by The thermal energy storage market has grown significantly over the past decade owing to the increasing adoption of renewable energy sources like solar and wind power. Thermal energy storage helps in storing thermal energy produced from renewable sources and makes it available whenever needed. Solar thermal collectors are used to absorb heat from the sun which is then stored in high temperature storage tanks filled with molten salt or other phase change materials. This stored heat energy can later be used to produce steam and generate electricity even after sunset through turbines. Thermal energy storage is crucial for renewable sources since the energy demand doesn’t always match the energy production.
The global Thermal Energy Storage Market is estimated to be valued at US$ 5.13 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the thermal energy storage market is the growing adoption of phase change materials (PCMs) for thermal energy storage. PCMs have higher storage density compared to sensible heat storage and help store larger amounts of thermal energy which can be released later as the material changes its phase back. Many companies are developing advanced PCMs with high melting points suitable for concentrating solar power applications. The use of PCMs is expected to increase significantly owing to their advantages.
Porter’s Analysis
Threat of new entrants: The thermal energy storage market has moderate threat of new entrants given the requirements of high initial capital investments and need for technical expertise.
Bargaining power of buyers: The bargaining power of buyers is moderate as the use of thermal energy storage solutions helps consumers reduce energy costs in the long run.
Bargaining power of suppliers: The bargaining power of suppliers is moderate given the presence of multiple component manufacturers for thermal storage equipment.
Threat of new substitutes: The threat of new substitutes is low as thermal energy storage is irreplaceable for load shifting applications in utilities and off-grid renewable energy systems.
Competitive rivalry: The competitive rivalry is high among existing players to gain more contracts for utility-scale projects and provide innovative and cost-effective solutions.
Key Takeaways
Global Thermal Energy Storage Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The Asia Pacific region is expected to dominate the market during the forecast period due to surging investments in renewable energy coupled with growing district heating and cooling needs in countries like China and India.
Regional analysis:
Asia Pacific accounted for more than 35% of the global thermal energy storage market share in 2023 due to the massive renewable integration target of China and growing thermal network needs in other developing nations. The government focus on clean energy goals is supporting the regional growth.
Key players: Key players operating in the thermal energy storage market are BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns & McDonnell, Inc., and DC Pro Engineering.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
