Thermal Energy Storage Market Report 2026

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% 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.

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