Thermal energy storage involves storing heat or cooling for later use, such as freezing water or other phase-change materials, such as concrete and gravel, at night when electricity is cheaper and then using it to produce cooling during the day as an energy-efficient way to replace traditional air conditioning. Thermal energy storage products involve concrete tiles, bricks, and patented technologies to generate heating and cooling from stored solar or off-peak electricity. These products are seeing widening usage in commercial, institutional and residential buildings globally for their potential to reduce energy costs and carbon emissions.

The Global Thermal Energy Storage Market is estimated to be valued at US$ 5.66 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Thermal Energy Storage are BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns and McDonnell, Inc., and DC Pro Engineering. Thermal energy storage technologies allow excess thermal or electrical energy to be stored for later use and help meet peak demand, which is driving their adoption worldwide. Many countries are also offering incentives for integrating renewable energy with thermal storage to meet their carbon reduction goals, propelling the global expansion of this market.

Market Key Trends

One of Thermal Energy Storage Market Demand is the rising deployment of molten salt technology. Molten salt has high thermal capacity and is non-corrosive, stable, and inexpensive. It remains fluid at high temperatures and can efficiently store large amounts of heat for several hours. Developers are using advanced molten salt in concentrated solar power plants to deliver power even when the sun is not shining. This is improving the flexibility of renewable energy resources.

Porter’s Analysis

Threat of new entrants: Explain in two line explanation: Low economies of scale and entry cost for small scale projects pose low threat. However, large scale projects require huge investments posing high barriers.
Bargaining power of buyers: Explain in two line explanation: Buyers have moderate bargaining power as they can negotiate for customized solutions but suppliers have differentiated products.

Bargaining power of suppliers: Explain in two line explanation: Suppliers have low-to-moderate bargaining power as manufacturing thermal storage systems requires technological expertise and established supply chains.
Threat of new substitutes: Explain in two line explanation: Alternate renewable sources like wind and solar PV are developing rapidly posing medium level threat.
Competitive rivalry: Explain very short in one line: Intense competition among established players to gain market share.

Geographical Regions

North America accounts for the largest share in the Thermal Energy Storage Market Size And Trends in terms of value owing to growing adoption of solar thermal power generation in commercial sector. Europe follows North America as the second largest region attributable to strict environmental regulations pushing technological advancements.

The Asia Pacific region is anticipated to record the fastest growth over the forecast period of 2024 to 2031. Rapid industrialization and urbanization in developing nations like China and India are creating massive demand for electricity. Combined with support through renewable energy targets and policies, thermal storage market is gaining momentum.

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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)