Global Thermal Energy Storage (TES) Market to Reach US$8.2 Billion by 2030

The global market for Thermal Energy Storage (TES) estimated at US$5.0 Billion in the year 2023, is expected to reach US$8.2 Billion by 2030, growing at a CAGR of 7.3% over the analysis period 2023-2030. Water, one of the segments analyzed in the report, is expected to record a 6.4% CAGR and reach US$3.3 Billion by the end of the analysis period. Growth in the Molten Salt segment is estimated at 7.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.6 Billion While China is Forecast to Grow at 8.9% CAGR

The Thermal Energy Storage (TES) market in the U.S. is estimated at US$1.6 Billion in the year 2023. China, the world`s second largest economy, is forecast to reach a projected market size of US$890.3 Million by the year 2030 trailing a CAGR of 8.9% over the analysis period 2023-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 5.7% and 6.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6.7% CAGR.

Global Thermal Energy Storage (TES) Market - Key Trends & Drivers Summarized

Why Is Thermal Energy Storage Crucial For Sustainable Energy Solutions?

Thermal Energy Storage (TES) is emerging as a critical technology for enhancing the sustainability and efficiency of energy systems. TES systems store thermal energy by heating or cooling a storage medium, enabling the energy to be used at a later time. This capability is particularly valuable for balancing supply and demand in renewable energy systems, where production can be intermittent. By storing excess energy during periods of low demand or high production, TES can provide a steady supply of energy during peak demand periods or when renewable sources are not producing. This helps to stabilize the grid, reduce reliance on fossil fuels, and minimize greenhouse gas emissions. Furthermore, TES can be used in various applications, including residential heating and cooling, industrial processes, and large-scale power plants, making it a versatile and integral component of the transition to a more sustainable energy future.

How Is The Development Of Molten Salt Storage Impacting The TES Industry?

One of the most exciting trends in Thermal Energy Storage is the development and application of molten salt storage systems. Molten salt TES is particularly effective for high-temperature applications, such as those in concentrated solar power (CSP) plants. These systems use salts heated to high temperatures to store thermal energy, which can then be used to generate electricity even when the sun is not shining. This technology allows CSP plants to operate around the clock, significantly enhancing their reliability and efficiency. Molten salt systems have a high heat capacity and can store large amounts of energy at a relatively low cost, making them an attractive option for large-scale energy storage. The ability to store energy for extended periods without significant losses further strengthens their appeal. As CSP technology continues to advance, the integration of molten salt storage is expected to play a critical role in the expansion and viability of solar power as a major renewable energy source.

What Are The Emerging Trends In Thermal Energy Storage?

The field of Thermal Energy Storage is witnessing several emerging trends that are shaping its development and adoption. One significant trend is the increasing integration of TES with renewable energy systems, particularly solar and wind power. By storing excess energy generated during peak production times, TES helps to mitigate the variability of renewable sources and ensures a reliable supply of energy. Another trend is the growing use of TES in district heating and cooling networks, which provide efficient thermal energy distribution in urban areas. This approach not only enhances energy efficiency but also reduces the carbon footprint of heating and cooling systems. Additionally, the development of hybrid TES systems, which combine different storage technologies to optimize performance and cost, is gaining traction. These systems can leverage the strengths of various storage methods, such as combining TES with battery storage, to provide more flexible and reliable energy solutions. Furthermore, advancements in thermal storage materials and system designs are expanding the range of applications for TES, from residential buildings to large industrial processes and power plants.

What Factors Are Driving Growth In The Thermal Energy Storage Market?

The growth in the Thermal Energy Storage market is driven by several factors that highlight the increasing demand for efficient and sustainable energy solutions. Firstly, the rising adoption of renewable energy sources, such as solar and wind power, is driving the need for effective energy storage solutions to manage the intermittent nature of these sources. TES provides a reliable way to store and dispatch energy as needed, making it a crucial component of renewable energy systems. Secondly, advancements in TES technology, including improved storage materials and system designs, are enhancing the efficiency and cost-effectiveness of TES solutions, making them more attractive to consumers and industries. The increasing focus on energy efficiency and the need to reduce greenhouse gas emissions are also promoting the adoption of TES in various applications, from residential heating and cooling to industrial processes and power generation. Additionally, government incentives and regulatory support for clean energy technologies are encouraging investment in TES projects, further boosting market growth. Lastly, the expansion of district heating and cooling networks in urban areas is creating new opportunities for TES, as these systems require efficient thermal energy storage to optimize performance and reduce environmental impact. These factors collectively contribute to the robust growth and ongoing innovation in the Thermal Energy Storage market.