The global thermal energy storage (TES) market is gaining strong momentum as the world accelerates its transition toward renewable energy, grid flexibility, and energy efficiency. Thermal energy storage systems enable excess heat or cold to be stored and used later, improving energy reliability while reducing operational costs and carbon emissions.

According to Kings Research, the global thermal energy storage market size was valued at USD 6,068.1 million in 2023, which is estimated to be valued at USD 6,603.8 million in 2024 and is projected to reach USD 13,103.1 million by 2031, growing at a CAGR of 10.28% during the forecast period. This growth is driven by rising renewable energy integration, expanding district heating and cooling networks, and increasing adoption of energy-efficient technologies across industrial and commercial sectors.

Thermal Energy Storage Market: Key Highlights

The thermal energy storage market is undergoing a significant transformation, supported by global decarbonization goals and the growing need for energy system resilience.

Key highlights include:

• Increasing deployment of concentrated solar power (CSP) plants using molten salt storage

• Rising adoption of district heating and cooling systems in urban infrastructure

• Growing industrial demand for waste heat recovery and process optimization

• Technological advancements in phase change materials (PCMs) and thermochemical storage

• Strong policy support for renewable energy integration and grid stability

Developed regions such as North America and Europe continue to lead in large-scale TES deployment, while Asia-Pacific is emerging as the fastest-growing market due to rapid urbanization, industrialization, and renewable energy investments.

Thermal Energy Storage Market Drivers and Emerging Trends to 2031

The market is driven by a convergence of sustainability goals, rising energy demand, and the need for reliable energy storage solutions that complement intermittent renewable energy sources.

Market Drivers

1. Rising Renewable Energy Integration
Solar and wind energy generation is inherently intermittent. Thermal energy storage enables excess energy to be stored and dispatched during peak demand periods, improving grid reliability and renewable energy utilization.

2. Growing Demand for Energy Efficiency
Industries, commercial buildings, and utilities are increasingly adopting TES solutions to reduce peak energy consumption, lower operational costs, and enhance energy efficiency.

3. Expansion of District Heating and Cooling Networks
Urban areas are investing in centralized heating and cooling systems that rely heavily on thermal energy storage to balance demand fluctuations and improve system efficiency.

4. Industrial Waste Heat Recovery
Industries such as chemicals, cement, steel, and food processing are deploying TES systems to capture and reuse waste heat, supporting cost reduction and emission control.

5. Supportive Government Policies and Climate Targets
Global commitments to net-zero emissions and energy transition policies are accelerating investments in thermal storage technologies.

Emerging Trends

• Advanced Phase Change Materials (PCMs): Improved thermal performance and compact storage solutions

• Integration with Smart Energy Systems: TES combined with AI-based energy management platforms

• Hybrid Energy Storage Solutions: Coupling thermal storage with batteries and hydrogen systems

• Decentralized Storage Applications: Building-level thermal storage for heating and cooling optimization

• Focus on Long-Duration Energy Storage: TES emerging as a cost-effective alternative for long-duration storage needs

Why This Thermal Energy Storage Market Report Stands Out

This comprehensive thermal energy storage market analysis provides actionable insights for energy developers, utilities, industrial operators, and policymakers.

Key features include:

• In-depth assessment of storage technologies and materials

• Detailed analysis of market dynamics, challenges, and opportunities

• Regional outlook highlighting investment trends and adoption patterns

• Competitive landscape analysis with strategic insights

• Long-term forecasts supporting strategic planning and investment decisions

The report is designed to support stakeholders in navigating evolving energy markets and capitalizing on emerging TES opportunities.

Who Are the Key Players in the Thermal Energy Storage Market?

The global thermal energy storage market is moderately fragmented, with key players focusing on technological innovation, large-scale project development, and strategic collaborations.

Major companies include:

• Siemens Energy

• Abengoa

• BrightSource Energy

• EnergyNest

• Steffes Corporation

• CALMAC

• Ice Energy

• DN Tanks

• Baltimore Aircoil Company

• Linde plc

These companies are investing in R&D to improve storage efficiency, reduce system costs, and expand applications across industrial, utility, and commercial sectors.

Thermal Energy Storage Market Segmentation Analysis

By Technology

• Sensible Heat Storage

• Latent Heat Storage

• Thermochemical Storage

Sensible heat storage currently dominates the market due to its maturity and cost-effectiveness, while latent and thermochemical storage technologies are gaining traction for advanced applications.

By Storage Material

• Water

• Molten Salt

• Phase Change Materials

• Ice

• Others

Molten salt remains the preferred choice for large-scale CSP plants, while PCMs are increasingly used in building and industrial applications.

By Application

• Power Generation

• District Heating & Cooling

• Industrial Processes

• Commercial Buildings

• Residential

Industrial and district energy applications account for a significant share of global demand.

Thermal Energy Storage Market Future Scope and Opportunities

The future of the thermal energy storage market is promising, driven by technological innovation and the global push for sustainable energy solutions.

Key opportunities include:

• Expansion of solar thermal power plants in emerging economies

• Retrofitting of existing industrial facilities with TES systems

• Integration of TES with green hydrogen production

• Development of compact storage solutions for urban buildings

• Growth of long-duration energy storage projects

As energy systems evolve, thermal energy storage will play a critical role in ensuring flexibility, resilience, and sustainability.

Regional Analysis: Which Regions Are Leading the Market?

North America

• United States

• Canada

North America leads the market due to strong renewable energy investments, advanced grid infrastructure, and supportive regulatory frameworks.

Europe

• Germany

• United Kingdom

• France

• Italy

• Spain

Europe’s leadership is driven by aggressive climate targets, district heating expansion, and industrial decarbonization initiatives.

Asia-Pacific

• China

• India

• Japan

• South Korea

• Australia

Asia-Pacific is expected to witness the fastest growth, supported by urbanization, industrial expansion, and large-scale renewable energy projects.

Latin America

• Brazil

• Mexico

• Chile

Middle East & Africa

• Saudi Arabia

• UAE

• South Africa

These regions are increasingly adopting thermal storage solutions for solar energy and industrial applications.

Thermal Energy Storage Market Outlook 2024–2031

The global thermal energy storage market is set for robust growth as energy systems prioritize flexibility, sustainability, and long-term storage solutions. Technological advancements, cost reductions, and supportive policies are expected to accelerate adoption across multiple sectors.

Kings Research Says

Kings Research highlights that thermal energy storage is emerging as a cornerstone technology in the global energy transition. As renewable energy penetration increases, TES solutions offer a scalable, cost-effective, and environmentally friendly approach to managing energy variability.

The integration of advanced materials, digital monitoring systems, and hybrid storage architectures will further enhance system performance. Early adoption of innovative thermal storage solutions will provide competitive advantages for utilities, industrial operators, and energy developers seeking long-term sustainability and operational resilience.