The Thermal Energy Storage Market is estimated to be valued at US$ 5.13 Bn in 2023 and is expected to exhibit a CAGR of 10. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Thermal energy storage systems help to store thermal energy by heating or cooling a storage medium so that the stored energy can be used later for heating and cooling applications. These systems utilize technologies such as sensible heat, latent heat and thermochemical heat to efficiently store heat or cold. They offer advantages such as reduction in energy costs, minimized power outages, flexible load management and adoption of renewable energy sources.
Market key trends:
One of the major trends driving the thermal energy storage market is the increasing adoption of concentrating solar power technologies globally. Concentrating solar power systems use mirrors or lenses to concentrate sunlight onto receivers that collect solar thermal energy and convert it into electric power. They offer the flexibility to store thermal energy for later usage after sunset or on cloudy days using thermal energy storage systems. This property makes concentrating solar power more efficient and dispatchable than conventional solar photovoltaic technologies. Countries across the world are investing heavily in the development of large scale concentrating solar power plants coupled with molten salt-based thermal energy storage systems to incorporate higher shares of solar power in their electricity grids. This is expected to fuel the demand for thermal energy storage solutions over the forecast period.
Threat of new entrants: The thermal energy storage market has high capital requirements for establishing thermal energy storage facilities which limits threat of new entrants.
Bargaining power of buyers: The presence of several buyers in the thermal energy storage market reduces their bargaining power.
Bargaining power of suppliers: Dominance of few technology providers increases the bargaining power of suppliers in the thermal energy storage market.
Threat of new substitutes: Limited substitutes available for thermal energy storage systems stabilizes competitive rivalry in the market.
Competitive rivalry: Intense competition exists between existing players to gain higher market share.
Strength: Thermal energy storage provides cost effective and sustainable solutions for optimizing renewable energy usage. Wide applications in end use industries boost market revenues.
Weakness: High initial investment requirements and technical complexities of thermal energy storage projects pose challenges. Dependence on climate conditions impact performance of certain technologies.
Opportunity: Increasing installations of concentrating solar power plants and growing demand for renewable integrated heating and cooling systems present major opportunities.
Threats: Slow pace of policy reforms and regulatory hurdles could restrain market potential in some regions. Technical limitations of a few technologies threaten their large scale commercialization.
The Global Thermal Energy Storage Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing demand for optimization of renewable energy integration. Asian countries like China and India dominate the global market supported by Government initiatives and focus on sustainable development. The Thermal Energy Storage Market size for 2023 is US$ 5.13 Bn.
Regional analysis Asia Pacific market is growing fastest due to rising renewable energy capacity additions in China, India and other developing nations. Europe and North America follow due to supportive regulatory schemes and carbon neutrality goals.
Key players operating in the Thermal Energy Storage market are BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns & McDonnell, Inc., and DC Pro Engineering. Key players are focused on integrating advanced technologies to develop cost efficient and eco-friendly solutions for concentrating solar power and district heating & cooling applications.