APAC Thermal Energy Storage Market

APAC Thermal Energy Storage Market Overview:

As per MRFR analysis, the APAC Thermal Energy Storage Market Size was estimated at 1.9 (USD Billion) in 2024.The APAC Thermal Energy Storage Market Industry is expected to grow from 2.06(USD Billion) in 2025 to 5 (USD Billion) by 2035. The APAC Thermal Energy Storage Market CAGR (growth rate) is expected to be around 8.395% during the forecast period (2025 - 2035).

Key APAC Thermal Energy Storage Market Trends Highlighted

The APAC Thermal Energy Storage Market is experiencing significant growth driven by a combination of rising energy demand, renewable energy integration, and government initiatives aimed at enhancing energy efficiency. Many countries in the region, such as China and India, are focusing on increasing their renewable energy capacities. This shift is prompting investments in thermal energy storage solutions to manage the intermittent nature of renewable energy sources like solar and wind. Additionally, the push for smart grid technologies and the adoption of energy management systems are leading to greater deployment of thermal energy storage, as it allows for better load balancing and peak shaving.Opportunities in the APAC Thermal Energy Storage Market are largely focused on urbanization and industrial applications. Rapid urbanization in countries like Indonesia and Vietnam is creating a growing need for energy-efficient solutions to support infrastructure development. Moreover, the industrial sector is increasingly adopting thermal energy storage for process optimization and energy cost savings, which presents a considerable opportunity for market players. With the proliferation of electric vehicles in the region, thermal energy storage can also play a role in charging infrastructure, which is a potential area for innovation and investment.Recent trends indicate that there is a surge in interest toward sustainable and cost-effective energy solutions. APAC governments are offering incentives and subsidies to promote the adoption of thermal energy storage technologies. As more countries set ambitious energy transition goals, the market is likely to witness enhanced collaboration between public and private entities to leverage advancements in material science and technology, helping to drive efficiency and reduce costs in thermal energy storage systems. Overall, the APAC region holds immense potential for the growth of thermal energy storage, supported by a favorable regulatory environment and increasing awareness of energy sustainability.

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

APAC Thermal Energy Storage Market Drivers

Increase in Renewable Energy Generation

The APAC region is witnessing a significant increase in renewable energy generation, particularly solar and wind energy. According to the International Renewable Energy Agency, renewable energy capacity in Asia was expected to surpass 1,000 gigawatts by 2025, driven by government initiatives and investment. Countries like China and India are prioritizing energy independence and sustainability in their energy policies, further boosting the demand for effective thermal energy storage solutions.The APAC Thermal Energy Storage Market Industry takes advantage of this momentum because of the vast importance of energy storage systems in mitigating the intermittency problems of renewable sources. The 14th Five-Year Plan from the government of China provisions aggressive targets for the increasing non-fossil fuel energy utilizations, which encourages further developments in the use of thermal storage technologies.

Government Policies and Incentives

Governments across the APAC region are implementing various policies and incentives to promote energy efficiency and reduce carbon footprint. For instance, the Japanese government has introduced the 'Sustainable Energy Supply Action Plan encouraging the integration of thermal energy storage systems within the energy mix. This strategic initiative aims to reduce greenhouse gas emissions by 26% by 2030. Consequently, support from governmental bodies is anticipated to enhance the adoption of thermal energy storage technologies, leading to sustained market growth in the APAC Thermal Energy Storage Market Industry.

Rising Urbanization and Industrialization

Rapid urbanization and industrialization are transforming the energy landscape in the APAC region. The United Nations reports that over 54% of Asia's population lives in urban areas, a figure projected to reach 64% by 2050. This increase in urban density leads to higher energy demands, prompting cities to adopt efficient energy storage solutions. The APAC Thermal Energy Storage Market Industry is well-positioned to leverage this trend as industries seek to manage energy consumption more effectively and offset peak loads through thermal energy storage.

Technological Advancements in Storage Solutions

The technological advancements in thermal energy storage systems, such as phase change materials and molten salt storage, are contributing to the growth of the APAC Thermal Energy Storage Market Industry. Research institutions across the region are increasingly investing in Research and Development (R&D) for innovative storage solutions. For instance, collaborative projects funded by the Australian Renewable Energy Agency propose novel designs for energy storage systems that improve efficiency and lower costs.As these technologies evolve, they promise improved performance and long-term economic viability, thereby encouraging adoption among energy producers in APAC.

APAC Thermal Energy Storage Market Segment Insights:

Thermal Energy Storage Market Technology Insights

The APAC Thermal Energy Storage Market within the Technology segment is experiencing noteworthy advancements, driven by an increasing demand for renewable energy resources and energy efficiency measures. This segment encompasses various innovative technologies, each contributing uniquely to the overall landscape. Molten Salt Storage stands out due to its high energy capacity and ability to provide extended storage duration, making it a preferred choice for solar thermal power plants. This technology plays a crucial role in enhancing the reliability of solar energy, particularly in regions with fluctuating sunlight.Water Thermal Storage has also emerged as a vital component in balancing energy supply and demand, particularly in urban settings where space is limited. Its capacity to store thermal energy in large volumes allows for efficient heating and cooling applications, which is increasingly relevant as urbanization accelerates across the APAC region. Phase Change Materials (PCMs) present a high thermal storage efficiency, making them advantageous in both residential and industrial applications. These materials transition between solid and liquid states, enabling substantial energy absorption and release, which can lead to enhanced energy savings.Ice Storage technology is gaining traction as a strategic solution for cooling needs, particularly during peak demand times in hot climates. This technology can reduce energy costs and ease the strain on the electrical grid during high consumption periods, showcasing its potential in energy management efforts in densely populated cities. As governments and industries in the APAC region continue optimizing their energy strategies, the integration of these technologies will be pivotal in driving sustainable growth and meeting energy targets. The robust market growth is supported by investments in Research and Development initiatives aimed at improving efficiency and innovative applications of these thermal energy technologies.Furthermore, collaboration among stakeholders to enhance manufacturing and adoption processes stands to bolster the APAC Thermal Energy Storage Market dynamics. Through these developments, the sector reflects a significant opportunity to address climate challenges while also supporting economic growth and energy resilience in the region.

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Thermal Energy Storage Market Storage Capacity Insights

The APAC Thermal Energy Storage Market is experiencing notable growth in the Storage Capacity segment, driven by the increasing demand for efficient energy management solutions across various industries. The market is characterized by four main categories: Less than 100 MWh, 100-500 MWh, 500-1000 MWh, and More than 1000 MWh, each playing an integral role in grid stability and energy conservation. The Less than 100 MWh segment is essential for small-scale applications, often supporting localized renewable energy projects, while the 100-500 MWh category caters to mid-sized enterprises, enhancing their operational efficiency and sustainability efforts.The 500-1000 MWh segment is significant due to its applicability in industrial processes where high energy demands are prevalent, enabling substantial load shifting. Lastly, the More than 1000 MWh category dominates the market, facilitating large-scale energy storage in power plants and aiding utilities with peak shaving and energy balancing. Overall, the segmentation reflects a comprehensive approach to address the diverse energy needs in the APAC region and is further bolstered by government initiatives and investments in renewable energy technologies aimed at improving energy security and reducing carbon emissions.

Thermal Energy Storage Market Application Insights

The Application segment of the APAC Thermal Energy Storage Market presents a diversified landscape that caters to various needs across different industries. District Heating, for instance, plays a crucial role in delivering efficient heating solutions to urban populations, allowing for reduced energy consumption and better resource management. Meanwhile, Industrial Processes utilize thermal energy storage for optimizing production schedules, minimizing energy costs, and enhancing overall efficiency. Concentrated Solar Power systems benefit significantly from thermal storage, enabling them to provide a steady energy supply even when solar generation is not at its peak.Building Heating and Cooling have increasingly turned to thermal energy solutions for maintaining comfortable indoor environments while promoting energy savings and sustainability. As urbanization in the APAC region continues to rise, the importance of these applications grows, aligning with regional goals for carbon reduction and energy efficiency. Overall, the APAC Thermal Energy Storage Market segmentation reflects a strategic adaptation to both current and emerging demands for reliable and sustainable energy solutions.

Thermal Energy Storage Market Material Used Insights

The APAC Thermal Energy Storage Market, particularly focusing on the Material Used segment, showcases diverse options including Concrete, Steel, Natural Materials, and Composite Materials. Each material has a specific role influencing thermal storage systems and their efficiency. Concrete, known for its excellent thermal properties, offers cost-effective solutions and durability in energy storage applications, thus holding a significant position in this market. Steel provides high thermal conductivity and is often utilized in advanced systems to enhance energy storage capabilities.Natural Materials, such as phase change materials, are gaining traction due to their sustainability and environmental benefits, which align with APAC's increasing focus on green energy solutions. Composite Materials combine the strengths of various materials, offering enhanced thermal performance and flexibility for efficient energy storage. As trends evolve, these materials contribute to growing market dynamics, responding to the demand for affordable and efficient energy solutions in the region. The exploration of innovative materials is also expected to drive growth in the APAC Thermal Energy Storage Market, encouraging a shift towards more environmentally friendly storage options that are vital for the future of energy management in densely populated urban areas across APAC.

Thermal Energy Storage Market Regional Insights

The APAC Thermal Energy Storage Market is experiencing substantial growth, driven by increasing energy demands and the shift towards sustainable energy solutions. Within the regional segmentation, China stands out as a key player due to its vast energy consumption and commitment to renewable energy integration. India is also making significant strides, focusing on enhancing its energy storage capabilities to support its burgeoning economy. Japan's growing focus on energy security post-Fukushima emphasizes the need for efficient thermal energy storage systems.South Korea, with its advanced technology landscape, is investing in innovative storage solutions to optimize energy management. Emerging markets like Malaysia and Thailand are gradually adopting thermal storage technologies to address their energy challenges, while Indonesia is harnessing its natural resources to develop efficient energy storage systems. The Rest of APAC segment captures the diverse energy landscape across various nations, each contributing to the overall growth of the APAC Thermal Energy Storage Market. This regional diversity reflects varying energy policies, economic conditions, and technological advancements, creating a dynamic environment for market growth and investment opportunities.

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

APAC Thermal Energy Storage Market Key Players and Competitive Insights:

The APAC Thermal Energy Storage Market is characterized by a diverse range of players, various innovative technologies, and increasing investments aimed at optimizing energy efficiency and promoting sustainability. Companies in this market are leveraging advancements in thermal energy storage systems to address the rising demand for renewable energy, mitigate energy costs, and enhance grid flexibility. The competitive landscape is shaped by the growing importance of thermal storage solutions, particularly in countries with ambitious renewable energy targets. The interplay between local manufacturers and international energy firms creates a dynamic environment where innovation, partnerships, and mergers and acquisitions are crucial for gaining market share and enhancing operational capabilities.Abengoa has established a significant presence in the APAC Thermal Energy Storage Market by focusing on advanced technology and sustainable solutions. The company is recognized for its expertise in concentrating solar power (CSP) and energy storage, providing innovative thermal energy storage systems that integrate seamlessly into renewable energy projects. Abengoa's strength lies in its commitment to research and development, allowing the company to stay at the forefront of technological advancements. Additionally, its strategic collaborations with local stakeholders and governments across various APAC countries have bolstered its market position, enabling effective implementation of thermal storage solutions tailored to regional energy needs. The company's extensive experience in project execution further solidifies its reputation in the market, making it a reliable partner for future energy storage projects.Siemens has also made considerable strides in the APAC Thermal Energy Storage Market through a diverse portfolio of products and services designed to enhance energy efficiency and sustainability. The company offers cutting-edge technologies, including industrial thermal storage solutions and digital energy management systems, which facilitate optimized energy consumption and operational efficiencies. Siemens' strengths in the APAC region are amplified through strategic partnerships, which enhance their ability to deliver integrated energy solutions. The company actively engages in mergers and acquisitions to expand its capabilities and presence, thereby reinforcing its commitment to innovative energy storage solutions. Through their focus on digitalization and automation, Siemens aims to position itself as a key player in the region, driving the transition towards a more sustainable energy future while catering to the unique demands of the APAC market.

Key Companies in the APAC Thermal Energy Storage Market Include:

Abengoa

Siemens

AES Corporation

Vestas

Khan Academy

Navigant Consulting

ENGIE

Honeywell

Johnson Controls

Danfoss

Fluence

Trane

Samsung C&T

JinkoSolar

APAC Thermal Energy Storage Market Industry Developments

The APAC Thermal Energy Storage Market has recently witnessed significant developments, with companies like Siemens and ENGIE actively expanding their operational footprint in the region. These expansions aim to meet rising energy demands and enhance grid stability amid increasing renewable energy integration. In the realm of mergers and acquisitions, AES Corporation announced its strategic acquisition of a thermal storage project in July 2023, bolstering its capabilities in the APAC region. Companies such as Fluence and Honeywell are also focusing on innovations in thermal energy storage technologies to optimize energy management within the grid. The market's growth is further fueled by substantial investments in renewable energy initiatives across countries like China and India, with a reported market valuation increase, reflecting a growing emphasis on sustainability and energy efficiency. Notably, JinkoSolar has gained prominence for its solar technology developments that align with thermal storage solutions, while Vestas continues to enhance its service offerings in the region. Over the past few years, the APAC region’s commitment to reducing carbon emissions has led to favorable policies and substantial funding thermal energy storage projects, emphasizing the increasing reliance on such systems in supporting renewable energy transition.

APAC Thermal Energy Storage Market Segmentation Insights

Thermal Energy Storage Market Technology Outlook

Molten Salt Storage

Water Thermal Storage

Phase Change Materials

Ice Storage

Thermal Energy Storage Market Storage Capacity Outlook

Less than 100 MWh

100-500 MWh

500-1000 MWh

More than 1000 MWh

Thermal Energy Storage Market Application Outlook

District Heating

Industrial Processes

Concentrated Solar Power

Building Heating and Cooling

Thermal Energy Storage Market Material Used Outlook

Concrete

Steel

Natural Materials

Composite Materials

Thermal Energy Storage Market Regional Outlook

China

India

Japan

South Korea

Malaysia

Thailand

Indonesia

Rest of APAC