The global thermal energy storage market was estimated at *** billion U.S. dollars in 2022. It was forecast to grow at a compound annual growth rate (CAGR) of *** percent until 2030, reaching ***** billion dollars that year.

The Thermal Energy Storage Market report segments the industry into Type (Molten Salt, Hot Water, Other Types), Application (Power Generation, Heating, Cooling), Technology (Sensible Heat Storage, Latent Heat Storage, Thermochemical Heat Storage), and Geography (North America, Europe, Asia-Pacific, South America, Middle East and Africa). Five years of historical data and market forecasts are included.

Thermal Energy Storage Market size was valued at USD 4.91 billion in 2021 and is poised to grow from USD 5.37 billion in 2022 to USD 11.07 billion by 2030, at a CAGR of 9.45% during the forecast period (2023-2030).

The North America Thermal Energy Storage Market is segmented by Type (Molten Salt, Chilled Water, Heat, Ice, and Others), Application (Power Generation and Heating & Cooling), Technology (Sensible Heat Storage, Latent Heat Storage, and Thermochemical Heat Storage), and Geography (US, Canada, and Rest of North America)

United States thermal energy storage market size is projected to exhibit a growth rate (CAGR) of 12.83% during 2025-2033. The increasing adoption of sustainable energy solutions, the escalating need for grid stability, the implementation of government incentives and policies, rising environmental awareness, rapid technological advancements, the expansion of the electric vehicle market, rising energy costs, and the surging demand to reduce carbon emissions are propelling the market growth.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on storage type, technology, material type, application, and end use.

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Thermal Energy Storage Market Size 2024-2028

The thermal energy storage market size is forecast to increase by USD 2.88 billion at a CAGR of 9.61% between 2023 and 2028.

The market is experiencing significant growth due to several key factors. One of the primary drivers is the increasing demand for Concentrated Solar Power (CSP) technology, which relies on thermal energy storage for efficient energy generation. Another trend influencing market growth is the growing demand for renewable energy sources as countries aim to reduce their carbon footprint and transition towards sustainable energy. The market experiences increasing demand for renewable energy sources, driven by factors such as their growing utilization in smart cities and smart buildings, as well as shifts in the energy mix. With the rise of renewable energy and its integration into urban infrastructure, the market anticipates continued growth opportunities, aligning with the global push towards cleaner and more sustainable energy solutions.
Additionally, it is gaining popularity as an alternate energy storage solution due to its high efficiency rate and ability to provide consistent power output. These factors are expected to fuel market growth and create new opportunities for market participants in the coming years. Furthermore, it is a promising solution for grid stability and reliability, making it an attractive option for utilities and power grid operators. Overall, the market is poised for growth as the world shifts towards renewable energy sources and seeks efficient and reliable energy storage solutions.

What will be the Size of the Thermal Energy Storage Market During the Forecast Period?

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The market is experiencing significant growth due to the increasing demand for infrastructure resilience, security, and cost reduction. With the global transition towards renewable energy sources and the integration of smart grids, these systems have become essential for grid stability and efficiency improvements. The lifecycle cost of these systems, including their ability to provide peak load shaving and grid reliability, makes them an attractive solution for climate change mitigation and carbon emissions reduction.
Sustainability and environmental impact are key drivers in the market, with innovation in the technologies focusing on building management systems, renewable integration, and green building technologies. Policies and regulations are also playing a crucial role In the deployment of thermal energy storage infrastructure development. The systems offer independence from traditional power sources, contributing to sustainable development and grid modernization. The market's size and direction are influenced by the adoption of these systems in various thermal applications, such as solar power, and the reliability they provide in reducing greenhouse gas emissions. Overall, the market is an essential component In the transition towards a more sustainable and efficient energy future.

How is this Thermal Energy Storage Industry segmented and which is the largest segment?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Technology

  Molten salt energy storage
  Phase change material


End-user

  Industrial
  Residential and commercial
  Utilities


Geography

  Europe

    Germany
    UK


  North America

    US


  APAC

    China
    Japan


  Middle East and Africa



  South America

By Technology Insights

The molten salt energy storage segment is estimated to witness significant growth during the forecast period. The molten salt thermal energy storage segment dominates the global market due to its extensive application in large-scale solar power projects, particularly concentrated solar power (CSP), enabling continuous electricity generation. In CSP systems, molten salt mixtures, such as sodium nitrate and potassium nitrate, are employed In the receiving tower to store energy. Upon absorption of solar heat from mirrors, the salt mixture reaches temperatures up to 1022 degrees Fahrenheit (550 degrees Celsius), causing it to melt.
The molten salt subsequently flows down the tower, either for immediate electricity production or storage in tanks for later use. This technology's popularity stems from its high energy density, compatibility with district heating and cooling systems, and ability to reduce carbon emissions from conventional fuels in power generation. This, coupled with its eco-friendly nature, aligns with the increasing demand for clean energy technologies, driving market growth. Technological advancements in MSES, such as improvements in safety, efficiency, and cost-effectiveness, have further boosted its market growth. Gov

Thermal Energy Storage (TES) Market size was valued at USD 239.91 Million in 2024 and is projected to reach USD 728.8 Million by 2031, growing at a CAGR of 14.9% from 2024 to 2031.The Thermal Energy Storage (TES) market is primarily driven by the growing demand for renewable energy integration and energy efficiency. As renewable sources like solar and wind generate intermittent energy, TES systems provide a reliable solution to store surplus energy and release it when needed, thus balancing the supply-demand gap. This is particularly critical for utility providers and industries seeking to reduce greenhouse gas emissions while maintaining energy consistency.Additionally, advancements in TES technologies, including molten salt, ice, and phase-change materials, are enhancing energy storage efficiency, driving adoption across sectors like commercial buildings, district heating, and power plants. Government incentives for sustainable energy projects and stringent environmental regulations also contribute to the expansion of the TES market, as organizations prioritize reducing reliance on fossil fuels.

Thermal Energy Storage Market Outlook

According to our latest research, the global thermal energy storage market size reached USD 6.8 billion in 2024, driven by rising demand for renewable energy integration and grid flexibility. The market is projected to expand at a robust CAGR of 10.7% between 2025 and 2033, reaching a forecasted value of USD 17.1 billion by the end of the period. This impressive growth trajectory is primarily fueled by increasing investments in sustainable energy infrastructure, government incentives for clean energy, and the urgent need to decarbonize heating and cooling sectors globally.

One of the primary growth factors for the thermal energy storage market is the accelerating adoption of renewable energy sources such as solar and wind, which are inherently intermittent. Thermal energy storage systems play a critical role in balancing supply and demand by storing excess energy during periods of low demand and releasing it when needed. This capability is especially valuable for grid operators seeking to maintain stability and reliability in the face of fluctuating renewable generation. Additionally, the push for energy efficiency in industrial processes and building operations has further amplified the need for advanced storage solutions, as they enable the capture and reuse of waste heat, thereby reducing overall energy consumption and greenhouse gas emissions.

Another significant driver is the growing emphasis on decarbonizing urban infrastructure, particularly in heating and cooling applications. District heating and cooling systems, which serve large urban populations, benefit immensely from thermal energy storage technologies by enabling the integration of renewable heat sources and optimizing energy distribution. Governments across Europe, Asia Pacific, and North America are implementing stringent regulations and offering financial incentives to promote the adoption of clean heating and cooling solutions. This policy landscape, combined with technological advancements in storage materials and system design, is propelling the market forward at a rapid pace.

Furthermore, advancements in storage materials and system integration are enhancing the cost-effectiveness and scalability of thermal energy storage solutions. Innovations such as high-performance phase change materials, improved molten salt formulations, and advanced thermochemical storage systems are expanding the range of applications and improving round-trip efficiency. These technological breakthroughs are attracting investments from both public and private sectors, fostering a competitive ecosystem and accelerating commercialization. As a result, the thermal energy storage market is poised to play a pivotal role in the global transition to a low-carbon energy system.

Regionally, Europe leads the adoption of thermal energy storage technologies, driven by ambitious climate targets and extensive district heating networks. The Asia Pacific region is rapidly emerging as a key growth market, supported by large-scale renewable energy projects and urbanization trends. North America, while mature in certain segments, continues to witness strong demand from industrial and commercial end-users seeking to enhance energy resilience and sustainability. Together, these regions account for the majority of global market revenues, with Latin America and the Middle East & Africa showing increasing potential as policy frameworks evolve and energy transition initiatives gain momentum.

Technology Analysis

The thermal energy storage market is segmented by technology into sensible heat storage, latent heat storage, and thermochemical storage, each offering unique advantages and applications. Sensible heat storage, which relies on temperature changes in storage media such as water or rocks, remains the most widely deployed technology due to its simplicity, reliability, and cost-effectiveness. This technology is especially prevalent in large-scale district heating and solar thermal power plants, where it enables efficient storage and retrieval of thermal energy ov

The global Thermal Energy Storage Market growth is expected to register a CAGR of 7%. Find out the latest trends and insights on the Thermal Energy Storage Market. Our analysis provides valuable information on the market size, key players, and growth opportunities.

The global thermal energy storage market size reached USD 7.5 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 15.5 Billion by 2033, exhibiting a growth rate (CAGR) of 8.4% during 2025-2033.

Thermal Energy Storage Market is projected to reach USD 57.7 Billion by 2034, with a 6.9% CAGR from 2025 to 2034.

Thermal Energy Storage Market size is growing with a CAGR of 10.3% in the prediction period & it crosses USD 12.39 Bn by 2032, from USD 6.24 Bn in 2025.

Molten Salt Thermal Energy Storage Market size was valued at USD 8.17 Billion in 2024 and is projected to reach USD 23.1 Billion by 2031, growing at a CAGR of 15.30% during the forecast period 2024-2031.

Global Molten Salt Thermal Energy Storage Market Drivers

The market drivers for the Molten Salt Thermal Energy Storage Market can be influenced by various factors. These may include:

High Initial Investment: The high initial costs associated with molten salt thermal energy storage systems may deter potential investors or project developers. Technical Challenges: Technical issues with the design, construction, and maintenance of molten salt storage systems could impede the market's growth. Limited Awareness and Education: Lack of knowledge about the benefits and potential applications of molten salt thermal energy storage systems by consumers and businesses may hinder market adoption. Regulatory Constraints: Because of regulatory roadblocks like permission processes or compliance requirements, project implementation may be delayed or operating costs may increase. Competition from Other Energy Storage Technologies: Lithium-ion batteries and pumped hydro storage are two examples of energy storage technologies that could pose a threat to the commercial adoption of molten salt thermal energy storage. Supply Chain Issues: One type of supply chain issue that can impede market expansion is a problem with the parts or raw materials required for molten salt storage systems. Geopolitical Factors: When trade disputes or geopolitical instability affect the regions where components for molten salt are produced or where projects are carried out, supply chains and project timelines may be thrown off. Limited Scalability: Molten salt thermal energy storage systems may not be as scalable as other energy storage technologies, which limits their suitability for certain markets or uses. Perception of Risk: Concerns regarding the purported hazards of molten salt technology, such as potential leaks or environmental consequences, may deter certain investors or project developers. Industry participants, policymakers, and research organisations must collaborate to address these limitations in order to surmount technological, financial, and regulatory barriers and encourage the widespread application of molten salt thermal energy storage systems.

Global Thermal Energy Storage Market is anticipated to experience remarkable expansion, with a projected Compound Annual Growth Rate (CAGR) of 10.66% from 2025 to 2033. According to the market analysis, the market size is forecasted to reach USD 13.75 Billion by the end of 2033, up from USD 5.53 Billion in 2024.

The Global Thermal Energy Storage market size to cross USD 13.75 Billion by 2033. [ht

Thermal Energy Storage Market Outlook

According to our latest research, the global thermal energy storage market size reached USD 6.8 billion in 2024, demonstrating robust momentum driven by increasing demand for renewable integration and energy efficiency. The market is projected to expand at a CAGR of 9.4% over the forecast period, reaching USD 15.1 billion by 2033. This significant growth is underpinned by the urgent need to decarbonize energy systems, advancements in storage technologies, and supportive policy frameworks worldwide.

One of the primary growth drivers for the thermal energy storage market is the accelerating deployment of renewable energy sources, particularly solar and wind, which are inherently intermittent. Thermal energy storage systems provide a crucial solution by storing excess energy during periods of low demand and releasing it when needed, thereby stabilizing grid operations and enhancing the reliability of renewable energy. Governments and utilities are increasingly investing in large-scale thermal storage projects to improve grid flexibility and reduce reliance on fossil fuels. Furthermore, the growing adoption of district heating and cooling systems in urban areas is boosting the demand for thermal energy storage, as these systems require efficient and scalable energy management solutions to meet fluctuating demand patterns.

Another significant factor propelling market growth is the rapid technological advancements in storage materials and system design. Innovations in phase change materials (PCMs), molten salts, and thermochemical storage methods are increasing the efficiency, capacity, and lifespan of thermal energy storage systems. These advancements are making it more feasible for industrial, commercial, and residential end-users to adopt thermal storage solutions for process heating, cooling, and power generation. Additionally, the declining costs of advanced storage materials and the integration of smart control systems are further enhancing the economic viability and operational efficiency of these solutions, encouraging broader adoption across various sectors.

The increasing focus on sustainability and stringent regulations aimed at reducing greenhouse gas emissions are also pivotal in shaping the growth trajectory of the thermal energy storage market. Industries and commercial entities are under growing pressure to minimize their carbon footprint, and thermal energy storage offers a practical pathway to achieve energy savings and emission reductions. Financial incentives, tax credits, and subsidies provided by governments in regions such as Europe and North America are accelerating the deployment of these technologies. Moreover, the emergence of energy-as-a-service business models is enabling more organizations to implement thermal storage without significant upfront capital expenditure, further fueling market expansion.

Regionally, Europe currently leads the global thermal energy storage market, driven by ambitious renewable energy targets and widespread adoption of district heating and cooling networks. North America follows closely, with significant investments in utility-scale storage projects and increasing integration of renewable energy. The Asia Pacific region is expected to witness the highest growth rate over the forecast period, propelled by rapid urbanization, industrialization, and supportive government policies in countries such as China, India, and Japan. Latin America and the Middle East & Africa are also emerging as promising markets, albeit at a relatively nascent stage, as they ramp up efforts to modernize their energy infrastructure and enhance energy security.

Technology Analysis

The technology segment of the thermal energy storage market encompasses three primary categories: sensible heat storage, latent heat storage, and thermochemical storage. Sensible heat storage, which involves storing energy by raising the temperature of a solid or liquid, remains the most widely adopted technology due to its simplicity, cost-effectiveness, and proven track record. Materials such as water and rocks are commonly used in these systems, making them particularly suitable for district heating and large-scale applications. However, the efficiency of sensible heat storage is generally lower compared to more advanced alternatives, which is driving research and development efforts aimed at improving system performance and reducing thermal losses.

The global thermal energy storage market size was valued USD 6.40 billion in 2023 and is expected to rise to USD 14.45 billion by 2032 at a CAGR of 9.47%.

The global thermal energy storage market increased from USD 4,281.6 million in 2019 and is anticipated to reach around USD 8558.34 million by 2026, at a CAGR of 10.4%.

Molten Salt Thermal Energy Storage Market is projected to reach USD 7.3 Billion by 2034, with a 9.0% CAGR from 2025 to 2034.

The global thermal energy storage market size was around USD 32.93 billion in 2024 and is likely to expand at a CAGR of more than 8.1%, surpassing USD 90.64 billion revenue by 2037. Commercial & Industrial End-user segment is projected to secure largest share by 2037, driven by increasing demand for energy in both industrial and commercial sectors, with global power demand growing by 3% since 2000.

Underground Thermal Energy Storage Market Outlook

As per our latest research, the global underground thermal energy storage (UTES) market size reached USD 1.46 billion in 2024, reflecting a strong momentum driven by the global transition toward sustainable energy solutions. The market is expected to expand at a robust CAGR of 8.2% from 2025 to 2033, reaching a projected value of USD 2.95 billion by 2033. The primary growth factor propelling the UTES market is the increasing demand for efficient, large-scale, and environmentally friendly energy storage solutions that support decarbonization and grid stability in both developed and emerging economies.

One of the most significant growth drivers for the underground thermal energy storage market is the global emphasis on renewable energy integration and energy efficiency. As nations strive to meet their climate commitments, there is an urgent need to balance the intermittent supply of renewables such as solar and wind with consistent energy availability. UTES systems, particularly borehole and aquifer-based storage, play a critical role by storing excess thermal energy during periods of low demand and releasing it when needed, thereby enhancing grid reliability and reducing dependence on fossil fuels. Furthermore, government incentives, regulatory mandates, and international agreements aimed at reducing greenhouse gas emissions are accelerating the adoption of UTES technologies across multiple sectors.

Urbanization and the rapid expansion of district heating and cooling networks in metropolitan areas are also fueling the growth of the underground thermal energy storage market. As cities become more densely populated, the need for sustainable district energy systems that can efficiently manage seasonal temperature fluctuations is becoming increasingly apparent. UTES solutions are being integrated into new and existing urban infrastructure projects to optimize energy use, lower operational costs, and minimize environmental impact. This trend is particularly pronounced in Europe and parts of Asia, where policy frameworks and funding mechanisms are actively supporting the deployment of advanced thermal energy storage solutions.

Technological advancements and ongoing research are further enhancing the performance, scalability, and cost-effectiveness of underground thermal energy storage systems. Innovations in drilling techniques, thermal insulation, and monitoring technologies are reducing installation and maintenance costs, making UTES more accessible to a broader range of end-users. Additionally, the development of hybrid systems that combine UTES with other renewable energy sources, such as geothermal and solar thermal, is expanding the application landscape and opening new avenues for market growth. Industry collaborations, pilot projects, and demonstration plants are also playing a pivotal role in raising awareness and building confidence among stakeholders.

Regionally, Europe continues to lead the underground thermal energy storage market, accounting for the largest share in 2024, followed by North America and Asia Pacific. The dominance of Europe is attributed to its mature district heating networks, progressive energy policies, and substantial investments in sustainable infrastructure. North America is witnessing significant growth due to increasing investments in smart grid technologies and the modernization of aging energy infrastructure. Meanwhile, the Asia Pacific region is poised for rapid expansion, driven by urbanization, industrialization, and supportive government policies in countries like China, Japan, and South Korea. These regional dynamics are shaping the competitive landscape and influencing the strategic direction of market participants.

Technology Analysis

The underground thermal energy storage market is segmented by technology into borehole thermal energy storage (BTES), aquifer thermal energy storage (ATES), cavern thermal energy storage (CTES), and others. Borehole thermal energy storage is currently th