Thermal Energy Storage Systems Market Size & Share 2025 – 2034

Thermal Energy Storage Systems Market Size

The thermal energy storage systems market was valued at USD 54.4 billion in 2024 and is estimated to grow at a CAGR of 5.6% from 2025 to 2034. There is rising demand for the thermal energy storage system on account of the increasing demand for electricity. Escalating demand for electricity is steadily driving the demand for thermal energy storage systems. In 2024, the U.S. possessed an approximate electricity generation capability of about 1.3 million MW, or 1,250 gigawatts.

Sectors including power generation, chemical processing, food and beverages, and HVAC are increasingly integrating thermal energy management systems to improve energy efficiency and lower the cost of operations. The emergence of these sectors will significantly increase the level of electricity consumption, thus augmenting the global thermal energy storage systems market.
 

The major utility of thermal energy storage systems is to store excess energy generated during production peak times to be used when there is no renewable energy source available. This system helps to improve grid stability. The rise in demand for these systems can be attributed to increasing energy production from wind and solar sources. In 2023, U.S. witnessed the significant growth in solar capacity by approximately 17,000 MW.
 

Concentrated solar power (CSP) plants are major users of TES, particularly in regions like the Middle East, North Africa, and the southwestern U.S. where sunlight is abundant. Molten salt-based TES systems are widely integrated into CSP plants to enable round-the-clock electricity generation. Innovations in phase change materials (PCMs), molten salts, and thermochemical storage solutions are enhancing the efficiency and storage capacity of TES systems.
 

Concentrated solar power (CSP) plants are major users of TES, majorly in the Middle East, North Africa, and Southwestern parts of the United States. Those areas have much more sunlight as compared to other regions. Molten salts are now the TES material of choice for CSP plants as it facilitates electricity generation throughout the day. The TES system has storage solutions in PCMs, molten salts, and even thermochemical materials PCMs are revolutionizing efficiency standards and storage capabilities.
 

Governments globally are enacting harsh energy efficiency regulations including the EU’s Energy Efficiency Directive or the U.S. Department of Energy’s energy efficiency storage policies. These steps show that the governments are spending huge amounts of money in these sectors, and it is certainly going to boost the need for energy storage systems. The Europe, in 2023, invested more than 105 billion in renewable energy sectors.
 

Thermal Energy Storage Systems Market Trends

• Molten salt-based TES systems are popularized in countries in the Middle East and Africa due to their ability to store thermal energy for a long duration of time. Furthermore, the incorporation of renewable solar CSP plants has the potential to attract high investments in these regions. Currently the world is planning to switch to 50% renewable electricity by 2030, which can be fulfilled by strong marketing of solar power development and TES systems.
   
• Due to their relatively low cost, phase change materials (PCMs) have a wide range of applications in TES systems. Buildings PCMs are commonly integrated in the building shell to facilitate heating and cooling. Furthermore, these materials can be used in any industrial process or HVAC system to improve energy efficiency and reduce peak demand. Efficient and compact PCMs are essential and highly appropriate in thermal energy storage systems, thus making it a major driver in the thermal energy storage systems market.
   
• Companies in this sector are investing huge amount in with product innovations, expanding their business across the world. In November 2022, Japan's Toshiba and Marubeni, along with Japanese utility Chubu Electric Power, have deployed a pilot rock-based storage facility at Toshiba's facility in Yokohama, Japan. The pilot system has a storage capacity of around 100 kWh.
   
• Developing countries including India, China and Brazil are also aiming to increase the use of renewable energy, which will find the requirement for energy storage systems. By 2027, India aims to have 275 GW of total wind and solar capacity, plus 72 GW of hydro and 15 GW of nuclear. Renewable energy's share of installed capacity is forecasted to rise to 43% by 2027.
   
• Similarly, in 2021, China also announced its plan to boost cumulatively installed energy storage to around 30 GW by 2025 and 100 GW by 2030, creating strong need for efficient storage systems. These requirements indicates the promising future for the thermal energy storage systems all over the world.
   

Thermal Energy Storage Systems Market Analysis

• The thermal energy storage systems industry was valued at USD 36.4 billion, USD 47.5 billion and USD 54.4 billion in 2022, 2023 and 2024 respectively. The industrial sector’s expansion, coupled with urbanization and rising electricity consumption, will be fueling the market growth in coming decades.
   
• The molten segment is anticipated to reach more than USD 94 billion by 2034 and will significantly grow in coming years mainly due to the rising preference for renewable energy across the world. Renewable sources of energy are around 43% of total energy production in Europe in 2022, leading the continent in energy production.
   
• The water (as a storage material) segment also holds around 2% market share due to growing utility across the sector. There are renewable energy projects, that are under construction, will be creating a strong need for energy storage systems. For instance, The EU is experiencing record-breaking solar capacity additions, with forecasts indicating over 60 GW of new solar PV installations in 2024 alone, surpassing previous years' records.
   
• Similarly, PCM segment also carries high importance because of its multiple features in various end use industries. The rising number of projects are tremendously propelling the need for energy storage systems. In 2024, an energy supplier in Finland has announced the upcoming construction of an underground seasonal thermal energy storage facility, with a planned storage capacity of 90 GWh.
   
• The other segments have considerable influence in the energy storage systems market in areas of efficiency, performance, and application versatility. The performance of material, which provides maximum efficiency, are best suited for super in industrial and utility applications.
   

• In the thermal energy storage systems market, the sensible heat segment has the majority of market share of over 98% in 2024 and will be further projected to grow in the coming years. It is mainly due to the significantly rising demand for energy across the world as well as growing industrialization and urbanization, helping market grow across the world.
   
• The global market for thermal energy storage systems continues to be strong owing to the simultaneous efforts towards upgrading electrical grids, modernizing utilities and replacing inadequate infrastructure. In 2021, EU announced that it would invest 5.84 billion from CEF for the energy infrastructure projects for 2021-2027, which mainly has its focus on grid improvements.
   
• The thermochemical segment carries significance with the increase in energy consumption all over the world. There is a rapid growth of innovation in the advanced technology. This facilitates the need for power distribution systems, in which energy storage systems plays a crucial role.
   
• Countries in North America including U.S and Canada are also stepping ahead in this industry. There are multiple projects of cooling systems, that are under construction, driving the need for thermal energy storage systems. For instance, Toronto's Downtown Deep Lake Water Cooling System uses the water from Lake Ontario to cool over 100 downtown buildings. The system saves 90,000 megawatt hours of electricity use annually, roughly enough to power a town of 25,000.
   

• The Asia Pacific thermal energy storage systems market in 2022, 2023 and 2024 was valued at USD 9.1 billion, USD 18.7 billion and USD 25.1 billion respectively. The developing countries in APAC including China, India, and Japan, witness massive electricity demand owing to the rising urbanization and industrialization. Therefore, the demand for the energy storage will be increasing its market across the Asia Pacific.
   
• Supportive government policies and financial incentives are driving the growth of TES technology in the Asia Pacific region. Many governments are promoting TES as part of their energy efficiency and carbon reduction strategies. The International Energy Agency projects that over 6,000 GW of new renewable electricity generation will be required by 2040 to address increasing global net zero commitments and the retirement of fossil fuel-based energy generation.
   
• Variable renewable energy (VRE) such as solar PV and wind are expected to form the majority of this growth, with an increasing focus on the need to firm supply to ensure stability of physical grid and market pricing. In the 2022 Integrated System Plan, AEMO forecasts that 2 GW of medium-depth (4-12 hour) storage is required by 2029 to address reliability needs of the NEM. These figures indicate that there will be huge demand for the thermal energy storage systems in coming years.
   
• In China, TES is widely adopted in industrial manufacturing, district cooling, and cold storage applications. These industries require cost-effective thermal management solutions to enhance energy efficiency and reduce operational costs. China’s strong government support, increasing renewable energy integration, and growing industrial applications position it as a key market for Thermal Energy Storage Systems.
   

Thermal Energy Storage Systems Market Share

Top 4 companies including Siemens Gamesa, Baltimore Aircoil Company, CALMAC and Burns & McDonnell hold more than 40% market around the world. The giant companies continuously research the new product and solutions, making them vital player in this industry worldwide. These companies prefer a massive investment specially in R&D. Additionally, these companies executes various business expansion tactics to gain a significant market share in that industry.
 

Thermal Energy Storage Systems Market Companies

• Abengoa: In October 2022, Abengoa received the Renewable Energy Award for the Noor 1 project, which involves the construction of three solar fields, each with a capacity of 200 MW, for the Mohammed bin Rashid Al Maktoum Solar Park in Dubai. The project is currently in the commissioning phase, with Abengoa responsible for the technical design and engineering of the heat transfer fluid (HTF) system and the fabrication of collectors for the three parabolic trough plants within the solar park.
   
• Steffes: In August 2021, Steffes has expanded its manufacturing operations in the Southeast U.S. with the acquisition of a facility in Shelby, North Carolina, representing an investment of USD 20.9 million. This expansion in Cleveland County enhances the company’s capabilities with advanced metal fabrication technologies and services, boosting its OEM product production and broadening its customer base across the region.
   

Thermal Energy Storage Systems Market Companies

Major players operating in the wire and cable industry are:

• Abengoa S.A.
• Baltimore Aircoil Company
• Burns & McDonnell
• Caldwell Energy Company
• CALMAC
• Deepchill Solutions Inc.
• DN Tanks
• Dunham-Bush Limited
• EVAPCO, Inc.
• FAFCO, Inc.
• Goss Engineering, Inc.
• McDermott
• New BrightSource, Ltd.
• Siemens Gamesa Renewable Energy, S.A.
• Steffes, LLC
   

Thermal Energy Storage Systems Market Industry News

• In December 2024, Brenmiller Energy Ltd, a leading global energy provider of thermal energy storage solutions to industrial and utility customers, announced that its bGen™ ZERO thermal energy storage has been selected to anchor a clean energy project being developed by Recursos de la Biomasa (“REBI”) in Spain, a leading Energy Service Company (ESCO) specializing in the decarbonization of residential and industrial heat. For this specific industrial application, Brenmiller’s bGen™ ZERO will be configured with 1.4 MWh of charging capacity, 10 MWh of storage, and 33 hours of continuous discharge.
   
• In November 2024, A 100MW thermal solar and molten salt energy storage system in Xinjiang, China, is set to be completed and integrated into the grid by the end of the year as part of a broader 1GW solar thermal energy storage and photovoltaic integration project in Turfan. According to announcements from the State Grid Turfan Power Supply Company the project's first phase has been completed. With a total investment of USD 840 million, the initiative combines 900MW of conventional solar PV with the 100MW thermal solar energy storage system.
   
• In April 2022, Pacific Gas & Electric Co. (PG&E) has selected Tesla's Megapack battery energy storage system for deployment at the Moss Landing electric substation in Monterey County. This certified and activated system by the California Independent System Operator will support the integration of renewable energy sources like wind and solar, advancing California's energy resilience and reducing dependence on conventional power sources.
   
• In June 2022, LG and Open Solar have teamed up in the U.S. solar market to elevate customer experience and collaborate with a prominent solar software provider. This partnership aims to provide enhanced support for LG solar installers as they transition towards remote sales and digital processes. It includes complimentary services such as system installation, design, and sales quotes, tailored specifically for solar professionals.
   

This thermal energy storage systems market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million and MW” from 2021 to 2034, 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 Use

• Residential & Commercial
• Utilities
• Industrial

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

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina