Thermal Energy Storage Market by Type (CSP, PHES), by Technology (Sensible Heat, Latent Heat, Thermo-Chemical), by Application (Combined Heating & Cooling [Industrial, Commercial & Residential], Power Generation [Industrial, Commercial]), by Geography (U.S., Canada, Spain, France, Italy, India, Australia, China, Chile, South Africa, U.A.E., Morocco) – Global Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

  • Published: July 2018
  • Report Code: PE11069
  • Available Format: PDF
  • Pages: 155

Thermal Energy Storage Market Overview

The global thermal energy storage market was valued at $3,000.9 million in 2017 and is projected to reach $7,472.9 million by 2023, witnessing a CAGR of 15.9% during the forecast period. Growing installation rate of concentrated solar power (CSP) systems and increasing demand for energy storage solutions for heating, ventilating, and cooling (HVAC) applications are the major factors driving the market growth.



Thermal energy storage system allows for the storage of excess thermal energy and its utilization during peak demand. It is primarily used for power generation in addition to heating and cooling applications.

Based on type, the thermal energy storage market has been categorized into pumped heat electrical storage (PHES), CSP, and others, where “others” include chilled water thermal energy storage and ice thermal energy storage. CSP dominated the market during the historical period, with more than 90.0% volume share in 2017. This can be attributed to the significant rise in the adoption of advanced CSP systems in recent years, particularly in countries such as Australia, Morocco, and the U.A.E.

The thermal energy storage market has also been categorized into sensible heat, latent heat, and thermo-chemical technologies . Sensible heat storage technology contributed the largest revenue to the market during the historical period, accounting for over 60.0% share in 2017. This can be attributed to the large-scale adoption of sensible heat storage technology because it facilitates the charging and discharging of heat for an unlimited number of cycles in an energy storage system.

On the basis of application, the thermal energy storage market has been categorized into combined heating and cooling, power generation, and others, where “others” include micro-grid and research and development activities. Combined heating and cooling was the largest application area of thermal energy storage systems during the historical period. The largest market share of this application can be attributed to the rise in the adoption of these systems for district cooling and heating purposes.

The thermal energy storage market for combined heating and cooling application has been classified into industrial, commercial and residential, and others, where “others” include domestic and civic facilities. In 2017, the commercial and residential category held the largest share in the market, in terms of both volume and value, owing to the high demand for thermal energy storage solutions for temperature regulation in commercial and residential facilities. The market for power generation application is bifurcated into industrial and commercial categories.

Globally, North America was the largest thermal energy storage market during the historical period, accounting for more than 75.0% share in terms of volume in 2017. The market growth in the region can be attributed to the extensive deployment of CSP plants in the U.S. In addition, the demand for power backup in HVAC systems in North American nations has boosted the market growth in the region in recent years.

Thermal Energy Storage Market Dynamics

The major trend observed in the thermal energy storage market is the adoption of energy storage technologies in environment-friendly buildings.


The major trend witnessed in the thermal energy storage market in recent years has been a shift toward environment-friendly buildings, also known as green buildings. These buildings use environment-friendly materials, which result in a very low carbon footprint. Besides, these buildings are increasingly employing energy storage technologies for power generation. Thus, thermal energy storage systems are finding wide application in green buildings for power generation purposes.


With rapid urbanization across the world, the demand for electricity has been on the rise, resulting in the deployment of different types of energy-generating utilities, including CSP plants. APAC has emerged as the leading market for CSP plants in recent years. As per China’s National Energy Administration, around 111 CSP projects are underway, with an aggregated capacity of around 9 GW. Of these, the first batch of CSP plants, of 1,349.0 MW capacity, has recently been operationalized, with more such plants expected to be commissioned soon. Such development projects are driving the growth of the thermal energy storage market.

Moreover, there has been a considerable rise in the consumption of power for district heating and cooling purposes. Due to the limited availability of independent cooling and heating systems for residential and commercial buildings, these facilities are dependent on power utilities to meet their power requirements. Thus, power utilities are increasingly setting up energy storage systems to meet the energy demand in these facilities, which, in turn, is driving the thermal energy storage market growth.


Thermal storage is a comparatively new technology introduced in the market. The energy storage system features different components, each having its own associated cost. At present, the cost of power generation with this system is around four times the cost of power generation using traditional fossil fuels, such as coal and natural gas. Besides, the initial investment for setting up this system is quite high. Thus, the heavy costs associated with this system result in its low adoption by utilities, which, in turn, restrains the thermal energy storage market growth.

Thermal Energy Storage Market Competitive Landscape

Some of the major players operating in the global thermal energy storage market are Abengoa Solar S.A., SolarReserve LLC, CALMAC, BrightSource Energy Inc., Baltimore Aircoil Company, Caldwell Energy Company, Cryogel, DC PRO Engineering, CRISTOPIA Energy Systems, and Dunham-Bush Holding Bhd.

Place An Order
USD 4900 USD 5900 USD 7500
Customized Report Solution

Get a bespoke market intelligence solution

We are committed to ensuring the highest level of client satisfaction
Quality Acknowledgement
Quality Acknowledgement

Our dedication to providing the most-accurate market information has earned us verification by Dun & Bradstreet (D&B). We strive for quality checking of the highest level to enable data-driven decision making for you

Unmatched Standards
Unmatched Standards

Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights

Reach Us
Reach Us Whenever You Need Us

With 24/7 research support, we ensure that the wheels of your business never stop turning. Don’t let time stand in your way. Get all your queries answered with a simple phone call or email, as and when required

Data Security
Complete Data Security

We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws