The Global Thermal Energy Storage Market was estimated at USD 28.27 billion in 2023, and it is expected to reach a revised size of USD 51.46 billion by 2029, with a CAGR of 12.73% over the foreseen period of 2024 - 2029.
Market Overview:
The major growth drivers of the global thermal energy storage market are increasing focus on renewable energy production and rising government initiatives for these storage systems. Besides, the surge in the call for HVAC technology is likely to boost the demand for the thermal energy storage market. Moreover, the increased call for thermal energy storage in Concentrated Solar Power (CSP) also shows a growth chance for the global market.
Market Drivers:
According to IRENA, global installed renewable energy capacity in 2019 was 176 GW higher than in 2018, an increase of 7.4%. Production growth returned to its long-term trend, thanks to a recovery in the hydroelectric sector. Solar production continues to grow strongly; in 2018, solar overtook bioenergy to become the third source of renewable electricity production. Solar and wind generation in 2018 increased by 28% and 11%, respectively. Collectively, these 2 energy sources continue to dominate renewable energy production, accounting for 73% of the growth since 2014. Solar energy has experienced an average annual growth rate of 49% globally due to strong political Federal government mechanisms to encourage energy adoption, the Solar Energy Investment Tax Credit, and growing demand for clean energy from the public and private sectors in all major economies in North America, Europe, and the Asia-Pacific region.
Thermal energy storage stores solar thermal energy by cooling or heating a storage medium, such as sand, rocks, water, and molten salt to use stored energy later for cooling and heating applications and power generation. Thermal energy storage is important for the storage of electricity in concentrating solar power plants where solar heat can be stored for power generation when sunlight is not available. This facilitates uninterrupted operations of CSP plants. Some of the key CSP thermal energy storage technologies include the single-tank thermocline system, the indirect two-tank system, and the two-direct tank system. The benefits of thermal energy storage in CSP power plants include greater reliability, increased overall efficiency, reduced capital, and operating costs, and economical operations. It can also reduce carbon dioxide emissions. Therefore, the integration of thermal energy storage in CSP power plants is likely to drive market growth in the future.
Market Restraints:
Thermal energy storage requires lower project costs, but it is less preferred than battery storage and pumped water storage due to its lower efficiency in economies of scale. Hence, these substitutes act as barriers to the growth of the thermal energy storage market.
Market Key Developments:
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2023 – 2029 |
|
Base Year |
2023 |
|
Forecast Period |
2024 - 2029 |
|
CAGR |
12.73% |
|
Segments Covered |
By Storage Material, Application, End User, and Region. |
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Various Analyses Covered |
Global, Regional and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
BrightSource Energy Inc., SolarReserve LLC, Abengoa SA, Terrafore Technologies LLC, Baltimore Aircoil Company, Ice Energy, Caldwell Energy, Cryogel, Steffes Corporation, and Others. |
molten salts are the most widely used storage media for storing thermal energy because they have higher boiling points and high volumetric thermal capacities. When energy is necessary, the salt is pumped into a steam generator that boils water, spins a turbine, and generates electricity.
thermal energy storage in Concentrated Solar Power Plants (CSPs) can help overcome the intermittency of solar resources and also reduce the leveled cost of energy (LCOE) when using the energy for long periods. TES systems can collect energy during sunny hours and store it to modify its delivery at a later time or to facilitate plant production in cloudy weather.
thermal energy storage systems are integrated into power plants as a viable demand management option. These systems use ice or cold water technologies to store thermal energy in reservoirs during off-peak utility hours. This helps meet peak demand with fewer power plants by shifting energy demand from customers to off-peak hours.
Europe is considered for the largest share of revenue with 31.1% in 2021 and is anticipated to maintain its position during the forecast period. North America accounted for the second-largest revenue share in 2021 due to a reduction in the need for more extensive production equipment during peak hours. The Asia-Pacific market is anticipated to grow at the highest CAGR of 14.3% during the outlook period. Developing countries like China, India, South Korea, Japan, Indonesia, and Malaysia are experiencing rapid urbanization and population growth. These developing countries have many unreliable power grids and critical infrastructure systems. This factor is anticipated to force industry players to invest in these countries, thereby stimulating the growth of thermal energy storage and distribution facilities.
The European Union has launched the Grasshopper project, which aims to create a new generation of fuel cell power plants that will use hydrogen energy to produce electricity without emissions. The project involves different private companies to find innovative solutions for the development of viable green technologies.
In early 2021, the development of renewable energy technologies in several markets was already challenged by funding, political uncertainties, and grid integration, which was further intensified by the coronavirus. According to the IEA, the COVID-19 crisis has had a significant impact on the global growth of adding renewable energy capacity. According to IEA estimates, the number of new renewable energy installations around the world is anticipated to decline in 2021 due to the unprecedented global COVID-19 crisis. This is the first annual decrease in 20 years since 2000 for the addition of renewable energy capacity. Net renewable electricity capacity additions in 2021 are anticipated to decrease by 13% compared to 2019.
Frequently Asked Questions
The Global Thermal Energy Storage Market is expected to grow with a CAGR of 12.73% between 2024-2029.
The Global Thermal Energy Storage Market size is expected to reach a revised size of US$ 51.46 billion by 2029.
Abengoa SA, Terrafore Technologies LLC, and Baltimore Aircoil Company are the three Thermal Energy Storage Market key players.
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