Thermal Energy Storage Market Size to grow by USD 2.88 billion between 2024-2028
According to a research report “ Thermal Energy Storage Market” by Technology (Molten salt energy storage, Phase change material) End-user (Industrial, Residential and commercial, Utilities) Geography (Europe, North America, APAC, Middle East and Africa, South America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 2.88 billion, at a CAGR of almost 9.61% during the forecast period. In the realm of thermal energy storage, Concentrated Solar Power (CSP) represents a pivotal role, offering a unique solution for capturing and preserving solar energy for future utilization. CSP technology employs mirrors or lenses to focus solar radiation onto a compact area, typically a receiver, producing substantial temperatures. This heat is subsequently employed to generate steam, which in turn activates a turbine linked to a generator, producing electricity. CSP integrates diverse solar collectors, such as parabolic troughs, solar power towers, dish systems, and linear Fresnel reflectors, to concentrate sunlight onto the receiver, intensifying solar radiation's impact.
Browse market data tables, figures, and in-depth TOC on “Thermal Energy Storage Market” by Technology (Molten salt energy storage, Phase change material) End-user (Industrial, Residential and commercial, Utilities) Geography (Europe, North America, APAC, Middle East and Africa, South America) Global Forecast to 2028. Download Free Sample
By Technology, the Molten salt energy storage segment is projected to dominate the market size in 2024
In the industrial sector, thermal energy storage plays a pivotal role by offering numerous applications that enhance energy efficiency, cut costs, and foster environmental sustainability. One significant application pertains to managing peak electricity demand. By storing surplus thermal energy during off-peak hours and utilizing it during peak demand periods, industries can lessen their reliance on expensive peak electricity, thereby lowering operational expenses and alleviating grid strain. Another essential application encompasses enhancing the efficiency of industrial processes. Thermal energy storage systems can retain excess thermal energy generated during high-efficiency phases and release it when energy demand or efficiency dips, ensuring consistent process performance and minimizing energy squandering.
By End-user, Industrial segment is expected to hold the largest market size for the year 2024
The molten salt energy storage (MSES) segment is the market leader in the global thermal energy storage market, accounting for a significant share. MSES is a crucial component in large-scale solar installations, such as Concentrated Solar Power (CSP) systems, enabling continuous electricity generation. In CSP plants, a molten salt mixture, typically consisting of sodium nitrate and potassium nitrate, is employed in the receiving tower for energy storage. The salt is heated by the concentrated solar radiation reflected by surrounding mirrors, reaching temperatures up to 1022 degrees Fahrenheit (550 degrees Celsius), causing it to melt. Subsequently, the molten salt flows down the tower, generating electricity instantly or being stored in tanks for future utilization.
Europe is forecasted to hold the largest market size by region in 2024
The European thermal energy storage market is poised for significant expansion during the forecast period, driven by the increasing adoption of renewable energy sources in the region. Governments across Europe are offering incentives to encourage investments in clean energy, aligning with the European Union's renewable energy targets for member countries. These regulations and policies have resulted in the establishment of numerous renewable energy farms, with the EU aiming to source approximately 42% of its energy from renewable sources by 2030. This shift towards renewables is expected to fuel the growth of the thermal energy storage market in Europe.
The Thermal Energy Storage Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
The Thermal Energy Storage (TES) market is witnessing significant growth due to the increasing adoption of solar power generation and renewable power generation as part of the clean energy future. Energy security methods are becoming increasingly important, and TES plays a crucial role in ensuring energy availability during periods of supply chain disruptions or low renewable energy generation. Seasonal energy storage through TES is an effective solution for storing excess renewable energy during periods of high generation and releasing it during periods of high demand. Battery energy storage is a popular energy storage alternative, but TES offers advantages such as higher energy density and lower costs for large-scale energy storage. TES is finding applications in power generation, HVAC systems, and concentrated solar power, among others. Renewable energy generation is expected to continue growing, driven by investments in renewables and the need to meet Paris Climate targets. Energy utilization efforts and energy efficiency are also key factors driving the demand for TES. However, reducing carbon emissions from thermal power generation remains a challenge, and TES can help bridge the gap by providing flexible and reliable thermal energy storage solutions.
Market Research Overview
Thermal energy storage systems have gained significant attention in the context of renewable energy production as a means to address the intermittency issues of wind and solar power. These systems store excess energy generated from renewable sources during periods of low energy production and release it during peak demand or when production is low. Solar power and wind power are the primary renewable energy sources utilizing thermal energy storage. Two common thermal energy storage technologies are ice-based and molten salt. Ice-based storage uses the heat of fusion to melt water and produce ice, which can then be melted back to produce steam for power generation. Molten salt technology, on the other hand, uses molten salts to store heat, which can be used to produce superheated steam in steam turbines or generate electricity directly through solar towers or solar troughs. Thermal energy storage systems have high technological efficiency and can be integrated with large-scale HVAC systems and solar thermal systems. The energy density of these systems is lower compared to battery energy storage, but they offer advantages such as longer cycle life and lower material costs. The VS1 CSP project by Worley and Vast Solar Pty is an example of a large-scale thermal energy storage project that uses molten salt technology. This technology has the potential to significantly contribute to energy security methods and renewable power generation, especially in regions with high solar radiation. Seasonal energy storage and deep cycles are also being explored to provide energy storage solutions for longer periods. Thermal energy storage systems offer alternatives to battery energy storage and can help utilities manage time-of-day pricing, utility off-peak hours, and demand-side management. The increasing investments in renewables and the push towards carbon reduction targets have led to significant growth in renewable electricity capacity. Thermal energy storage systems play a crucial role in this transition by providing reliable and efficient energy storage solutions for renewable energy generation. However, challenges such as material costs, volumetric heat capacities, boiling points, and supply chain disruptions need to be addressed to ensure the continued growth and competitiveness of thermal energy storage systems.
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