India Thermal Energy Storage Market

India Thermal Energy Storage Market Overview:

As per MRFR analysis, the India Thermal Energy Storage Market Size was estimated at 285.6 (USD Million) in 2024.The India Thermal Energy Storage Market Industry is expected to grow from 309(USD Million) in 2024 to 840 (USD Million) by 2035. The India Thermal Energy Storage Market CAGR (growth rate) is expected to be around 9.518% during the forecast period (2025 - 2035).

Key India Thermal Energy Storage Market Trends Highlighted

The India Thermal Energy Storage Market is witnessing significant trends driven by the country’s commitment to renewable energy and its efforts to reduce carbon emissions. Key market drivers include government initiatives promoting sustainable energy solutions. The Indian government has set ambitious renewable energy targets, including a substantial increase in solar and wind energy, which necessitates the integration of energy storage systems to ensure reliability and efficiency. There are notable opportunities to be captured in the thermal energy storage segment, particularly in industrial sectors, where energy management is essential for operational costs.As industries look to optimize energy use, adopting thermal storage systems can provide a feasible solution to balance peaks in energy demand. Furthermore, the rising adoption of concentrated solar power (CSP) technologies offers a fertile ground for thermal storage applications, enabling energy to be stored and used during non-productive hours. Trends in recent times reveal an increasing collaboration between private and public sectors aiming to innovate and improve thermal storage technologies. Local manufacturers are focusing on developing cost-effective solutions, enhancing storage efficiency, and extending the lifespan of thermal energy systems.Additionally, there is a growing interest in policy frameworks that support the deployment of thermal storage, providing a conducive environment for investments. As urbanization continues to expand, cities are looking at thermal energy storage systems to meet growing energy demands sustainably. Overall, the thermal energy storage market in India is evolving rapidly, reflecting both local needs and global sustainability goals.

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

India Thermal Energy Storage Market Drivers

Growing Demand for Renewable Energy Integration

As India aims to achieve a target of 450 GW of renewable energy by 2030, the integration of thermal energy storage solutions becomes critical to balancing the grid. According to the Ministry of New and Renewable Energy, renewable energy sources contributed approximately 38% of India's total installed power capacity as of 2022. This rapid expansion necessitates robust energy storage solutions to manage intermittent supply effectively, indicating a significant growth opportunity for the India Thermal Energy Storage Market Industry.Established organizations like Tata Power and Adani Green Energy are increasingly investing in thermal energy storage technologies, which aligns with governmental policies promoting sustainable energy solutions.

Government Initiatives and Policy Support

The Indian government has implemented various policies to support the adoption of energy storage technologies. This includes initiatives under the National Energy Storage Mission, which aims to accelerate Research and Development in storage technologies while also exploring funding mechanisms to incentivize the market. According to the Central Electricity Authority, policies promoting energy efficiency and storage solutions could reduce greenhouse gas emissions by up to 30% by 2030.These government backing measures indicate a strong push for the India Thermal Energy Storage Market Industry, validating its future growth prospects.

Surging Energy Demand in India

The demand for electricity in India is projected to increase significantly, with estimates suggesting a growth rate of 5.5% annually over the next decade according to the International Energy Agency. This increase in energy demand requires efficient storage solutions to mitigate the risk of energy shortages, particularly during peak hours. Companies such as L&T and ReNew Power are focusing on developing advanced storage systems to meet this growing demand, illustrating the critical role that the India Thermal Energy Storage Market Industry plays in ensuring energy reliability and security.

Technological Advancements in Storage Solutions

Technological innovations in thermal energy storage systems have led to increased efficiency and reduced costs, making them more attractive for commercial and residential applications. For example, phase change materials have been developed that allow for higher energy density storage, which can significantly improve performance metrics. The collaboration between Indian Institute of Technology (IIT) and private sector firms is accelerating the development of innovative storage technologies.Alongside that, the India Thermal Energy Storage Market Industry perceives better feasibility and growth opportunities accompanying increased technology adoption.

India Thermal Energy Storage Market Segment Insights:

Thermal Energy Storage Market Technology Insights

The Technology segment of the India Thermal Energy Storage Market is witnessing substantial growth, driven by the increasing demand for energy-efficient solutions and the transition to renewable energy sources. This segment encompasses various methods of thermal energy storage, notably including Molten Salt Storage, Water Thermal Storage, Phase Change Materials, and Ice Storage. Molten Salt Storage has emerged as a critical technology due to its ability to store vast amounts of thermal energy at high temperatures, making it particularly advantageous for concentrating solar power plants. The efficiency of this technology enhances the grid's reliability and supports renewable energy integration.Water Thermal Storage is another pivotal method favored for its simplicity and cost-effectiveness, utilizing chilled or heated water to balance energy supply and demand effectively. This technology is widely implemented in district cooling applications, reinforcing its significance in urban areas, particularly in regions like India, where rapid urbanization is taking place and the need for efficient cooling solutions is paramount. Phase Change Materials play an essential role in enhancing energy storage systems' capacity and efficiency by absorbing and releasing thermal energy as it changes phases, which is integral for applications requiring temperature control in industrial processes and building environments.

Ice Storage Systems also contribute significantly to the market, particularly in commercial buildings, where they facilitate energy savings by producing ice at night during off-peak hours to cool spaces during the day. This method not only reduces energy costs but also alleviates strain on the power grid during peak hours, aligning with India's goals for energy sustainability. Collectively, these technologies form the backbone of the India Thermal Energy Storage Market, each contributing unique advantages that cater to diverse applications and help address the energy challenges faced in India's growing economy. The increasing focus on innovation and the resultant development of more efficient thermal energy storage solutions underline the importance of this segment in meeting future energy demands while contributing to environmental sustainability.

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

Thermal Energy Storage Market Storage Capacity Insights

The Storage Capacity segment of the India Thermal Energy Storage Market is a crucial component driving the industry's growth and efficiency. It encompasses various capacities including Less than 100 MWh, 100-500 MWh, 500-1000 MWh, and More than 1000 MWh. Among these, the 100-500 MWh range is gaining significant traction due to its optimal balance between capacity and cost-effectiveness, making it a preferred choice for many commercial applications aiming to enhance energy management. Less than 100 MWh holds importance for smaller utility projects and residential installations, providing localized solutions that meet specific energy demands efficiently.The 500-1000 MWh capacity plays an essential role in larger industrial applications, supporting significant energy storage and ensuring a stable supply during peak usage times. Furthermore, the segment of More than 1000 MWh is emerging as a cornerstone for large-scale renewable energy projects, enabling significant energy storage capabilities that can bridge the gap in supply and demand. As India continues to focus on expanding its renewable energy infrastructure, advancements in thermal energy storage technology will enhance the performance and reliability of these various capacities, fueling the overall expansion of the India Thermal Energy Storage Market.

Thermal Energy Storage Market Application Insights

The Application segment of the India Thermal Energy Storage Market plays a vital role in enhancing energy efficiency across various industries. District Heating systems are increasingly significant as they provide a centralized heating solution, optimizing resource usage in urban areas. Industrial Processes leverage thermal energy storage to balance energy loads, thereby increasing productivity and reducing operational costs. Concentrated Solar Power is becoming prominent, utilizing solar energy to effectively store thermal energy for later use, which is pivotal in enhancing sustainability in energy production.Additionally, the Building Heating and Cooling sector is witnessing advancements in thermal energy storage technology, which helps maintain comfortable indoor temperatures while lowering energy consumption. As India moves towards renewable energy adoption, the importance of these applications within the Thermal Energy Storage Market is set to grow, driven by the government’s focus on sustainable energy policies and climate change mitigation efforts. Overall, this segment not only reflects a growing trend towards energy efficiency but also aligns with India's commitment to reducing carbon emissions and implementing more resilient energy systems.

Thermal Energy Storage Market Material Used Insights

The India Thermal Energy Storage Market, particularly focusing on the Material Used segment, showcases diverse solutions central to the efficiency and sustainability of energy systems. Materials such as Concrete, Steel, Natural Materials, and Composite Materials are vital for optimizing energy storage performance. Concrete, due to its abundance and durability, offers a cost-effective option, becoming a preferred choice in many thermal energy storage applications. Steel, recognized for its structural integrity, plays a crucial role in enhancing the thermal storage systems' design and durability.Natural Materials, including phase change materials, are becoming increasingly relevant due to their eco-friendly properties and sustainability, aligning with India's carbon reduction objectives. Composite Materials provide versatility and enhanced thermal performance, potentially leading to more efficient energy storage solutions. The growth in these materials is driven by the increasing demand for renewable energy sources and energy efficiency, contributing to the overall evolution of the India Thermal Energy Storage Market. Environmental policies, coupled with technological advancements, present significant opportunities for each of these materials, shaping how energy storage systems are implemented and optimized across India.This dynamic landscape reflects the importance of material choice in enhancing the sector's overall effectiveness and sustainability.

India Thermal Energy Storage Market Key Players and Competitive Insights:

The India Thermal Energy Storage Market is emerging as a crucial component in the energy sector, driven by the increasing demand for efficient and sustainable energy solutions. This market landscape is characterized by a mix of established players and emerging startups, each vying to secure their position amidst the growing focus on renewable energy integration and energy management systems. Factors such as government policies promoting the use of clean energy technologies, rising energy costs, and the need for grid stability are propelling the adoption of thermal energy storage solutions. As a result, competition is intensifying, leading companies to innovate and expand their offerings while collaborations and strategic partnerships are being formed to enhance market penetration and technological advancements.Tata Power is a prominent player in the India Thermal Energy Storage Market, showcasing its commitment to sustainable energy practices and innovative solutions. The company's strengths lie in its extensive experience in the energy sector, backed by a solid reputation for reliability and efficiency. Tata Power has a diversified portfolio that includes not only renewable energy sources but also advanced thermal energy storage systems that cater to industrial and commercial needs. Its operational capabilities across various regions of India enable it to offer tailored storage solutions that meet specific customer requirements. Furthermore, Tata Power's focus on research and development underscores its ongoing efforts to improve energy storage technologies, positioning itself as a leader in the market.Havells holds a significant presence in the India Thermal Energy Storage Market, offering a range of products and services designed to enhance energy efficiency. The company's strengths are reflected in its commitment to innovation and quality, with a portfolio that includes advanced thermal storage solutions for both domestic and industrial applications. Havells is well-known for its strategic partnerships and collaborations, which have allowed it to enhance its technological capabilities and market reach. The company's adaptability to market trends and customer needs helps it maintain a competitive edge in the thermal energy storage space. Moreover, Havells' approach to mergers and acquisitions is notable, as it seeks opportunities to expand its footprint within India while reinforcing its commitment to providing effective energy solutions that align with the country's sustainability goals.

Key Companies in the India Thermal Energy Storage Market Include:

Tata Power

Havells

NTPC

Siemens

Godrej

Indian Oil Corporation

Reliance Power

Bharat Heavy Electricals Limited

Gujarat State Electricity Corporation Limited

Schneider Electric

Adani Green Energy

ABB

Thermax

Wartsila

L&T

India Thermal Energy Storage Market Industry Developments

Recent developments in the India Thermal Energy Storage Market indicate significant growth and investment from major players such as Tata Power and NTPC, which are focusing on innovative solutions to enhance energy efficiency and sustainability. In October 2023, Adani Green Energy announced plans to expand its energy storage capacity to support renewable projects, reflecting the growing demand for reliable thermal energy solutions. Additionally, Reliance Power is exploring new technologies in thermal storage to balance grid demand amidst increasing renewable energy integration. There have been notable mergers and acquisitions in the sector, with Siemens acquiring a stake in a storage technology firm in March 2023, aimed at bolstering their offerings in thermal energy solutions. Godrej and Bharat Heavy Electricals Limited are also ramping up their thermal energy storage initiatives, responding to India's ambitious climate goals and energy transition strategy. The Indian Government continues to push for advancements in energy storage technology, seeing it as a critical component in achieving energy security and sustainability goals by 2030. The market dynamics are increasingly influenced by regulatory frameworks and financial incentives aimed at promoting clean energy technologies and improving energy access across the country.

India 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