Thermal Energy Storage Market Share, Growth and Future Analysis

The demand for electricity is expected to grow at a 2.1% annual rate from 2019 till 2040, according to the World Energy Outlook 2019 published by the International Energy Agency (IEA). At this rate, compared to 19% in 2019, the share of electricity in final energy consumption will become 40% by 2040. This would be a result of the rapid industrialization, as an increase in the number of factories directly means a rise in the demand for power. It is not just factories where energy is needed, but almost everywhere — homes, commercial buildings, or transportation.

The IEA also ways that till at least 2020-end, coal will be the major source of power generation, which has already degraded the air quality beyond imagination. This is pushing up the need for renewable sources of electricity, which is, in turn, leading to the growth of the thermal energy storage market across the globe. From $3,000.9 million in 2017, the industry size is projected to increase to $7,472.9 million by 2023, at a 15.9% CAGR during forecast period.

Currently, Asia-Pacific is the largest exponent of the CSP method, with China leading the way in the region. According to the National Energy Administration of China, 111 CSP projects, which have a combined electricity generation capacity of 9 gigawatts (GW), were under construction in the country in 2017. Of these, the first network of CSP plants, which can cumulatively create 1,349 megawatts (MW) of energy, has already being commissioned.

Around the world, North America is the largest thermal energy storage market, on account of the quick development of CHP stations and rising requirement for backup power for heating ventilation, and air conditioning (HVAC) systems. In the coming years, the demand for storing thermal energy would surge the fastest in APAC, as the growing population in the region is raising the demand for energy, while depleting the fossil fuel reserves are shifting the limelight on renewable energy.

Thus, with the increasing concerns regarding air pollution, due to the burning of fossil fuels for generating electricity, the focus on renewable electricity will keep on rising, thus driving the popularity of the thermal energy storage concept.

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