Report Details:
15 Companies Covered
132 Pages
The Thermal Energy Storage Market to grow at a Massive CAGR of 15.2% through 2035 Due to Many Important Features of Thermal Energy Storage
Overview of the Thermal Energy Storage Market
The thermal energy storage market continues to demonstrate strong growth momentum, driven by rising adoption of renewable energy technologies and expanding applications across industrial, commercial, and utility sectors.
According to Market Research Future Analysis, the global thermal energy storage market was valued at USD 267.39 billion in 2024 and is projected to reach USD 1268.25 billion by 2035, reflecting an impressive CAGR of 15.20% from 2025 to 2035.
The increasing need for grid flexibility, coupled with supportive government policies that promote sustainable development, has accelerated the integration of thermal energy storage solutions in both developing and mature markets.
Technologies, such as molten salt storage, water thermal storage, phase change materials, and ice storage, played a pivotal role in enhancing the efficiency of renewable energy systems.
As energy-consuming industries seek reliable and cost-effective storage solutions, thermal storage continues to gain prominence as an essential component of the global energy transition.
Segment Insights
Technology remained central to the evolution of the thermal energy storage market, with the sector projected to reach a valuation of USD 5.15 billion in 2024 and expand significantly to USD 12 billion by 2035.
Molten salt storage held a dominant position, valued at USD 2.07 billion in 2024 and anticipated to rise to USD 4.9 billion by 2035. Its ability to store substantial thermal energy for later use makes it vital for concentrating solar power plants, supporting electricity generation even during non-sunny hours.
Water thermal storage followed closely, valued at USD 1.63 billion in 2024 and projected to reach USD 3.7 billion by 2035. Its wide adoption in heating and cooling applications and strong suitability for industrial and residential efficiency improvements continue to support its rapid growth.
Storage capacity also played a crucial role in market development. Systems below 100 MWh are essential for residential and small-scale installations, while capacities between 100–500 MWh support medium-sized facilities with grid stability benefits.
Larger systems within the 500–1000 MWh range catered to commercial applications requiring extensive load shifting, whereas capacities above 1000 MWh were increasingly preferred for utility-scale projects, enabling significant balancing of supply and demand.
Applications further highlighted the sector’s diverse value. District heating gained traction as regions prioritized centralized heating solutions, while industrial processes adopted thermal storage to reduce peak loads and operational costs.
Concentrated solar power remained a key driver as it relies heavily on thermal storage for energy availability beyond daylight hours. Building heating and cooling systems also contributed significantly, supporting global efforts to enhance energy efficiency in commercial and residential infrastructure.
Material innovations underpinned these advancements, with concrete favored for large-scale heat retention, steel valued for durability and recyclability, natural materials, including phase-change materials, offering sustainability benefits, and composite materials gaining momentum for their versatility and enhanced thermal performance.
Together, these material categories reinforce the market’s transition toward high-efficiency, low-carbon energy solutions.
Regional Insights
North America led with a valuation of USD 1.55 billion in 2024, expected to reach USD 3.55 billion by 2035, reflecting strong policy support for clean energy transition and grid modernization. Europe followed with USD 1.35 billion in 2024, projected to reach USD 3.1 billion by 2035, driven by district heating expansion and decarbonization initiatives.
The Asia-Pacific region stood out with high growth potential, expanding from USD 1.5 billion in 2024 to USD 2.85 billion by 2035 as regional governments increase investments in renewable integration.
South America and the Middle East & Africa, though smaller in scale, showed expanding opportunities as their energy systems modernize and industrial applications diversify.
Key Players
Key companies operating in the Thermal Energy Storage Market include Tessera Solar, UTC Power, Bell and Gossett, Toshiba Energy Systems, Abengoa, CPS Energy, Steag Energy Services, EnergyNest, Hitecprod, GreenFire Energy, MHI Thermal Systems, Magma Energy, and Storfinity.
These companies continue to strengthen their capabilities through technological advancements, strategic partnerships, and project expansions aimed at meeting rising demand for efficient and scalable storage solutions.
Industry Developments
- In March 2025, Brenmiller Energy expanded operations at its thermal-energy gigafactory, increasing bGen™ production capacity and advancing its global commercial pipeline.
- In October 2024, EnergyNest signed an agreement to supply thermal energy storage systems to Yara, supporting decarbonization of ammonia production processes.
- In November 2024, ENGIE accelerated energy-storage deployments following the integration of Broad Reach Power assets, bolstering its position in grid support and large-scale storage solutions.
Key Findings
- The global thermal energy storage market is projected to grow from USD 267.39 billion in 2024 to USD 1268.25 billion by 2035.
- Molten salt storage and water thermal storage remained the fastest-expanding technology categories.
- North America, Europe, and Asia-Pacific represented the most influential regional markets.
- District heating, industrial processes, and concentrated solar power led application growth.
- Advancements in thermal materials and the integration of renewable energy continue to drive market expansion.