Global Thermal Energy Storage Market Size, Share, Opportunities, And Trends By Material Type (Molten Salt, Water, Phase Change Materials (PCM), Others), By Application (Power Generation, Heating & Cooling), By Technology (Sensible Heat Storage, Latent Heat storage, Thermochemical heat storage), By End-User (Utilities, Residential and Commercial, Others), And By Geography - Forecasts From 2025 To 2030

Thermal Energy Storage Market Size:

The global thermal energy storage market is expected to grow at a CAGR of 10.93%, reaching a market size of US$14.219 billion in 2030 from US$8.466 billion in 2025.

The intermittent nature of renewable energy sources is reduced by thermal energy storage (TES) systems, which store excess energy during times of low demand and release it when required. Nonstop research on materials and storage techniques is enhancing the effectiveness and scale of thermal energy storage systems. Thermal energy storage systems help increase energy efficiency by reducing peak demand and energy costs and improving heating, ventilation, and air conditioning (HVAC) system performance.

Therefore, they started gaining popularity in commercial and industrial sectors for better energy utilization. There is also an increasing trend towards the application of TES systems due to efforts by the government to implement policies and financial incentives aimed at promoting energy efficiency as well as clean energy. Measures to encourage investment in renewable energy sources and reduce greenhouse gases are significantly upheld.

What are the Thermal Energy Storage Market Drivers?

• Increased demand for renewable energy is contributing to the global thermal energy storage market's growth

As the demand for thermal energy rises, TES solutions will inevitably be increasingly needed. Manufacturing, residential climate control, agriculture, transport, and even more so, renewable energy conversion – all of these activities are correlated with rising temperatures in industrialized processes and heat transfer as global urbanization trends weigh in along with a cleaner energy transition. In addition, it is increasingly emphasized that thermal energy is utilized more efficiently since energy efficiency measures are being implemented. Therefore, looking at the whole picture, the increasing demand for thermal energy underlines the importance of thermal energy storage in enhancing resilience, sustainability, and energy security.

• Rising technological advancement is anticipated to propel the global thermal energy storage market growth.

The advancement of high-temperature content materials allows the function of TES systems at elevated temperatures, improving their performance in terms of efficiency and the quantity of energy stored. This makes renewable energy generation sources such as concentrated solar power (CSP) more effective by utilizing waste heat more efficiently, making them more viable and sustainable. Enhancing thermal storage techniques and the chemical storage of heat energy offers a solution in enabling long-term chemical energy storage for heat release whenever needed. Hybrid thermal energy storage systems make it possible to combine different storage systems to maximize their merits while improving energy density and cycling stability and enhancing system adaptability.

Moreover, enhancements in the control strategies and the integration of the systems improve the performance of the TES systems in real-time by considering the weather, energy demand, and energy costs, hence improving the reliability and performance of the system. The smooth interaction between the traditional power plants and the renewable sources of energy in the TES system aids in fast-tracking the uptake of thermal energy options because the smart algorithms control the blending of those technologies harmoniously. Therefore, thermal energy storage systems are increasingly being adopted in these regions.

• Increasing the use of sensible heat technology will increase the market.

Using sensible heat technology, thermal energy storage stores thermal energy by altering a material's temperature without causing a phase shift. Sensible heat systems are easy to use, dependable, and unlikely to break down or require maintenance. They are simple to implement and run because they don't require complicated phase change materials or chemical reactions. They also provide high efficiency. Because of their adaptability, they can be used for various tasks, including industrial operations and home heating. Another benefit of sensible heat storage is its affordability. The materials are usually cheap and widely available, reducing the system's overall cost. These systems can also be easily integrated into traditional heating, cooling, and power generation systems because they are scalable and compatible with current infrastructure.

Major Restraints in the Thermal Energy Storage Market:

• High investment costs are anticipated to hamper the market growth

The initial investment cost for thermal energy storage includes costs associated with the purchase and assembly of storage tanks, heat exchangers, insulation, control systems, and other miscellaneous equipment. These costs are also subject to change depending on the costs of materials. Engineering and design costs incorporate feasibility studies, specialized designs, and meeting regulations. There are also costs for the installation and the provision of labor, as well as the costs of operation and maintenance of the system, which include monitoring, inspections, and repairs. Therefore, the expansion of the thermal energy storage market worldwide will be limited by the high costs of investments.

Thermal Energy Storage Market Geographical Outlook:

• Asia Pacific is witnessing exponential growth during the forecast period.

Concentrated solar power plants are becoming more widely deployed, with molten salt TES systems playing an important role in the market's growth. Further, China and India, two nations with high levels of solar radiation, are at the forefront of CSP advancements.

The growing energy demand in Asia-Pacific nations is fueled by the use of TES systems to manage peak loads, increase grid stability, and boost overall energy efficiency. This increased demand is mostly caused by rapid industrialization and urbanization.

Thermal Energy Storage Market Key Launches

• In April 2024, the innovative Finnish company Polar Night Energy took a major step toward revolutionizing energy storage, which recently raised €7.6 million in a funding round. The money will be carefully used to grow the company's research and sales teams and improve the technology that makes it easier to convert thermal energy stored into electrical power.
• In April 2024, through a successful private placement, MN8 Energy LLC, a US-based independent solar power producer, raised USD 325 million (EUR 303 million) to fund its expansion plans. The investment seeks to advance the company's growth trajectory and fortify its operations.

Thermal Energy Storage Market Scope:

Report Metric	Details
Thermal Energy Storage Market Size in 2025	US$8.466 billion
Thermal Energy Storage Market Size in 2030	US$14.219 billion
Growth Rate	CAGR of 10.93%
Study Period	2020 to 2030
Historical Data	2020 to 2023
Base Year	2024
Forecast Period	2025 – 2030
Forecast Unit (Value)	USD Billion
Segmentation	Material Type Application Technology End-User Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in Thermal Energy Storage Market	BrightSource Energy Inc. Aalborg CSP A/S Abengoa SA Baltimore Aircoil Company Burns & McDonnell
Customization Scope	Free report customization with purchase

 

The thermal energy storage market is segmented and analyzed as follows:

• By Material Type
  • Molten salt
  • Water
  • Phase Change Materials (PCM)
  • Others
• By Application
  • Power Generation
  • Heating & Cooling
• By Technology
  • Sensible Heat Storage
  • Latent Heat Storage
  • Thermochemical heat storage
• By End-User
  • Utilities
  • Residential and Commercial
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits to the Stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. CXO Perspective

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View 

5. GLOBAL THERMAL ENERGY STORAGE MARKET BY MATERIAL TYPE

5.1. Introduction

5.2. Molten salt

5.3. Water

5.4. Phase Change Materials (PCM)

5.5. Others

6. GLOBAL THERMAL ENERGY STORAGE MARKET BY APPLICATION

6.1. Introduction

6.2. Power Generation

6.3. Heating & Cooling

7. GLOBAL THERMAL ENERGY STORAGE MARKET BY TECHNOLOGY

7.1. Introduction

7.2. Sensible Heat Storage

7.3. Latent Heat Storage

7.4. Thermochemical heat storage

8. GLOBAL THERMAL ENERGY STORAGE MARKET BY END-USER

8.1. Introduction

8.2. Utilities

8.3. Residential and Commercial

8.4. Others

9. GLOBAL THERMAL ENERGY STORAGE MARKET BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. By Material Type

9.2.2. By Application

9.2.3. By Technology

9.2.4. By End-User

9.2.5. By Country

9.2.5.1. USA

9.2.5.2. Canada

9.2.5.3. Mexico

9.3. South America

9.3.1. By Material Type

9.3.2. By Application

9.3.3. By Technology

9.3.4. By End-User

9.3.5. By Country

9.3.5.1. Brazil

9.3.5.2. Argentina

9.3.5.3. Others

9.4. Europe

9.4.1. By Material Type

9.4.2. By Application

9.4.3. By Technology

9.4.4. By End-User

9.4.5. By Country

9.4.5.1. United Kingdom

9.4.5.2. Germany

9.4.5.3. France

9.4.5.4. Italy

9.4.5.5. Spain

9.4.5.6. Others

9.5. Middle East and Africa

9.5.1. By Material Type

9.5.2. By Application

9.5.3. By Technology

9.5.4. By End-User

9.5.5. By Country

9.5.5.1. Saudi Arabia

9.5.5.2. UAE

9.5.5.3. Others

9.6. Asia Pacific

9.6.1. By Material Type

9.6.2. By Application

9.6.3. By Technology

9.6.4. By End-User

9.6.5. By Country

9.6.5.1. China

9.6.5.2. Japan

9.6.5.3. India

9.6.5.4. South Korea

9.6.5.5. Indonesia

9.6.5.6. Taiwan

9.6.5.7. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. BrightSource Energy Inc.

11.2. Aalborg CSP A/S

11.3. Abengoa SA

11.4. Baltimore Aircoil Company

11.5. Burns & McDonnell

11.6. SaltX Technology Holding AB

11.7. Caldwell Energy Company

11.8. Terrafore Technologies LLC

11.9. Trane Technologies plc

11.10. Thunder Said Energy

11.11. Fitzer Incorporation

11.12. MGA Thermal

11.13. MAN Energy Solutions

11.14. Aalborhcsp

11.15. Engine

Thermal Energy Storage Companies:

• BrightSource Energy Inc.
• Aalborg CSP A/S
• Abengoa SA
• Baltimore Aircoil Company
• Burns & McDonnell
• SaltX Technology Holding AB
• Caldwell Energy Company
• Terrafore Technologies LLC
• Trane Technologies plc
• Thunder Said Energy
• Fitzer Incorporation
• MGA Thermal
• MAN Energy Solutions
• Aalborhcsp
• Engine