The Thermal Energy Storage Market size is projected to grow at a CAGR of 12.38% to reach US$8.466 billion in 2025 from US$4.204 billion in 2019. It has been observed a powerful rate in recent years and is forecast to exhibit fruitfully within the years to come back.
Thermal energy storage is a method of storing thermal energy by changing the temperature so that it may be utilised for a variety of reasons afterward. Thermal energy storage solutions are very useful for storing energy for future use. Thermal energy storage (TES), commonly known as heat storage, is a low-cost, high-efficiency energy transmission technology that does not need chemical conversion. This is one of the most practical environmentally friendly energy-saving options. It temporarily stores thermal energy in either a hot or cold state for later use. Thermal energy storage systems minimise carbon dioxide emissions, end-user energy consumption, and peak-hour energy demand. The system's efficiency and efficacy are determined by the sort of material utilised in its construction. Solar plants, thermal power plants, combined heat and power plants, and process industries, as well as other energy storage applications, all employ it.
However, the initial cost of building thermal storage systems is usually greater since the design is so important to the system's effectiveness. This might limit the market share of worldwide thermal energy storage throughout the predicted period. Furthermore, a lack of knowledge about storage technology and the requirement for highly experienced personnel to maintain the system may stymie industry expansion. Thermal energy storage costs vary depending on the application, size, and thermal insulation technique used. Thermal storage systems based on phase transition materials and thermo-chemical storage are generally more expensive than the storage capacity they provide. The cost of storage systems accounts for around 30% to 40% of the entire system cost. Thermal energy storage solutions are expected to become more competitive in the near future as research into energy storage technology continues to reduce the upfront capital need.
Surging Demand for Renewable Energy Storage and Growing Environmental Concerns Is Estimated to Account For the Growth of the Thermal Energy Storage Market
The thermal energy storage industry is being driven by the increased adoption of renewable energy sources and the growing need for a constant power supply. Furthermore, the market is expected to grow as demand for thermal energy storage in HVAC (heating, ventilation, and air conditioning) for district heating and cooling grows. Renewable energy generating sources, such as solar and wind energy, are rapidly being used by the commercial and industrial (C&I) sectors for self-consumption. Renewable energy, on the other hand, is a variable power source, and the C&I industry isn't making the most of it. As a result, in order to enhance the rate of utilization of renewable energy sources, the C&I sector is projected to adopt energy storage systems at a faster pace, which will present substantial possibilities for thermal energy storage providers in the future. Also, decarbonization of the energy sector and carbon emission reductions to limit global climate change are among the most important goals for governments, energy authorities, and utilities throughout the world. According to IRENA, accelerating renewable energy deployment, as well as electrification and improving electric grid energy efficiency, can assist achieve over 90% of the energy-related CO2 emission reductions necessary to fulfill the Paris Climate goals by 2050. In addition, concentrated solar power (CSP) is rapidly being combined with thermal energy storage systems to provide grid flexibility and reduce efficiency losses by generating electricity through dry cooling at cooler ambient temperatures. Furthermore, rising environmental awareness, along with the expanding use of thermal energy storage for power production in green buildings, is driving expansion.
North America and Asia Pacific Region Fuelled the Thermal Energy Storage Market
Based on Regions, the market for thermal energy storage is metameric into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2019, the North America region emerged united of the leading regions; though, the market within the Asia-Pacific region is anticipated to develop at a fast rate as compared to different regions. North America is additionally anticipated to exhibit the highest rate / CAGR over the forecast amount 2019-2026. Factors like high energy storage capacity and increased thermal storage penetration, particularly in the United States Furthermore, the fast adoption of renewable energy has altered the energy environment, increasing the need for thermal energy storage in this region.
The growth of the Asia-Pacific market is calculable to be fuelled by the growing urbanization and population expansion are accelerating in developing countries such as China, India, South Korea, Japan, Indonesia, and Thailand. Many of these developing countries' electrical grids and basic infrastructural systems are unstable. This feature is projected to encourage industry participants to invest in these countries, resulting in an increase in the number of thermal energy storage and distribution grid installations.
The substantial growth in the Europe region is attributed to use for space heating, water heating, district heating and cooling, and power production, which are abundant in the region. Because of the huge number of active TES projects and the presence of key companies in the region, the market for thermal energy storage is anticipated to grow at a faster pace during the forecast period.
COVID-19 had a negative influence on the thermal energy storage industry since the pandemic halted activity in a variety of industries, including all oil and gas and renewable energy facilities in numerous countries, and delayed the expansion of the thermal energy storage market to a considerable level by 2020. Financing, regulatory uncertainty, and grid integration were already posing challenges to the development of renewable energy technology in various markets at the start of 2020, and COVID-19 has added to the mix. The COVID-19 problem, according to the IEA, has had a substantial impact for worldwide renewable power capacity expansion. The number of new renewable power projects globally is expected to decline in 2020, according to IEA projections, as a result of the unprecedented global COVID-19 problem. Since 2000, yearly renewable energy capacity expansion has been on the decline for the first time in 20 years. Construction delays are a result of supply chain disruptions, mostly induced by China, lockdown measures in all major countries, social-distancing restrictions for workers, and the resulting financial problems. With the commencement of the majority of the postponed projects, renewable energy capacity addition is expected to grow in 2021. As a result, new installations are expected to recover next year, bringing the total amount of renewable power capacity added to the same level as in 2019. Supportive government initiatives for renewable energy technology in a number of nations will add to this. Furthermore, nations are expected to make renewable energy expenditures a significant component of stimulus packages to re-energize their economy. Renewable technologies, such as solar and wind, may also aid with economic growth by providing employment, lowering emissions, and stimulating innovation.