Thermal Energy Storage Market is set to witness significant growth between 2023 and 2032, primarily owing to the increasing demand for TES (Thermal Energy Storage) technologies. Besides, launch of favorable initiatives such as the GEB Initiative, E3 Initiative, and ESCG (Energy Storage Grand Challenge) will also support the growth of the thermal energy storage market over the forthcoming years.

Besides, certain international initiatives are proving to be fruitful for the thermal energy storage market. For instance, in December 2022, the European Union has introduced certain amendments to the REPowerEU, under which renewable projects will also include standalone energy storages. The directive mentions that the new permit granting process will now include thermal and power facilities that are required to repower, build, and operate energy production plants that depend on renewable sources.

Overall, the thermal energy storage market has been segmented in terms of storage material, technology, application, end-user, and region.

On the basis of storage material, the water segment is set to grow significantly by 2032 end, due to the increasing usage of water-based thermal storage material in cooling and heating applications. Besides, these storage devices are also gaining popularity on grounds of their cost-effectiveness and high specific heat capacity.

Based on technology, the market is likely to be characterized by the thermochemical segment, which is anticipated to grow due to the increasing adoption of high and low-temperature storage systems. Moreover, increasing investment across industrial establishments, along with an emerging focus toward better utilization of energy storage technology will also foster the market demand over the next decade.

In the context of end-user, the industrial segment is set to witness robust growth through 2032. The segmental growth can be accredited to the increasing adoption of technologies across various industries that utilize heat for manufacturing their goods. Additionally, increasing expenditure toward infrastructural development will also benefit the market demand in the foreseeable future.

Based on application, the process heating and cooling segment will grow appreciably through 2032, owing to rapid industrialization in developing nations, stringent emission norms, and increasing investments toward renewable energy generation.

In the regional context, the North America thermal energy storage market was valued at more than USD 2.5 billion in 2022 and is anticipated to grow at a steady rate through 2023-2032. The regional growth can be attributed to the expanding industrial sector and rapid urbanization. According to a report, between 2010 and 2021, urbanization in the U.S.A. increased by a whopping 19%, and such rapid urbanization will foster market growth.