The global thermal energy storage market size was valued at USD 4.1 billion in 2019 and is projected to grow at a compound annual growth rate (CAGR) of 9.45% from 2020 to 2027. Shifting preference towards renewable energy generation, including concentrated solar power, and rising demand for thermal energy storage (TES) systems in HVAC are among the key factors propelling the industry growth. Growing need for enhanced energy efficiency, coupled with continuing energy utilization efforts, will positively influence the thermal energy storage demand. For instance, in September 2018, the Canadian government updated a financial incentive plan “Commercial Energy Conservation and Efficiency Program” that offers USD 15,000 worth rebates for commercial sector energy upgrades.
The market in the U.S. is projected to witness substantial growth in the forthcoming years on account of increasing number of thermal energy storage projects across the country. For instance, in 2018, the U.S. accounted for 33% of the 18 under construction projects and 41% of the total 1,361 operational projects globally. Presence of major industry players in the country is expected to further propel the TES market growth in the U.S.
Gather more insights about the market drivers, restrains and growth of the Global Thermal Energy Storage Market
The U.S. Department of Energy (DoE) evaluates thermal energy storage systems for their safety, reliability, cost-effective nature, and adherence to environmental regulations and industry standards. It also stated that Europe and the Asia Pacific display higher fractions of grid energy storage as compared to North America. Rising need for a future with clean energy is prompting governments across the globe to take efforts towards developing innovative energy storage systems.
Product Type Insights
Sensible heat storage accounted for the largest revenue share of 46.2% in 2019. This can be attributed to rising demand for solar thermal systems, along with applicability across large scale HVAC systems. Provision of reversible charging and discharging facility for an infinite number of cycles is a key feature of the technology that will further enhance the product penetration.
Technology Insights
Molten salt technology occupied the largest revenue share of 31.1% in 2019 and is expected to witness significant growth over the forecast period. The growth of the segment can be attributed to its high technological efficiency, along with its usage in several solar energy projects. Molten salt is used to store the heat collected by means of solar troughs and solar towers. The heat collected by means of this technology is used to enable steam turbines by converting it to superheat steam.
End-user Insights
The industrial segment accounted for the largest revenue share of 39.7% in 2019 and is projected to maintain its lead over the forecast period. Rising spending on infrastructure development and establishment will propel the demand for HVAC systems, which, in turn, will drive the industrial segment. Furthermore, growing adoption of these systems across several industries using large quantities of hot water for economic purposes will boost the segment growth.
Storage Material Insights
Molten salt accounted for the largest revenue share of 35.0% in 2019 owing to its usage as a thermal energy storage medium across several applications, including concentrated solar power plants. The molten salt stores solar energy for longer durations, thereby overcoming the short energy cycle restraint of thermal energy storage. Growing demand for concentrated solar power technology is expected to positively influence the TES market growth.
Application Insights
The district heating and cooling segment accounted for the largest revenue share of 35.2% in 2019. The application of district cooling and heating is utilized to distribute the generated power in order to suffice commercial and residential requirements. This distributed energy is utilized for water heating, space heating, and air conditioning. The stored power is derived in cogeneration plants by burning biomass and fossil fuels. Various systems utilized for the generation of energy for district heating and cooling applications include central solar power and boiler stations.
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Regional Insights
Europe accounted for the largest revenue share of 30.1% in 2019 and is projected to maintain its lead over the forecast period. The region is characterized by a large number of thermal energy storage systems, which are utilized for space heating, water heating, district heating and cooling, and power generation. Spain is the largest contributor to the regional market growth owing to the large number of operational TES projects across the country, along with presence of major players, such as Abengoa Solar.
Key Companies & Market Share Insights
Industry participants are integrating advanced technologies into the existing technology to enhance the product demand through the provision of improved thermal energy management systems. Furthermore, eminent players are emphasizing on inorganic growth ventures as a part of their strategic expansion. Some of the prominent players in the global thermal energy storage market include:
· BrightSource Energy Inc.
· SolarReserve LLC
· Abengoa SA
· Terrafore Technologies LLC
· Baltimore Aircoil Company
· Ice Energy
· Caldwell Energy
· Cryogel
· Steffes Corporation
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