Thermal Energy Storage Market to Flourish at a Significant Pace Owing to Rising Demand for Renewable Energy Sources

The thermal energy storage market has garnered massive popularity in recent years. Thermal energy storage helps to store thermal energy for use in space heating and cooling applications. Thermal energy storage provides flexibility to shift heating and cooling loads from peak demand times to off-peak times. It helps to balance energy demand and reduces greenhouse gas emissions. Some common thermal energy storage techniques include molten salt storage, chilled water storage, and ice storage. Thermal energy storage plays a vital role in facilitating effective integration of renewable energy like solar and wind power into the grid.

The global thermal energy storage market is estimated to be valued at US$ 4.2 billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2030.

Key Takeawaws

Key players operating in the thermal energy storage market are CALMAC, DN Tanks, EVAPCO, Sunamp, NETpower, Steffes Corporation, Burns & McDonnell, FAFCO, Ice Energy, and Caledonian MacBrayne.

The Thermal Energy Storage Market Demand is driven by increasing investment in renewable energy projects globally. Thermal energy storage helps renewable energy sources like solar and wind power to produce energy even when the sun is not shining or wind is not blowing. This boosts the reliability of renewable sources. Growing focus on reducing dependence on fossil fuels and transitioning towards sustainable energy presents significant growth opportunities for thermal energy storage systems.

Major players are rapidly expanding their global footprint to tap the vast potential of high growth emerging markets in Asia Pacific and Latin America. Strategic collaborations with EPC companies and renewable energy plant developers are allowing thermal storage system providers to capture a significant share of the expanding thermal storage installations across geographies.

Market Drivers

Rising demand for renewable energy sources like solar and wind power is a key driver boosting the adoption of thermal energy storage systems. Thermal energy storage helps to overcome the intermittent nature of renewable energy by storing surplus thermal energy during peak generation hours and providing power even when the renewable source is unavailable. This enhances flexibility and reliability of renewable power. With aggressive renewable capacity addition targets, the critical role of energy storage in accelerating the clean energy transition is driving significant growth of the thermal storage market.

PEST Analysis

Political: Thermal energy storage systems are being encouraged through regulatory policies and tax incentives in many countries to meet renewable energy targets. This is driving growth.

Economic: The increasing electricity demand coupled with rising energy costs is encouraging commercial and industrial facilities to adopt thermal energy storage solutions for cost savings.

Social: There is a growing awareness among consumers about the need for sustainable energy solutions due to environmental concerns. This is increasing the adoption of thermal energy storage especially in residential and commercial sectors.

Technological: Advanced phase change material technologies and improved heat exchangers are enabling higher storage densities and cost-effectiveness. Integration of thermal energy storage with solar thermal power plants is also improving due to technology advances. Efficient monitoring systems are enabling remote monitoring of storage systems.

Geographical regions where market in terms of value is concentrated

North America currently dominates the thermal energy storage market led by the US. This is due to supportive policies for renewable energy adoption and presence of leading manufacturers. The region accounted for over 30% of the global market share in 2021. Europe is another major regional market driven by stringent emission reduction targets and focus on sustainable technologies adoption in countries like Germany, UK, France etc.

The fastest growing region for the thermal energy storage market

The Asia Pacific region is poised to be the fastest growing market for thermal energy storage during the forecast period. This is attributed to increasing investments in solar thermal power plants as well as rising demand from the industrial sector across China, India and other emerging Asian economies. supportive government policies and declining hardware costs are further encouraging the integration of renewable energy with storage systems in the region.

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