Thermal Energy Storage Market Size

Thermal Energy Storage Market Analysis

The Thermal Energy Storage Market size is estimated at USD 1.12 billion in 2024, and is expected to reach USD 1.51 billion by 2029, growing at a CAGR of 6.25% during the forecast period (2024-2029).

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.