The thermal energy storage sector is anticipated to grow significantly, reaching a valuation of approximately US$ 31,964.26 million by the year 2030, up from US$ 13,608.68 million in 2022. This growth represents a compound annual growth rate (CAGR) of 6.3% from 2022 through 2030.
Thermal energy storage refers to the method of storing energy in the form of heat or cold for later use. This technology allows for the balancing of energy consumption between peak and off-peak hours. Various methods exist for thermal energy storage, including sensible heat storage, latent heat storage, and thermochemical storage. Sensible heat storage is particularly effective in reducing energy usage and minimizing carbon dioxide emissions, utilizing materials such as water or rock to store and distribute thermal energy. This method is especially suitable for residential applications. On the other hand, latent heat storage systems store energy without changing the temperature of the medium, relying instead on phase changes of materials. These phase change materials (PCMs) are utilized in building and solar applications to capture and retain excess heat. Thermochemical storage systems operate based on chemical reactions to store heat.
The thermal energy storage market is divided into categories based on technology, including sensible heat storage, latent heat storage, and thermochemical heat storage. While all these technologies are commercially available, some are more advanced and widely implemented than others. For instance, sensible heat storage involves changing the temperature of a material, whereas latent heat storage involves altering the state of a material from solid to liquid or liquid to vapor without a temperature change. Thermochemical storage, in contrast, relies on the surface reactions of materials. The primary applications for these technologies include buildings, energy production systems, district heating, power plants, and various industrial uses.
When categorized by storage material, the thermal energy storage market includes water, molten salt, and phase change materials (PCMs). The increasing adoption of renewable energy sources is driving the demand for thermal energy storage systems, particularly in power generation and residential heating. These systems can vary significantly in terms of temperature levels and the materials used for heat storage. Other materials that can be utilized include stones, rocks, pebbles, and occasionally bricks. Additionally, metals and graphite are also viable options for thermal energy storage.
In terms of application, the thermal energy storage market is segmented into district heating and cooling, power generation, and process heating and cooling. Thermal energy storage systems are particularly valuable in concentrating solar power (CSP) plants, enabling the provision of dispatchable power even during nighttime hours. They are also essential in thermal power plants for optimizing operations and managing load variations effectively. Furthermore, these systems play a crucial role in recovering and utilizing heat in industrial processes that would otherwise be wasted. They also enhance heat supply reliability in hybrid heat and power plants by decoupling heat and power production.
From the perspective of end users, the thermal energy storage market is divided into two main segments: utility and non-utility. The utility segment encompasses industries such as manufacturing, consumer goods, aerospace, and energy production. Conversely, the non-utility segment primarily includes independent power producers and companies that generate power without relying on fossil fuels. An example of a non-utility generator is an industrial entity that feeds surplus energy back into the grid.
The thermal energy storage market can be further analyzed based on type, storage material, application, and end user. By type, it includes sensible heat storage, latent heat storage, and thermochemical storage. The storage material segment consists of water, molten salt, phase change materials (PCMs), and other materials. The application segment is divided into district heating and cooling, power generation, and process heating and cooling. Finally, the end user segment is categorized into utility and non-utility. Geographically, the market is segmented into regions such as Europe, Asia Pacific, North America, the Middle East & Africa, and South America.
Key players in the thermal energy storage market include Goss Engineering Inc., Evapco Inc., Burns & McDonnell Consultants Inc., Baltimore Aircoil Co., BrightSource Energy Inc. (Kelvin Energy Inc.), Sunamp Ltd., Calmac Corp., MAN Energy Solutions SE, Steffes LLC, and Abengoa SA, among others.
The overall size of the thermal energy storage market has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather quantitative and qualitative data regarding the market. This research aids in forming a comprehensive overview and forecast of the market across all segments. Additionally, numerous primary interviews with industry stakeholders have been carried out to validate the findings and gain deeper analytical insights. This includes discussions with industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants specializing in the thermal energy storage sector.