ID: MRFR/E&P/1772-HCR | August 2022 | Region: Global | 132 pages
Impact of COVID-19 on the Global Thermal Energy Storage Market
The COVID-19 pandemic has reduced the profitability of businesses across all the industries. Various regions, including many European countries, have been heavily impacted, recording all-time low electricity prices in the first quarter of FY’2020. Moreover, due to the severity of this virus, industries are forced to concentrate only on essential work. This has led to a pause on the thermal energy storage system as this system is used in buildings and industries for cooling and heating purposes. The slowdown in the operations in various industries, including energy & power, metallurgy, chemicals, electronics, shipping, food & beverage, healthcare, and rail transport, has impacted the deployment of thermal energy storage systems, which store thermal energy by heating or cooling a storage medium.
FIGURE: GEOTHERMAL ENERGY, INSTALLED CAPACITY, MW (2015–2019)
Moreover, thermal energy storage is an emerging technology. Hence, manufacturers need field-specific engineers for the erection, procurement, commissioning, and maintenance & overhaul job of thermal energy storage plants. However, the shortage of human resources and expertise due to the ongoing pandemic has hindered the operations of various thermal energy storage projects. Furthermore, the revenue generation for numerous manufacturing companies worldwide has declined due to the reduced demand for manufactured goods. Manufacturing companies across the globe have shut down operations and are facing numerous difficulties in restarting business operations. Some of the common difficulties faced by manufacturing companies across the globe include disruptions in the supply chain, low revenue generation due to low sales, inability to operate at 100% due to social distancing norms, and limited workforce. The decline in demand for manufactured goods and consumer electronics has directly impacted the demand for thermal energy storage systems, which are also out of service. However, as economies are planning to resume business to increase revenue generation gradually, the demand for thermal energy storage systems is expected to resume its average growth rate by early 2021.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Source: Secondary sources