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The global thermal energy storage market is expected to reach $12.50 billion by 2025, according to a new report by Grand View Research, Inc. Increasing demand for access to efficient and cost competitive energy sources is expected to favor market growth.
Thermal energy storage is considered to be the primary renewable option for electricity generation. Heat stored by short term and seasonal thermal energy storage systems are extremely helpful in balancing the variations in renewable electricity production & distribution, in a cost effective manner. It causes no adverse impact on the environment and is a sustainable source of energy.
The renewable energy demand has increased from various countries including, the U.S., South Africa, Saudi Arabia, Brazil, China, and India. The governments of these countries are trying to derive solutions & technologies to store the generated energy from renewable sources such as tides, wind, biomass, and sun. The rising demand from these regions coupled with the novel product development by industry participants is expected to drive market growth over the forecast period.
A large number of energy storage equipment manufacturers & service providers are involved in the adoption of various strategies such as new product developments, partnerships, agreements, collaborations, and joint ventures in order to increase market penetration and cater to the changing technological requirements of different end-use applications in the region.
Further key findings from the report suggest:
- In terms of technology, molten salt technology is expected to follow an anticipated CAGR of 16.4% over the next eight years
- Molten salt technology is utilized to store the heat collected by means of solar troughs and solar towers. The growing awareness regarding the technology is expected to benefit the segment demand
- Asia Pacific is expected to witness the highest growth over the forecast period. Rising demand from countries such as China and India and government initiatives are expected to benefit the demand in the region
- The global thermal energy storage demand in power generation application was USD 0.57 billion in 2016 and is anticipated to witness the fastest growth over the next eight years
- The U.S. market was valued at USD 0.52 billion and is estimated to reach USD 2.32 billion by 2025
- The Middle East & Africa region is anticipated to witness high growth at a CAGR of 15.7% by 2025. The MEA region has a number of concentrating solar power (CSP) projects which include thermal energy storage installed in countries such as United Arab Emirates (UAE), Saudi Arabia and Morocco
- Key players of the industry include Chicago Bridge & Iron Company N.V. (CB&I), Abengoa Solar S.A., Ice Energy, Evapco, Inc., and Dunham-Bush Holding Bhd. These major players are investing in R&D activities to enhance their product portfolio and thus increase their geographical presence