PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 2128972
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 2128972
Cold Thermal Energy Storage market size was valued at US$ 420.7 Million in 2025, expanding at a CAGR of 13.8% from 2026 to 2033.
The Cold Thermal Energy Storage (CTES) market consists of technologies and systems for storing and supplying cooling in various cooling technologies and systems through forms such as but not limited to ice, chilled water, and any other form of phase change material. CTES storage systems allow for the shifting of cooling loads from peak hours to non-peak hours. The demand for this kind of technology, consisting of commercial, industrial and institutional segments, is expected to increase due to the increasing need for chilling, particularly in hot climates and urbanised settings. Innovation in this sector consists of material science and system designs. Thus, CTES adoption is expected to strengthen as industries prioritise energy efficiency, sustainability, and resilient cooling infrastructure.
Cold Thermal Energy Storage Market- Market Dynamics
Increasing Awareness Of Environmental Impacts Of Traditional Cooling To Propel Market Demand
The increasing awareness of the environmental impacts of traditional cooling systems is driving demand for cold thermal energy storage because it can help design energy-efficient cooling systems and decrease the dependence of refrigeration systems on conventional cooling systems and therefore will minimise the emissions of greenhouse gases in cooling systems. In April 2026 the DCCEEW (Gov) and the Australian Government's HFC phase-down aim to reduce HFC use by 85% by 2036, while the international community is trying to restore the ozone layer to the mid-20th-century levels, and with current efforts, this restoration will be achieved by 2065 . It states that there are about 60 million HFC refrigerants using refrigeration and air conditioning equipment in Australia, which together contribute to 12% of all emissions in Australia.
In addition, emissions of refrigerants are estimated to be as much as the emissions from 2 million cars operating in Australia each year, with one kilogram of R410A being the same greenhouse gas as 2 tonnes of CO2, equal to driving a car for 10,000 kilometres. These environmental concerns are accelerating adoption of sustainable cooling technologies and energy-efficient thermal storage solutions.
The Global Cold Thermal Energy Storage market is segmented on the basis of Type, Product, Service, Technology, Component, Application, and Region.
In terms of services, Installation Services holds a significant share in the Cold Thermal Energy Storage market because of the rise in the number of installations of the cold thermal energy storage system installation process, which needs high technical expertise, and the increase in the need for cooling systems in commercial and industrial buildings. For instance, in March 2026, according to the Sustainable Futures Collaborative Org., there were 250 projects in India's public energy storage R&D and D&D portfolio, and the key thematic focus was on thermal energy storage in a limited yet important set of R&D projects. In fact, thermal energy storage is the concept where special devices store thermal energy in mediums such as rocks or salts, oils, or molten salts for future uses. Thus, the concept helps maintain the balance between the demand for heating/cooling on both the demand and supply sides.
Among the given products, chilled water storage accounts for a prominent share in the Cold Thermal Energy Storage market due to its cost-effectiveness, scalability, efficiency over the years, and application in commercial & retail, industrial & commercial, and district cooling sectors. For example, in August 2025, according to TechUK, 80 sites of data centers located in England were surveyed, and 73 responses were received. Among these, 51% have dry cooling systems (air-based or refrigeration-based), and 64% consume less than 10,000 m3 of water every year. In addition, 89% of respondents monitor their water usage or use waterless cooling systems.
The report mentions that some of the ways by which water usage can be reduced include closed-loop systems, direct-to-chip cooling, immersion cooling, rainwater harvesting, effluent treatment reuse, and onsite water storage systems. Operating at 32°C instead of 25°C will minimize water and energy consumption. These trends reinforce demand for efficient chilled water storage solutions across diverse cooling applications.
Cold Thermal Energy Storage Market- Geographical Insights
The Asia Pacific region is expected to dominate the Cold Thermal Energy Storage market, based on various reasons, such as the high level of industrialization and urbanization in the region, among others. In February 2025, the Carbon Brief Org report states that the amount invested in energy efficiency, which is calculated in terms of the turnover generated by large energy service companies (ESCOs), increased by 4% year-over-year, as the energy-efficiency services generated 540 billion yuan ($75 billion), equivalent to $75,000 million (USD). This industry, which is regarded as clean energy, is an important part of China's economy, but the growth rate of 4% in this sector was the lowest compared to the other sectors highlighted in the report. These investments will further boost demand within the region for better-performing cold thermal energy storage.
The global Cold Thermal Energy Storage market is considerably fragmented because of the presence of some of the major competitors operating in the market as a result of the innovation in thermal energy storage technology, energy-efficient coolers, and enhanced distribution channels. The competitors in the market differ based on the types of products that are provided by different companies. EVAPCO, Inc., Dunham-Bush, Omega Thermo Products, CALMAC, and Viking Cold Solutions, Inc. are some of the companies among the list of major players. In October 2025, Dunham-Bush, in collaboration with the Malaysian Investment Development Authority (MIDA), had planned to promote the development of green cooling technology in Malaysia's data center industry, especially in regard to ultra-low energy HVAC and cooling technologies in the data center industry. These developments highlight a growing industry focus on energy efficiency, sustainable cooling, and advanced thermal storage technologies.
In October 2025, Trane Technologies increased the application of their ice thermal energy storage technology by applying their ice battery technology in commercial buildings, government buildings, hospitals, and educational institutions in order to shift their cooling loads during off-peak hours and reduce their power consumption.
In March 2025, ENERGYNEST signed a commercial agreement with LEONHARD KURZ for the implementation of a power-to-heat solution, including thermal energy storage, to decarbonize the production process of KURZ.