The global thermal energy storage (TES) market was valued at approximately USD 4.1 billion in 2019 and is projected to grow at a compound annual growth rate (CAGR) of 9.45% from 2020 to 2027. Several factors are driving this growth, notably the increasing preference for renewable energy generation, including concentrated solar power (CSP), and the rising demand for TES systems in heating, ventilation, and air conditioning (HVAC) applications. The growing emphasis on enhanced energy efficiency, alongside ongoing initiatives to optimize energy utilization, is expected to significantly boost the demand for thermal energy storage solutions.
For example, in September 2018, the Canadian government launched an updated financial incentive program called the “Commercial Energy Conservation and Efficiency Program.” This initiative offers rebates of up to USD 15,000 for energy upgrades in the commercial sector, highlighting governmental efforts to encourage energy-efficient technologies, including TES.
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Product Type Segmentation Insights
When examining the product types within the thermal energy storage market, the segment focusing on sensible heat storage dominated, accounting for 46.2% of the revenue share in 2019. This dominance can be attributed to the rising demand for solar thermal systems and the technology's applicability across large-scale HVAC systems. A key advantage of sensible heat storage is its provision for reversible charging and discharging, which allows for an infinite number of cycles without significant degradation in performance. This feature not only enhances the technology's penetration into the market but also makes it a reliable option for various applications.
On the other hand, the thermochemical heat storage segment is projected to exhibit the fastest CAGR of 13.8% over the forecast period. In thermochemical storage systems, heat is stored by utilizing different media that release energy when a reverse reaction occurs. This method offers a high energy density compared to both latent and sensible heat storage systems, making it particularly efficient. One of the most significant advantages of thermochemical storage is its suitability for long-term storage; energy losses are minimized over time, occurring primarily during the charging and discharging phases. This characteristic makes thermochemical storage an attractive option for applications requiring reliable and enduring energy storage solutions.
Conclusion
Overall, the thermal energy storage market is set for significant growth driven by advancements in renewable energy technologies, government incentives, and increasing project activity in regions like the U.S. As the market evolves, both sensible heat and thermochemical storage solutions will play vital roles, catering to diverse energy storage needs and promoting greater energy efficiency across various sectors. The continuous focus on enhancing energy storage capabilities will further solidify TES as a crucial component in the transition to a more sustainable energy future.
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