Thermal Energy Storage Market Size & Share, by Technology (Sensible, Latent); Storage Material (Water, Molten, PCM, Salts); Application (Heating & Cooling, Power Generation); End-user (Residential, Commercial & Industrial, Utilities) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4784
  • Published Date: Apr 04, 2023
  • Report Format: PDF, PPT

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

Thermal Energy Storage Market size is expected to surpass USD 8.57 billion by the end of 2035, growing at a CAGR of 17.40% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of thermal energy storage was over 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 thermal energy storage 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.

Thermal Energy Storage Market
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Thermal Energy Storage Sector: 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 thermal energy storage 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

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)
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Thermal Energy Storage Segmentation

End-user (Residential, Commercial & Industrial, Utilities)

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.

Application (Heating & Cooling, Power Generation)

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 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

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Thermal Energy Storage Industry - Regional Synopsis

North American Market Forecast

The thermal energy storage market in North America 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.

Europe Market Forecast

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.

APAC Market Statistics

Further, the thermal energy storage market in the Asia Pacific 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.

Research Nester
Thermal Energy Storage Market Size
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Companies Dominating the Thermal Energy Storage Landscape

    • 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

  • 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.

  • 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.

Author Credits:  Payel Roy, Dhruv Bhatia

  • Report ID: 4784
  • Published Date: Apr 04, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

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

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

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.

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.

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.

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.

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

The heating & cooling segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Thermal Energy Storage Market Report Scope

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