Size in 2024: 5.15 USD Billion.
- Molten Salt Storage expected to grow from 1.25 USD Billion in 2024 to 3.0 USD Billion by 2035.
- Water Thermal Storage projected to increase from 1.4 USD Billion in 2024 to 3.5 USD Billion by 2035.
- Government initiatives globally are enhancing market growth through funding and incentives.
Market Size & Forecast
2023 Market Size: USD 4.76 Billion
2024 Market Size: USD 5.15 Billion
2035 Market Size: USD 12 Billion
CAGR (2025-2035): 7.99%
Largest Regional Market Share in 2024: North America.
Major Players
Key Companies 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, and Storfinity.
Key Thermal Energy Storage Market Trends Highlighted
There are a number of major trends in the Thermal Energy Storage Market that show how much people want energy efficiency and sustainability. One important factor in the market is the urgent need to balance energy supply and demand. Thermal energy storage systems are becoming more and more important as governments across the world try to cut down on greenhouse gas emissions and employ more renewable energy sources.Â
These systems help balance the fact that solar and wind energy are not always available. This is clear from the many government programs throughout the globe that support the switch to cleaner energy sources and encourage investment in renewable energy technology. Another option that may be looked at is the development of storage technologies like phase change materials and molten salt systems, which make thermal energy storage more useful and efficient.
These new ideas may help businesses save money on operations and provide them with more options when it comes to energy use. Also, the increased worry about energy security because of geopolitical considerations makes it even more important to diversify energy sources by using thermal storage systems. Recently, there has been a tendency towards more cooperation between the public and commercial sectors to make it easier for research and development to happen in this area.Â
Governments in different parts of the world are offering incentives and regulatory assistance for thermal energy storage installations to help local economies and bring in investments. Also, the fact that more and more people and organizations are becoming conscious of environmentally friendly practices is driving market expansion as they look for solutions that not only satisfy their energy demands but also help protect the environment.
The worldwide market for thermal energy storage systems is growing because of this collective push towards cleaner energy solutions. This shows that there is a big shift towards more sustainable energy systems.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Thermal Energy Storage Market Drivers
Increasing Demand for Renewable Energy Solutions
The growing global emphasis on sustainability and the transition to renewable energy sources is a significant driver for the Thermal Energy Storage Market Industry. Reports indicate that by 2025, renewable sources are projected to account for about 30% of the global power supply, primarily through wind and solar technologies. This shift necessitates efficient energy storage systems, such as thermal energy storage, to ensure a stable energy supply and assist in grid management.
Organizations such as the International Energy Agency have underscored the importance of energy storage technologies, estimating that solutions like thermal energy storage can reduce grid congestion and enhance energy distribution efficiency. This growing adoption of renewables and the necessity for complementary storage solutions position the Thermal Energy Storage Market for substantial growth in the coming years.
Technological Advancements in Energy Storage
Innovation in energy storage technologies plays a pivotal role in enhancing the efficiency and applicability of thermal energy storage systems. Recent advancements, such as phase change materials and improved thermal insulation techniques, are revolutionizing how thermal energy is stored and subsequently utilized. For example, the Energy Storage Association reports that new materials are improving storage efficiency by up to 25% and reducing costs significantly.
These technological improvements foster wider acceptance and investment in thermal energy storage, making it a prominent choice for utility firms and industrial applications across the Thermal Energy Storage Market Industry.
Government Initiatives and Support
Government policies and regulations are essential drivers influencing the Thermal Energy Storage Market Industry. Various regions are implementing initiatives aimed at promoting alternative energy storage solutions to meet their climate goals. For instance, the European Union has set targets to reduce greenhouse gas emissions by 55% by 2030, and it sees thermal energy storage as a key enabler in achieving this objective. Policy instruments such as grants, tax incentives, and subsidies for energy storage projects encourage investments in thermal energy technologies, accelerating market growth.
According to the United States Department of Energy, supportive policies enhance market access, leading to increased installations and innovations in thermal storage systems.
Rising Energy Costs and Grid Instability
The increasing volatility of energy prices and concerns regarding grid reliability are significant contributors to the growth of the Thermal Energy Storage Market Industry. With energy prices fluctuating due to factors like geopolitical tensions and climate change, consumers and industries are looking for more economical solutions for energy consumption. As per the Global Energy Monitor, energy costs can rise by 20-30% during peak demand seasons, creating an urgent need for energy buffering solutions.
Thermal energy storage allows users to store energy when rates are low and utilize it during high-demand times, effectively reducing operational costs. Industries that have implemented thermal energy storage systems, such as major corporations in the manufacturing sector, have reported savings of up to 30% on energy costs, underscoring the financial advantages of this technology.
Thermal Energy Storage Market Segment Insights
Thermal Energy Storage Market Technology Insights
The Thermal Energy Storage Market has been experiencing steady growth, driven by advancements in energy storage technology that enhance the efficiency and reliability of renewable energy systems. As of 2024, the overall market is projected to achieve a valuation of 5.15 USD Billion, expanding significantly to 12.0 USD Billion by 2035.
Within this market, technology plays a critical role, with various methodologies employed to store thermal energy for use in heating and electricity generation. Among the prominent technologies, Molten Salt Storage stands out as a major player, valued at 2.07 USD Billion in 2024, and expected to rise to 4.9 USD Billion by 2035, thus demonstrating its majority holding in the market. This technology is significant due to its ability to store large amounts of thermal energy, making it essential for concentrating solar power plants, where it can optimize energy delivery by storing heat for electricity generation during non-sunny hours.
Water Thermal Storage follows closely, valued at 1.63 USD Billion in 2024 and anticipated to grow to 3.7 USD Billion by 2035. This method is widely adopted in various industrial applications for heating and cooling purposes, capitalizing on readily available resources. It provides a straightforward, cost-effective solution for energy storage, further bolstered by the need for energy efficiency in residential and commercial sectors, thus aiding market growth.
Phase Change Materials represent another notable technology segment with a valuation of 1.02 USD Billion in 2024, projected to expand to 2.4 USD Billion in 2035. These materials are vital in applications where temperature regulation is crucial as they can absorb and release stored thermal energy during phase transitions. Their significant potential for improving energy efficiency in buildings and systems is driving increased interest and investment within this segment.
Additionally, Ice Storage, although the smallest segment with a current valuation of 0.43 USD Billion in 2024 and a projection to hit 1.0 USD Billion by 2035, plays an essential role in cooling applications, particularly in commercial refrigeration and air conditioning systems. This technology allows for the storage of energy through the phase change of water into ice, providing a practical means of shifting energy use from peak demand hours to off-peak times, thereby supporting the grid's overall stability.
The Thermal Energy Storage Market is therefore characterized by its diverse technology offerings, each contributing uniquely to renewable energy strategies and adaptation to climatic changes. The continued investments and developments in these technologies are crucial for addressing the global energy demand and promoting eco-friendly practices, confirming the market's trajectory toward significant expansion in the coming years. The insights from the Thermal Energy Storage Market data reflect a robust industry driven by technological innovation and increasing adoption of sustainable energy solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Thermal Energy Storage Market Storage Capacity Insights
The Thermal Energy Storage Market revenue is on a growth trajectory with significant emphasis on the Storage Capacity segment. Expected to be valued at 5.15 USD Billion in 2024, the market showcases a robust expansion with projections reaching 12.0 USD Billion by 2035. Various capacities including Less than 100 MWh, 100-500 MWh, 500-1000 MWh, and More than 1000 MWh play vital roles in addressing energy efficiency and sustainability needs globally. The Less than 100 MWh capacity holds a critical position in residential and small-scale applications, driving adoption in decentralized energy systems.
Meanwhile, 100-500 MWh systems are essential for medium-sized facilities and contribute to grid stability. The 500-1000 MWh segment caters to large-scale commercial operations, promoting effective load shifting and renewable energy integration. Notably, the More than 1000 MWh capacity is significant for utility-scale projects, offering extensive energy storage solutions that balance supply and demand. As governments worldwide encourage clean energy transitions, conducive policies and technological advancements further enhance the attractiveness of various capacities, presenting opportunities for innovation and investment in the Thermal Energy Storage Market industry.
Thermal Energy Storage Market Application Insights
The Thermal Energy Storage Market revenue showcases significant potential, particularly within the Application segment which encompasses District Heating, Industrial Processes, Concentrated Solar Power, and Building Heating and Cooling. As the market matures, District Heating is becoming increasingly crucial, harnessing stored thermal energy to provide heating across residential and commercial spaces. Industrial Processes leverage thermal energy storage for improved efficiency, reducing peak energy demand and costs. Concentrated Solar Power applications are pivotal in optimizing energy supply from renewable sources, enhancing grid stability.
Building Heating and Cooling systems are essential for energy conservation, making them key players in reducing carbon footprints and promoting energy efficiency. This segment is poised to expand as global energy demands grow. The projected Thermal Energy Storage Market data highlights an increase in market statistics from USD 5.15 billion in 2024 to significant growth by 2035. Factors driving this growth include environmental regulations, technological advancements in storage systems, and the increasing emphasis on sustainable energy solutions.
Overall, the Application segment plays a vital role in bridging the gap between energy supply and demand in the global landscape.
Thermal Energy Storage Market Material Used Insights
The Thermal Energy Storage Market is experiencing notable developments in the Material Used segment, contributing to the market's overall value expected to reach 5.15 USD Billion in 2024. This growth is largely influenced by the increasing demand for sustainable energy solutions. Within this segment, materials such as Concrete, Steel, Natural Materials, and Composite Materials play significant roles. Concrete is known for its thermal mass properties, making it an effective choice for large-scale thermal storage systems. Steel, with its high strength and recyclability, is favored in applications requiring durability and efficiency.
Natural Materials, including phase change materials, offer eco-friendly options that align with global sustainability initiatives. Composite Materials, which combine distinct features of various substances, are also gaining traction for their versatile applications and enhanced performance in thermal energy storage systems. The emphasis on energy efficiency and the reduction of carbon footprints are driving significant investment and innovation in these materials, reinforcing their importance in the Thermal Energy Storage Market, ultimately benefitting overall market growth.
Thermal Energy Storage Market Regional Insights
The Thermal Energy Storage Market has shown substantial regional activity, with North America leading the way and achieving a valuation of 1.55 USD Billion in 2024, expected to rise to 3.55 USD Billion by 2035. Europe follows closely, holding a value of 1.35 USD Billion in 2024, increasing to 3.1 USD Billion, indicating significant investments in renewable energy technologies. The Asia Pacific region also holds a significant share, valued at 1.5 USD Billion in 2024 and projected to reach 2.85 USD Billion, showcasing its growing focus on clean energy solutions.
South America and the Middle East and Africa are comparatively smaller markets, with valuations of 0.5 USD Billion and 0.25 USD Billion in 2024, respectively. However, South America's expected growth to 1.05 USD Billion and the Middle East and Africa's to 0.45 USD Billion highlights emerging opportunities in these regions. The overall Thermal Energy Storage Market data reflects a trend towards enhancing energy efficiency and sustainability, driven by the rising demand for renewable energy sources and government initiatives across regions.
The market growth is influenced by both technological advancements and regulatory frameworks supporting energy storage solutions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Thermal Energy Storage Market Key Players and Competitive Insights
The competitive landscape of the Thermal Energy Storage Market is characterized by a diverse range of players, each contributing to the evolution of thermal energy storage technologies. This market includes various methodologies for storing heat energy, including sensible heat storage, latent heat storage, and thermochemical storage, primarily driven by the needs for renewable energy integration and grid stability. Factors such as technological advancements, governmental policies promoting sustainable energy solutions, and an increasing demand for energy efficiency are propelling participants to innovate and expand their offerings. As competition intensifies, companies are focused on strategic partnerships, acquisitions, and the development of next-generation storage solutions to enhance their market presence and strengthen their positioning in this rapidly growing field.
SolarReserve stands out within the Thermal Energy Storage Market due to its specialized focus on concentrating solar power (CSP) systems that incorporate thermal storage capabilities. The company takes advantage of advanced technology that allows for energy to be stored as heat, which can be used when solar power is not available. This ability to deliver energy on demand, regardless of sunlight conditions, enhances SolarReserve's appeal. The integration of robust thermal energy storage solutions in CSP projects positions the company as a reliable contributor to the global shift towards renewable energy. The strategic approach towards optimizing storage capacity and increasing energy efficiency boosts SolarReserve's strengths in sustainable energy generation, aiming to provide a consistent and reliable energy supply while minimizing carbon footprints.
General Electric brings a wealth of experience and a broad portfolio of solutions to the Thermal Energy Storage Market, particularly focusing on advanced energy generation and storage technologies. The company's key offerings include integrated thermal storage systems that are designed to enhance energy generation efficiency while reducing operational costs. General Electric's strength lies in its ability to leverage its vast engineering capabilities and global footprint to deliver innovative thermal storage solutions that meet diverse energy needs across different regions. The company's commitment to research and development, along with strategic alliances and mergers, allows it to enhance its service offerings continuously. This positioning not only strengthens General Electric's competitive edge but also enables it to influence market dynamics significantly in favor of advanced energy storage solutions on a global scale.
Key Companies in the Thermal Energy Storage Market Include:
Thermal Energy Storage Market Industry Developments
Recent developments in the Thermal Energy Storage Market reflect an increasing focus on sustainable energy solutions, particularly from companies like SolarReserve, General Electric, and Siemens AG. Investments in advanced thermal energy storage technologies are rising, with notable advancements in molten salt storage systems and phase change materials.Â
In 2022, significant projects were initiated in North America and Europe, underscoring the global shift towards enhancing thermal energy efficiency in response to climate change initiatives. This growing interest reflects a broader movement within the energy sector towards integrating thermal storage with renewable sources.
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
|
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)
|
7.99% (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
|
SolarReserve, General Electric, Veolia Environnement, Siemens AG, HPC Energy, Danfoss, ENGIE,
|
|
Segments Covered
|
Technology, Storage Capacity, Application, Material Used, Regional
|
|
Key Market Opportunities
|
Increased renewable energy integration, Growth in energy efficiency initiatives, Rising demand for grid stability, Advancements in storage technologies, Expanding industrial applications
|
|
Key Market Dynamics
|
growing energy demand, renewable energy integration, cost reduction initiatives, government incentives, technological advancements
|
|
Countries Covered
|
North America, Europe, APAC, South America, MEA
|
Thermal Energy Storage Market Highlights:
Frequently Asked Questions (FAQ) :
The Thermal Energy Storage Market is expected to be valued at 5.15 USD Billion in 2024.
By 2035, the Thermal Energy Storage Market is projected to reach a value of 12.0 USD Billion.
The expected compound annual growth rate for the Thermal Energy Storage Market from 2025 to 2035 is 7.99%.
North America is expected to dominate the Thermal Energy Storage Market with a value of 1.55 USD Billion in 2024.
Water Thermal Storage is anticipated to reach a market size of 3.7 USD Billion by 2035.
Major players in the market include SolarReserve, General Electric, Veolia Environnement, and Siemens AG.
Molten Salt Storage is projected to have a market size of 4.9 USD Billion by 2035.
Opportunities exist due to increasing demand for energy-efficient solutions, particularly in renewable energy applications.
Asia Pacific is expected to grow and reach a market size of 2.85 USD Billion by 2035.
Ice Storage technology is valued at 0.43 USD Billion in 2024.
