Thermal Energy Storage: Unlocking Renewable Energy Potential

 

The global thermal energy storage market is estimated to be valued at US$5.67 billion in 2024 and is expected to exhibit a CAGR of 10% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Introduction to the Market

Renewable energy sources such as solar and wind are intermittent in nature, creating challenges in terms of energy supply and demand balance. Thermal energy storage systems help address this issue by storing thermal energy from renewables and other sources for later use. This improves utilization of renewable energy and supports grid decarbonization efforts.

Competitive Landscape

The global thermal energy storage market is moderately fragmented. Some of the major players operating in this market include BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns & McDonnell, Inc., and DC Pro Engineering. Manufacturers are focusing on new product development and partnerships to gain market share.

Market Trends

Some of the key market trends in the thermal energy storage market include growing focus on cost reductions, increasing focus on PCM based storage, and increasing application of aquifer and borehole thermal energy storage systems. Manufacturers are targeting cost reductions to improve the adoption of thermal energy storage. PCMs are gaining popularity due to their inherent advantages over sensible heat storage. Aquifer and borehole storage technologies are being increasingly applied for large-scale seasonal storage purposes.

Market Challenges

High initial capital costs, lack of common standards, and limited field testing are some of the key challenges currently inhibiting the large-scale adoption of thermal energy storage technologies. Subsidies and financing schemes would help address the high upfront investment barrier. Developing universal test procedures and certification standards can also help stakeholders.

Opportunity

The thermal energy storage market has significant opportunity for growth in the coming years. As concerns over climate change increase, many countries and organizations are seeking ways to reduce carbon emissions from energy generation and storage. Thermal energy storage provides a means to store heat or cool air from renewable but intermittent energy sources like solar and wind. This stored thermal energy can then be used for heating, cooling and power generation even when the sun isn't shining or wind isn't blowing. As renewable energy adoption increases around the world, thermal energy storage can help address the issue of reliability by ensuring energy needs are met even during periods without solar or wind. New projects combining renewable energy plants with thermal storage capacity are positioning the technology for greater utilization. Both businesses and governments see the value of stable renewable energy sources made possible through thermal storage.

The future outlook for the thermal energy storage market is positive. Analysts predict the market will grow substantially in the next 5-8 years as renewable energy adoption grows worldwide. Many nations have set ambitious targets for transitioning to renewable sources for a significant portion of their power needs by 2030 or 2050. However, intermittency remains a barrier to cost-effective large scale integration of solar and wind energy. Thermal energy storage is expected to play a key enabling role in providing renewable energy around the clock. Increased private sector investment and declining costs will further drive the technology's utilization. Major trends include innovative new storage materials with better heat transfer properties and efficiency. Wider application in end use sectors like buildings and industry will also expand the storage market. Overall, thermal storage is poised to realize its potential and make renewable energy a practical mainstream option.

SWOT Analysis

• Strength: Thermal energy storage provides a reliable and sustainable solution for balancing intermittent renewable energy sources. Its ability to time-shift solar and wind-generated electricity for power generation on demand is a key advantage over other options.
  
• Weakness: High initial capital costs and low energy densities of some storage materials can be barriers for widespread commercialization of projects.
  
• Opportunity: Growing global emphasis on combating climate change through renewables and decarbonization goals present a major opportunity for increased uptake of thermal storage to address integration challenges. Supportive policy measures in many countries also encourage energy storage market growth.
  
• Threats: Delays in completing large pilot projects or potential technology failures early on could slow market adoption. Geopolitical risks may impact project economics in certain markets.

Geographical Regions

North America held the largest share of the global thermal energy storage market in 2024 due to strong presence of key players and supportive government policies for renewable integration in the region. Asia Pacific is expected to witness the fastest growth during the forecast period owing to increasing investments in sustainable energy initiatives across developing nations like China and India to meet rising power demands.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it