Thermal Energy Storage Market

Thermal Energy Storage Market Size by Storage Material (Water, Molten Salt, and PCM), Technology (Sensible Heat, Latent Heat, and Thermochemical), Application (Power Generation, District Heating and Cooling, Process Heating and Cooling and Others), End User (Residential, Commercial, and Industrial), Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2024 to 2033

Base Year: 2023 Historical Data: 2020-22
  • Report ID: TBI-14238
  • Published Date: Apr, 2024
  • Pages: 236
  • Category: Energy & Power
  • Format: PDF
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The global thermal energy storage market was valued at USD 5 billion in 2023 and grew at a CAGR of 15% from 2024 to 2033. The market is expected to reach USD 20.22 billion by 2033. The increasing demand for renewable energy will drive the growth of the global thermal energy storage market.

Market Introduction:

Thermal energy is the energy present in a system due to its temperature. Thermal energy storage (TES) is a technology that stores thermal energy for later use by heating or cooling a storage medium. This stored energy can be retrieved when needed for various applications. TES systems typically involve a storage medium, energy transfer mechanisms, and control systems. There are several types of TES methods: Sensible Heat Storage, Latent Heat Storage, and Thermochemical Storage. TES has diverse applications, including integrating renewable energy sources, optimizing HVAC systems, improving industrial processes, and enhancing district heating and cooling networks. Its importance lies in enhancing energy efficiency, reducing costs, stabilizing the grid, and mitigating environmental impacts. TES systems help reduce energy costs by utilizing cheaper off-peak electricity for storage and decreasing reliance on expensive peak-hour energy. Additionally, they promote grid stability by balancing energy supply and demand. Moreover, TES contributes to environmental sustainability by reducing greenhouse gas emissions. Ongoing research and development in TES aim to improve efficiency, reliability, and scalability. Innovations in materials and technologies are driving advancements in TES systems.

Thermal Energy Storage Market Size

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Recent Development
  • Waaree Energies and Israel's Brenmiller have signed an agreement to implement thermal energy storage facilities in India. In India, Brenmiller and Waaree will work together to investigate, design, and implement solar-powered thermal energy storage facilities. To implement its bGen thermal energy storage systems (TES) in India, Brenmiller Energy Ltd, a clean energy business listed on the NASDAQ, revealed this week that it has signed a Memorandum of Understanding (MoU) with Waaree Energies Ltd, the country's largest solar panel manufacturer.

Market Dynamics:


The increasing demand for renewable energy – The rise in thermal energy demand is driving a corresponding increase in the need for thermal energy storage (TES) solutions. As industries expand, urban populations grow, and energy transitions towards cleaner sources progress, the demand for thermal energy rises across manufacturing, residential heating and cooling, agriculture, transportation, and renewable energy conversion. Furthermore, as energy efficiency initiatives gain momentum, there is a growing focus on utilizing thermal energy more effectively. Overall, the increasing demand for thermal energy underscores the importance of thermal energy storage as a key enabler of energy security, sustainability, and resilience.


The high costs of investment The initial capital investment for TES includes purchasing and installing storage tanks, heat exchangers, insulation materials, control systems, and ancillary equipment. Material costs further influence expenses. Engineering and design costs involve feasibility studies, customized solutions, and compliance with regulations. Installation and labour costs and ongoing operation and maintenance expenses, including monitoring, inspections, and repairs, also have significant capital requirements. Therefore, the high investment costs will limit the global thermal energy storage market's growth.


Advancements in thermal energy storage technology – Developing high-temperature materials enables TES systems to operate at elevated temperatures, increasing energy storage capacity and efficiency. This allows for more effective heat utilisation from renewable sources like concentrated solar power (CSP), enhancing the feasibility and reliability of renewable energy generation. Advancements in thermochemical storage technologies enable reversible chemical reactions to store and release heat energy, offering long-duration storage capabilities. Integrating hybrid TES systems combines multiple storage technologies to leverage their advantages, enhancing energy density, cycling stability, and system flexibility. Additionally, advancements in system integration and control strategies optimize TES operations based on real-time demand, weather conditions, and energy prices, enhancing system efficiency and reliability. Smart control algorithms enable the seamless integration of TES systems with renewable energy sources and conventional power plants, further promoting the adoption of thermal energy solutions. These factors contribute to the increased adoption of thermal energy storage.

Regional segmentation analysis:

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Europe emerged as the most significant global thermal energy storage market, with a 44% market revenue share in 2023.

The European Union's ambitious energy and climate targets drive significant investments and policy support for renewable energy and energy storage technologies, including TES. Additionally, Europe's diverse energy landscape, which includes a significant share of renewable energy sources, creates a need for efficient energy storage solutions. Europe's strong emphasis on research, innovation, and collaboration has led to developing advanced TES technologies and solutions. Furthermore, supportive regulatory frameworks, financial incentives, and market mechanisms in Europe encourage developing and adopting TES technologies.

Europe Region Thermal Energy Storage Market Share in 2023 - 44%

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  • Portugal-based energy giant EDP and zero-carbon heat and power provider Rondo Energy will use thermal energy storage to electrify industrial heat. EDP and Rondo Energy agreed to develop up to 400MW of wind and solar capacity, which will power up to 2GWh of Rondo's "Heat Battery" installations. These installations will supply heat generated from renewable energy sources to businesses and energy-intensive consumers of EDP.
Storage Material Segment Analysis

The storage material segment is divided into water, molten salt, and PCM. The water segment dominated the market, with a market share of around 45% in 2023. Water is the most widely used material in thermal energy storage (TES) due to its numerous advantages. Its high heat capacity enables efficient energy storage, allowing water-based TES systems to absorb and retain significant amounts of thermal energy. Furthermore, water is abundantly available and inexpensive, making it a cost-effective choice for TES applications. Its widespread availability reduces material procurement costs and logistical challenges, enhancing the economic viability of water-based TES systems. Water is non-toxic and environmentally friendly, posing minimal risks to human health and the environment.

  • Antora Energy, a US-based firm with a unique "thermal battery" technology that it said was appropriate for decarbonizing industrial processes, raised $150 million in a Series B financing round. The product of the company uses patented "thermophotovoltaic" (or "TPV") technology to deliver electricity and heat that is stored in carbon blocks. TPV uses solar photovoltaic (PV) )-like cells to convert light emitted from high-temperature heat sources into energy.
technology Segment Analysis

The technology segment is divided into sensible heat, latent heat, and thermochemical. The sensible heat segment dominated the market, with a market share of around 47% in 2023. Sensible heat technology in thermal energy storage (TES) involves storing thermal energy by changing the temperature of a material without undergoing a phase change. Sensible heat systems are simple and reliable, with minimal risk of failure or maintenance issues. They don't rely on complex phase change materials or chemical reactions, making them easy to implement and operate. Additionally, they offer high efficiency. Their versatility makes them suitable for various applications, from residential heating to industrial processes. Cost-effectiveness is another advantage of sensible heat storage. The materials used are typically abundant and inexpensive, lowering overall system costs. Furthermore, these systems are scalable and compatible with existing infrastructure, enabling seamless integration into conventional heating, cooling, and power generation systems.

Application Segment Analysis

The application segment is divided into power generation, district heating and cooling, process heating and cooling and Others. The power generation segment dominated the market, with a market share of around 48% in 2023. Thermal energy storage (TES) is widely used in power generation because it enhances grid stability, optimises energy use, and integrates renewable energy sources effectively. TES systems offer grid stability and flexibility by storing excess energy during periods of high generation and releasing it during periods of low generation or high demand. TES systems are crucial in integrating renewable energy sources like solar and wind into the power grid. This improves the overall efficiency and sustainability of power generation operations.

End-user Segment Analysis

The end-user segment is divided into residential, commercial, and industrial. The industrial segment dominated the market, with a market share of around 54% in 2023. Industries such as manufacturing, chemicals, refining, and food processing require significant thermal energy for heating, cooling, and other processes. Thermal energy storage (TES) systems allow industrial users to optimize energy use, improve process efficiency, and reduce operating costs. Industrial facilities often have existing thermal processes and infrastructure that can be easily integrated with TES systems, making adoption more seamless. Industrial users have strong incentives to invest in TES systems, as they can achieve significant cost savings and return on investment by reducing energy consumption and minimizing peak demand charges. Additionally, industrial companies prioritise environmental sustainability and seek ways to lower greenhouse gas emissions. TES systems can help industrial users achieve their sustainability goals.

  • Dutch heating specialist Newton Energy Solutions unveiled a novel thermal energy storage device for residential applications. The system has a reduced number of thermal bridges and a proprietary 3 cm thin vacuum insulation. Two variants of the system have different energy storage capacities (20 kWh and 29 kWh) and different water quantities (214 litres and 320 litres).
Some of the Key Market Players:
  • Abengoa
  • Baltimore Aircoil Company
  • Burns and McDonnell
  • Caldwell Energy Company
  • DN Tanks
  • Dunham Bush
  • FAFCO Inc.
  • Siemens Gamesa Renewable Energy

Report Description:

Attribute Description
Market Size Revenue (USD Billion)
Market size value in 2023 USD 5 Billion
Market size value in 2033 USD 20.22 Billion
CAGR (2024 to 2033) 15%
Historical data 2020-2022
Base Year 2023
Forecast 2024-2033
Region The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East and Africa. Furthermore, the regions are further analyzed at the country level.
Segments Storage Material, Technology, Application and End User

Frequesntly Asked Questions

As per The Brainy Insights, the size of the global thermal energy storage market was valued at USD 5 billion in 2023 to USD 20.22 billion by 2033.

Global thermal energy storage market is growing at a CAGR of 15% during the forecast period 2024-2033.

The market's growth will be influenced by the increasing demand for renewable energy.

The high costs of investment could hamper the market growth.

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This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global thermal energy storage market based on below mentioned segments:

Global Thermal Energy Storage Market by Storage Material:

  • Water
  • Molten Salt
  • PCM

Global Thermal Energy Storage Market by Technology:

  • Sensible Heat
  • Latent Heat
  • Thermochemical

Global Thermal Energy Storage Market by Application:

  • Power Generation
  • District Heating and Cooling
  • Process Heating and Cooling
  • Others

Global Thermal Energy Storage Market by End User:

  • Residential
  • Commercial
  • Industrial

Global Thermal Energy Storage Market by Region:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
  • Asia-Pacific
    • Japan
    • China
    • India
  • South America
    • Brazil
  • Middle East and Africa  
    • UAE
    • South Africa


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