Thermal energy storage market to grow at 9.61% CAGR from 2024 to 2028

 Driven by CSP demand and AI’s impact on market trends TES market is estimated to grow by USD 2.88 billion from 2024-2028. Thermal energy storage technologies include sensible heat storage, thermochemical storage (TCS), molten salts, and ice-based technology.

The global thermal energy storage market size is estimated to grow by USD 2.88 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 9.61%  during the 2024-2028 period. Increasing demand for CSP is driving market growth, with a trend towards growing demand for renewable energy sources. However, rising demand from alternate sources of energy storage due to efficiency rate  poses a challenge.

Challenges

Thermal energy storage technologies include sensible heat storage, thermochemical storage (TCS), molten salts, and ice-based technology. Molten salts are popular due to their high energy density and ability to store large amounts of heat. Latent heat storage and thermochemical heat storage are also gaining attention for their efficiency and ability to provide seasonal energy storage.

Energy efficiency and utilization efforts are key to a clean energy future, with TES offering alternatives like latent heat storage, thermochemical heat storage, and ice-based technology. The market is also exploring large-scale HVAC systems, solar thermal systems, and deep cycles for electric automobiles. Despite challenges, the TES market is poised for growth, offering solutions for grid reliability, decentralized renewable energy, and utility off-peak hours.

Battery energy storage and power generation applications are key areas of focus for energy storage alternatives. Utilities are exploring demand-side management and off-peak hours for energy storage, while time-of-day pricing and carbon reduction targets are driving the adoption of energy storage.

HVAC systems and large-scale solar thermal systems are using thermal energy storage for energy efficiency and energy utilization efforts. The clean energy future relies on the continued development of energy storage technologies and the efficient use of materials and technological efficiency.

Solar troughs, solar towers, superheated steam, and steam turbines are all being used to store and generate thermal energy from solar power. Renewable energy sources like solar and wind power are becoming increasingly competitive. Excess energy from these sources can be stored for use during low energy production periods, ensuring energy security and a sustainable energy future. 

Renewable energy, specifically geothermal energy, is a clean and reliable source of electricity generation that is becoming increasingly important due to global population growth and industrialization. According to the International Energy Agency (IEA), electricity demand is projected to grow by 60-70% by 2040. In 2020, global geothermal capacity expanded by 2%, due to new projects coming online. Geothermal energy is a promising solution to meet growing electricity demand in a sustainable and eco-friendly way. 

Thermal energy storage systems, including molten salt and ice storage, are the most widely used energy storage technologies in the market, surpassed only by battery energy storage systems. These systems provide grid operators with flexibility and reliability, ensuring a consistent power supply and preventing blackouts.