Thermal Energy Storage Market Size

Thermal Energy Storage Market size was valued at USD 32.93 billion in 2024 and is set to reach USD 80.01 billion by the end of 2037, registering around 7.9% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of thermal energy storage is assessed at USD 35.04 billion.

The growth of the market can be attributed to the growing need to augment the energy storage, so that it can be utilized at the time of emergencies. Generally, it happens through cooling or heating a medium in order to use the energy later. By 2040, thermal energy storage could increase potential long-duration storage, or LDES, capacity globally from a range of around 1 TW to 3 TW to between 2 TW and 8 TW.

In addition to these, factors that are believed to fuel the market growth of thermal energy storage include the rising efforts to boost the development of smart cities. With the growing infrastructure of smart cities, the need for sustainable energy is expected to grow. The Smart Cities USA project will improve San Jose's quality of life by fostering 25,000 CleanTech employment, fostering environmental sustainability, and driving economic growth. To achieve this development the City of San Jose, California partnered up with Intel to use Intel's IoT Smart City Demonstration Platform. On the other hand, the thermal energy storage market growth is also attributed to the growing production of electricity. Moreover, 2019 saw a 1.3% increase in global gross power production over 2018. Since 1974, annual increases in global power output have been constant.