The global thermal energy storage market is predicted to attain a value of $7,472.9 million by 2023, increasing from $3,000.9 million in 2017, exhibiting a 15.9% CAGR during the forecast period (2018–2023), according to a research by P&S Intelligence.
Factors resulting in the expansion of the market are surging demand for balanced power supply, increasing government initiatives for promoting the adoption of thermal energy storage solutions, growing requirement for energy storage solutions for HVAC applications, and rising installation of concentration solar power (CSP).
The market is classified into CSP, pumped heat electrical storage (PHES), and others (including chilled water thermal energy storage and ice thermal energy storage). Out of these, the CSP classification dominated the market in the past, accounting for a volume share of over 90.0% in 2017. CSP systems are widely being adopted in countries including Morocco, the U.A.E., and Australia. The demand for these systems is further growing due to the increasing requirement for power of cooling and heating applications.
Based on application, the thermal energy storage market is categorized into power generation, combines heating and cooling, and others (which include micro-grid and research & development activities). Out of these, the combined heating and cooling application accounted for the largest share of the market in the past, owing to the high demand for thermal energy storage systems for district heating and cooling purposes. The category is further classified into commercial & residential, industrial, and others (civic and domestic facilities).
The thermal energy storage market was dominated by North America, and the region accounted for over 75.0% share of the market in 2017, in terms of volume. The growing need for backup power supply for HVAC systems and rising adoption of CSP plants in the U.S. are driving the regional domain. The Asia-Pacific region is projected to grow at the fastest pace, exhibiting a CAGR of 44.7& CAGR during the forecast period, owing to the increasing need for energy due to surging population.
Because of swift urbanization across the globe, the requirement for energy has been growing, which in turn, is driving the thermal energy storage market. Asia-Pacific has been widely deploying CSP plants recently. According to the Chinese National Energy Administration, approximately 111 CSP projects are in the pipeline, and have an aggregated capacity of about 9 GW. Out of these, the first batch of plants, with capacity of 1,349.0 MW, have started operating recently.
A key trend being observed in the thermal energy storage market is the current shift towards eco-friendly buildings, which are also known as green buildings. Owing to their environment-friendly nature, these building have incredibly low carbon footprint. Green buildings are further extensively using energy storage technologies to generate power. Therefore, the increasing application of thermal energy storage systems in these building is expected to result in the growth of the market in the years to come.
Hence, the rapid urbanization leading to high demand for energy and rising penetration of green building are projected to drive the market.
