The global thermal energy storage market size was valued at USD 6,068.1 million in 2023, which is estimated to be valued at USD 6,603.8 million in 2024 and reach USD 13,103.1 million by 2031, growing at a CAGR of 10.28% during the forecast period.
The growth is driven by the rising integration of renewable energy sources, increasing demand for energy-efficient solutions, and supportive government policies promoting sustainable energy infrastructure worldwide.
Thermal Energy Storage Market: Key Highlights
- The global energy landscape is undergoing a major transformation, emphasizing decarbonization, electrification, and efficiency. Thermal energy storage systems have emerged as vital components in achieving these goals by storing excess thermal energy for later use — balancing demand, reducing energy costs, and enhancing grid stability.
- TES technologies are increasingly being adopted in district heating and cooling, concentrated solar power (CSP), industrial waste heat recovery, and HVAC systems. With growing emphasis on renewable integration, TES enables optimal utilization of intermittent solar and wind resources by converting surplus power into stored heat or cold for subsequent use.
- North America and Europe are leading the TES market due to strong regulatory frameworks, district energy network expansion, and renewable integration initiatives. Meanwhile, Asia-Pacific is rapidly emerging as a key growth hub, supported by urbanization, industrial expansion, and sustainability mandates.
- The market is witnessing rapid advancements in phase change materials (PCMs), molten salt technologies, and thermochemical energy storage systems. These innovations are enhancing energy density, cycle life, and system efficiency — paving the way for next-generation thermal storage applications across sectors.
Thermal Energy Storage Market Drivers and Emerging Trends to 2033
The global TES market growth is underpinned by multiple converging factors — energy transition targets, rapid adoption of renewables, and the urgent need to decarbonize industrial and building sectors. According to the International Renewable Energy Agency (IRENA), renewable energy sources are projected to account for nearly 60% of global electricity generation by 2030, creating strong demand for flexible storage solutions like TES that can bridge temporal gaps between supply and demand.
Key Market Drivers
- Rising Renewable Energy Integration TES plays a crucial role in mitigating the intermittency of renewable generation, particularly in concentrated solar power (CSP) plants and solar district heating. By storing surplus thermal energy during peak production, it ensures a consistent energy supply even during periods of low sunlight or wind.
- Decarbonization of Building and Industrial Sectors As governments enforce stricter carbon emission norms, industries and commercial facilities are increasingly investing in TES to enhance energy efficiency and reduce dependence on fossil fuels. The technology allows for load shifting and reduced peak power consumption, aligning with net-zero energy goals.
- Grid Modernization and Smart Energy Systems Integration of TES with smart grids, advanced metering, and IoT-based controls enables intelligent energy management, predictive maintenance, and optimized load balancing. Such integration enhances grid reliability while supporting the electrification of heating and cooling systems.
- Economic and Environmental Benefits TES reduces operational energy costs by enabling time-of-use energy optimization and decreasing the reliance on costly peak power generation. It also minimizes waste heat losses, lowering greenhouse gas emissions and enhancing system sustainability.
Emerging Trends
- Advancements in Phase Change and Thermochemical Materials Ongoing R&D efforts in high-performance materials — such as eutectic salts, paraffin waxes, and metal hydrides — are enabling higher energy storage density and thermal stability. These advancements are expanding TES applications across both low- and high-temperature domains.
- Integration with Heat Pumps and Renewable Cooling Systems The combination of TES with heat pumps and renewable cooling solutions is becoming increasingly popular in residential, commercial, and industrial buildings. This integration allows for efficient energy use and helps meet sustainability targets in urban infrastructures.
- Thermal Energy Storage in District Heating and Cooling Networks Europe and Asia-Pacific are leading the adoption of TES in large-scale district energy systems. Such networks utilize stored heat or cold to provide flexible, cost-effective, and low-carbon energy for multiple buildings and communities.
- Decentralized Thermal Storage for Industrial Applications Industrial sectors are leveraging TES for waste heat recovery, improving process efficiency, and ensuring uninterrupted operations. Deployments in sectors like chemicals, metallurgy, and food processing are expanding rapidly.
- Hybrid Systems with Renewable and Battery Storage A growing trend is the integration of TES with battery energy storage systems (BESS), offering hybrid solutions that provide both electrical and thermal balancing capabilities. This enhances overall energy utilization and resilience of renewable systems.
Why This Report Stands Out
This in-depth Thermal Energy Storage Market Report provides strategic insights for utilities, energy developers, technology providers, policymakers, and investors. It offers a comprehensive view of emerging technologies, regulatory frameworks, and competitive benchmarking — empowering stakeholders to make informed decisions in the evolving energy transition landscape.
The report includes segmentation by technology, storage medium, application, and region, helping identify profitable investment areas and future growth hotspots. It also analyzes key innovations, funding trends, and partnership developments shaping the TES market.
Through extensive primary and secondary research, this analysis delivers reliable forecasts, enabling organizations to align their strategies with global energy efficiency goals and low-carbon transitions.
Key Companies in the Global Thermal Energy Storage Market
- Siemens Energy AG
- Abengoa Solar S.A.
- BrightSource Energy, Inc.
- DN Tanks Inc.
- Calmac Manufacturing Corporation
- Cryogel Thermal Energy Systems
- Steffes Corporation
- SolarReserve, LLC
- Ice Energy Holdings, Inc.
- Baltimore Aircoil Company
- Burns & McDonnell
- EnergyNest AS
- Viking Cold Solutions, Inc.
- MAN Energy Solutions SE
- DC Pro Engineering
These players are focusing on developing innovative TES technologies, modular systems, and cost-effective solutions that enhance scalability and integration with renewables. Strategic partnerships, M&A activities, and R&D initiatives remain central to their growth strategies.
Market Segmentation
By Technology
- Sensible Heat Storage
- Latent Heat Storage
- Thermochemical Storage
By Storage Medium
- Water
- Molten Salts
- Phase Change Materials (PCM)
- Others
By Application
- Power Generation (CSP Plants)
- District Heating & Cooling
- Process Heating
- Cold Storage
- Industrial Waste Heat Recovery
- Residential & Commercial Buildings
By End User
- Industrial
- Commercial
- Utilities
- Residential
Thermal Energy Storage Market Future Scope, Trends, and Forecast [2025–2032]
The future of TES is intertwined with the global shift toward net-zero emissions, renewable integration, and sustainable urbanization. By 2032, TES systems are expected to play a pivotal role in shaping 24/7 clean energy availability, grid flexibility, and energy independence.
Key growth opportunities include:
- Expansion of solar thermal power with molten salt-based TES for 24-hour energy supply.
- Adoption of district-scale cold storage systems in urban megaprojects.
- Integration of TES with hydrogen production, enhancing renewable hydrogen efficiency.
- Development of AI-enabled TES management software for predictive energy control.
- Increasing demand for retrofit TES installations in commercial buildings to optimize HVAC performance.
Governments across Europe, North America, and Asia are providing tax incentives, low-interest financing, and R&D grants to accelerate TES adoption. The European Green Deal, U.S. Inflation Reduction Act, and India’s National Solar Mission all emphasize energy storage as a cornerstone for achieving sustainable growth.
Moreover, as digitalization and IoT adoption grow, TES systems will increasingly rely on data analytics and smart controls for optimal operation, predictive maintenance, and lifecycle cost reduction.
Regional Insights
North America
- United States
- Canada
North America holds a significant share in the TES market due to its well-established renewable infrastructure, growing district energy projects, and industrial decarbonization policies. Federal and state incentives are encouraging adoption in HVAC and CSP sectors.
Europe
- Germany
- Spain
- France
- Nordic Countries
- United Kingdom
Europe dominates the global TES landscape with advanced district heating and CSP technologies. Strong policy support under the EU Green Deal and Horizon Europe programs continues to drive R&D and large-scale deployment of TES systems.
Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
Asia-Pacific is expected to witness the fastest CAGR, driven by rapid industrialization, urban expansion, and renewable integration efforts. China and India are investing heavily in CSP plants and district cooling projects using TES technologies.
Latin America
- Brazil
- Chile
- Mexico
Latin America’s growing energy demand and focus on solar-based solutions are opening opportunities for TES systems, particularly in CSP and agricultural cold storage applications.
Middle East & Africa
- United Arab Emirates
- Saudi Arabia
- South Africa
The Middle East and Africa are emerging as high-potential markets, leveraging abundant solar resources and ambitious energy diversification goals. TES systems are being deployed in solar desalination, smart cities, and industrial parks to enhance sustainability.
Kings Research Says
The Thermal Energy Storage Market is positioned to become a cornerstone of the global clean energy ecosystem. As nations accelerate toward carbon neutrality, TES technologies will bridge the gap between renewable supply and round-the-clock energy demand.
Kings Research emphasizes that the integration of TES with AI, IoT, and digital twins will redefine how energy is stored, distributed, and consumed — offering new business models and opportunities for both utilities and consumers.
Organizations investing early in scalable, efficient, and modular TES systems will be better prepared to capitalize on global energy transitions, decarbonization policies, and smart grid modernization trends.
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