Thermal Energy Storage Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global Thermal Energy Storage (TES) market is poised for significant growth, with a current market size of USD 5.15 billion in 2024, projected to reach USD 12.0 billion by 2035. This growth trajectory reflects a robust compound annual growth rate (CAGR) of 7.99% from 2025 to 2035. The increasing demand for energy efficiency and the integration of renewable energy sources are key drivers propelling this market forward. As industries and municipalities seek to optimize energy consumption and reduce costs, thermal energy storage solutions are becoming increasingly vital in balancing supply and demand, particularly in regions with high solar and wind energy penetration. Technological advancements, such as the development of phase change materials and improved insulation techniques, are enhancing the efficiency and applicability of thermal energy storage systems. Companies like Siemens AG, CALMAC, and Ice Energy are at the forefront of innovation, investing in research and development to create more efficient and cost-effective solutions. Strategic partnerships and collaborations, such as Siemens' alliance with various renewable energy firms, are further accelerating market growth by expanding the reach and capabilities of thermal energy storage technologies. As the global focus on sustainability intensifies, the TES market is expected to play a crucial role in the transition towards a more resilient and efficient energy landscape.

Regional Market Size

Regional Deep Dive

The Thermal Energy Storage Market is experiencing significant growth across various regions, driven by the increasing demand for energy efficiency and renewable energy integration. In North America, Europe, Asia-Pacific, the Middle East and Africa (MEA), and Latin America, the market dynamics are influenced by regional energy policies, technological advancements, and the growing need for grid stability. Each region presents unique characteristics, such as varying levels of investment in renewable energy, regulatory frameworks, and cultural attitudes towards energy consumption, which collectively shape the market landscape.

Europe

• The European Union's Green Deal is pushing for increased investments in thermal energy storage solutions, with countries like Germany and Sweden leading the way in innovative projects.
• The recent collaboration between Siemens and various European utilities aims to develop large-scale thermal storage systems that can support the transition to renewable energy sources.

Asia Pacific

• China is rapidly expanding its thermal energy storage capacity, with significant investments in molten salt storage systems to support its growing solar power sector.
• Australia's National Energy Market is seeing increased adoption of thermal energy storage technologies, particularly in residential applications, driven by government incentives and a shift towards sustainable energy.

Latin America

• Countries like Chile are leveraging their abundant solar resources by implementing thermal energy storage systems, which are essential for balancing supply and demand in the energy grid.
• Brazil is exploring the potential of thermal energy storage in hydropower plants to optimize energy production and reduce reliance on fossil fuels.

North America

• The U.S. Department of Energy has launched initiatives to promote thermal energy storage technologies, particularly in California, where the integration of solar energy is critical for grid reliability.
• Companies like Ice Energy are innovating with ice-based thermal storage systems, which are gaining traction in commercial buildings to reduce peak energy demand and costs.

Middle East And Africa

• The UAE is investing heavily in thermal energy storage as part of its Vision 2021 initiative, with projects like the Mohammed bin Rashid Al Maktoum Solar Park incorporating advanced storage solutions.
• South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is encouraging the development of thermal storage projects to enhance energy security and reliability.

Did You Know?

“Thermal energy storage can reduce energy costs by up to 30% during peak demand periods, making it a crucial technology for energy management.” — International Renewable Energy Agency (IRENA)

Segmental Market Size

The Thermal Energy Storage (TES) market is experiencing significant growth, driven by the increasing demand for energy efficiency and renewable energy integration. Key factors propelling this segment include the rising need for grid stability and the implementation of regulatory policies promoting renewable energy sources. Additionally, technological advancements in materials and systems are enhancing the efficiency and cost-effectiveness of thermal storage solutions. Currently, the adoption of TES technologies is in the scaled deployment stage, with notable examples such as the Crescent Dunes Solar Energy Project in Nevada and the use of molten salt storage systems by companies like Abengoa Solar. Primary applications include district heating, industrial processes, and peak load shifting in commercial buildings. Macro trends such as sustainability initiatives and government mandates for carbon reduction are accelerating the adoption of TES solutions. Relevant technologies shaping this segment include phase change materials and advanced insulation techniques, which are improving the performance and viability of thermal energy storage systems.

Future Outlook

The Thermal Energy Storage (TES) market is poised for significant growth from 2024 to 2035, with a projected market value increase from $5.15 billion to $12.0 billion, reflecting a robust compound annual growth rate (CAGR) of 7.99%. This growth trajectory is underpinned by the increasing demand for energy efficiency and the integration of renewable energy sources into the grid. As governments and industries worldwide prioritize sustainability, the adoption of TES systems is expected to rise, facilitating the storage of excess energy generated during peak production times for use during periods of high demand. By 2035, it is anticipated that TES systems will account for approximately 15-20% of the total energy storage market, driven by advancements in technology and decreasing costs of materials and installation. Key technological drivers, such as the development of phase change materials and advancements in molten salt storage systems, are expected to enhance the efficiency and capacity of thermal energy storage solutions. Additionally, supportive policies and incentives aimed at reducing carbon emissions and promoting renewable energy adoption will further catalyze market growth. Emerging trends, including the integration of TES with district heating systems and the rise of hybrid energy systems combining thermal and electrical storage, will also shape the market landscape. As the global focus on energy transition intensifies, the Thermal Energy Storage market is set to play a crucial role in achieving energy resilience and sustainability goals.