Thermal Energy Storage Market 2020 and Forecast 2021-2027

                                          
Report Overview: Global Thermal Energy Storage Market


The global thermal energy storage market size was valued at USD 3.27 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 11.5% from 2021 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.

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.

The primary challenge faced by the thermal energy storage sector is the economical storage of energy. An important advancement in this sector has been the usage of lithium-ion batteries. These batteries exhibit high energy density and long lifespans of 500 deep cycles, i.e. the number of times they can be charged from 20% to their full capacity before witnessing a deterioration in performance. They can also be utilized in electric vehicles, district cooling and heating, and power generation.
 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.

The thermochemical heat storage segment is anticipated to exhibit the fastest CAGR of 13.8% over the forecast period 2021-2027. In this storage, the heat stored by different mediums is released when a reverse reaction takes place between them. Thermochemical storage systems provide high energy density as compared to latent or sensible heat storage systems. This form of heat storage is preferable for long-term storage as losses do not occur overtime, but only during charging and discharging phases.

Technology Insights: Global Thermal Energy Storage Market

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.

Ice-based technology is anticipated to grow at a significant rate over the forecast period. Ice is used in ice storage air conditioning for the storage of thermal energy. The process is highly feasible as the heat of fusion of water is sufficiently high and can contain approximately 317,000 BTU or 334 mega joules (MJ) of energy in one metric ton of water. This energy is equivalent to approximately 26.5 ton-hours or 93 kWh. This application can be utilized to provide chilled water and air conditioning to a large number of commercial and residential buildings.

End-user Insights: Global Thermal Energy Storage Market

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.

The utilities segment is expected to witness the fastest growth over the forecast period. The segment comprises public services, such as broadband internet, transportation, telephone, sewage, water, natural gas, and electricity. Thermal energy is utilized to provide these public services at an extremely low cost. Cogeneration plants are employed to derive thermal energy and then convert it to the required form of energy.

The residential and commercial segment held a significant market share in 2019. Thermal energy plants are utilized to generate electrical energy to suffice the energy demand of the residential and commercial sectors. Electrical storage heaters and home storage units are also employed to store thermal energy in order to provide residential and commercial buildings with heating and cooling capacity as required.

Storage Material Insights: Global Thermal Energy Storage Market

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.
Water is the most commonly utilized material to store heat energy as it has a heat capacity of 4.2 J/(cms.K), which is considered to be one of the highest. It is often utilized in systems such as heat storage tanks, pebbles, concrete, and hot rocks. The steam generated is then utilized to power the turbines, which eventually generate low cost and efficient electricity.

Application Insights: Global Thermal Energy Storage Market

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.
The power generation segment is anticipated to witness the highest growth over the forecast period. Rising demand for uninterrupted and cost-efficient power supply from off grid and remote areas will drive the segment.

Introduction of several government schemes regarding electricity generation from solar power plants will boost the power generation segment growth. The renewable power generation supplier receives retail electricity price for each unit generated and the extra power sold back to the grid under the feed-in tariff scheme.

Thermal energy is utilized for process heating and cooling application in order to change the chemical and physical properties of the desired material. Heat treatment is utilized for metalworking, industrial, and manufacturing processes. These processes require extreme cooling and heating in order to harden or soften the desired material. Various types of process include quenching, normalizing, tempering, strengthening, precipitation, case hardening, and annealing.

Regional Insights: Global Thermal Energy Storage Market

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.
North America accounted for the second largest revenue share in 2019 owing to reduction in requirement for more extensive generation equipment during peak hour demand. Positive outlook towards renewable based power generation, along with increasing research and development activities aimed at energy storage systems, will augment the U.S. market growth.

The market in the Asia Pacific is anticipated to expand at the highest CAGR of 13.2% over the forecast period. Developing nations such as China, India, South Korea, Japan, Indonesia, and Malaysia are witnessing rapid growth in urbanization and population. These developing nations have many unreliable power grids and fundamental infrastructure systems. This factor is expected to compel industry participants to invest in these nations, and thus boost the growth of installations of thermal energy storage and distribution grids.

Key Companies & Market Share Insights: Global Thermal Energy Storage Market

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:

Key companies Profiled: Global Thermal Energy Storage Market Report

 	
BrightSource Energy Inc.
 	
SolarReserve LLC
 	
 Abengoa SA
 	
Terrafore Technologies LLC
 	
Baltimore Aircoil Company;
 	
Ice Energy
 	
Caldwell Energy
 	
Cryogel; Steffes Corporation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global thermal energy storage market report on the basis of product type, technology, storage material, application, end user, and region:

Product Type Outlook (Revenue, USD Million, 2016 - 2027)

 	
Sensible Heat Storage
 	
Latent Heat Storage
 	
Thermochemical Heat Storage

Technology Outlook (Revenue, USD Million, 2016 - 2027)

 	
Molten Salt Technology
 	
Electric Thermal Storage Heaters
 	
Solar Energy Storage
 	
Ice-based Technology
 	
Miscibility Gap Alloy Technology

Storage Material Outlook (Revenue, USD Million, 2016 - 2027)

 	
Molten Salt
 	
Phase Change Material
 	
Water

Application Outlook (Revenue, USD Million, 2016 - 2027)

 	
Process Heating & Cooling
 	
District Heating & Cooling
 	
Power Generation
 	
Ice storage air-conditioning
 	
Others

End-user Outlook (Revenue, USD Million, 2016 - 2027)

 	
Industrial
 	
Utilities
 	
Residential & Commercial