The Thermal Energy Storage Market Report is Segmented by Storage Material (Molten Salt, Phase-Change Materials, and More), Technology (Sensible Heat Storage, Thermochemical Heat Storage, and More), Application (Power Generation, Industrial Process Heat, and More), End-User (Utilities, Commercial and Industrial, and Residential), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa).

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.

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Thermal Energy Storage Market Size 2024-2028

The thermal energy storage market size is valued to increase by USD 2.88 billion, at a CAGR of 9.61% from 2023 to 2028. Increasing demand for CSP will drive the thermal energy storage market.

Market Insights

Europe dominated the market and accounted for a 30% growth during the 2024-2028.
By Technology - Molten salt energy storage segment was valued at USD 2.87 billion in 2022
By End-user - Industrial segment accounted for the largest market revenue share in 2022

Market Size & Forecast

Market Opportunities: USD 132.83 billion 
Market Future Opportunities 2023: USD 2.88 billion
CAGR from 2023 to 2028 : 9.61%

Market Summary

Thermal energy storage (TES) is an essential component of various energy systems, particularly concentrated solar power (CSP), which is gaining significant traction due to the increasing demand for renewable energy sources. TES enables the efficient and effective utilization of solar energy by storing excess heat generated during peak sunlight hours for use during periods of low sunlight or high demand. The global TES market is driven by the growing demand for energy storage solutions to ensure grid stability and improve operational efficiency. Renewable energy sources, such as solar and wind, are intermittent, making energy storage a crucial element for their integration into the power grid.
Furthermore, TES is increasingly being adopted in industries to optimize supply chains and ensure compliance with energy regulations. One real-world business scenario illustrating the importance of TES is in the manufacturing sector, where energy-intensive processes require consistent power supply. By implementing TES systems, manufacturers can store excess energy during off-peak hours and use it during peak production times, reducing their reliance on the grid and improving operational efficiency. Additionally, TES can help manufacturers comply with energy regulations and reduce their carbon footprint by increasing the use of renewable energy sources. The challenges facing the TES market include the high initial investment costs, limited storage capacity, and the need for advanced thermal insulation materials.
However, ongoing research and development efforts are addressing these challenges, leading to advancements in TES technology and increasing its adoption across various industries and applications.

What will be the size of the Thermal Energy Storage Market during the forecast period?

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The Thermal Energy Storage (TES) market continues to evolve, presenting significant opportunities for businesses seeking energy efficiency, economic viability, and environmental sustainability. TES systems employ various materials, such as molten salts, phase change materials, and liquid nitrogen, for storing thermal energy. These systems offer flexibility in demand response and grid-scale storage, ensuring operational flexibility and temperature control. One trend in the TES market is the integration of smart grids, which enhances system performance optimization and energy conversion efficiency. For instance, thermal inertia in TES systems can help stabilize the grid by providing a steady power supply during peak demand periods.
Additionally, system modeling and heat transfer modeling play crucial roles in capacity planning and design optimization. Material properties, such as thermal conductivity, specific heat capacity, and melting point, significantly impact the charging and discharging rates of TES systems. Proper maintenance requirements and safety protocols ensure system longevity and operational efficiency. Furthermore, TES systems contribute to economic viability by reducing energy costs through demand response and peak shaving. TES applications span various industries, including power generation, industrial processes, and HVAC systems. Companies can make informed decisions regarding component selection, system integration, and policy implications based on the latest research and advancements in TES technology.

Unpacking the Thermal Energy Storage Market Landscape

Thermal energy storage (TES) markets encompass various applications, including waste heat recovery and peak shaving, offering significant business advantages. For instance, TES systems in peak shaving applications can reduce energy costs by up to 20%, enabling businesses to mitigate demand charges and improve return on investment (ROI) (Source: International Energy Agency). Insulation materials play a crucial role in TES systems, enhancing material durability and improving heat exchanger efficiency by up to 15% (Source: National Renewable Energy Laboratory). Geothermal energy storage and latent heat storage are essential TES technologies. Cost-effectiveness analysis reveals that geothermal energy storage can provide thermal energy at a lower cost

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 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)

As per Cognitive Market Research's latest published report, the Global Thermal Energy Storage market size was USD 4.6 Billion in 2022 and it is forecasted to reach USD 21.87 Billion by 2030. Thermal Energy Storage Industry's Compound Annual Growth Rate will be 15.23% from 2023 to 2030. Factors Impacting on Thermal Energy Storage Market

Increasing demand for energy storage for supplementing increasing solar energy production, and growing demand for thermal energy storage (TES) systems in HVAC, are the major driving factors for the Thermal Energy Storage Market. With the help of thermal energy storage, the utilization of solar thermal energy can continue during the time period when there is no sunlight, which is propelling the growth of the Thermal Energy Storage Market. In addition, increasing preference for renewable energy production, with growing environmental concerns, is estimated to create opportunities for the thermal energy storage market in the forecast period. However high initial costs can hamper the growth of the market. What is Thermal Energy Storage?

Thermal energy storage (TES) is one form of energy storage. In this instance, a substance obtains energy when its temperature rises and loses it when its temperature falls. Utilizing this attribute allows for the use of diverse materials with various thermal properties and variable outcomes, which may result in a variety of applications for thermal energy storage.

Cold Storage Thermal Energy Storage Market Outlook

According to our latest research, the Global Cold Storage Thermal Energy Storage market size was valued at $4.2 billion in 2024 and is projected to reach $10.7 billion by 2033, expanding at a robust CAGR of 10.8% during 2024–2033. One major factor driving the growth of the cold storage thermal energy storage market globally is the increasing demand for energy-efficient and sustainable refrigeration solutions, especially in sectors such as food & beverage, pharmaceuticals, and data centers. As industries strive to reduce operational costs and carbon footprints, the adoption of advanced thermal energy storage (TES) technologies is becoming a strategic imperative, supporting both environmental and economic objectives across developed and emerging markets.

Regional Outlook

North America currently holds the largest share of the cold storage thermal energy storage market, accounting for nearly 38% of the global revenue in 2024. This dominance is attributed to the region’s mature cold chain infrastructure, high adoption of advanced energy management systems, and stringent regulatory mandates on energy efficiency. The United States, in particular, leads the market due to its expansive food processing and pharmaceutical sectors, as well as substantial investments in data center operations. In addition, favorable government incentives and aggressive sustainability targets have accelerated the deployment of TES technologies in commercial and industrial applications. Canada also contributes significantly, benefitting from its strong agricultural exports and growing focus on renewable energy integration.

Asia Pacific is emerging as the fastest-growing region in the cold storage thermal energy storage market, with a projected CAGR exceeding 13.5% between 2024 and 2033. Rapid urbanization, expanding middle-class populations, and escalating demand for perishable goods are key growth drivers in countries like China, India, and Japan. Investment in cold chain logistics and the proliferation of large-scale warehousing facilities are further accelerating market expansion. Governments across the region are actively supporting infrastructure upgrades and offering incentives to promote energy-efficient storage solutions. The region’s robust manufacturing sector, coupled with increasing adoption of automation and digitalization in cold storage, is expected to sustain high growth rates through the forecast period.

Emerging economies in Latin America, the Middle East, and Africa are witnessing a gradual but steady increase in the adoption of cold storage thermal energy storage solutions. However, these regions face unique challenges, including limited access to reliable power infrastructure, high initial capital costs, and a lack of skilled technical personnel. Policy reforms, such as subsidies for renewable energy integration and mandates for food safety, are beginning to stimulate localized demand. Nevertheless, the pace of adoption is often constrained by economic volatility and the need for tailored solutions that address region-specific requirements, such as extreme climates and fragmented supply chains. Despite these hurdles, growing awareness of the benefits of TES technologies is expected to unlock new opportunities in these markets over the coming years.

Report Scope

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.

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 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.

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.

The global molten salt thermal energy storage market size was valued at over USD 4.82 billion in 2025 and is expected to register a CAGR of more than 11.3%, exceeding USD 14.06 billion revenue by 2035, impelled by service providers reducing carbon emissions to transform the energy sector.

Discover growth stimulants, challenges, and expansion opportunities in the Thermal Energy Storage market with our detailed analysis report. Stay ahead in the industry!

Global Thermal Energy Storage - TES market size 2025 was XX Million. Thermal Energy Storage - TES Industry compound annual growth rate (CAGR) will be XX% from 2025 till 2033.

The global thermal energy storage market size was valued at over USD 5.37 billion in 2025 and is expected to register a CAGR of over 9.2%, exceeding USD 12.95 billion revenue by 2035, impelled by higher generation of solar energy.

The global thermal energy storage market stood at USD18.89 billion in 2022 & is projected to reach USD49.72 billion by 2028 with a CAGR of 9.18%.

Global Molten Salt Thermal Energy Storage market has valued at USD 2.58 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 12.07%.

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.

High-Temperature Thermal Energy Storage is becoming a crucial component in the advancement of renewable energy systems. As the demand for efficient energy storage solutions grows, high-temperature systems offer the ability to store large amounts of energy at elevated temperatures, which is particularly beneficial for industrial applications and concentrated solar power (CSP) plants. These systems utilize materials that can withstand extreme temperatures, providing a reliable and efficient means of storing thermal energy. The development of high-temperature storage solutions is not only enhancing the performance of existing renewable energy systems but also paving the way for new applications in sectors that require high-grade heat, such as metallurgy and chemical processing.

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.

The report covers Global Molten Salt Thermal Energy Storage (TES) Companies and the market is segmented by Technology (Parabolic Trough, Fresnel Reflector, and Power Tower) and Geography (North America, Asia-Pacific, Europe, South America, Middle-East, and Africa). The market size and forecasts for Molten Salt Thermal Energy Storage are provided in terms of electricity generation (TWh) and installed capacity (MW).