July 12, 2024
Thermal Energy Storage Market

Thermal Energy Storage Market: Growing Demand For Sustainable Energy Solutions

Market Overview:

Thermal energy storage systems are used to store and release large amounts of thermal energy for later use. These systems play a pivotal role in addressing the energy demand management and grid stability issues, especially in renewable energy applications. The advantages of thermal energy storage systems include enhanced utilization of renewable energy, reduced reliance on fossil fuels, and increased grid reliability. The need for such products is associated with the growing demand for sustainable energy solutions, as well as the implementation of government initiatives to promote renewable energy sources.

Market Key Trends:

One of the key trends in the thermal energy storage market is the increasing adoption of concentrated solar power (CSP) systems. CSP systems utilize mirrors or lenses to concentrate sunlight onto a receiver, which then converts the heat into thermal energy. This thermal energy is stored in a thermal energy storage system, which can be used to generate electricity on-demand, even when sunlight is not available. The growing demand for clean and sustainable energy solutions is driving the adoption of CSP systems, thereby fueling the demand for thermal energy storage systems.

The global Thermal Energy Storage Market Size is estimated to be valued at US$4.65 billion in 2023 and is expected to exhibit a CAGR of 10.3% over the forecast period of 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Porter’s Analysis

Threat of New Entrants: The thermal energy storage market is expected to witness a moderate threat of new entrants. While the market offers significant growth opportunities, it also requires substantial investments in research and development and infrastructure. Additionally, existing players have established strong distribution networks and customer relationships, making it difficult for new entrants to gain market share.

Bargaining Power of Buyers: The bargaining power of buyers in the thermal energy storage market is moderate. Buyers have the ability to switch between suppliers based on price and quality, but the market is dominated by a few key players, reducing the buyer’s ability to negotiate favorable terms.

Bargaining Power of Suppliers: The bargaining power of suppliers is relatively high in the thermal energy storage market. Key suppliers of materials and components used in thermal energy storage systems have limited competition, giving them the ability to dictate prices and terms to manufacturers. This can have a significant impact on the profitability of companies operating in the market.

Threat of New Substitutes: The threat of new substitutes in the thermal energy storage market is low. With increasing concerns about climate change and the need for renewable energy solutions, the demand for thermal energy storage systems is expected to grow. The unique benefits offered by these systems, such as peak load management and grid stability, make it difficult for substitutes to gain traction.

Competitive Rivalry: The competitive rivalry in the thermal energy storage market is intense. The market is dominated by a few key players who have significant market share. These companies compete based on product innovation, cost-efficiency, and customer relationships. The high level of competition drives companies to constantly improve and differentiate their products to stay ahead.

Key Takeaways

The global thermal energy storage market is expected to witness high growth, exhibiting a CAGR of 10.3% over the forecast period from 2023 to 2030. This growth can be attributed to increasing awareness about the benefits of thermal energy storage systems in reducing greenhouse gas emissions and the need for sustainable energy solutions.

In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the thermal energy storage market. This can be attributed to the increasing adoption of renewable energy sources, government initiatives promoting energy storage technologies, and the presence of key players in the region.

Key players operating in the thermal energy storage market include BrightSource Energy, Inc., EnergyNest AS., Ice Energy, Baltimore Aircoil Company, Inc., Abengoa Solar, S.A, Burns & McDonnell, Inc., and DC Pro Engineering. These companies have established a significant market presence through technological advancements, strategic partnerships, and mergers and acquisitions.