Thermal energy storage (TES) offers solutions for energy storage, load shifting and improved power plant efficiency. It enables shifting renewable power generation to better match electricity demand. Thermal energy, in the form of heat or cold, is captured and stored for later use in district heating or cooling applications and industrial processes. Key advantages of thermal energy storage over electrical storage technologies include relatively low costs, large energy storage capacities, and near-room-temperature operation. Rapid growth of renewable generation from solar and wind is driving the need for energy storage solutions to utilize surplus renewable power.
The Global Thermal Energy Storage Market is estimated to be valued at US$ 5.66 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the Thermal Energy Storage market are BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns and McDonnell, Inc., and DC Pro Engineering. These players are focusing on contracts and agreements strategies to strengthen their foothold in the thermal energy storage market.
Development of innovative and cost-effective thermal energy storage technologies
Thermal Energy Storage Market Demand
Advances in phase change materials, thermo-chemical energy storage, and other storage media will facilitate commercialization of large-scale thermal storage systems.
North America dominates the global thermal energy storage market due to rising emphasis on renewable integration and decarbonization of power grids. However, Asia Pacific is expected to witness the fastest growth on account of rapidly increasing energy demand and government initiatives to adopt renewable energy in countries like China and India.
Market Drivers
Rising demand for renewable energy integration is a major driver of the thermal energy storage market. As the share of variable solar and wind power increases, cost-effective long-duration energy storage solutions are required to balance intermittent renewable resources. Thermal storage technologies help overcome the mismatch between power generation and usage more effectively than intermittent battery storage. Government policies and targets related to renewable portfolio standards, carbon emission reduction also support the demand for TES worldwide.
PEST Analysis
Political: Thermal energy storage faces regulations around safety and emissions. Various government policies and subsidies can promote its adoption for managing peak power loads and integrating renewable resources.
Economic: Rising energy costs and demand are driving interest
Thermal Energy Storage Market Size And Trends
to reduce costs and maximize renewable energy usage. Its ability to store heat cheaply and discharge it on demand adds economic value to various industries and buildings.
Social: Thermal storage helps boost energy access and affordability for residential and commercial users. Its role in supporting renewable energy adoption aligns with public sentiment around cleaner energy and climate change mitigation.
Technological: Advancements are occurring in materials, phase-change technologies, and integrated smart control systems to improve storage density, cycling efficiency and usability of thermal energy storage across applications. Its integration with existing HVAC and power facilities utilizes latest digitalization.
Geographical concentration of market value
Europe accounts for a major share of the global thermal energy storage market value currently due to supportive policies and initiatives for renewable integration and decarbonization of heat in buildings. Countries like Germany, France and the UK have demonstrated leadership. North America is another significant regional market backed by initiatives to modernize energy infrastructure.
Fastest growing region
Asia Pacific region is projected to witness the highest growth in the thermal energy storage market during the forecast period driven by increasing government focus as well as private sector investments in renewable energy adoption, district heating and cooling systems in countries like China, India and Japan. Rapid urbanization and rising energy demand in the developing economies of the region present compelling opportunities.
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