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Thermal Energy Storage Market - By Storage Material (Water, Molten Salt, PCM), By Technology (Sensible Heat, Latent Heat, Thermochemical), By Application (Power Generation, District Heating & Cooling, Process Heating & Cooling), By End-User & Forecast, 2023-2032

  • Report ID: GMI2589
  • Published Date: Mar 2023
  • Report Format: PDF

Thermal Energy Storage Market Size

Thermal Energy Storage Market size crossed USD 36 billion in 2022 and is anticipated to grow at a CAGR of 7.5% from 2023 to 2032.  

Increasing investments toward concentrated solar power plants coupled with favorable regulations toward sustainable energy generation technologies will propel the market growth. The renewable energy sources and CSP are widely gaining acceptance on account of accelerating demand for efficient and reliable energy generation technology. Moreover, stringent regulatory norms and standards toward emission reduction have significantly influenced the industry outlook. In addition, supportive policy framework toward the development of renewable energy is set to boost the market progression.

Thermal Energy Storage Market

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Shifting consumer preference toward adaptive, efficient, and durable centralized cooling system have urged the deployment of thermal energy storage across the HVAC applications. Moreover, the thermal energy storage technology is being widely used for comfort cooling owing to growing demand for climate-controlled buildings. For instance, the U.S. government in November 2022, under its U.S. Department of Energy Office of Clean Energy Demonstrations landmark has proposed to fund USD 350 billion toward long-duration energy storage (LDES) projects.

High prices of TES systems may restrain industry growth

High capital investment associated with the construction of TES system has been a major restraint for the market expansion. The technology has become more competitive when compared with the other technologies on account of improving and standardizing manufacturing process coupled with growing requirement of enhanced storage material. Moreover, positive outlook toward limiting carbon emissions along with development of CSP plants is set to stimulate the market in the forthcoming years.

Thermal Energy Storage Market Analysis

The thermal energy storage market size from molten salt-based TES systems segment is predicted to record a CAGR of 7.5% through 2032. The technology has a wide scale storage capacity and provides stable and continuous supply across CSP plants. Moreover, these materials are being widely used for electrochemical treatment, heat transfer, and heat treatment. Additionally, high boiling point and volumetric heat capacity along with low vapor pressure are also set to enhance the market outlook.

The sensible heat segment accounted for 8 GW in 2022, on account of its low capital requirement when compared with its counterparts. Increasing investments toward sustainable district heating and cooling systems coupled with exponential growth in solar thermal technology are anticipated to impel the segment development.

The residential & commercial segment will reach USD 2 billion in 2032, due to the ongoing replacement and renovations projects across various establishments on account of growing electricity consumption. In addition, accelerating investments toward expansion and upgradation of power infrastructure in enhancing the deployment of sustainable grid systems will positively foster the industry growth.

Based on application, the thermal energy storage market share from district heating & cooling segment was valued at USD 1.5 billion revenue in 2022, attributed to growing demand for centralized heating & cooling systems across residential and commercial establishments along with deployment of sustainable district energy network.


Thermal Energy Storage Market Size By Region 

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The Asia Pacific thermal energy storage industry held over 45% of the revenue share by 2032, driven by increasing investments across environment friendly cooling technologies along with rapid development of sustainable energy sources. Furthermore, the supportive government policies coupled with accelerating use of thermal energy storage technology for heat across various application is set to impede the industry statistics.

Thermal Energy Storage Market Share

Major players operating across the market include

  • DN Tanks
  • Caldwell Energy Company
  • Abengoa
  • Siemens Gamesa Renewable Energy, S.A
  • Burns & McDonnell
  • McDermott
  • Baltimore Aircoil Company
  • FAFCO, Inc.
  • Dunham Bush
  • FAFCO, Inc.
  • Steffes
  • Goss Engineering, Deepchill Solutions Inc.

Continuous innovations toward advanced thermal energy storage systems to enhance the demand for uninterrupted power supply will upsurge the market demand.

For instance, in October 2022, McDermott signed a deal with Hydrostar Incorporated for engineering design of Silver City Energy Storage Project located in New South Wales, Australia. The contract will provide full FEED services for a 200 MW compressed air energy storage project which can discharge electricity up to eight hours at a time.

Impact of COVID-19 Pandemic

The Covid- 19 pandemic has severely affected the global economy with significant impact on the overall energy consumption. The pandemic led to major projects being delayed as the investments declined and companies’ revenue stream decreased. However, strict protocols to control the virus spread has elevated the power demand across the residential establishments which significantly enhanced the industry growth. Moreover, increasing investments toward development of industrial facilities, and manufacturing plants primarily across the developing economies will complement the market size.

This market research report of thermal energy storage includes in-depth coverage of the industry with estimates & forecast in terms of “MW” & “USD” from 2019 to 2032 for the following segments:

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Market, By Storage Material

  • Water
  • Molten Salt
  • PCM
  • Others

Market, By Technology

  • Sensible Heat
  • Latent Heat
  • Thermochemical

Market, By Application

  • Power Generation
  • District Heating & Cooling
  • Process Heating & Cooling

Market, By End-User

  • Residential & Commercial
  • Utilities
  • Industrial

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • Spain
    • Italy
    • Sweden
    • Greece
  • Asia Pacific
    • China
    • India
    • Australia
  • Middle East & Africa
    • UAE
    • South Africa
    • Morocco
    • Israel
  • Latin America 
    • Chile


Authors: Ankit Gupta, Abhishek Chopra

Frequently Asked Questions (FAQ) :

The market size of thermal energy storage crossed USD 36 million in 2022 and is set to progress at over 7.5% gains through 2032 owing to supportive laws and financial plans for producing renewable energy.

The district heating & cooling application accounted for USD 1.5 billion revenue in 2022 due to significant investments in the implementation of district heating and cooling systems across industries.

The sensible heat segment registered over 8 GW in 2022 owing to the soaring suitability of the technology in district heating & cooling systems and the mounting demand for solar thermal technology systems.

The Asia Pacific is slated to acquire over 45% of the market share by 2032 on account of the widespread use of thermal energy storage technology for producing heat in a variety of applications and supportive governmental requirements in the region.

Thermal Energy Storage Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 743
  • Countries covered: 16
  • Pages: 410
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