Thermal Energy Storage Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Thermal Energy Storage Market is Segmented by Type (Molten Salt, Hot Water, and Other Types), Application (Power Generation, Heating, and Cooling), Technology (Sensible Heat Storage, Latent Heat Storage, and Thermochemical Heat Storage), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

Thermal Energy Storage Industry Overview

Thermal Energy Storage Market Summary
Study Period: 2019 - 2028
Fastest Growing Market: Europe
Largest Market: Europe
CAGR: > 8 %

Major Players

Thermal Energy Storage Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Thermal Energy Storage Market Analysis

The thermal energy storage market is expected to record a CAGR of around 8% during the forecast period. The COVID-19 outbreak negatively impacted the market due to the industrial lockdowns and plummeted power demand in the power generation industry. The thermal energy storage industry players witnessed huge losses in their revenues. The ABENGOA company recorded a revenue of EUR 1,250 million for 2020, a 16% decline from EUR1,493 million in 2019. The thermal energy storage market is likely to boom in the future due to the increased demand for technology in the industrial sector for large-scale heating and cooling applications and the option for an eco-friendly method of saving energy for power generation during peak hours. However, the competition from other energy storage alternatives like battery energy storage is expected to hamper the market’s growth in the future.

  • The power generation application is expected to witness significant growth during the forecast period due to the growing adoption of concentrated solar power (CSP) technology with thermal energy storage systems.
  • The research and innovation endeavors to diversify the scope of the technology by the industry players and government organizations create ample opportunities for the market. Very recently, the European Union allotted funds for the technological advancement of thermal energy storage under the Horizon 2020 program.
  • Europe is likely to grow faster during the forecast period due to the high demand for seasonal energy storage.

Thermal Energy Storage Industry Segments

The scope of the thermal energy storage market report includes:

Molten Salt
Hot water
Other Types
Power Generation
Sensible Heat Storage
Latent Heat Storage
Thermochemical Heat Storage
North America
Middle-East and Africa

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Thermal Energy Storage Market Trends

This section covers the major market trends shaping the Thermal Energy Storage Market according to our research experts:

Power Generation Expected to Witness Significant Growth

  • The global search for renewable methods of power generation and energy security has accelerated the need for technologies like concentrated solar power(CSP) in solar power generation. In the current scenario, these technologies are often used with thermal energy storage systems.
  • In 2020, the CSP power generation was around 14.5 TWh. The growth in the technology application was witnessed in the industrial and commercial sectors. Several projects are about to get added to the solar CSP power generation portfolio in combination with thermal energy storage systems.
  • In January 2022, the Chinese government announced plans to build 11 CSP projects with thermal energy storage by 2024. The country's state-owned firms are expected to play a leading role in the upcoming projects in consortium with other industry players. They are gigawatt-scale mixed renewable energy projects to be added within two years.
  • In August 2021, the Vast Solar Pty reported progress in the Vast Solar CSP Power Plant with thermal energy storage. The 30,000-kW project is located in Australia and is currently under construction. The project is expected to be operational in 2022.
  • Due to these developments, the power generation segment is expected to occupy the largest market share during the forecast period.
Concentrated Solar Power Generation, in TWh, Global, 2015-2020

Europe Expected to Witness the Highest Growth

  • Europe has been installing various thermal energy storage systems for a decade in the urban districts of countries like Spain, Austria, and Northern and Central Europe. The major driver of such a strategic step is the high energy consumption during winters and exploring renewable ways of district heating.
  • The region has planned even more large-scale thermal storage projects to meet the ever-growing seasonal and short-term storage demand, with a majority of the installations with molten salt technology and underground hot water tanks. They are expected to serve as multifunctional energy hubs for future district heating sources and other applications.
  • In July 2021, Vantaa Energy declared plans to construct a seasonal thermal energy storage plant in Vantaa, Finland. The 90-GWh million cubic meter storage plant will include hot water caverns around 60 meters underground in bedrock. The company, along with its project partners AFRY and YIT, projected the completion of the project in 2026.
  • In January 2022, the European Union and the European Investment Bank chose Malta Inc., the grid-scale thermal energy storage provider, to execute the Sun2Store thermal energy storage project in Spain. It is a 1,000-MWh/ten-hour duration energy storage system that combines pumped heat technology with molten salt. The project will be developed in partnership with the Alfa level.
  • Such developments are expected to boost the European thermal energy storage market significantly.
Thermal Energy Storage Market - Growth Rate by Region, 2022-2027

Thermal Energy Storage Market Competitor Analysis

The thermal energy storage market is moderately consolidated. Some of the key players are BrightSource Energy Inc., Abengoa SA, Baltimore Aircoil Company, Terrafore Technologies LLC, and SR Energy.

Thermal Energy Storage Market Top Players

  1. BrightSource Energy Inc.

  2. Abengoa SA

  3. Baltimore Aircoil Company

  4. Terrafore Technologies LLC

  5. SR Energy

*Disclaimer: Major Players sorted in no particular order

Thermal Energy Storage Market Concentration

Thermal Energy Storage Market Recent Developments

  • In 2020, ALEC Energy and the Swedish company Azelio signed an MoU to install over 49 MW of thermal energy storage project in Dubai, United Arab Emirates, by 2025. The project will be executed in phases, starting with 150 kW in 2021, 4 MW in 2022, 7 MW in 2023, 13 MW in 2024, and 25 MW in 2025.
  • In August 2021, researchers at the National Renewable Energy Laboratory, United States, introduced a new prototype technology for thermal energy storage, with silica sand as the storage medium. The cost-effective storage medium can prove to be a new technology that can be installed in small modular structures in the country to supply heat and electricity.

Thermal Energy Storage Market Report - Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in USD billion, till 2027

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

      2. 4.5.2 Restraints

    6. 4.6 Supply Chain Analysis

    7. 4.7 Porter's Five Forces Analysis

      1. 4.7.1 Bargaining Power of Suppliers

      2. 4.7.2 Bargaining Power of Consumers

      3. 4.7.3 Threat of New Entrants

      4. 4.7.4 Threat of Substitutes Products and Services

      5. 4.7.5 Intensity of Competitive Rivalry


    1. 5.1 Type

      1. 5.1.1 Molten Salt

      2. 5.1.2 Hot water

      3. 5.1.3 Other Types

    2. 5.2 Application

      1. 5.2.1 Power Generation

      2. 5.2.2 Heating

      3. 5.2.3 Cooling

    3. 5.3 Technology

      1. 5.3.1 Sensible Heat Storage

      2. 5.3.2 Latent Heat Storage

      3. 5.3.3 Thermochemical Heat Storage

    4. 5.4 Geography

      1. 5.4.1 North America

      2. 5.4.2 Europe

      3. 5.4.3 Asia-Pacific

      4. 5.4.4 South-America

      5. 5.4.5 Middle-East and Africa


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 BrightSource Energy Inc.

      2. 6.3.2 Aalborg CSP AS

      3. 6.3.3 Abengoa SA

      4. 6.3.4 Baltimore Aircoil Company

      5. 6.3.5 Burns & McDonnell

      6. 6.3.6 SaltX Technology Holding AB

      7. 6.3.7 Terrafore Technologies LLC

      8. 6.3.8 Trane Technologies PLC

      9. 6.3.9 SR Energy

      10. 6.3.10 Vantaa Energy

    4. *List Not Exhaustive

**Subject to Availability
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Thermal Energy Storage Market Research FAQs

The Thermal Energy Storage Market is studied from 2019 - 2028.

The Thermal Energy Storage Market is growing at a CAGR of >8% over the next 5 years.

Europe is growing at the highest CAGR over 2019 - 2028.

Europe holds highest share in 2021.

BrightSource Energy Inc., Abengoa SA, Baltimore Aircoil Company, Terrafore Technologies LLC, SR Energy are the major companies operating in Thermal Energy Storage Market.

Thermal Energy Storage Industry Reports

In-depth industry statistics and market share insights of the Thermal Energy Storage sector for 2020, 2021, and 2022. The Thermal Energy Storage research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Thermal Energy Storage report PDF.

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