Thermal Energy Storage Materials Market (2025 - 2033) Size, Share & Trends Analysis Report By Material Type (Latent Heat Storage Materials, Thermochemical Storage Materials), By End-use (Power Generation, Building & Construction, Industrial Processes, Transportation), By Region, And Segment Forecasts

Thermal Energy Storage Materials Market Summary

The global thermal energy storage materials market size was estimated at USD 5.51 billion in 2024 and is projected to reach USD 10.36 billion by 2033, growing a CAGR of 7.3% from 2025 to 2033. The demand for thermal energy storage materials is rapidly increasing as industries and governments worldwide seek efficient methods to balance energy supply and demand.

With the rising adoption of renewable energy systems, particularly solar and wind, the need for energy storage that can maintain grid stability has surged. Thermal energy storage (TES) materials play a vital role in capturing and reusing waste heat, significantly improving energy efficiency across residential, commercial, and industrial sectors. The shift toward decarbonization and sustainable energy utilization is also fueling demand. In addition, the growing construction of energy-efficient buildings and the expansion of district heating and cooling networks are driving further adoption.

The key drivers for the thermal energy storage materials industry include increasing renewable energy deployment, growing investments in smart grid infrastructure, and rising industrial waste heat recovery applications. The demand for phase change materials (PCMs) and molten salts is expanding due to their ability to store heat for long durations with minimal energy loss. Advancements in thermochemical materials that offer higher storage density and operational efficiency are accelerating market growth. The shift toward electrified heating and cooling, combined with industrial modernization, is further boosting adoption. Moreover, corporate sustainability goals and the growing need for reliable off-grid power solutions have enhanced TES material relevance globally.

The TES materials market is witnessing innovations in composite phase change materials, bio-based PCMs, and nanomaterial-infused storage solutions. Companies are developing modular, compact, and recyclable storage units that enable easy integration with renewable plants and buildings. Molten salts are being improved for higher temperature stability in concentrated solar power (CSP) systems. Digital technologies, including IoT-enabled monitoring and AI-based predictive management, are optimizing TES performance. Furthermore, hybrid systems combining sensible, latent, and thermochemical storage techniques are becoming increasingly popular. The shift toward sustainable and recyclable materials align with the global focus on circular energy economies.

Market Concentration & Characteristics

The market is moderately consolidated, with major players such as Cryogel Thermal Energy Systems, CALMAC, and DN Tanks leading the landscape through technological innovation and strategic projects. Large-scale energy developers collaborate with TES material manufacturers to optimize efficiency for renewable and industrial uses. However, emerging regional players in Asia Pacific and Europe are gradually increasing competition through localized production and advanced material innovations. The growing number of startups in nanotechnology-based thermal materials also indicates a gradual shift toward a semi-fragmented structure, driven by strong R&D capabilities.

The threat of substitutes for TES materials is moderate. While battery storage systems and hydrogen-based energy storage offer competition, they are less efficient in thermal applications. TES materials remain superior in long-duration, low-cost heat storage for industrial and solar applications. However, advancements in solid-state batteries and mechanical energy storage could pose future challenges. Integration of TES with battery and hydrogen systems is emerging as a hybrid approach, minimizing substitution risks. The continued preference for TES in HVAC, district heating, and CSP sectors ensures sustained market strength despite technological competition.

Material Type Insights

The sensible heat storage materials segment led the thermal energy storage materials market with the highest revenue share of 51.7% in 2024, due to their simplicity, cost-effectiveness, and scalability. These systems rely on temperature changes in solid or liquid media such as water, molten salts, or concrete to store and release heat efficiently. Their mature technology and easy integration into existing thermal systems make them ideal for district heating, concentrated solar power (CSP), and building energy management. Moreover, minimal maintenance requirements and long operational lifespans further enhance their commercial adoption across power generation and industrial sectors.

The thermochemical storage materials segment is expected to grow at the fastest CAGR of 8.5% over the forecast period, owing to their superior energy density and potential for long-duration energy storage. These materials store energy through reversible chemical reactions, enabling negligible heat loss over time. Growing interest in decarbonizing industrial heat applications and renewable integration is driving research into metal oxides, salts, and sorbent-based systems. As industries and utilities demand more efficient and compact storage solutions, thermochemical technologies are increasingly being recognized as the next frontier for high-temperature and long-term thermal energy storage.

End-use Insights

The power generation segment led the thermal energy storage materials industry with the highest revenue share of 33.8% in 2024, primarily due to the integration of storage systems with concentrated solar power plants and grid-scale renewable projects. TES materials are crucial for stabilizing the electricity supply by converting intermittent solar or wind energy into consistent thermal energy for later use. Their ability to enhance grid flexibility, reduce curtailment, and optimize renewable utilization has positioned them as indispensable in achieving clean energy goals. Utilities and energy providers are increasingly deploying TES to improve energy reliability and lower operational costs.

The industrial processes segment is expected to grow at the fastest CAGR of 7.5% over the forecast period. Industries such as chemicals, cement, food, and metallurgy are seeking efficient heat recovery and decarbonization solutions to cut carbon emissions and energy costs. TES systems allow industries to capture waste heat or store renewable energy for high-temperature operations, thus reducing dependence on fossil fuels. As global emission norms tighten and industrial electrification gains traction, the use of thermal energy storage materials in process heat applications is expected to expand considerably in the coming years.

Regional Insights

Asia Pacific dominated the global thermal energy storage materials market and accounted for the largest revenue share of 39.6% in 2024, due to extensive renewable projects and strong government initiatives. Countries like China, India, and Japan are expanding their solar and wind infrastructure, integrating TES to enhance reliability and energy balance. Increasing urbanization and industrial energy consumption drive demand for efficient heating and cooling systems. The region also benefits from local manufacturing capabilities that lower production costs. Investment in CSP projects and waste heat recovery technologies has further strengthened Asia Pacific’s market position, with countries investing heavily in sustainable smart grid systems and energy-efficient construction.

The China thermal energy storage materials market is expected to grow over the forecast period. China is rapidly advancing in TES deployment, driven by national policies promoting carbon neutrality and clean energy technologies. The country’s extensive CSP installations and district heating projects are key growth areas. Chinese manufacturers are innovating high-performance inorganic salts and hybrid PCMs for cost-effective applications. The government’s strong R&D support under initiatives like “Made in China 2025” has accelerated domestic material production. TES integration into smart buildings and industrial energy systems is rising, driven by growing demand for energy efficiency and stable power management.

North America Thermal Energy Storage Materials Market Trends

North America is witnessing strong growth due to the rising adoption of renewable energy and federal incentives for energy efficiency. The U.S. and Canada are investing heavily in grid modernization and peak load management systems, where TES materials play a vital role. Technological advancements in PCM-based solutions and molten salt systems are expanding market potential. Increasing emphasis on decarbonizing the building and industrial sectors is enhancing demand for thermal energy storage. Furthermore, partnerships between startups and research institutions are contributing to innovation and commercialization.

U.S. Thermal Energy Storage Materials Market Trends

The U.S. is a key market within North America, supported by DOE-backed research and utility-scale renewable energy integration. Companies are adopting TES for HVAC optimization, data centers, and large-scale solar power plants. Growing environmental awareness and carbon reduction mandates are pushing both private and public sectors to invest in TES-based systems. Hybrid storage models combining TES and battery systems are emerging as efficient alternatives. The strong presence of manufacturers and technology developers ensures steady market growth over the coming years.

Europe Thermal Energy Storage Materials Market Trends

Europe maintains a strong foothold in the TES materials industry, propelled by the EU’s aggressive decarbonization and energy transition policies. The European Green Deal and Horizon 2030 projects are supporting large-scale TES deployment. District heating systems in Nordic countries, solar integration in Southern Europe, and energy-efficient construction across Western Europe drive demand. The region’s robust R&D base and cross-border collaborations are fostering the development of recyclable, high-performance TES materials. Strong regulatory frameworks further encourage innovation and large-scale project implementation.

The Germany thermal energy storage materials market is leading in Europe due to its well-established renewable infrastructure and energy transition strategy, known as the “Energiewende.” Focused investments in industrial waste heat recovery, district heating, and green construction are propelling demand. German manufacturers are innovating advanced PCMs and thermochemical storage systems with improved stability and energy density. Government-backed pilot projects and collaborations with European research networks enhance technological competitiveness. Increasing focus on hybrid energy storage and industrial decarbonization further supports long-term growth.

Central & South America Thermal Energy Storage Materials Market Trends

The Central & South America thermal energy storage materials industry is showing growing potential, led by Brazil, Mexico, and Chile, where solar and industrial heating applications are expanding. Government efforts to diversify energy portfolios and promote renewable energy storage are key drivers. TES is gaining adoption in commercial and industrial facilities for cooling and heating optimization. International partnerships support technology transfer and capacity building. The market is still developing but holds significant opportunities for CSP and off-grid applications, particularly in remote areas with high solar potential.

Middle East & Africa Thermal Energy Storage Materials Market Trends

The Middle East & Africa thermal energy storage materials industry is gaining traction as regional economies diversify energy sources and invest in sustainable infrastructure. Countries such as Saudi Arabia and the UAE are leading with large-scale CSP projects integrating TES. High cooling demand in the region promotes TES adoption in HVAC and building systems. Government strategies like Saudi Vision 2030 and Dubai Clean Energy Strategy 2050 emphasize renewable integration and energy efficiency. Collaboration with European technology providers is fostering innovation and knowledge exchange, ensuring robust market expansion in the coming decade.

Key Thermal Energy Storage Materials Company Insights

Some of the key players operating in the market include Brenmiller Energy and Cryogel Thermal Energy Systems.

• Brenmiller Energy Ltd. is an Israel-based renewable energy company specializing in thermal energy storage solutions. Its flagship product, the bGen™ system, converts renewable electricity into heat for industrial and utility-scale applications. The company focuses on supporting decarbonization by providing sustainable alternatives to fossil-fuel-based heating.

• Cryogel Thermal Energy Systems develops advanced insulation and heat retention materials using aerogel technology. The company provides innovative thermal management and storage solutions for industrial, power generation, and CSP (concentrated solar power) applications, helping enhance efficiency and reduce heat losses.

LUMENION and Heliac are some of the emerging market participants in the thermal energy storage materials market.

• LUMENION GmbH is a German company pioneering steel-based high-temperature thermal energy storage systems. Its technology enables large-scale storage of renewable electricity as heat, which can later be used for district heating or industrial applications, supporting grid stability and energy transition goals.

• Heliac A/S, based in Denmark, designs and manufactures solar thermal collectors and integrated energy storage systems. The company’s technology captures solar radiation and stores it as heat, providing sustainable and cost-effective thermal energy for industrial processes and district heating networks.

Recent Developments

• In August 2024, Brenmiller Energy inaugurated its thermal energy storage manufacturing facility in Dimona, Israel, to scale up production of its patented bGen system. The new plant is designed to support industrial decarbonization by providing grid-scale thermal batteries capable of storing renewable energy as heat for later industrial use.

• In February 2024, Cryogel expanded its product line by introducing advanced aerogel-based insulation materials optimized for long-duration heat storage. The company entered partnerships with European CSP developers to improve system efficiency and reduce heat losses in molten salt-based TES projects.

• In January 2025, CALMAC launched its next-generation IceBank energy storage system for commercial buildings. The updated design improves energy efficiency and load shifting capabilities for HVAC systems. The company also partnered with Trane Technologies to integrate TES into smart building automation solutions.

Thermal Energy Storage Materials Market Report Scope

Global Thermal Energy Storage Materials Market Report Segmentation

This report forecasts revenue growth at the global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the thermal energy storage materials market report based on material type, end-use, and region:

• Material Type Outlook (Revenue, USD Million, 2021 - 2033)

  • Sensible Heat Storage Materials

  • Latent Heat Storage Materials

  • Thermochemical Storage Materials

• End-use Outlook (Revenue, USD Million, 2021 - 2033)

  • Power Generation

  • Building & Construction

  • Industrial Processes

  • Transportation

  • Others

• Regional Outlook (Revenue, USD Million, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • Egypt

    • Qatar

    • Kuwait