Thermal Energy Storage System Market
Thermal Energy Storage System Market
The market for Thermal Energy Storage System was estimated at $28.98 billion in 2023; it is anticipated to increase to $52.0 billion by 2030, with projections indicating growth to around $78.9 billion by 2035.
Report Summary
Table of Contents
Methodology
Market Data
Global Thermal Energy Storage System Market Outlook
Revenue, 2023 (US$B)
$29.0B
Forecast, 2033 (US$B)
$66.7B
CAGR, 2023 - 2033
8.7%
The Thermal Energy Storage System industry revenue is expected to be around $34.2 billion in 2024 and expected to showcase growth with 8.7% CAGR between 2025 and 2034. <p>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.</p><p>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.</p>
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
<p>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.</p>
Europe Outlook
<p>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.</p>
Market Dynamics and Supply Chain
01
Driver: Increased Demand for Renewable Energy, and Cost-Effective Energy Solution
Renewable energy generation are also time & environment dependent, specially solar & wind energy and This growing trend towards using renewable energy has also led to a greater demand for thermal energy storage systems. These systems help balance the supply and demand of energy effectively. TESS offers an affordable energy solution, by storing energy to reduce expenses and decrease dependency on non renewable resources.<br>Governments and businesses are also focusing attention and resources towards energy efficiency measures. This has also resulted in a rise, of storage solutions usage.
02
Restraint: High Initial Investment Costs, and Technical Challenges
To implement TESS on a large scale requires significant upfront investment on infrastructure & resources which hinders broader usage.<br>Systems like TESS encounter challenges, in performance efficiency when operating in different temperature settings.
03
Opportunity: Integration with Solar Power and Expansion into Emerging Markets
As micro solar projects and building integrated solar power become more prevalent with regional government initiatives, the demand for TESS grows due to its crucial role, in storing solar energy efficiently.<br>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.
04
Challenge: Space Constraints
Setting up storage units, in urban or confined spaces can pose difficulties and limit the practicality of the system.
Supply Chain Landscape
1
Component Supplier
BASF
Clariant
Dow
(Advanced materials like ##https://datastringconsulting.com/industry-analysis/phase-change-materials-market-research-report##)
2
System Integrators
Calmac
Ice Energy
3
Engineering Services
BrightSource Energy
Abengoa
4
End Users
District energy providers
Industrial sectors
Residential
1
Component Supplier
BASF
Clariant
Dow
(Advanced materials like ##https://datastringconsulting.com/industry-analysis/phase-change-materials-market-research-report##)
2
System Integrators
Calmac
Ice Energy
3
Engineering Services
BrightSource Energy
Abengoa
4
End Users
District energy providers
Industrial sectors
Residential
*The illustration highlights the key stakeholders within the supply chain ecosystem.
Applications of Thermal Energy Storage System in District Heating & Cooling, Industrial Processes and Power Generation
District Heating & Cooling
<p>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.</p>
Power Generation
<p>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.</p>
Industrial Processes
<p>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.</p>
Residential
<p>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.</p>
Recent Developments
September 2023
<p><strong>Siemens Energy</strong> introduced a cutting edge salt-based thermal energy storage system.</p>
July 2023
<p><strong>Abengoa Solar</strong> unveiled a small scale TESS designed for small scale industrial applications.</p>
February 2023
<p><strong>BrightSource Energy</strong> broadened the use of TESS, for projects focusing on generating power.</p>
There is an increasing emphasis on materials and their connection to renewable energy sources in recent updates with Calmac introducing an urban friendly thermal storage solution for district cooling.
Impact of Industry Transitions on the Thermal Energy Storage System Market
As a core segment of the Energy Storage industry,
the Thermal Energy Storage System market develops in line with broader industry shifts.
Over recent years, transitions such as Transition to Advanced Materials and Integration with Smart Grids have redefined priorities
across the Energy Storage sector,
influencing how the Thermal Energy Storage System market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Transition to Advanced Materials
Researchers are investigating materials, like advanced phase change materials to enhance storage efficiency and reduce expenses.
02
Integration with Smart Grids
Smart grid technologies are merging more and more with TESS systems to enhance energy distribution and utilization efficiency.