US Thermal Energy Storage Market Overview:
As per MRFR analysis, the US Thermal Energy Storage Market Size was estimated at 499.8 (USD Million) in 2023. The US Thermal Energy Storage Market Industry is expected to grow from 550 (USD Million) in 2024 to 1,350 (USD Million) by 2035. The US Thermal Energy Storage Market CAGR (growth rate) is expected to be around 8.506% during the forecast period (2025 - 2035).
Key US Thermal Energy Storage Market Trends Highlighted
The US Thermal Energy Storage Market is experiencing significant trends driven by the growing focus on renewable energy sources and the push for energy efficiency. The need for efficient energy management, particularly with the integration of solar and wind power, is fueling interest in thermal energy storage systems. These systems allow for the capture and storage of excess energy generated during peak production times for later use, which aligns with the increasing adoption of renewable technologies across the country. Additionally, government initiatives aimed at reducing carbon emissions and promoting cleaner energy solutions are boosting investments in thermal energy storage.
These efforts reflect the broader trend toward sustainability in the energy sector. Opportunities within the US market include advancements in technology that enhance the efficiency and affordability of thermal energy storage solutions. Emerging technologies such as phase change materials and advanced insulation techniques are being explored to improve performance, potentially attracting more industries to invest. Moreover, the growing need for grid stability and the desire to manage energy costs present avenues for development and innovation within this sector. Recent times have seen states like California, Texas, and Massachusetts commit to ambitious renewable energy targets, further propelling the demand for effective energy storage solutions.
As policymakers continue to emphasize the importance of a resilient energy grid, the integration of thermal energy storage will play a crucial role in achieving these goals. The trends underscore a transition toward more reliable, efficient, and sustainable energy systems within the US.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Thermal Energy Storage Market Drivers
Increasing Demand for Renewable Energy Integration
The push for renewable energy is significantly driving the US Thermal Energy Storage Market Industry. According to the U.S. Energy Information Administration (EIA), renewable energy consumption is projected to rise by more than 40% by the year 2035. This emphasizes the need for energy storage solutions that can accommodate the intermittent nature of solar and wind power, aligning with goals set by the U.S. government and institutions like the Department of Energy.
The ability to store thermal energy allows for greater efficiency and stability in energy supply, which aligns with federal commitments to reduce greenhouse gas emissions and increase the use of renewable sources in the energy mix. This trend indicates that investments in thermal energy storage technologies, such as molten salt and ice storage, will remain a priority, fostering market expansion as stakeholders from utilities to large-scale corporate energy users seek dependable and eco-friendly energy solutions.
Rising Grid Modernization Efforts
The ongoing modernization of the electrical grid in the United States is another key driver of the US Thermal Energy Storage Market Industry. Agencies such as the Federal Energy Regulatory Commission (FERC) have substantiated the need for grid resilience and reliability as they implement policies to incorporate advanced grid technologies. As per documented initiatives, states like California and New York are investing billions in grid upgrades that necessitate the incorporation of energy storage systems. By 2025, California aims for 1,325 megawatts of energy storage capacity on its grid to meet peak demands sustainably. This evolving landscape thus creates an integral demand for thermal energy storage solutions that can help optimize grid performance and facilitate the transition to smarter, more integrated energy systems.
Government Incentives and Policies
Federal and state-level policies significantly bolster the growth of the US Thermal Energy Storage Market Industry through various incentives aimed at increasing energy efficiency. For instance, the Investment Tax Credit (ITC) allows a credit of 30% for energy storage systems that are charged exclusively by renewable energy sources. Moreover, states are implementing Renewable Portfolio Standards (RPS) mandating the purchase of renewable energy. According to the National Renewable Energy Laboratory (NREL), the cumulative impact of these policies is expected to generate an additional 15 gigawatts of energy storage installations across the United States by 2030.This regulatory support not only accelerates market entry for thermal energy storage solutions but also enhances their commercial viability, leading to increased market revenues.
US Thermal Energy Storage Market Segment Insights:
Thermal Energy Storage Market Technology Insights
The US Thermal Energy Storage Market, with a focus on the Technology segment, is increasingly gaining traction as a critical component of energy management strategies. This market encompasses various technologies that provide efficient energy storage solutions, facilitating the smooth transition of thermal energy for heating and cooling applications. Among these technologies, Molten Salt Storage has emerged as a robust contender, often utilized in concentrating solar power plants. Its ability to store heat for extended periods allows for energy dispatch even when solar generation is low, enhancing grid stability. Water Thermal Storage plays a significant role in both commercial and residential applications, leveraging large volumes of water for heating and cooling, which is an economical and straightforward method of energy storage that utilizes the principles of thermal stratification.
In addition, Phase Change Materials (PCMs) have garnered attention due to their high energy storage capacity per unit volume. These materials absorb and release thermal energy during phase transitions, offering a compact solution for thermal energy storage needs. The integration of PCMs into building materials can significantly reduce energy consumption in buildings, thereby enhancing energy efficiency. Ice Storage systems, as a part of this technology segment, are another innovative method that prepares ice at night when electricity demand is lower and uses it to cool buildings during the day. This not only shifts peak load demand but also offers cost savings for users during peak energy pricing periods, highlighting its economic benefits.
The significance of these technologies is underscored by the growing demand for sustainable energy solutions and the imperative to reduce carbon emissions. As companies and government entities pursue alternative energy sources, thermal energy storage technologies are essential to address the intermittency of renewable energy sources, particularly solar and wind. Advancements in materials science and energy management systems continue to propel the development and adoption of these technologies, which are crucial for optimizing energy resources in line with the US's ambitious climate and energy goals. Overall, the US Thermal Energy Storage Market's Technology segment is vital for enhancing energy reliability, reducing operational costs, and promoting sustainable practices across various industries.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Thermal Energy Storage Market Storage Capacity Insights
The Storage Capacity segment of the US Thermal Energy Storage Market plays a crucial role in enhancing energy efficiency and stability within the power grid. Covering a range from Less than 100 MWh to More than 1000 MWh, this segment addresses varied energy demands across residential, commercial, and industrial sectors. Energy systems with Less than 100 MWh capacity primarily support smaller applications, facilitating localized energy management, while the 100-500 MWh range often caters to medium-scale projects, effectively balancing supply and demand during peak usage hours.
The 500-1000 MWh capacity category supports larger industrial requirements, helping to reduce costs associated with energy consumption and improving reliability. Meanwhile, the More than 1000 MWh segment is significant for large-scale energy storage systems that can provide substantial backup power and improve grid resilience. The increasing emphasis on renewable energy sources has driven the growth of these varying storage capacities, as they allow for the effective harnessing of intermittent energy generation. Additionally, advancements in technology and decreasing costs are making larger storage solutions more scalable and accessible, pushing forward innovations within the US Thermal Energy Storage Market.
Thermal Energy Storage Market Application Insights
The Application segment of the US Thermal Energy Storage Market encompasses several key areas including District Heating, Industrial Processes, Concentrated Solar Power, and Building Heating and Cooling. Each of these areas plays a vital role in enhancing energy efficiency and reliability across various sectors. District Heating utilizes thermal storage to provide heated water for residential and commercial buildings, effectively balancing supply and demand during peak usage. In Industrial Processes, thermal energy storage facilitates the management of energy loads, contributing to operational efficiency and cost savings.
Concentrated Solar Power stands out by harnessing solar energy through thermal storage systems, allowing for energy generation even when sunlight is absent, thereby enhancing renewable energy utilization. Building Heating and Cooling applications are significant for maintaining temperature control in urban environments, with thermal storage solutions capable of improving grid stability and reducing energy costs for consumers. The growing demand for sustainability and energy resilience strengthens the position of these applications in the market, driving further innovations and investment in thermal energy storage technologies. Overall, the Application segment is critical for achieving the broader goals of energy efficiency and sustainable development in the US.
Thermal Energy Storage Market Material Used Insights
The US Thermal Energy Storage Market, particularly focusing on the Material Used segment, showcases various materials that play crucial roles in energy efficiency and sustainability. Among these, Concrete stands out for its thermal mass properties, enabling effective heat retention and smooth energy release, which is vital for energy management in various applications. Steel, recognized for its high durability and strength, offers the structural integrity needed for large-scale storage systems, while Natural Materials are gaining traction for their sustainability and lower environmental impact, catering to the growing demand for eco-friendly solutions.
Composite Materials are also significant in this landscape, as they combine the benefits of different substances to enhance performance and efficiency. The diversity in material utilization not only highlights the adaptability of thermal energy storage technologies but also reflects the market's growth potential, driven by increasing energy needs and sustainability initiatives across the US. As organizations and industries shift toward green solutions, the focus on innovative materials will likely facilitate advancements and offer new opportunities for energy storage systems.
US Thermal Energy Storage Market Key Players and Competitive Insights:
The US Thermal Energy Storage Market has been increasingly significant as the demand for renewable energy sources grows and the need for efficient energy management solutions becomes more pressing. This market is characterized by a diverse range of companies striving to enhance their technological capabilities, develop innovative storage solutions, and secure partnerships to expand their customer base. Additionally, the market is witnessing a rising trend in government policies and incentives that encourage investment in thermal energy storage systems. As competition intensifies, players in this market are focusing on strategic collaborations, mergers, and acquisitions to gain a competitive edge and adapt to the evolving demands of the energy landscape. Various technologies, including sensible heat storage, latent heat storage, and thermochemical storage, play crucial roles in shaping market dynamics, making it essential for companies to continuously innovate to keep pace with industry advancements.
Abengoa Solar has established a notable presence within the US Thermal Energy Storage Market through its commitment to developing concentrated solar power (CSP) solutions, which incorporate innovative thermal energy storage technologies. The company leverages its expertise in solar thermal projects to offer reliable and efficient energy solutions. Abengoa Solar’s strengths lie in its ability to integrate advanced thermal storage systems with renewable energy generation, thereby providing enhanced flexibility and stability in energy supply. Their strong reputation for innovation and sustainable practices allows them to maintain a competitive advantage. By focusing on the development of large-scale solar plants equipped with sophisticated thermal storage capabilities, Abengoa Solar has positioned itself strongly in the US market, appealing to large-scale utility customers and contributing to the overall growth of thermal energy storage as a viable alternative.
Ecosystem Energy has emerged as a dynamic player in the US Thermal Energy Storage Market, focusing on offering a range of energy management solutions that leverage advanced thermal storage technology. The company specializes in integrating thermal energy storage systems with existing infrastructure, catering primarily to commercial and industrial clients who aim to optimize their energy consumption and reduce costs. Ecosystem Energy's strengths include its comprehensive understanding of energy efficiency strategies that align with the sustainability goals of its clients. With a commitment to providing tailored solutions, the company has actively pursued strategic partnerships and collaborations to enhance its market presence. In recent years, Ecosystem Energy has engaged in mergers and acquisitions to bolster its capabilities and expand its offering of key products and services, consistently driving innovation and ensuring its position as a leader in the US thermal energy storage sector.
Key Companies in the US Thermal Energy Storage Market Include:
- Abengoa Solar
- Ecosystem Energy
- Tesla
- California Energy Storage Alliance
- Duke Energy
- Engie
- Fluence Energy
- EnergyNest
- NextEra Energy
- Brookfield Renewable Partners
- McPhy Energy
- AES Clean Energy
- Honeywell
- Siemens
- S and C Electric Company
US Thermal Energy Storage Market Industry Developments
The US Thermal Energy Storage Market has seen significant developments in recent months, focusing on advancements in technology and the growing integration of renewable energy sources. Companies such as Tesla and Fluence Energy are leading innovations through the deployment of thermal storage systems that enhance grid reliability and offer flexibility in energy supply. Duke Energy has been actively investing in large-scale storage projects to improve energy efficiency and meet regulatory mandates, while Abengoa Solar has been advancing its Concentrated Solar Power technology coupled with thermal storage capabilities.
In terms of recent mergers and acquisitions, EnergyNest announced in September 2023 its acquisition of a US-based battery storage company, aiming to integrate its thermal solutions into the existing electric grid. Additionally, in August 2023, Engie reinforced its position in the market by acquiring assets from a regional energy firm, fostering growth in clean energy initiatives. Over the past few years, notable market trends include increased partnerships among organizations like the California Energy Storage Alliance and NextEra Energy, which focus on collaborative projects to meet 2030 energy goals. The US government is also supporting these efforts through incentives aimed at promoting energy storage technologies, further driving market expansion.
US 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
| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2018 |
499.8 (USD Million) |
| MARKET SIZE 2024 |
550.0 (USD Million) |
| MARKET SIZE 2035 |
1350.0 (USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
8.506% (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 Million |
| KEY COMPANIES PROFILED |
Abengoa Solar, Ecosystem Energy, Tesla, California Energy Storage Alliance, Duke Energy, Engie, Fluence Energy, EnergyNest, NextEra Energy, Brookfield Renewable Partners, McPhy Energy, AES Clean Energy, Honeywell, Siemens, S and C Electric Company |
| SEGMENTS COVERED |
Technology, Storage Capacity, Application, Material Used |
| KEY MARKET OPPORTUNITIES |
Grid stability solutions, Renewable energy integration, Demand response programs, Commercial HVAC enhancements, Government incentives for adoption |
| KEY MARKET DYNAMICS |
rising renewable energy adoption, government incentives and policies, technological advancements, decreasing storage costs, increasing energy demand |
| COUNTRIES COVERED |
US |
Frequently Asked Questions (FAQ) :
The US Thermal Energy Storage Market is expected to be valued at 550.0 USD Million in 2024.
By 2035, the overall market is projected to reach 1350.0 USD Million.
The expected CAGR for the market from 2025 to 2035 is 8.506%.
The Molten Salt Storage technology segment is leading, expected to be valued at 220.0 USD Million in 2024.
The Water Thermal Storage segment is anticipated to grow to 350.0 USD Million by 2035.
Phase Change Materials are expected to be valued at 100.0 USD Million in 2024.
The Ice Storage technology is projected to grow to 300.0 USD Million by 2035.
Key players in the market include Abengoa Solar, Tesla, Duke Energy, and Fluence Energy among others.
Increased demand for renewable energy and advancements in storage technologies are key growth drivers.
The Molten Salt Storage market is expected to reach 450.0 USD Million by 2035.
