Thermal Energy Storage Market is Estimated to Witness High Growth Owing to Opportunity of Meeting Peak Electricity Demand

Thermal Energy Storage Market


Thermal energy storage systems play a vital role in balancing electricity generation and demand by storing heat or cold for later use. These systems help in storing thermal energy by heating or cooling a storage medium so that the stored energy can be used for heating and cooling applications when needed. Increasing use of these systems in utilities, commercial, and residential sectors to shave peak loads and shift energy demand from peak to off-peak hours is driving the growth of the thermal energy storage market.

The global thermal energy storage market is estimated to be valued at US$ 5.13 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

Meeting peak electricity demand presents a major opportunity for growth in the thermal energy storage market during the forecast period. Thermal energy storage helps in shifting the demand from peak to off-peak hours by storing energy when electricity demand and prices are lower, and releasing it during peak demand periods. This helps in reducing strain on the utilities to generate electricity only during peak hours. Additionally, it helps avoid installing extra power generation capacity to meet peak demand. Increasing focus on integrating renewable energy would further drive the demand for storing excess thermal energy generated during off-peak periods and utilizing it when renewable energy generation is low. Thermal energy storage can effectively balance the intermittency of renewable sources like solar and wind, thereby promoting their greater adoption.

Porter's Analysis

Threat of new entrants: Low, as establishing new storage facilities requires high capital investments. However, supportive government policies are likely to attract new players.

Bargaining power of buyers: High, as buyers can negotiating prices due to presence of several thermal energy storage system providers.

Bargaining power of suppliers: Medium, as suppliers have moderate threat due to availability of substitutes. However, intellectual property rights protect suppliers' positions.

Threat of new substitutes: Low, as limited substitutes are available for providing thermal energy on demand. However, renewable sources may emerge as substitutes.

Competitive rivalry: High, as major players compete on the basis service quality, storage capacity, and efficiency.

SWOT Analysis

Strength: Storage of thermal energy helps meet peak energy demands and supports renewable energy integration. Systems have long operational life with minimal maintenance.

Weakness: High initial investment costs pose significant challenge. Geographic limitations for certain storage methods.

Opportunity: Favorable government policies and investments in renewable energy offer significant growth prospects. Rapid urbanization increases demand for decentralized energy storage solutions.

Threats: Slow adoption of new technologies increases payback period. Competition from alternative storage technologies impacts growth.

Key Takeaways

Global Thermal Energy Storage Market Size is expected to witness high growth over the forecast period owing to supportive policies and growing need to efficiently integrate renewable energy sources. The market in Asia Pacific region is estimated to grow at fastest pace led by rapid industrialization and infrastructure development in China and India.

North America currently dominates the global market led by presence of leading thermal energy storage technology providers such as Ice Energy and Baltimore Aircoil Company in the US. Government incentives and investments in renewable energy have boosted regional market growth.

Key players operating in the thermal energy storage market are BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns & McDonnell, Inc. BrightSource Energy, Inc. is a leading player offering solar thermal energy storage technology. EnergyNest AS provides seasonal thermal energy storage solutions.
 

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