Global Thermal Energy Storage System Market Outlook
Revenue, 2023
Forecast, 2033
CAGR, 2023 - 2033
Thermal Energy Storage Systems (TESS) are crucial for enhancing energy efficiency and sustainability through the storage of energy for future use. These systems assist in energy expenses cut down and lowering greenhouse gas emissions significantly. In 2023 the market value was $29 billion with predictions suggesting an increase to $52 billion by 2030 and $78.9 billion by 2035, with a steady growth rate of 8.7% CAGR.
These systems employ techniques like practical storage systems based on temperature differences and chemical processes to efficiently handle and enhance energy utilization, in various applications.
Market Key Insights
- The Thermal Energy Storage System market is projected to grow from $29.0 billion in 2023 to $66.7 billion in 2033. This represents a CAGR of 8.7%, reflecting rising demand across District Heating & Cooling, Industrial Processes and Power Generation.
- Siemens Energy together with Calmac and Ice Energy lead the market as major competitors which determine its competitive dynamics.
- U.S. and Germany are the top markets within the Thermal Energy Storage System market and are expected to observe the growth CAGR of 6.4% to 9.1% between 2023 and 2030.
- Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 8.4% to 10.9%.
- The Thermal Energy Storage System market will receive a $5.4 billion boost from Transition like Transition to Advanced Materials during the 2030 period.
- The Thermal Energy Storage System market is set to add $37.8 billion between 2023 and 2033, with manufacturer targeting Power Generation & Industrial Processes Application projected to gain a larger market share.
- With Increased demand for renewable energy, and Growing focus on energy efficiency, Thermal Energy Storage System market to expand 130% between 2023 and 2033.
Opportunities in the Thermal Energy Storage System
Business sectors are more and more turning to TESS to achieve their decarbonization objectives and adhere to guidelines.
Growth Opportunities in North America and Europe
North America Outlook
The growth of infrastructure and increasing use of renewable energy are key factors fueling the expansion of the thermal energy storage market. This trend is particularly prominent, in the realm of district heating and cooling systems.
Europe Outlook
The European emphasis on energy efficiency and environmental laws supports the industry by driving growth in the use of these technologies, in factories and home heating systems.
Market Dynamics and Supply Chain
Driver: Increased Demand for Renewable Energy, and Cost-Effective Energy Solution
Governments and businesses are also focusing attention and resources towards energy efficiency measures. This has also resulted in a rise, of storage solutions usage.
Restraint: High Initial Investment Costs, and Technical Challenges
Systems like TESS encounter challenges, in performance efficiency when operating in different temperature settings.
Opportunity: Integration with Solar Power and Expansion into Emerging Markets
The fast paced expansion of cities in regions such as Asia Pacific is leading to an increased need for thermal storage solutions, in both homes and industries.
Challenge: Space Constraints
Supply Chain Landscape
BASF
Clariant
Dow
(Advanced materials like ##https://datastringconsulting.com/industry-analysis/phase-change-materials-market-research-report##)
Calmac
Ice Energy
BrightSource Energy
Abengoa
District energy providers
Industrial sectors
Residential
BASF
Clariant
Dow
(Advanced materials like ##https://datastringconsulting.com/industry-analysis/phase-change-materials-market-research-report##)
Calmac
Ice Energy
BrightSource Energy
Abengoa
District energy providers
Industrial sectors
Residential
Applications of Thermal Energy Storage System in District Heating & Cooling, Industrial Processes & Power Generation
Thermal energy storage improves district heating and cooling systems by managing supply and demand effectively and decreasing energy wastage. Companies such as Calmac and Ice Energy are prominent for their focus on energy efficient solutions.
In the realm of energy technology, TESS takes part in storing surplus thermal energy produced during peak periods for future utilization. The industry is spearheaded by companies such as BrightSource Energy and Abengoa Solar who are pioneering the integration of storage solutions with renewable energy sources.
Industries utilize TESS to regulate process temperatures and enhance energy efficiency in sectors such as manufacturing and chemical production fields. Siemens Energy and MAN Energy Solutions are pioneers in implementing industrial solutions.
Thermal storage systems assist in lowering energy costs for homes by storing heat or cold for consumption. Leading companies, in this field include Sunamp and Trane.
Recent Developments
Siemens Energy introduced a cutting edge salt-based thermal energy storage system.
Abengoa Solar unveiled a small scale TESS designed for small scale industrial applications.
BrightSource Energy broadened the use of TESS, for projects focusing on generating power.