Europe and Middle East Thermal Energy Storage Market Size, Share, Competitive Landscape and Trend Analysis Report, by Technology, by Storage Material, by Application, by End User, and, by Region: Opportunity Analysis and Industry Forecast, 2024 - 2033

Europe and Middle East Thermal Energy Storage Market Research, 2033

The Europe and Middle East thermal energy storage market size was valued at $8.0 billion in 2023 and is estimated to reach $12.1 billion by 2033, exhibiting a CAGR of 4.4% from 2024 to 2033. The rise in emphasis on energy efficiency and sustainability prompts industries, businesses, and governments to seek innovative ways to optimize energy usage and reduce carbon emissions. TES technologies offer a range of benefits that align with these objectives. TES systems enable more efficient utilization of energy resources, reduce reliance on fossil fuels, and minimize environmental impact by capturing and storing thermal energy for later use in heating, cooling, and power generation applications.

Introduction

Thermal energy storage (TES) refers to the technology and methods used to store energy in the form of heat. This stored thermal energy is then used later to provide heating, cooling, or to generate electricity. TES systems are designed to balance the supply and demand of energy, improve energy efficiency, and enhance the reliability of energy systems. They are commonly used in various applications such as solar power plants, heating & cooling systems of buildings, and industrial processes.

Key Takeaways

• The Europe and Middle East thermal energy storage market has been analyzed in terms of value ($billion). The analysis in the report is provided on the basis of technology, storage material, application, end user, and region.
• The Europe and Middle East thermal energy storage market report includes a detailed study covering underlying factors influencing the industry opportunities and trends.
• The key players in the Europe and Middle East thermal energy storage market are Aalborg CSP, Abengoa, Cartesian, Enel Spa, EVAPCO, Inc, Kraftblock GmbH, Lumenion GmbH, Magaldi Green Energy, Man energy solutions, PCM products ltd., Phelas GmbH, Spirax Sarco Limited., Sunamp Ltd., and Thermofin.
• The report facilitates strategy planning and industry dynamics to enhance decision making for existing market players and new entrants entering the thermal energy storage industry.
• Countries such as Germany, Spain, Italy, and Saudi Arabia hold a significant share in the Europe and Middle East thermal energy storage market.

Market Dynamics

The surge in integration of renewable energy sources significantly drives the demand for thermal energy storage (TES) systems. According to the Internation Energy Agency, by 2026, global renewable electricity capacity is forecast to rise more than 60% from 2020 levels to over 4 800 GW. As the countries shift toward a more sustainable energy landscape, renewable sources such as solar and wind power are increasingly adopted due to their environmental benefits. However, these sources are inherently intermittent, producing energy only when the sun is shining or the wind is blowing, which does not always align with peak energy demand. TES systems address this challenge by storing excess energy produced during periods of high generation and releasing it when demand is higher or when renewable generation is low, thereby enhancing the reliability and stability of the energy supply. All these factors are expected to drive the demand for thermal energy storage during the forecast period.

However, electrochemical batteries such as lithium-ion batteries, have emerged as strong competitors to TES in various sectors such as grid-scale energy storage and electric vehicles. Batteries offer several advantages such as high energy density, rapid response times, and modularity that makes them well-suited for applications requiring short-duration energy storage and frequent cycling. In addition, the declining costs of battery technologies have made them increasingly cost-competitive with TES systems, particularly for applications where space constraints or portability are significant considerations. All these factors hamper the Europe and Middle East thermal energy storage market growth.

Governments establish regulatory frameworks and standards that promote the integration of TES into building codes, energy codes, and utility regulations. Policymakers are encouraging the adoption of energy-efficient building practices and reducing the environmental footprint of the built environment by mandating or incentivizing the use of TES technologies in new construction or major renovations. In addition, utilities are required to consider TES as a viable option for grid-scale energy storage and demand management, thereby diversifying their energy storage portfolios and enhancing grid reliability. All these factors are anticipated to offer new growth opportunities for the Europe and Middle East thermal energy storage market.

Segments Overview

The Europe and Middle East thermal energy storage market is segmented into technology, storage material, application, end user, and region. On the basis of technology, the market is bifurcated into latent heat storage and others. By storage material, the market is classified into water, molten salt, phase change material (PCM), and others. On the basis of application, the market is categorized into power generation, heating, and cooling. By end user, the market is divided into residential, commercial & industrial, and utilities. Region-wise, the market is analyzed across Europe and the Middle East.

On the basis of technology, the market is bifurcated into latent heat storage and others. The others segment accounted for less than four-fifths of the Europe and Middle East thermal energy storage market share in 2023 and is expected to maintain its dominance during the forecast period. Sensible heat storage (SHS) is driven by factors such as simplicity, cost-effectiveness, and the availability of storage materials. SHS systems store energy by raising the temperature of a storage medium, typically water, oil, or solid materials such as rocks and concrete. In addition, thermochemical storage (TCS) is driven by the need for high energy density and long-term storage capabilities. TCS systems store energy through reversible chemical reactions that offer significantly higher energy densities compared to sensible and latent heat storage.

By storage material, the market is segmented into water, molten salt, phase change material (PCM), and others. The molten salt segment accounted for more than one-third of the Europe and Middle East thermal energy storage market share in 2023 and is expected to maintain its dominance during the forecast period. High thermal stability of molten salt allows it to operate at elevated temperatures without degrading. This stability makes molten salts particularly suitable for concentrating solar power (CSP) plants, where they store heat captured from solar collectors during the day and release it to generate electricity at night or during cloudy periods. The high operating temperature of molten salts also improves the overall efficiency of the power cycle, enabling more efficient conversion of thermal energy to electrical energy.

On the basis of application, the market is categorized into power generation, heating, and cooling. The heating segment accounted for more than two-fifths of the Europe and Middle East thermal energy storage market share in 2023 and is expected to maintain its dominance during the forecast period. As energy consumption continues to rise, there is a growing need to optimize energy use, particularly in the heating sector. TES systems help in balancing the energy supply and demand by storing surplus heat generated during low-demand periods and releasing it during peak demand times, thereby reducing energy waste and enhancing overall efficiency.

By end user, the market is segmented residential, commercial & industrial, and utilities. The utilities segment accounted for less than half of the Europe and Middle East thermal energy storage market share in 2023 and is expected to maintain its dominance during the forecast period. Economic factors play a significant role in the adoption of TES in utilities. The cost of energy production varies significantly throughout the day due to fluctuations in demand and supply. TES systems enable utilities to shift energy use from high-cost peak periods to lower-cost off-peak periods, thereby optimizing energy pricing and improving the overall economic efficiency of the energy system. In addition, as the costs of TES technologies, such as molten salt and phase change materials, continue to decrease, they become preferable investments for utilities looking to enhance their operational efficiency and reduce costs associated with energy generation and distribution.

Region-wise, the market is analyzed across Europe and the Middle East. The Europe segment accounted for more than four-fifths of the Europe and Middle East thermal energy storage market share in 2023 and is expected to maintain its dominance during the forecast period. Europe has set ambitious targets for reducing greenhouse gas emissions, increasing energy efficiency, and promoting the use of renewable energy sources. TES plays a crucial role in achieving these goals by enabling the efficient storage and utilization of thermal energy from renewable sources such as solar and wind. This integration helps reduce reliance on fossil fuels, thereby lowering carbon emissions and advancing the EU's transition to a sustainable energy system.

Competitive Analysis

Key players in the Europe and Middle East thermal energy storage market include Aalborg CSP, Abengoa, Cartesian, Enel Spa, EVAPCO, Inc, Kraftblock GmbH, Lumenion GmbH, Magaldi Green Energy, Man energy solutions, PCM products ltd., Phelas GmbH, Spirax Sarco Limited., Sunamp Ltd., and Thermofin.

In the Europe and Middle East thermal energy storage market, companies have adopted agreements to expand the market or develop new products. For instance, in August 2023, Aalborg CSP A/S and Alfa Laval AB signed an agreement in which Alfa Laval takes partial ownership of Aalborg CSP’s header-coil heat exchanger business. This business focuses on high-temperature energy storage for electricity and industrial high-temperature steam. Moreover, in March 2023, Sunamp, a thermal battery company, has partnered with Sheen Parkside, an infrastructure and operations group, to create mobile heat networks across the UK. These networks utilize Sunamp's Plentigrade phase change material technology in container-sized thermal batteries.

Key Benefits of Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the Europe and Middle East thermal energy storage market analysis from 2023 to 2033 to identify the prevailing Europe and Middle East thermal energy storage market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the Europe and Middle East thermal energy storage market statistics and segmentation assists to determine the prevailing market opportunities.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the Europe and Middle East thermal energy storage market trends, key players, market segments, application areas, and market growth strategies.

  Europe and Middle East Thermal Energy Storage Market Report Highlights