Thermal Energy Storage Market Projected to Reach USD 12 Billion by 2035 | Tessera Solar, UTC Power, Bell and Gossett
May 21, 2025
iCrowdMarketing powered by iCrowdNewswire
Introduction
As per MRFR analysis, the Thermal Energy Storage Market Size was estimated at 4.76 (USD Billion) in 2023. The Thermal Energy Storage Market Industry is expected to grow from 5.15 (USD Billion) in 2024 to 12 (USD Billion) by 2035. The Thermal Energy Storage Market CAGR (growth rate) is expected to be around 8.01% during the forecast period (2025 - 2035).
The Thermal Energy Storage (TES) market has been steadily gaining momentum in recent years as the global energy landscape undergoes a fundamental transformation. With increasing emphasis on renewable energy integration, grid flexibility, and decarbonization, TES systems have emerged as a critical solution to bridge the gap between energy supply and demand. By storing thermal energy for later use, TES technologies enable enhanced energy efficiency, reduced carbon emissions, and greater reliability for heating, cooling, and power generation applications. As industries, governments, and utilities seek resilient and sustainable energy systems, the TES market is expected to grow significantly in the coming decade.
Get a Free Sample Copy@ https://www.marketresearchfuture.com/sample_request/2401
Market Overview and Dynamics
The global TES market is driven by a variety of technological, environmental, and policy-related factors. TES systems work by storing heat or cold in mediums such as water, molten salts, or phase change materials (PCMs) during off-peak hours and releasing it during peak demand periods. This allows for better utilization of intermittent renewable sources like solar and wind. The market is broadly categorized into three main types of TES technologies: sensible heat storage, latent heat storage, and thermochemical storage. Among these, sensible heat storage—using materials like water or molten salts—is the most mature and widely adopted.
The commercial, industrial, and utility sectors are the primary users of TES. District heating and cooling systems, combined heat and power (CHP) plants, and concentrated solar power (CSP) plants are among the key application areas. Increasing electrification of heating and cooling systems, particularly in Europe and North America, is further accelerating the demand for TES solutions.
Key Drivers and Opportunities
One of the major drivers of the TES market is the global push for renewable energy integration. Solar and wind power are inherently variable and require effective storage solutions to ensure reliability. TES systems paired with CSP plants allow solar energy collected during the day to be used at night, improving dispatchability and reducing dependence on fossil fuels.
Energy efficiency regulations and decarbonization targets are also fueling market growth. Governments worldwide are introducing incentives and mandates to promote energy-efficient technologies, including TES. For instance, energy performance standards for buildings increasingly incorporate thermal storage solutions as a compliance mechanism.
Urbanization and growing energy demands in emerging economies are creating new opportunities for TES in district energy systems and industrial processes. Additionally, advancements in material science and thermal storage design are improving efficiency and reducing costs, making TES more economically viable across a wider range of applications.
Buy Premium Research Report Now: https://www.marketresearchfuture.com/checkout?currency=one_user-USD&report_id=2401
Challenges and Restraints
Despite the promising outlook, the TES market faces several challenges. High upfront capital costs and long payback periods often deter investment, particularly in developing regions with limited financial incentives. Technical complexities related to thermal losses, degradation of storage materials, and system integration can also limit adoption.
Furthermore, the market lacks standardized performance metrics and regulatory frameworks, leading to inconsistent deployment and limited awareness among stakeholders. Competition from other energy storage technologies, particularly lithium-ion batteries, poses another significant challenge, although TES maintains distinct advantages in specific thermal applications.
Regional Insights
North America and Europe currently lead the TES market, thanks to robust infrastructure, supportive policies, and advanced research initiatives. The United States has seen widespread adoption of TES in commercial buildings and CSP projects in the Southwest. In Europe, district heating networks in countries like Denmark, Germany, and Sweden are increasingly incorporating large-scale TES systems to enhance energy flexibility and reduce emissions.
The Asia-Pacific region, particularly China and India, is expected to witness rapid market growth in the coming years due to rising energy demand, industrial expansion, and government-backed clean energy initiatives. The Middle East and Africa also hold potential, especially in the deployment of CSP with thermal storage in sun-rich regions.
Read Report Overview: https://www.marketresearchfuture.com/reports/thermal-energy-storage-market-2401
Future Outlook
The future of the TES market appears promising, with anticipated compound annual growth rates (CAGR) exceeding 8% in the coming decade. Innovations in high-efficiency materials, modular systems, and hybrid energy storage (combining TES with electrical storage) are expected to enhance performance and cost-effectiveness. As global energy systems transition toward net-zero targets, TES will play a pivotal role in decarbonizing thermal energy use across sectors.
Moreover, increasing focus on building resilience in the face of climate change and energy security concerns is likely to further boost TES investments. Public-private partnerships, regulatory support, and research funding will be critical to overcoming existing barriers and realizing the full potential of thermal energy storage.
The Thermal Energy Storage market stands at a crucial juncture in the global energy transition. With its ability to enhance energy efficiency, support renewable integration, and lower emissions, TES offers a scalable and sustainable solution to modern energy challenges. While technological and economic hurdles remain, ongoing innovation and policy support are paving the way for broader adoption. As nations strive for greener and more resilient energy systems, thermal energy storage is poised to become an essential component of the energy infrastructure of the future.
Related Reports:
Lithium-ion Battery Recycling Market
Industrial Air Compressor Market
Liquefied Natural Gas Lng Market
About Market Research Future:
At Market Research Future (MRFR), we enable our customers to unravel the complexity of various industries through our Cooked Research Report (CRR), Half-Cooked Research Reports (HCRR), Raw Research Reports (3R), Continuous-Feed Research (CFR), and Market Research & Consulting Services.
MRFR team have supreme objective to provide the optimum quality market research and intelligence services to our clients. Our market research studies by products, services, technologies, applications, end users, and market players for global, regional, and country level market segments, enable our clients to see more, know more, and do more, which help to answer all their most important questions.
Also, we are launching “Wantstats” the premier statistics portal for market data in comprehensive charts and stats format, providing forecasts, regional and segment analysis. Stay informed and make data-driven decisions with Wantstats.
URL : https://www.marketresearchfuture.com/reports/thermal-energy-storage-market-2401
Contact Information:
Contact Information:Contact Us: Market Research Future (Part of Wantstats Research and Media Private Limited) 99 Hudson Street, 5Th Floor New York, NY 10013 United States of America +1 628 258 0071 (US) +44 2035 002 764 (UK) Email: sales@marketresearchfuture.com Website: https://www.marketresearchfuture.com
Tags: English, Thermal Energy Storage Market,Thermal Energy Storage Market Size,Thermal Energy Storage Market Share,Thermal Energy Storage Market Growth,Thermal Energy Storage Market Trends,Thermal Energy Storage Market Analysis