Thermal Energy Storage Global Market Report 2026

Thermal energy storage (TES) is a technology designed to capture and store heat or cold for use at a later time, helping to balance energy supply and demand. It utilizes methods such as sensible heat storage, latent heat storage with phase change materials, and thermochemical storage to absorb excess thermal energy during periods of low demand and release it when needed. TES plays a vital role in enhancing energy efficiency, supporting the integration of renewable energy sources, and lowering operational costs across a range of applications, including building climate control, industrial processes, and large-scale power generation.

The primary product types of thermal energy storage include sensible heat storage, latent heat storage, and thermochemical heat storage. Sensible heat storage involves storing and releasing heat by changing the temperature of a material without altering its phase. TES technologies include molten salt systems, electric thermal storage heaters, solar energy storage systems, ice-based technologies, and miscibility gap alloy technology. Common materials used for storage include water, molten salts, phase change materials (PCMs), and other specialized substances. Applications of TES span power generation, heating, and cooling, and it serves various end-user sectors such as utilities, commercial enterprises, and industrial facilities.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the thermal energy storage market by increasing costs of imported molten salts, specialized alloys, insulation materials, heat exchangers, and storage tanks used in large-scale and industrial TES systems. Utilities and industrial users in North America and Europe are most affected due to dependence on imported materials, while Asia-Pacific faces higher project costs for export-oriented installations. These tariffs are raising capital expenditure and slowing project timelines. At the same time, they are supporting domestic material processing, localized manufacturing of storage systems, and regional supply chain development for TES technologies.

The thermal energy storage market research report is one of a series of new reports from The Business Research Company that provides thermal energy storage market statistics, including thermal energy storage industry global market size, regional shares, competitors with a thermal energy storage market share, detailed thermal energy storage market segments, market trends and opportunities, and any further data you may need to thrive in the thermal energy storage industry. This thermal energy storage market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The thermal energy storage market size has grown rapidly in recent years. It will grow from $6.5 billion in 2025 to $7.36 billion in 2026 at a compound annual growth rate (CAGR) of 13.2%. The growth in the historic period can be attributed to increasing energy efficiency requirements, early adoption of district cooling systems, growth of concentrated solar power plants, rising industrial heat recovery initiatives, development of thermal storage materials.

The thermal energy storage market size is expected to see rapid growth in the next few years. It will grow to $11.97 billion in 2030 at a compound annual growth rate (CAGR) of 12.9%. The growth in the forecast period can be attributed to increasing integration of tes with renewable energy grids, rising investments in long-duration energy storage, growing demand for grid flexibility solutions, expansion of industrial decarbonization projects, advancements in thermal storage materials. Major trends in the forecast period include increasing deployment of molten salt storage systems, rising adoption of phase change materials, growing integration with renewable power plants, expansion of ice-based cooling storage, enhanced focus on high-temperature industrial storage.

The rising demand for renewable energy is expected to drive the growth of the thermal energy storage market in the coming years. Renewable energy, derived from natural sources that are consistently replenished, such as sunlight, wind, water, geothermal heat, and biomass, offers an environmentally friendly alternative that helps reduce greenhouse gas emissions. The demand for renewable energy is largely driven by the need to mitigate greenhouse gas emissions, which are major contributors to climate change. This has led governments and industries to prioritize cleaner, more sustainable energy solutions. Thermal Energy Storage (TES) plays a crucial role in improving the reliability and efficiency of renewable energy by storing excess heat generated during peak production periods, making it available when energy demand is high or supply is low. For example, in December 2024, Eurostat, a Luxembourg-based government agency, reported that renewable energy accounted for 24.5% of the energy consumed in the European Union in 2023, up from 23.0% in 2022. As such, the increasing demand for renewable energy is fueling the growth of the thermal energy storage market.

Key players in the thermal energy storage market are focusing on developing cutting-edge solutions, such as next-generation energy storage systems, to improve energy efficiency, reduce carbon emissions, and aid the integration of renewable energy sources into the power grid. Advanced technologies, such as solid-state and flow batteries, are playing a crucial role in thermal energy storage applications by efficiently storing excess heat and releasing it when required, thus enhancing overall energy efficiency. For instance, in February 2025, Brenmiller Energy Ltd., an Israel-based thermal energy storage company, launched the bGen zero thermal oil (ZTO) solution, an innovative thermal energy storage system designed to electrify thermal oil heating in industrial applications. This system utilizes renewable electricity to charge and store thermal energy in crushed rocks, later transferring it to thermal oil at up to 340°C with high efficiency, providing a sustainable, zero-emission alternative for industrial heating.

In October 2024, TEXEL Energy AB, a Sweden-based thermal energy storage company, acquired all Stirling engine-related assets and thermal energy technologies from Azelio AB for an undisclosed amount. This acquisition strengthens TEXEL Energy AB's thermal energy storage capabilities, incorporating Stirling engine technology to enhance renewable energy solutions. Azelio AB, also based in Sweden, specializes in long-duration storage solutions using Stirling engine technology to convert stored thermal energy into electricity.

Major companies operating in the thermal energy storage market are Siemens Energy AG, Danfoss, Burns & McDonnell, Alfa Laval AB, MAN Energy Solutions SE, Dunham-Bush Limited, EVAPCO Inc., Baltimore Aircoil Company Inc., BrightSource Energy Inc., DN Tanks, Thermofin, Steffes, TEXEL Energy AB, Cox Energy Solar S.A., Malta Inc., Cryogel, Deepchill Solutions Inc., Terrafore Technologies LLC, Caldwell Energy Company, Brenmiller Energy Ltd.

Europe was the largest region in the thermal energy storage market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the thermal energy storage market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the thermal energy storage market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The thermal energy storage market consists of revenues earned by entities by providing services such as energy load management, renewable energy integration, peak demand reduction and backup thermal energy supply for industrial, commercial and residential applications. The market value includes the value of related goods sold by the service provider or included within the service offering. The thermal energy storage market also includes sales of thermal batteries, molten salt thermal storage, ice-based thermal storage systems, thermochemical storage systems, sensible heat storage systems, and latent heat storage systems. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Thermal Energy Storage Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses thermal energy storage market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for thermal energy storage ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The thermal energy storage market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Product Type: Sensible Heat Storage; Latent Heat Storage; Thermochemical Heat Storage
• 2) By Technology: Molten Salt Technology; Electric Thermal Storage Heaters; Solar Energy Storage; Ice-Based Technology; Miscibility Gap Alloy Technology
• 3) By Storage Material: Water; Molten Salt; Phase Change Material (PCM); Other Storage Materials
• 4) By Application: Power Generation; Heating; Cooling
• 5) By End User: Utilities; Commercial; Industrial
• Subsegments:
• 1) By Sensible Heat Storage: Water-Based Storage; Molten Salt Storage; Solid Media Storage
• 2) By Latent Heat Storage: Phase Change Materials (PCMs); Ice Storage; Molten Salt Phase Change
• 3) By Thermochemical Heat Storage: Sorption Heat Storage; Chemical Reaction Heat Storage; Reversible Thermochemical Material
• Companies Mentioned: Siemens Energy AG; Danfoss; Burns & McDonnell; Alfa Laval AB; MAN Energy Solutions SE; Dunham-Bush Limited; EVAPCO Inc.; Baltimore Aircoil Company Inc.; BrightSource Energy Inc.; DN Tanks; Thermofin; Steffes; TEXEL Energy AB; Cox Energy Solar S.A.; Malta Inc.; Cryogel; Deepchill Solutions Inc.; Terrafore Technologies LLC; Caldwell Energy Company; Brenmiller Energy Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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