The TES market's competitive landscape is dynamic and evolving swiftly. While established players command a substantial share, new entrants disrupt the market with innovative technologies and adaptable business models.
*Disclaimer: List of key companies in no particular order
The Thermal Energy Storage (TES) market is undergoing a surge in interest, attributed to its potential in addressing challenges such as volatile renewable energy sources, burgeoning energy demand, and managing peak grid loads. This has set the stage for a competitive landscape where both established entities and emerging startups vie for market dominance.Key Players and Their Strategies:Caledonian MacBrayne (UK)DN Tanks (US)Ice Energy (US)Steffes Corporation (US)Burns & McDonnell (US)FAFCO, Inc (US)Abengoa Solar (Spain)Brightsource Energy, Inc. (US)Solarreserve, LLC (US)Baltimore Aircoil Company (US)Calmac (UK)Cristopia Energy Systems (India), among others, are key players in the TES market.These industry leaders deploy diverse strategies to carve a competitive edge, including:Technological Innovation: Companies invest substantially in research and development to craft efficient and cost-effective TES technologies. This includes advancements in materials, designs, and control systems.Geographic Expansion: Established entities expand their global footprint by venturing into new markets and forging strategic partnerships with local businesses.Mergers & Acquisitions: Market consolidation is anticipated, with larger players acquiring smaller firms possessing niche technologies or expertise.Vertical Integration: Some companies vertically integrate their operations to gain better control over the entire supply chain, ensuring quality and cost control.Focus on Specific Applications: Many players concentrate on specific applications where TES provides significant benefits, such as solar thermal power generation, district heating and cooling, and optimizing industrial processes.Factors Influencing Market Share Analysis:Several factors impact a company's market share in the TES market, encompassing:Product Portfolio: The breadth and depth of a company's product offerings, spanning various technologies and capacities, cater to diverse customer requirements.Technological Differentiation: Providing unique and innovative technologies that offer superior performance or cost advantages can grant a competitive edge.Brand Reputation and Customer Relationships: A robust brand image, an established client base, and favorable customer relations contribute to higher market share.Geographical Presence: A global presence allows companies to explore new markets and seize regional growth opportunities.Financial Strength and Investment Capacity: Strong financial resources enable firms to invest in R&D, marketing, and expansion, thereby enhancing their market share.Emerging Trends and New Entrants:The TES market observes several new and emergent trends:Modular TES Systems: Smaller, pre-fabricated units that offer greater flexibility and scalability, suitable for smaller applications and distributed energy systems.Hybrid TES Systems: Combining different TES technologies to improve overall system performance and efficiency, catering to a broader range of application needs.Digitalization and Smart Control Systems: Implementing data analytics and artificial intelligence (AI) in TES systems to optimize performance, minimize energy losses, and enhance predictive maintenance.Focus on Sustainability: Increasing emphasis on sustainable TES solutions that support renewable energy integration and reduce carbon emissions.Numerous startups are entering the market with innovative TES technologies and disruptive business models, challenging established players by offering more cost-effective solutions, targeting niche applications, and leveraging digital technologies for enhanced efficiency and customer experience.Overall Competitive Scenario:The TES market's competitive landscape is dynamic and evolving swiftly. While established players command a substantial share, new entrants disrupt the market with innovative technologies and adaptable business models. The market is poised for further consolidation through mergers and acquisitions, as larger entities seek access to new technologies and expand their market outreach. The future success of companies in this landscape will depend on their continuous innovation, adoption of new technologies, provision of tailored solutions, and responsiveness to evolving customer demands. Additionally, companies emphasizing sustainability and contributing to the advancement of clean energy solutions stand to achieve greater success in the long run.Industry Developments and Latest Updates:Caledonian MacBrayne (UK):- October 26, 2023: Announced a partnership with Aquatera Thermal Systems to explore integrating TES into ferry operations for cleaner and more efficient energy utilization. (Source: Caledonian MacBrayne website)DN Tanks (US):- September 12, 2023: Secured a contract to supply a 500,000-gallon ice storage system for a data center in California. (Source: DN Tanks press release)Ice Energy (US):- November 15, 2023: Featured in Energy Magazine for its innovative ice-based TES technology and its contributions to grid resilience. (Source: Energy Magazine website)Steffes Corporation (US):- December 5, 2023: Partnered with a leading utility company to install a large-scale TES system for grid peak shaving and renewable energy integration. (Source: Steffes Corporation press release)
The thermal energy storage industry is projected to grow from USD 29.47 Billion in 2022 to USD 67.22 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 12.50% during the forecast period (2022 - 2030). The Thermal Energy Storage Market size was valued at USD 26.2 billion in 2021. Rising demand for thermal energy storage to supplement ever-increasing solar energy generation and rise in environmental concerns regarding the increase in carbon emissions are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The deployment of decentralized renewable thermal energy storage is powering a disrupting transformation of the energy sector. The speedy growth of decentralized renewable energy technologies is likely to change the structure of the energy sector towards a multi-operator set-up in which large utilities interact with captive consumers and mini-utilities. Renewable energy distributed through the grid and mini-grids and off-grid installations has provided power to 30% of the people who have gained access to electricity since 2000. To achieve a 100% electrification rate by 2030, decentralized renewable thermal energy storage share will need to increase significantly. For over 70% of those who gain access in rural areas, decentralized systems based on renewable energy will be the most cost-effective solution.
Further, governments, associations, and universities across the globe are taking several steps to invest actively in R&D to come up with creative storage mediums which have a low or zero effect on the environment. The growing government initiatives coupled with technological advancement initiatives adopted by various vendors are anticipated to boost the thermal energy storage market CAGR over the forecast period.
Additionally, renewable power generation and thermal energy storage have emerged as major alternatives to fossil fuels, thus reducing the dependency on them. This, in turn, has resulted in a viable solution for countries worldwide to opt for them to meet their carbon reduction targets and switch towards cleaner energy technologies. The rise in the deployment of renewable energy in the last decade has been noticed on account of these methods.
However, renewable energy sources, including solar and wind, have intermittent supplies. To counter the intermittency nature of large-scale renewable deployment, thermal energy storage systems provide a viable solution as they can be integrated with CSP projects to boost the thermal energy storage market revenue positively.
The Thermal Energy Storage Market segmentation, based on technology, includes sensible heat storage, latent heat storage, and thermochemical storage. The sensible heat storage segment held the majority share in 2021 of the Thermal Energy Storage Market revenue. This can be attributed to the rising demand for solar thermal energy storage and their applicability across large-scale HVAC systems. However, thermochemical storage is the fastest-growing category over the forecast period. In this storage, the heat stored by various mediums is released when a reverse reaction occurs between them. This type of heat storage is preferable for the long-term repository as losses do not occur over time but only during the charging and discharging phases.
The Thermal Energy Storage Market segmentation, based on storage material, includes water, molten salt, phase change material, and others. The molten salt segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to its high technological efficiency and usage in various solar energy projects. Molten salt is utilized to store the heat collected using solar troughs and solar towers. However, phase change material is the fastest-growing category due to the global energy-saving and sustainable development trend.
November 2022: Hyme Energy ApS announced that the company is partnering with Bornholms Energi & Forsyning (BEOF) to construct its first molten salt thermal energy storage storehouse demonstrator on the Danish island of Bornholm. The storage structure is designed for completion in 2024 and will have an accommodation of 1 MW/20 MWh. It will deliver heat, power, and ancillary services to the local network.
The Thermal Energy Storage Market data has been bifurcated by end users into commercial & industrial, utilities, and residential. The commercial and industrial segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Rising infrastructure development and establishment spending will propel the demand for HVAC systems. Hence, the growing adoption of these systems across several industries using large quantities of hot water for economic purposes positively impacts market growth. However, residential is the fastest-growing category over the forecast period. Thermal energy storage plants are used to generate electrical energy to suffice the energy demand of the residential sectors.
Figure 2: Thermal Energy Storage Market by End User, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe thermal energy storage market accounted for USD 11.58 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. The region is characterized by many thermal energy storage systems, which are used for space heating, water heating, district heating and cooling, and power generation. Further, the Germany thermal energy storage market held the largest market share, and the UK thermal energy storage market was the fastest-growing market in the European region.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Thermal Energy Storage Market Share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America thermal energy storage market accounts for the second-largest market share owing to a reduction in the requirement for more extensive generation equipment during peak hour demand. Further, the US thermal energy storage market held the largest market share, and the Canada thermal energy storage market was the fastest-growing market in the North America region.
The Asia-Pacific thermal energy storage market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the rapid development of renewable energy sources and rising investments in environmentally friendly cooling technology are the main factors fueling regional progress. Moreover, China thermal energy storage market held the largest market share, and the India thermal energy storage market was the fastest-growing market in the Asia-Pacific region.
Major market players are spending a lot of money on R&D to increase their product lines, which will support the thermal energy storage market to grow even more. Market participants are also taking a range of strategic initiatives to grow their footprint globally, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the thermal energy storage industry must offer cost-effective items to expand and survive in an increasingly competitive and growing market environment.
One of the primary business strategies manufacturers adopt in the global heat storage system industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In the thermal energy storage market, major players such as Medtronic Inc (Ireland), Abbott Laboratories (US), Stryker Corporation (US), and others are working on expanding the market demand by investing in research and development activities.
Seaborg Technologies is a private Danish startup. It is developing small molten salt reactors. Founded in 2015 and established in Copenhagen, Denmark, Seaborg emerged as a small team of chemists, physicists, and engineers with educational roots at the Niels Bohr Institute, CERN, ESS and DTU who share a common vision of safe, sustainable and cheap nuclear power. Seaborg Technologies is called after the American nuclear chemist and Nobel laureate Glenn T. Seaborg. In December 2021, Seaborg Technologies declared that it had developed a sodium hydroxide-based molten salt storage method that was more efficient. The compound uses less salt because it can store more heat per salt unit and is hence more effective at storing energy. It costs around 90% less than the other salts employed in the business.
Also, McDermott International is a company that provides engineering, procurement, construction, installation, and technology solutions to the energy industry. It operates through five segments: NCSA, EARC, MENA, APAC, and Technology. It specializes in petrochemical, refining, gasification, and gas processing technologies. The company provides EPC services for the LNG industry, including liquefaction plants, regasification terminals, peak shaving facilities, storage tanks, and FLNG topsides. In October 2022, McDermott signed a deal for front-end engineering design for Hydrostor Incorporated for the Silver City Thermal Energy Storage project encountered in Broken Hill, New South Wales, Australia.
August 2021: A new prototype technology for thermal energy storage was introduced by researchers at the National Renewable Energy Laboratory, US. This system uses silica sand as the storage medium. The cost-effective storage medium is a new technology that can be installed in small modular structures in many nations to supply heat and electricity
Thermal Energy Storage Market Highlights:
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