Thermal Energy Storage Market Trends and Leaders (2024-2032)

This editorial highlights key insights from one of the latest reports added to Statzon, provided by Statzon’s data partner, Global Market Insights Inc. The report explores the global Thermal Energy Storage (TES) market, examining market trends, growth drivers, key players, and forecasts from 2024 to 2032. Thanks to our collaboration with Global Market Insights Inc., the full report is available on the Statzon Market Intelligence Platform for a detailed understanding of the TES market landscape.

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Market Overview

The global thermal energy storage (TES) market is on a trajectory of substantial growth, with projections indicating an increase from $47.5 billion in 2023 to $91.6 billion by 2032. This represents a compound annual growth rate (CAGR) of 7.6% over the forecast period. Thermal energy storage technologies play a crucial role in balancing energy supply and demand, particularly in the context of increasing renewable energy integration.

Key Trends and Market Drivers

1. Renewable Energy Integration: The rising deployment of Concentrated Solar Power (CSP) plants is a significant driver for TES adoption, as these systems enable continuous power generation even when the sun isn't shining.
2. Sustainable Cooling Demand: Growing concerns about climate change and increasing global temperatures are driving demand for efficient, sustainable cooling solutions, boosting the TES market.
3. Government Support: Favorable policies and financial incentives in many countries are encouraging the implementation of TES systems across various sectors.
4. Energy Efficiency Push: Industries and utilities are increasingly turning to TES to optimize energy use, reduce costs, and improve overall system efficiency.
5. Technological Advancements: Ongoing research and development in storage materials and system designs are enhancing the performance and cost-effectiveness of TES solutions.

Market Segmentation

Technology

• • Sensible Heat Storage
    Dominating the market with over 95% share in 2023, sensible heat storage is projected to grow at a CAGR of 7.6% from 2023-2032. This technology is widely used in power plants and industrial processes due to its simplicity and cost-effectiveness. It typically involves heating and cooling a liquid or solid storage medium without a change in phase.
  • Latent Heat Storage
    Latent heat storage is gaining traction, with an expected CAGR of 3.7% from 2023 to 2032. This technology utilizes phase change materials (PCMs) to store and release energy during the phase transition process, offering higher energy density compared to sensible heat storage.
  • Thermochemical Storage
    Still in early development stages, thermochemical storage holds promise for long-term, high-density energy storage. It involves using reversible chemical reactions to store and release heat, potentially offering even higher energy densities than latent heat storage.

Storage Material

1. • Molten Salt
     Molten salt led the market with an over 90% share in 2023 and is projected to grow at a CAGR of 7.8% from 2023 to 2032. It's particularly popular in concentrated solar power plants due to its high heat capacity and ability to operate at high temperatures.
   • Water-based Storage
     Water-based storage is expected to grow at a CAGR of 8.7% from 2023 to 2032. It is gaining popularity, especially in district heating and cooling applications. Its low cost and environmental friendliness make it an attractive option for many applications.
   • Phase Change Materials (PCM) and Others
     While occupying a smaller market share, PCMs are expected to grow due to their high energy storage density and ability to maintain constant temperatures during phase changes.

Application

• • Power Generation
    The largest segment  accounted for over 90% of the market in 2023, with a projected CAGR of 7.7% from 2023 to 2032. TES systems in power generation help balance supply and demand, integrate renewable energy sources, and improve overall plant efficiency.
  • District Heating & Cooling
    With an expected CAGR of 6.0% from 2023-2032, this segment is growing as cities look for more efficient ways to heat and cool buildings. TES systems can help reduce peak loads and improve the overall efficiency of district energy systems.
  • Process Heating & Cooling
    This emerging application area is seeing increased adoption in industries such as food processing, chemical manufacturing, and data centers, where consistent temperatures and energy efficiency are crucial.

Regional Markets

Source: Statzon - Global Market Insights

Asia Pacific

Middle East & Africa

As one the fastest-growing region with an expected CAGR of 8.6% from 2023-2032, the Middle East & Africa is leveraging its abundant solar resources to develop large-scale CSP projects with integrated TES. Countries like Morocco and the United Arab Emirates are at the forefront of this trend, aiming to reduce their dependence on fossil fuels and capitalize on their solar potential.

Europe

With its strong focus on renewable energy integration and ambitious climate targets, Europe remains a key market for TES. The region is seeing increased adoption of TES in district heating and cooling systems, as well as in industrial applications. The European Union's push for a climate-neutral economy is driving investment in energy storage technologies, including TES.

North America

The North American market is characterized by a focus on grid modernization and energy efficiency. TES systems are being increasingly adopted in commercial and industrial sectors to reduce peak energy demand and associated costs. The region is also seeing growing interest in TES for concentrated solar power plants, particularly in the southwestern United States.

Key Players

The thermal energy storage market features a diverse range of players, from large multinational corporations to specialized TES companies. Some key insights about these companies include:

• CALMAC (Trane Technologies):CALMAC's ice-based thermal energy storage systems are widely used for building cooling applications.
• Abengoa: A major player in the concentrated solar power sector, Abengoa has significant experience in molten salt thermal storage systems for CSP plants.
• Burns & McDonnell: Offers engineering and construction services for various TES projects, including both sensible and latent heat storage systems.
• Siemens Gamesa Renewable Energy: Recently entered the TES market with an innovative electric thermal energy storage system, demonstrating the growing interest of major renewable energy companies in this sector.
• DN Tanks and McDermott: Specialize in the design and construction of large-scale thermal storage tanks, crucial components for many TES systems.

In addition to the companies discussed above, the report also mentions several other significant players in the thermal energy storage market:

• New BrightSource
• Baltimore Aircoil Company
• Dunham-Bush
• Goss Engineering
• Steffes
• EVAPCO
• FAFCO
• Deepchill Solutions
• Caldwell Energy Company

These companies are driving innovation in the TES market through R&D investments, strategic partnerships, and expansion into new geographic markets. Many are focusing on improving the efficiency and cost-effectiveness of their systems, as well as developing new storage materials and technologies to meet the evolving needs of the energy sector.

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