Top Trends in Thermal Energy Storage Market 2021: An Overview and Outlook Report for 2030

The shifting preference for renewable energy generation, including concentrated solar power, and the growing demand for HVAC thermal energy storage (ATES) systems are key drivers driving industry growth.

Heat storage systems are mainly used to store energy, also known as heat storage. It has an energy transfer process that is fast and very efficient and requires no chemical conversion. This is one of the most viable options for environmentally friendly energy savings. It temporarily retains thermal energy for later use in the hot or cold form. Thermal energy storage systems minimize carbon dioxide emissions, lower end-user energy consumption and reduce energy demand during peak hours. The system’s performance and economy depend on the type of material used in its production. It, like other energy storage applications, is commonly used in solar power plants and thermal power plants, as well as in combined heat and power plants and process industries.

Globally market for thermal energy storage to surpass $ 374 million from $ 190 million in value growth by 2030 at a CAGR of 14.2% over the forecast period, i.e. 2020-30.

The shifting preference for renewable energy generation, including concentrated solar power, and the growing demand for HVAC thermal energy storage (ATES) systems are key drivers driving industry growth. The increasing need for improved energy efficiency, combined with continued efforts to use energy, would positively impact the demand for thermal energy storage. By taking more steps towards the implementation of sustainable technologies by the government, the developed targets for CO2 emission reduction can be achieved and consumer demand can be stimulated. The market environment will be complemented by an increasing demand for energy efficient and cost competitive resources coupled with continuous and reliable power requirements in various industries.

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The market for thermal energy storage is segmented by product type as responsible heat storage, latent heat storage and thermochemical heat storage. The sensible heat storage segment is estimated to be the market leader with a share of more than 45.0%, which can be attributed to the increased demand for solar thermal systems and its widespread applicability in HVAC systems. The most important aspect of the technology that will further increase product penetration is to provide reversible charging and discharging facilities for an infinite number of cycles. During the forecast period, the thermochemical heat storage segment is expected to show the highest CAGR of 13.2%. Compared to latent or sensitive heat storage systems, thermochemical storage systems have a high energy density. For long-term storage, this form of heat storage is preferred because losses do not occur over time, but only during the charging and discharging phase.

Utilities segment is growing with the highest CAGR in 2019-30

The market for thermal energy storage is divided by end user into Industrial, Utilities and Residential and Commercial. The industrial segment accounted for the largest revenue share of 28% in 2019 and is expected to maintain its lead over the forecast period. Rising expenditure on infrastructure construction and construction would fuel the demand for HVAC systems, which in turn will boost the industrial segment. In addition, the increasing adoption of these systems in various industries would drive the growth of the segment by using large amounts of hot water for economic purposes. Over the forecast period, the utility segment is expected to show the fastest growth. Public utilities, such as broadband internet, transportation, telecommunications, sanitation, water, natural gas, and electricity, are included in the section. Thermal energy is used at an extremely low cost to provide these public services. Cogeneration plants are used to derive thermal energy and then convert it into the right kind of energy.

Thermal energy storage market: market dynamics

Electricity demand has increased with rapid urbanization around the world, leading to the deployment of various forms of energy-generating facilities, including CSP power plants. In addition, there has been a significant increase in power consumption for district heating and cooling. Due to the limited availability of independent cooling and heating systems for residential and commercial buildings, these facilities depend on electrical networks to meet their power requirements. Energy companies are therefore deploying more and more energy storage systems to meet the energy demand of these facilities, which in turn is driving the growth of the thermal energy storage market.

Increasing use of concentrated solar power plants

The main drivers of market growth are the increasing speed of installation of concentrated solar power systems (CSP) and the increasing demand for heating, ventilation and cooling (HVAC) energy storage solutions. Renewable energy sources such as solar and wind energy are increasingly used by the commercial and industrial (C&I) sector for their own consumption. But renewable energy is an intermittent energy source and the C&I sector is not making full use of it. The C&I industry is therefore expected to increasingly adopt energy storage systems to increase the use of renewable energy sources, which in turn will create significant opportunities for thermal energy storage providers in the future.

The thermal energy storage market in Europe led the market with a lion share of more than 30% in 2019 and is expected to maintain its lead over the forecast period. A large number of thermal energy storage systems used for space heating, water heating, district heating and cooling and power generation characterize this region. Thanks to a large number of operational TES projects across the country, together with the presence of major players, Spain is the largest contributor to regional market growth. The Asia Pacific market is expected to grow at the highest CAGR of 14.3% over the forecast period. The urbanization and population of developing countries such as China, India, South Korea, Japan, Indonesia and Malaysia are experiencing rapid growth. There are many unreliable power grids and basic infrastructure systems for these developing countries. This factor is expected to force industry participants to invest in these countries, thereby increasing the growth of thermal energy storage facilities and distribution grids.

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