Thermal Energy Storage Market Analysis by Technology (Sensible, and Latent); by Storage Material (Water, Molten, PCM, and Salts), by Application (Heating & Cooling, and Power Generation); and by End User (Residential, Commercial & Industrial, and Utilities) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035

Buy Now Report ID: 4784 | Published Date: Apr 04, 2023

Global Thermal Energy Storage Market Size, Forecast, and Trend Highlights Over 2023 - 2035

The global thermal energy storage market size is estimated to reach USD 8.57 Billion by the end of 2035 by growing at a CAGR of 17.40%over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of thermal energy storage was USD 1.25 Billion. The growth of the market can be attributed to the growing need to augment the energy storage, so that it can be utilized at the time of emergencies. Generally, it happens through cooling or heating a medium in order to use the energy later. By 2040, thermal energy storage could increase potential long-duration storage, or LDES, capacity globally from a range of around 1 TW to 3 TW to between 2 TW and 8 TW.

In addition to these, factors that are believed to fuel the market growth of thermal energy storage include the rising efforts to boost the development of smart cities. With the growing infrastructure of smart cities, the need for sustainable energy is expected to grow. The Smart Cities USA project will improve San Jose's quality of life by fostering 25,000 CleanTech employment, fostering environmental sustainability, and driving economic growth. To achieve this development the City of San Jose, California partnered up with Intel to use Intel's IoT Smart City Demonstration Platform. On the other hand, the market growth is also attributed to the growing production of electricity. Moreover, 2019 saw a 1.3% increase in global gross power production over 2018. Since 1974, annual increases in global power output have been constant.

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Global Thermal Energy Storage Market: Key Insights

Base Year


Forecast Year




Base Year Market Size (2022)

USD 1.25 Billion

Forecast Year Market Size (2035)

USD 8.57 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Global Thermal Energy Storage Market: Growth Drivers and Challenges


Growth Drivers

  • Growing Demand for Electricity – Large-scale uses of thermal energy storage are found in the realm of electrical energy generation. Hence, during times of high energy demand, electricity is generated using the stored heat energy. The January 2022 issue of the IEA's semi-annual Electricity Market Report states that in 2021 the demand for electricity increased by more than 1500 terawatt hours across the globe. It was the greatest ever in history.
  • Higher Generation of Solar Energy – The sun's rays are reflected onto a collector in a concentrating solar power (CSP) system, creating heat that is used to generate electricity that can either be used right away or stored as thermal energy for later use. According to the International Renewable Energy Agency, by the end of 2020, there were 710 GW of solar PV installations worldwide. The highest capacity expansion of any renewable energy source occurred in 2020 with an increase of about 125 GW in new solar PV capacity.
  • Growing Investment in Energy Transition– Rising expenditure on the technologies used for energy transition is expected to boost the market growth. An all-time high of USD 1.3 trillion was invested globally in energy transition technologies in 2022, including energy efficiency. Although to stay on track, the annual investment needs to be quadrupled.
  • Rising Generation of Thermal Power –Thermal power can be stored in underground tanks for future use.  India produced around 88,000 million units (MU) of thermal power in November 2022, which is about 16% higher than the 75,000 MU it produced a year earlier.
  • Rising Development of Smart Infrastructure – Applications for thermal energy storage can be found in urban spaces. Energy storage is acknowledged by utilities as being crucial to advancing the smart grid and, by default the smart cities.  Around 43 megacities with populations over 10 million are projected to exist in the world by 2030, the majority of them in developing areas.


  • Limitation associated with container size and its thermal stability
  • Storage of thermal energy can be expensive- the developing stage of thermal energy storage required extensive research and development to achieve its maximum efficiency, moreover the installation cost of the underground storage facilities is high. Therefore, the overall cost of thermal energy storage is expensive and is likely to hamper the market growth.
  • Lack of infrastructure in the developing countries

Global Thermal Energy Storage Market Segmentation

The global thermal energy storage market is segmented and analyzed for demand and supply by end user into residential, commercial & industrial, and utilities. Out of these, three end user of thermal energy storage, the commercial & industrial segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the increasing demand for energy for both industrial and commercial purposes. The global industrial sector's demand for power has grown by 3% since 2000. In addition, in 2021, retail power sales to businesses climbed by roughly 3%. Moreover, 0.14 trillion kWh, or nearly 3% of the total amount of energy, were used by the industrial and commercial sectors, worldwide.

The global thermal energy storage market is also segmented and analyzed for demand and supply by application into heating & cooling, and power generation. Amongst these two segments, the heating and cooling segment is expected to garner a significant share in the year 2035. The rejected heat from air conditioning units can be recovered using latent heat thermal energy storage devices, which can then be used to produce low-temperature hot water. Owing to the heat rejection from air conditioning systems, it reduces not only the amount of primary energy needed to heat residential hot water and also the damage to the environment. The growth of the segment is primarily attributed to rising demand for air conditioner. Almost 20% of the electricity consumed in buildings worldwide today is used by air conditioners and electric fans to stay cool. In addition to increasing emissions, the growing demand for space cooling is placing a tremendous amount of stress on the energy infrastructure of many nations. Moreover, over two-thirds of homes worldwide may have air conditioners by 2050. Together, China, India, and Indonesia will make up half of the total.

Our in-depth analysis of the global thermal energy storage market includes the following segments:

            By Technology

  • Sensible
  • Latent

           By Storage Material

  • Water
  • Molten
  • PCM
  • Salts

         By Application

  • Heating & Cooling
  • Power Generation

        By End User

  • Residential
  • Commercial & Industrial
  • Utilities

Global Thermal Energy Storage Market Regional Synopsis


The market share of thermal energy storage in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~38% by the end of 2035. The growth of the market can be attributed majorly to the increasing demand for heating and cooling systems for the buildings in the region and rising efforts to boost the use of thermal energy. The Building Technologies Office (BTO) is concentrating on thermal storage research, development, demonstration, and deployment to hasten the commercialization and application of next-generation energy storage technologies for building applications. Buildings use over 39% of all primary energy and 74% of all electricity in the US. According to the Office of Energy Efficiency & Renewable Energy around 50% of building energy demand is currently met by thermal end uses, such as air conditioning, water heating, and refrigeration, and this percentage is expected to rise in the coming years in the United States.

The European thermal energy storage market is estimated to be the second largest, registering a share of about ~25% by the end of 2035. The growth of the market can be attributed majorly to the rising effort put in by the government to augment energy storage systems. For instance, the UK government created a SUPERGEN Energy Storage Hub in the UK to gather all the researchers that have expertise in energy storage research. This is likely to enhance the existing energy storage system technologies and the complete value chain system from energy storage to manufacturing. Moreover, the rising demand for electricity and rising cases of power outages are also expected to boost the market growth in the region.

Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to hold a significant share by the end of 2035. The growth of the market can be attributed majorly to the presence of one of the largest thermal power plants in the region. Just 11 thermal power plants worldwide have a total installed capacity of 5 GW or more. China, Japan, and Taiwan are home to eight of them. Moreover, the largest thermal power plant in the world is located in Longjing, Taichung, Taiwan. It is an around 5,800-Megawatt coal-fired power plant that is owned and run by the government-owned Taiwan Electricity Corporation. Furthermore, China generated a record 617 terawatt-hours more overall electricity and 465 terawatt-hours more thermal power between January and August 2021 compared to the same time the previous year.


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Top Featured Companies Dominating the Global Thermal Energy Storage Market

    • New BrightSource, Ltd.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Abengoa SA
    • Terrafore Technologies LLC
    • Baltimore Aircoil Company
    • Ice Energy Heat Pumps Ltd.
    • Caldwell Partners International Inc.
    • Cryogel
    • Steffes, LLC
    • Enel S.p.A
    • Brenmiller Energy Ltd.


In The News

  • November 2022: The Enel Group in partnership with Brenmiller Energy Ltd. Launched a new energy storage system in Snata Barabara, Tuscany. it is an innovative thermal storage system that is fully sustainable and capable of accelerating the energy transition.

  • March 2022: Brenmiller Energy Ltd. announced the automation of thermal energy storage in its production unit in Dimona, Israel. The first production is expected to begin by May 2023. Furthermore, by the end of 2023, it is anticipated that full production capacity for up to 4,000 MWh of clean energy bGen TES modules yearly will be reached.


Global Economic Impact

Request Insights
Despite Inflation & Fearing Recession, Businesses Across the Globe Expected to Do Better in 2023:

In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.

Author Credits:  Payel Roy, Dhruv Bhatia

Key Questions Answered in the Report

1) What are the major factors driving the growth of the thermal energy storage market?

Ans: Increasing production of electricity, rising investment in smart cities development, and growing production of renewable energy are the major factors driving the market growth.

2) What would be the CAGR of thermal energy storage market over the forecast period?

Ans: The market size of thermal energy storage is anticipated to attain a CAGR of 17.40% over the forecast period, i.e., 2023 – 2035.

3) What are the challenges affecting the thermal energy storage market growth?

Ans: Lack of storage facilities and high initial investment for developing thermal energy storage are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of thermal energy storage market in future?

Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

5) Who are the major players dominating the thermal energy storage market?

Ans: The major players in the market are New BrightSource, Ltd., Steffes, LLC, Abengoa SA, Terrafore Technologies LLC, Baltimore Aircoil Company, Ice Energy Heat Pumps Ltd., Caldwell Partners International Inc., Cryogel, Enel S.p.A, and Brenmiller Energy Ltd.

6) How are the company profiles selected?

Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

7) What are the segments in the thermal energy storage market?

Ans: The market is segmented by technology, storage material, application, end user, and by region.

8) Which segment captures the largest market size in the application segment in the thermal energy storage market?

Ans: The heating & cooling segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

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