| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 890.1 Million |
| 2025 Market Size | USD 997.8 Million |
| 2032 Forecast | USD 2357.7 Million |
| Growth Rate (CAGR) | 13.1% |
| Largest Region | West |
| Fastest Growing Region | South |
| Nature of the Market | Fragmented |
| Largest Application Category | District Heating & Cooling |
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The U.S. thermal energy storage market revenue was USD 890.1 million in 2024, and it is expected to witness a CAGR of 13.1% from 2025 to 2032, reaching USD 2,357.7 million in 2032. With the rising electricity cost in the United States, thermal energy storage systems allow consumers to store energy during off-peak periods and utilize it during peak demand. With sustainability goals among businesses in the U.S., companies are integrating thermal energy storage systems to maximize the use of renewable energy and minimize energy waste.
Moreover, with the rise in urban economies, most of the residential and commercial sectors in the U.S. are integrating district cooling systems, which help provide centralized energy to multiple infrastructures that demand thermal energy storage systems for energy storage.
The increased emphasis on environmental concerns and sustainability measures is demanding for thermal energy storage (TES) systems which are essential components for enabling the sustainable energy ecosystem.
Additionally, renewable energy systems further help in reaching the decarbonization goals of the country by eliminating the use of fossil fuels for power generation. TES is the most suitable option for storing the energy produced during the day by solar plants, which can be further utilized during non-sunlight hours.
Additionally, with the rising government initiatives and policies such as the Federal Investments Tax Credit (ITC), state-level incentives such as California’s Self-Generation Incentive Program (SGIP) are driving the integration of renewable energy storage systems for the storage of the generated power.
In August 2024, the U.S. Department of Energy launched the advanced Energy Storage Research and Testing Facility at the Pacific Northwest National Lab in Richland Wash.
Industries in the United States are demanding thermal energy storage systems to maintain consistent energy and power disruptions for smooth operations in the market.
The aging infrastructure and extreme weather events such as hurricanes, heat waves, and winter storms may cause power disruptions in residential, commercial, and industrial activities.
TES further helps by providing energy during peak demand periods further driving the growth of the market. Additionally, TES unlike traditional storage systems such as centralized fossil fuel power plants reduces the risk of single-point failure which can hamper the overall operation. In the TES system, if one part of the grid is not functioning then the other parts may supply energy without any disruptions.
Thermal energy storage systems work on a simple mechanism rather than complex digital electronic systems, which makes them a more secure energy storage option compared to fully digital or electronic systems.
Sensible heat storage technology is the largest category with a market share of around 90% in 2024. This storage technology is widely used in district heating and cooling applications and industrial heat management systems.
Latent heat storage is the fastest-growing category during the forecast period. This growth can be attributed to the growing demand for compact solutions for energy storage during power generation.
The advancement in phase change materials such as operations of PCM in various temperatures further comes up with the decreased cost compared to the traditional materials.
Further, these types of energy storage are most efficient where spaces are limited and efficiency is crucial compared to other types as there is a rapid increase in construction activities in the U.S.
Based on technology, the market has the following categories:
Based on storage material, the water category held the largest market share, of 40%, in 2024. This is due to the widespread adoption of water for energy storage systems by most industries.
The PCM category will grow at the highest CAGR during the forecast period. This is due to its ability to store and release heat at a consistent temperature. The PCM presents a higher latent thermal energy storage capacity, compared to the water-based thermal storage system, which means that it can store more energy per unit mass compared to water further allowing it to become more compact.
Based on the material, the market has the following categories:
District heating and cooling systems held the largest market share 2024. With the rapid urbanization in the U.S., there is an increased demand for district heating and cooling solutions for new residential and commercial construction activities. The district heating and cooling systems require efficient energy storage systems, which are fulfilled by the thermal energy storage systems further driving the need of the thermal energy storage systems.
Renewable energy integration will grow at the highest CAGR during the forecast period. This growth can be attributed to the rising state and federal targets for the integration of renewable energy systems, which further demand for storing the energy generated during the excess generation from these systems.
Based on application, the market has the following categories:
The utilities sector held the largest market share of 60% in 2024. This is due to its need to store energy during low-demand periods and utilize that energy during high-demand periods.
The commercial sector will grow at the highest CAGR during the forecast period. This is due to the higher demand from the commercial sector for storing energy. With the stricter building codes and standards that aim to increase efficiency, commercial entities are adopting thermal energy storage systems.
Based on end user, the market has the following categories:
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The western region of the U.S. is the largest regional market with a share of 40% in 2024. The region comprises states like California, which is a hub of thermal energy storage in the U.S. Furthermore, programs such as the California Self-Generation Incentive Program (SGIP) provide incentives to support distributed energy sources.
In September 2023, the U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) announced a total investment of $33 million for research, development, and demonstration projects for the development of low-cost thermal energy storage systems.
The market has been categorized into the following regions:
The U.S. thermal energy storage market is fragmented due to the presence of a large number of players in the country with numerous technologies and solutions, such as Siemens AG and Honeywell International Inc.
Larger companies in the market are acquiring smaller firms for the expansion of their product portfolio and their geographic reach in the country to get dominance in the market.
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