by Thermal energy storage technologies refer to techniques used for storing thermal energy produced by concentrating sunlight, industrial processes, and waste heat for later use. Thermal energy storage helps meet peak demand, increase system efficiency, and integrate renewable energy. For instance, through seasonal thermal energy storage, heat is stored during summer for use in winter for district heating applications and vice versa.
The global Thermal Energy Storage Market is estimated to be valued at US$ 5.13 Billion 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.
Market key trends:
Growing Demand for Thermal Energy Storage Technologies
The key trend propelling the growth of the thermal energy storage market is the growing demand for thermal energy storage technologies. Thermal energy storage helps store surplus thermal energy for later use, thereby increasing system efficiency and reducing dependency on fossil fuels. By storing excess heat during summer for winter and non-peak hours, thermal energy storage helps power generation units operate at full capacity throughout the year. This significantly reduces energy costs. As awareness regarding the benefits of thermal energy storage increases, its demand is expected to rise substantially over the forecast period.
SWOT Analysis
Strength: Thermal energy storage provides an efficient way to store surplus renewable energy such as solar energy during sunny hours and release it back to the grid during peak hours. This helps reduce grid congestion and improves power quality and reliability.
Weakness: High initial capital costs required for setting up thermal energy storage systems make them less affordable compared to traditional power generation methods. Seasonal changes also affect the performance and efficiency of some thermal energy storage technologies.
Opportunity: Increasing emphasis on utilizing renewable energy resources worldwide is driving the demand for efficient energy storage solutions to address intermittency issues. Governments provide several incentives and policies to support the adoption of thermal energy storage.
Threats: Fluctuations in raw material prices needed for manufacturing thermal storage equipment can increase project costs. Development of newer advanced energy storage technologies poses competition to the growth of thermal energy storage market.
Key Takeaways
Global Thermal Energy Storage Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market is estimated to reach a size of US$ 5.13 Bn in 2023 and expected to grow at a CAGR of 10% during the forecast period.
Regional analysis –
The thermal energy storage market in Asia Pacific region is anticipated to grow at the fastest rate owing to increasing investments in renewable energy integration and growing number of thermal energy storage projects across countries like China and India. Europe currently dominates the global market led by significant demand from countries including Germany, Italy and Spain.
Key players –
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. These players are focusing on new product launches and partnerships to strengthen their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
