| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 23.4 Billion |
| 2025 Market Size | USD 25.6 Billion |
| 2032 Forecast | USD 50.4 Billion |
| Growth Rate (CAGR) | 10.20% |
| Largest Region | Europe |
| Fastest Growing Region | APAC |
| Nature of the Market | Fragmented |
| Largest End User Category | Industrial |
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The sensible heat storage category, under segmentation by technology, is expected to be the highest revenue generator over the forecast period and advance with a CAGR of around 10.5%.
This will be due to the increase in the demand for thermal energy storage for cooling, heating, and power generation applications. TES using sensible heat relies on the specific heat properties of a storage medium, which is kept in well-insulated storage tanks. Molten salt is the predominant storage medium in this technology in both the industrial and commercial sectors. The biggest reason for the widespread usage of the sensible heat storage technology is its cost-effectiveness. The additional benefits associated with it are high heat diffusivity, thermal conductivity, density, affordability, availability, and ease of handling.
Ice and cold water are used in industries where a large portion of electricity is devoted to powering heating and cooling systems. Ice storage is a prevalent solution to addressing peak energy demands, especially during the summer season. Molten salt mixtures serve the dual purpose of acting as both thermal energy storage and heat transfer fluids, thus reducing the capital cost of the energy system. Phase-change materials (PCMs) play an important role in releasing and storing thermal energy during the freezing and melting phases, in addition to serving as valuable components for thermal insulation and barriers.
Based on technology, the market has the following categories:
Molten salt held the largest share, of around 60%, in the storage material segment, in 2023, and it is expected to grow at the highest rate in the coming years. Molten salts are the most-prevalent thermal energy storage medium as they exhibit higher boiling points and remarkable volumetric heat capacities. When energy is required, these salts are pumped to a steam generator, where they facilitate the boiling of water, set turbines in motion, and, ultimately, generate electricity.
Furthermore, these materials provide cost-effectiveness, flexibility, and extended storage capabilities, which is why they have been employed in over half of the operational thermal energy storage projects to date.
Based on storage material, the market has the following categories:
Based on application, the power generation sector is set to witness a Thermal Energy Storage Market growth rate of around 12.5% in the forecast period. This is credited to the increasing adoption of the CSP technology integrated with energy storage systems. For instance, in 2022, the global installed CSP capacity was 7 GW, and it witnessed a fivefold increase between 2010 and 2020, as reported by the IRENA. This surge in CSP technology adoption is the most easily noticeable in the commercial and industrial domains.
Furthermore, numerous upcoming projects will expand the solar CSP power generation portfolio, with an emphasis on incorporating thermal energy storage systems. For example, in June 2020, Siemens Energy partnered with EnergyNest to develop such systems for industrial customers across the globe.
TES within CSP facilities provides a solution to address the intermittency of solar energy resources, while simultaneously lowering the levelized cost of energy (LCOE), by allowing for power utilization over extended durations. The TES system can gather energy during daytime hours and store it, allowing for its utilization during cloudy conditions or at a later time. As a result, the operational window of a solar–thermal power plant can be prolonged, even during periods of limited direct solar radiation, without the necessity for relying on the combustion of fossil fuels.
Based on application, the market has the following categories:
The industrial category holds the largest market share, of around 40%, in 2024.
This is due to the wide use of TCES in the manufacturing, chemical, refining, and food processing industries, which require an appropriate amount of thermal energy for heating, cooling, and other processes.
Furthermore, the residential and commercial category also hod the significant market share in the end user segment due to the rapid growth in the number of commercial projects and heavy industries, including refineries, manufacturing facilities, chemical plants, and several other industrial facilities. Furthermore, the expanding construction & building activities worldwide will serve as a chief driving factor for the thermal energy storage market throughout the projected period. According to the United Nations Environment Programme, buildings & construction activities accounted for over 34% of the worldwide energy demand and 37% of the emissions related to energy and processes in 2021.
Based on end use, the market has the following categories:
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Europe held around 40% share in the global market in 2024. European countries' actions to accomplish carbon reduction targets and transition from coal-based power production and the concurrent rise in renewable energy generation support the deployment of CSP plants equipped with storage capabilities. For the past decade, TES systems have been extensively commissioned in urban districts, particularly in Austria, Spain, Central Europe, and Northern Europe. The major reason for such strategic initiatives is to meet the high energy demand during winters, while exploring renewable methods for district heating.
In this regard, the Thermal Energy Storage Market in Europe is propelled by the large consumer base, swift advancement in the TES technology, and presence of major industry players in the region. Furthermore, the presence of expanding economies, such as Italy, Germany, Spain, France, and the U.K., means a rising demand for TES for cooling and heating applications.
The regions and countries analyzed for this report include:
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