by The Thermal Energy Storage Market is estimated to be valued at US$ 5.13 Bn in 2023 and is expected to exhibit a CAGR of 10.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Thermal energy storage (TES) helps store thermal energy by heating or cooling a storage medium so that the stored energy can be used later for heating and cooling applications. TES systems are useful for shifting energy demand from peak to off-peak times and stabilizing energy supply from intermittent renewable energy sources like solar and wind. Common TES technologies include sensible heat storage, latent heat storage, and thermochemical heat storage which use materials like molten salts, ice, concrete, phase change materials (PCMs) for efficient storage of thermal energy.
Market Dynamics:
One of the key drivers for the thermal energy storage market is the increasing demand for renewable energy integration. Renewable energy sources like solar and wind are intermittent in nature and their output cannot be adjusted based on demand. TES helps overcome this challenge by storing excess thermal energy produced during periods of high renewable generation for use when production drops. This allows greater flexibility and reliability of renewable power supply. Secondly, the growing need for peak shaving or load shifting is also fueling the market growth. TES plays a vital role in meeting peak electricity demand by discharging stored thermal energy when demand is high and charging it during off-peak hours when demand is lower. This flattens demand curves and reduces stress on conventional power plants.
Segment Analysis
The global thermal energy storage market is segmented based on technology, storage material and application. Based on technology, sensible heat storage segment dominates the market and accounted for over 45% of the total market share in 2022. Sensible heat storage utilizes latent and sensible heat transfer processes to store energy during charging and discharge. This technology works on the principle of heating or cooling a storage media without a phase transition and is a cost-effective option for large-scale applications.
Pest Analysis
Political: Supportive policies and regulations by governments across regions aims to reduce carbon emissions are driving the adoption of renewable and clean energy sources like thermal energy storage. This is positively impacting the market growth.
Economic: Declining costs of thermal energy storage systems along with availability of funding and incentives by governments for research & development of new technologies are fueling the market expansion.
Social: Increasing awareness about importance of efficient energy utilization and need to reduce reliance on conventional energy sources are propelling the demand for thermal energy storage systems.
Technological: Advancements in phase change materials and heat transfer fluids are improving the efficiency and cost-effectiveness of thermal energy storage systems. This is augmenting their use across various end-use industries.
Key Takeaways
The Global Thermal Energy Storage Market Size is expected to witness high growth, exhibiting CAGR of 10.% over the forecast period, due to increasing adoption of solar thermal technologies for industrial process heating and power generation applications.
The Asia Pacific region dominates the global market and accounted for over 35% of the total share in 2022. Ongoing investments by China and India in renewable energy integration and adoption of thermal energy storage systems for solar energy projects are fueling the regional market growth.
Key players operating in the thermal energy storage market are BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns & McDonnell, Inc., and DC Pro Engineering. BrightSource Energy dominates the global market owing to extensive use of its solar thermal power generation technologies worldwide.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
