In the rapidly growing field of global thermal energy storage market size was valued at USD 21.68 billion in 2024 and is projected to reach USD 51.80 billion by 2033, growing at a CAGR of 9.1% from 2024 to 2033

Thermal energy storage systems play an important role for companies in making the transition to sustainable production economically profitable.

 

The European energy crisis has placed greater focus on the industrial heating transition. After all, there is an enormous potential for savings, as approximately two-thirds of the total energy consumption in industrial processes is accounted for by process heat in production. Especially in view of high gas prices and political requirements for decarbonization, it is crucial for companies to drive the transformation of their supply to renewable energy and electrify their process heat. Meanwhile, technologies such as thermal energy storage play an important role for companies in making the switch to sustainable production economically profitable.

 

How does thermal energy storage work?

Thermal energy storage systems include both heat and cold storage systems. In thermal storage, energy is supplied to the storage medium in the form of heat during the charging process, and released again during the discharging process. The most commonly used systems include sensible heat storage, latent heat storage and thermochemical heat storage. These differ according to storage duration, temperature as well as the applied principle of storage.

Sensitive heat storage

In so-called sensible heat storage, the temperature of a material - a solid or a liquid, depending on the system - is raised to store thermal energy. Typical storage materials include water, thermal oil, concrete, sandstone, bricks, or molten salts. The potential storage period depends on the storage materials used. Sensible thermal storage is the most established and cost-effective method for thermal energy storage.

Latent heat storage

In latent heat storage systems, thermal energy is stored with the aid of a phase changing material. When these materials change phase (from solid to liquid, for example), they have to absorb energy. This energy, which has been added to the material, remains bound in the material as so-called latent energy. Typical phase change materials include ice, kerosene, fatty acid, sugar alcohol, salt hydrates, inorganic salts and metals. Latent heat storage materials can store energy over a long period of time without major losses. So far, these stores have seldomly been used in an industrial context.

Thermochemical heat accumulators

Thermochemical heat storage systems use the reversible gas-solid reaction. The energy is stored in an endothermic reaction instead of a temperature rise, which offers the advantage of low storage loss. Two types of thermochemical storage technologies can be distinguished: thermochemical reactions and sorption processes. Their advantage is the very high energy storage density and low storage losses.

Advantages of thermal energy storage for industrial purposes

The ability to store energy and utilize it when needed at a later date is essential for an affordable energy transition. Thermal energy storage offers the industry a number of advantages through its various applications.

Storing surplus energy - and thus reducing costs

By electrifying their production processes and storing low-cost electricity at off-peak times for later use, companies can protect against price volatility as well as Industry price risks, fluctuating gas prices, CO2 compensation costs, and grid balancing charges.

The global thermal energy storage Industry size was exhibited at USD 21.68 billion in 2023 and is projected to hit around USD 51.80 billion by 2033, growing at a CAGR of 9.1% during the forecast period of 2024 to 2033.



Growth Factors

Increasing demand for electricity due to the increased commercialization increased use of electricity during the peak hours and a demand for heating and cooling applications in the smart infrastructure are all leading to a growth in this Industry. The growth will be supplemented by many supportive government policies in the developed as well as the developing nations for renewable energy technologies. Many countries across the globe are making investments in renewables which is an important part which acts as a stimulus for the growth of this Industry in different economies.

Investments in solar and wind is creating jobs reducing emissions and fostering innovation. In order to reduce the carbon emissions in the energy sector to cap the global climate change it's the most important goal of many governments. It has led to an increase in the energy efficiency of the electric grids which are able to achieve reduced carbon dioxide emissions. By the year 2022 the Government of India it's targeting to install 175 gigawatts of renewable energy capacity. This energy will come from a wind, biopower solar and hydro power.

Similarly, the Spanish government is also aiming to add 157 gigawatts of renewable energy capacity by the year 2030. The use of thermal energy storage provides better reliability reduced investment, increase in the overall efficiency add reduction in the running costs and economic operations. A speedy growth of the decentralized renewable energy technologies will also drive the Industry.

Key Takeaways:

• In 2023, Europe dominated the Industry with 38.0% of the total Industry share.


• By technology, the sensible storage segment has captured 84.8% of the total share in 2023.


• By storage material, the molten salt segment is growing at a CAGR of 9.3% during the forecast period.


• By application, the power generation segment has accounted Industry share of around 60% in 2023.


• By end user, the industrial segment accounted for 41% Industry share in 2023.

Technology Insights

On the basis of technology, the sensible heat storage segment shall contribute largely to the growth of the industry during the forecast period. Thermal energy storage which is in the form of sensible heat depends on the specific heat of a storage medium. The storage William it's captain storage tanks which have high thermal insulation. Molten salt is the most widely used commercial heat storage medium. It has a large number of industrial as well as commercial applications. Molten salt has excellent thermal properties.

In about 50% of the operational thermal energy projects molten salts are used till date. The sensible heat storage technology is extremely cost efficient.

Storage Material Insights

On the basis of the storage material, the molten salt segment is expected to grow well during the forecast period. Molten salts are commonly used as they have higher boiling points. Salt is pumped into her steam generator which boils water spins a turbine and generates electricity when there is a need for energy.

Application Insights

The power generation segment on the basis of application is expected to be the largest contributor during the forecast period. Storage of the thermal energy in concentrating solar power plants will be helpful in overcoming the intermittency of the solar resource as it will be able to provide power for extended periods of time. Energy can be captured during the sunshine hours and it can be stored for its delivery to facilitate the plant output during unfavourable weather conditions.

The working of the solar thermal power plant can be extended even when there is no solar radiation. It will reduce the need to burn fossil fuels. Energy storage will not only reduce the gap between supply and demand but it will also improve the reliability and the performance of the energy systems and play an extremely important role in conserving energy.

End-User Insights

The utility segment is expected to have the largest Industry share. This system makes use of chilled water technologies or ice for storing the thermal energy in tanks for the future use. The energy is stored in the tanks when it is not used during the off-peak hours. It helps in meeting the demand during the peak hours. Many customers are able to avail the power which is available on the time of the day pricing depending upon the peak hours. Energy is sold to the customers at a lower price during the off-peak hours.

The industrial segment is also expected to grow as there is an increase in the spending on infrastructure development. Increased use of large quantities of hot water in these industries will boost the segment growth. Thermal energy plans are utilized to generate electricity energy to meet the demand of the residential and commercial sectors. There is a use of home storage units to store the thermal energy to provide for the residential and commercial buildings as and when required.

Some of the prominent players in the thermal energy storage Industry include: BrightSource Energy Inc., SolarReserve LLC, Caldwell Energy, Cryogel, Steffes Corporation, Abengoa SA, Terrafore Technologies LLC, Ice Energy, Baltimore Aircoil Company

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