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Ice Thermal Energy Storage Systems Market

The market for Ice Thermal Energy Storage Systems was estimated at $3.8 billion in 2025; it is anticipated to increase to $6.0 billion by 2030, with projections indicating growth to around $9.5 billion by 2035.

Report ID:DS2407014
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Energy & Power
Energy Storage
Ice Thermal Energy Storage Systems
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Market Data
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Global Ice Thermal Energy Storage Systems Market Outlook

Revenue, 2025

$3.8B

Forecast, 2035

$9.5B

CAGR, 2026 - 2035

9.7%

The Ice Thermal Energy Storage Systems industry revenue is expected to be around $3.8 billion in 2026 and expected to showcase growth with 9.7% CAGR between 2026 and 2035. Building on this robust outlook, Ice Thermal Energy Storage Systems have become a critical component of modern energy management strategies, particularly as utilities, facility owners, and policymakers prioritize peak load management, HVAC energy efficiency, and ambitious decarbonization goals. The market’s current structure is anchored by the commercial and industrial end-user segments, which combined account for 74.1% of demand, underscoring the importance of large-scale cooling and process applications in shaping procurement and investment decisions. Static technology solutions, generating about $2.35 billion in revenues in 2025, dominate industry sales due to their proven reliability, lower operational complexity, and strong compatibility with existing chiller-based infrastructure, reinforcing their role in enhancing grid stability, optimizing capital expenditure, and supporting long-term resilience across the thermal energy storage market.

At their core, Ice Thermal Energy Storage Systems are engineered cooling solutions that create and store ice during off-peak hours and discharge that stored thermal energy during peak demand, enabling significant reductions in peak electricity consumption and operating costs for commercial buildings and industrial facilities. Key features include modular static technology tanks, seamless integration with central HVAC plants to maximize HVAC energy efficiency, intelligent controls for smart grid optimization, and compatibility with district cooling systems and other sustainable cooling technologies. Major applications span high-rise offices, shopping centres, hospitals, airports, data centres, manufacturing plants, and campus-scale infrastructure, where ice-based cooling solutions support comfort, process reliability, and energy cost stability. Recent trends driving demand include rising electricity tariffs, stricter building performance standards, corporate sustainability and net-zero commitments, and accelerating renewable energy integration, collectively positioning Ice Thermal Energy Storage Systems as a strategic enabler of low-carbon, flexible thermal energy management across global markets.

Ice Thermal Energy Storage Systems market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Ice Thermal Energy Storage Systems Market Outlook

Market Key Insights

  • The Ice Thermal Energy Storage Systems market is projected to grow from $3.8 billion in 2025 to $9.5 billion in 2035. This represents a CAGR of 9.7%, reflecting rising demand across Building Cooling Systems, Data Center Cooling, and Industrial Processes.

  • EVAPCO Inc., Baltimore Aircoil Company, and CALMAC are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the Ice Thermal Energy Storage Systems market and are expected to observe the growth CAGR of 7.1% to 10.2% between 2025 and 2030.

  • Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 9.3% to 12.1%.

  • Transition like Decarbonization and Energy Efficiency is expected to add $523 million to the Ice Thermal Energy Storage Systems market growth by 2030.

  • The Ice Thermal Energy Storage Systems market is set to add $5.7 billion between 2025 and 2035, with manufacturer targeting Commercial & Industrial Application projected to gain a larger market share.

  • With

    onset of intensified climate change measures, and

    Increased Energy Demand and Price Volatility, Ice Thermal Energy Storage Systems market to expand 152% between 2025 and 2035.

ice thermal energy storage systems market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Ice Thermal Energy Storage Systems - Country Share Analysis

Opportunities in the Ice Thermal Energy Storage Systems

In high-rise offices, shopping malls, hospitals, and university campuses, facility owners are also prioritizing peak load management and HVAC optimization to reduce electricity tariffs and meet stricter building-performance codes. Ice Thermal Energy Storage Systems enable retrofits that downsize chillers, flatten demand curves, and support smart grid participation by shifting cooling production to nighttime. Dynamic ice systems, valued around $1.41 billion globally in 2025, are expected to grow to $2.45 billion by 2030, posting an 11.75% CAGR, with strongest adoption in Asia-Pacific commercial buildings.

Growth Opportunities in North America and Asia-Pacific

In North America, Ice Thermal Energy Storage Systems adoption is most strongly driven by the commercial segment, particularly high-rise offices, healthcare campuses, universities, data centers, and large retail complexes seeking thermal energy storage to meet stringent building energy codes and decarbonization mandates. Key opportunities arise from retrofitting existing HVAC infrastructure to enable peak load shifting and demand response, where commercial building portfolios can standardize on scalable, modular ice-based solutions rather than traditional chilled water storage alone. Competition is intensifying among large HVAC OEMs, regional engineering contractors, and controls specialists, with differentiation increasingly based on lifecycle cost, system reliability, and advanced controls for smart grid integration that monetize utility incentives and capacity payments. Market drivers include rising electricity peak-demand charges, grid congestion in metropolitan areas, corporate net-zero commitments, and tighter performance standards for cooling equipment, all of which favor Ice Thermal Energy Storage Systems that deliver high-density energy storage and superior load flexibility. Strategic focus should center on packaged systems optimized for commercial retrofits, digital platforms that integrate with building management systems, and performance-guaranteed service models targeting facility owners that manage multi-site portfolios across climate-sensitive states.
In Asia-Pacific, Ice Thermal Energy Storage Systems are poised for fastest acceleration in the industrial end-user segment, supported by rapid growth in manufacturing clusters, electronics production, cold-chain logistics, and energy-intensive process industries that demand reliable, efficient cooling. Top opportunities are emerging in large industrial parks and mixed-use smart cities where planners favor integrated district cooling and urban district cooling networks, enabling centralized ice storage to flatten peak loads in rapidly urbanizing regions. Competitive dynamics involve a mix of global technology providers and strong local EPC players that compete primarily on project delivery capability, customization to local climatic conditions, and financing flexibility for large-capex installations. Policy-driven drivers include aggressive energy efficiency targets, government-backed green industrial corridors, and rising electricity tariffs during peak hours, which make Ice Thermal Energy Storage Systems an attractive tool for renewable energy integration and grid stability. Strategic emphasis should be placed on high-capacity, utility-scale designs for industrial and campus-style facilities, localization of manufacturing and service support to reduce total installed cost, and long-term concession or ESCO models that bundle design, build, finance, and operate services for industrial offtakers with limited upfront capital.

Market Dynamics and Supply Chain

01

Driver: Growing Demand for Peak Load Management and Integration with Renewable Energy Resources

The ice thermal energy storage systems market is also propelled by increasing peak cooling load challenges in urban environments and deeper integration of renewable energy sources into power grids. First, as cities expand and cooling needs rise with hotter climates and denser construction, facility managers seek solutions to shift electricity use away from peak afternoon demand to off‑peak hours. Ice TES systems freeze water at night when grid loads and electricity prices are also lower and then discharge stored cooling during the hottest parts of the day. This load‑shifting reduces utility bills and alleviates strain on electrical infrastructure. Second, with solar and wind generation growing rapidly, there is also a need to balance intermittent renewable output with continuous cooling demand. Ice storage can also absorb surplus renewable generation at night or midday and deliver reliable cooling later, improving energy utilization, reducing carbon emissions, and supporting decarbonization goals in commercial, industrial, and institutional buildings.
A key driver for ice thermal energy storage systems is also rapid advancement in intelligent controls and smart building integration technologies. Modern systems increasingly use real‑time data, predictive analytics, and automated energy management platforms that optimize when ice is also produced and discharged based on weather forecasts, utility rate schedules, and building load patterns. These technologies enhance system responsiveness, reduce waste, and improve overall efficiency by aligning storage use with actual demand and electricity pricing signals. As smart HVAC and building management systems become more widespread, ice TES adoption grows because operations become simpler to manage and yield clearer financial and environmental benefits. This trend supports broader digital transformation in facilities seeking energy cost savings, performance insights, and improved sustainability metrics.
02

Restraint: High upfront capital costs and limited financing options constrain wider adoption

One major restraint for ice thermal energy storage systems is the significant upfront capital expenditure associated with system installation, including storage tanks, chillers, controls, and integration with existing HVAC infrastructure. Many organizations delay or reject projects due to long payback periods compared with conventional cooling upgrades, weakening near‑term demand and slowing revenue growth for suppliers. For example, smaller commercial facilities often lack access to favorable financing or incentives, making systems less competitive, which reduces deployment scale and restricts market expansion until cost reductions or tailored funding mechanisms emerge.
03

Opportunity: Rapidly Expanding District Cooling Networks in United Arab Emirates and Saudi Arabian Megacities and Large Cloud Data Centers in United States and Europe

Ice Thermal Energy Storage Systems are increasingly favored in large district cooling concessions across United Arab Emirates and Saudi Arabia, where extreme temperatures and sustainability targets are accelerating centralized thermal energy storage deployment. Untapped potential lies in integrating static ice tanks into new mixed-use megaprojects and airport expansions to shift chiller loads to off-peak hours. Static technology, already generating about $2.35 billion globally in 2025, is projected to reach $3.52 billion by 2030, reflecting an 8.4% CAGR between 2026 and 2030, with fastest regional growth in Gulf Cooperation Council cities.
Large cloud data centers in the United States and Europe represent a rapidly expanding niche for Ice Thermal Energy Storage Systems, driven by 24/7 cooling demand, grid congestion, and corporate decarbonization commitments. Dynamic ice-based thermal energy storage can provide redundancy for mission-critical cooling, deliver sustainable cooling capacity, enable higher utilization of on-site renewable energy, and minimize reliance on diesel backup. This segment is expected to outpace overall market growth, with modular dynamic solutions gaining the largest share within industrial and hyperscale data center cooling applications.
04

Challenge: Limited awareness and technical expertise slows market penetration in key segments

Another key market restraint is the lack of awareness among potential end users and a shortage of skilled designers and installers experienced with ice TES integration. Many facility managers and engineers remain unfamiliar with long‑term operational savings and optimization strategies, resulting in slower procurement cycles and fewer projects moving forward. This knowledge gap hampers demand, particularly in regions without strong energy efficiency programs or educational initiatives, and reduces confidence among investors and decision makers, limiting market growth and adoption rates overall.

Supply Chain Landscape

1

Component Supply

Baltimore Aircoil CompanyFAFCO
2

System Manufacturing

EVAPCO Inc.CALMAC
3

Project Integration

Ice EnergyEVAPCO Inc
4

End-User Applications

Ice Thermal Energy Storage SystemsCommercial Buildings CoolingDistrict Cooling Networks
Ice Thermal Energy Storage Systems - Supply Chain

Use Cases of Ice Thermal Energy Storage Systems in Building Cooling & Data Center Cooling

Building Cooling Systems : Ice thermal energy storage systems are widely used in building cooling applications by producing and storing ice during off‑peak hours to serve daytime air conditioning demands, typically using ice‑on‑coil internal storage integrated with HVAC chillers. This approach shifts electricity consumption to cheaper night‑time periods, lowers peak demand charges, and enables smaller chiller and equipment sizes, enhancing energy efficiency and reducing operating costs for large commercial offices, hospitals, schools, and mixed‑use buildings. Ice TES improves load management and contributes to sustainability goals by smoothing cooling demand peaks and supporting grid stability while reducing overall energy use.
Data Center Cooling : In data center cooling, ice thermal energy storage systems provide reliable, continuous cooling capacity by using stored cold energy to cool servers and critical infrastructure during peak periods. Typically combined with existing chilled water systems, the ice is produced overnight when electricity rates are lower and melt‑discharged during high load periods, helping to reduce operational energy costs and improve system resilience. This application is particularly valuable for facilities with near‑constant cooling needs, supporting uptime requirements while delivering notable savings by reducing peak power consumption and integrating with automated HVAC controls.
Industrial Processes : For industrial process cooling, ice thermal energy storage systems deliver efficient temperature control in sectors such as food processing, pharmaceuticals, and manufacturing. In these applications, ice storage buffers cooling demand, allowing equipment to operate at optimal efficiency and shifting energy use to off‑peak hours, which reduces electricity costs and enhances energy management. The stored cold energy supports continuous process operations during peak loads or equipment maintenance, improving reliability and stabilizing production quality. Ice TES also lowers chiller capacity requirements and contributes to reduced emissions through optimized energy use.

Recent Developments

Recent developments in ice thermal energy storage systems reflect stronger demand for demand response cooling, enhanced energy efficiency in HVAC, and integration with smart grid and building management systems. Key market trend shows increasing adoption of thermal load shifting as data centers and commercial buildings pursue peak shaving to reduce utility costs and carbon footprints. Advances in control algorithms and predictive analytics are improving system performance and lowering lifecycle costs. These dynamics are expanding opportunities for modular TES solutions in retrofit and new construction projects.

December 2024 : CALMAC introduced an upgraded ice thermal energy storage system that improves storage capacity by about 20% while reducing installation costs, strengthening its product portfolio and competitive differentiation in ice TES offerings for commercial and institutional HVAC applications. 
October 2025 : Trane Technologies deployed a substantial ice thermal storage system at a hospital facility to deliver peak‑load cooling and reduce electrical load during high‑demand periods, marking a significant commercial installation of ice battery technology in healthcare infrastructure. This deployment reflects broader market momentum for ice thermal storage solutions in mission‑critical environments.

Impact of Industry Transitions on the Ice Thermal Energy Storage Systems Market

As a core segment of the Energy Storage industry, the Ice Thermal Energy Storage Systems market develops in line with broader industry shifts. Over recent years, transitions such as Decarbonization and Energy Efficiency and Digital Transformation in Energy Management have redefined priorities across the Energy Storage sector, influencing how the Ice Thermal Energy Storage Systems market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Decarbonization and Energy Efficiency

Driven by aggressive decarbonization targets and tightening energy efficiency regulations, Ice Thermal Energy Storage Systems are shifting from a niche technology to a strategic asset, with this transition projected to add $523 million to market growth by 2030. By shifting cooling loads to off-peak hours and enabling deeper use of renewable electricity, these advanced thermal energy storage solutions reduce peak load management costs, cut greenhouse gas emissions, and enhance grid decarbonization. Adoption is accelerating in large commercial buildings, data centers, and district cooling networks seeking sustainable cooling and lower lifecycle operating expenses. As facility owners and utilities prioritize energy resilience and ESG performance, Ice Thermal Energy Storage Systems increasingly form the backbone of low-carbon HVAC strategies, improving grid stability while strengthening corporate sustainability credentials and long-term asset value.
02

Digital Transformation in Energy Management

The rise of Industry 4.0 has brought about a significant shift in energy management, driven largely by ongoing digital transformation across industries. Advanced data analytics, smart sensors, and IoT integration are revolutionizing Ice Thermal Energy Storage Systems, allowing for realtime monitoring, automated controls, and predictive maintenance. This automated and intelligent approach to energy management significantly boosts operational efficiency and reliability while minimizing system downtime. As industries continue adopting interconnected digital solutions, these systems become even more responsive and adaptive, enabling better energy optimization, enhanced load management, and long-term cost savings for commercial, industrial, and utility-scale applications.