Cold Thermal Energy Storage Market Size, Share & COVID-19 Impact Analysis, By Application (Buildings {Residential, Commercial, Warehouse}, Industrial {Meat Processing, Dairy, Beverages, and Others}) and Regional Forecasts, 2021-2028

The global cold thermal energy storage market size was valued at USD 227.9 million in 2020. The global market is projected to grow from USD 244.7 million in 2021 to USD 616.6 million in 2028 at a CAGR of 14.1% during the forecast period. The global impact of COVID-19 has been staggering and unmatched, with the cold thermal energy market observing a negative demand across the regions during pandemic. Based on our analysis, the global market projected a slow growth of 6.6% in 2020 when compared to the average year-on-year growth during 2017-2019. The growth in CAGR is attributable to this market's demand and growth returning to pre-pandemic levels once the pandemic is over.

Remarkable developments in energy storage systems and the subsequently declining environmental impact from utilizing these systems is driving the demand for these systems worldwide. These systems store up thermal energy by heating or cooling a storage medium known as phase change material (PCM). The stored energy can be used at a later time for heating and cooling applications, providing better reliability, increased overall efficiency, and reduced investment and running costs. The shift towards sustainable solutions accelerated by the negative environmental impact caused due to depleting fossil fuel resources will boost the technology adoption in the forthcoming years.

Blockades in Energy Industry has Harmed Market Growth amid COVID-19

The pandemic caused by the spread of the novel coronavirus globally has impacted the industry worldwide. International Energy Agency (IEA) stated that the COVID-19 has significantly impacted the growth in power generation from renewable energy sources. IEA estimated that the number of new renewable power installation worldwide is set to fall in 2020 due to pandemic. Furthermore, the shutdown of manufacturing facilities worldwide is also responsible for declining market growth.

LATEST TRENDS

Increased Demand for Reliable and Efficient Energy Storage Systems to Augment  Market Growth

During the past few decades, a vast amount of daytime peak power around the world has been shifted to off-peak hours with the use of these kind of systems. Notable technological developments have been made in energy storage technology, which has had an extensive and vivid impact on the lives of humankind. With significantly less energy input, cold thermal energy storage systems are capable of providing better cooling as compared to traditional non-storage energy-producing methods. In regions where utilities charge higher power consumption rates during the day i.e., on-peak hours, and low rates for off-peak hours during the night, these systems have proven to be economical.

Increasing Emphasis on Utilization of Renewable Energy Resources Will Favor Market

The growing need to conserve the earth's resources and be environmentally sustainable has given rise to the demand for cold thermal energy storage systems. In May 2019, IEA reported that electricity demand for cooling tripled to reach nearly 2000 terawatt-hours (TWh) between 1990 and 2018. Consequently, energy-efficient technologies have gained importance in recent years to achieve sustainable energy targets. Extensive research and development (R&D) activities are being conducted in new areas, such as the utilization of hydrofluro-olefins (HFO) refrigerants in ice storage machines that have a lower global warming potential and zero ozone depletion potential compared to their HFC (hydrofluorocarbons) counterparts. The aforementioned factors along with innovative government policies to promote sustainable technologies will fuel the demand for thermal energy in the near future.

DRIVING FACTORS

Increasing Efforts to Decarbonize Cooling Sector for Sustainable Development is Supporting Growth

Cold thermal energy storage allows for a transition away from fossil fuel, resulting in around 30-50% reduction in primary energy consumption. The deployment of such systems reduces fossil fuel consumption and greenhouse gas emissions considerably, which could eventually help mitigate the rising pollution threat. Air conditioning (AC) systems account for between 16-50% of electricity consumption in many regions worldwide, especially in hot and humid countries near the equator. Cold thermal energy storage technology is more efficient than traditional decentralized air conditioning systems and can reduce electricity use during peak demand through reduced power consumption. Consequently, increasing investments in such technologies will propel the market forward in the forthcoming years.

Growing Adoption of Energy Efficient Technologies Led by Encouraging Government Initiatives Will Drive Market

According to the International Renewable Energy Agency's (IREA) Renewable Capacity Statistics 2021, the cooling loads required by industrial and commercial sectors would see an increase in electricity share of final energy from 20% in 2017 to 49% by 2050. Relying solely on power generators may stretch the existing resources and increase the overall cost. The availability of low-cost and reliable renewable electricity is opening the door to integrating the renewable energy sector with the buildings and industry sectors for a cross-sector decarburization strategy.

For example, electricity demand for building space cooling can be moved to lower-cost periods by charging up cold thermal storage systems during off-peak times and then discharging when required. This factor enables reduced grid congestion, higher renewable energy penetration, and lowers costs. Numerous state and/or federal governments have introduced energy efficiency standards and financial support plans to support the transition towards greener systems. The above-mentioned factors will augment the growth of cold thermal energy storage industry over 2021-2028.

RESTRAINING FACTORS

Lack of Awareness and High Initial Investment is Hindering Global Cold Thermal Energy Storage Market

Cold thermal energy storage systems are suitable for large commercial spaces such as hospitals, offices, educational institutes, and others. They are not feasible for smaller capacities, especially for residential buildings, as it is challenging to overcome the scale of high economies involved. High initial investments are required to install heating and cooling systems for centralized cooling systems, which is only possible through government subsidies and local channel compliance. Furthermore, a significant market restrain is the lack of awareness about cold TES technology, its applications and benefits such as cost savings. Besides these factors, the lack of integrated infrastructure and land-use planning could also restrict the technology adoption to some extent. Inadequate knowledge and capacity to execute projects and a lack of agreed methodology to recognize energy-saving and environmental benefits are also significant hurdles affecting the cold thermal energy storage market growth.                

SEGMENTATION

By Application Analysis

Wide Application in Commercial Spaces to Drive Market Share for Commercial Segment

By application, the market is segmented into buildings and industrial.

Cold thermal energy storage application is segmented into building and industrial applications. The building application segment is further split into commercial, residential, and warehouses. Similarly, the industrial application segment is split into meat processing, dairy, beverages, and others. The commercial segment will acquire a significant market share over 2021-2028 with expanding applications in the commercial sector. These systems are primarily used in private and public sectors, including offices, shops, government, institutions, airports, and organizations. The warehouse segment will also account for a notable market share due to wide use in refrigeration applications in the food processing sector. In residential applications, the use of these systems is limited due to the lack of commercial availability of economic cold storage systems for small residential capacities.

Beverage and meat processing application segment account for a sizable share in this market. Cooling is an essential part of the beverage industry as it is necessary for the pre-cooling of bottled cans. The new ice bank machines, which incorporate cold TES technology for direct and indirect cooling of beverages, are likely to gain robust popularity among beverage manufacturers during the forecast period. In the meat processing industry, cold TES systems are used as refrigerated chambers and can chill, freeze, and store any perishable product.

In the dairy industry, cold thermal storage systems are used as ice builders with a vast range of potential applications, from fermentation vessels in breweries to heat exchangers in bakeries and farms and large milk cooling systems. The others application segment, which includes medical, biotechnology, military, and other niche applications, will record steady growth between 2021 and 2028.

REGIONAL INSIGHTS

North America to Hold Market Share due to Continuous Investments In Research & Development

The market has been evaluated across five major regions, including North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.

North America generated USD 89.03 million in terms of annual revenue in 2020 and will lead cold thermal energy storage market share through 2028. This growth can be attributed to continuous investments in research & development of thermal energy storage and energy management solutions. Growing awareness towards utilizing renewable energy systems also drives the regional technology demand.

The Asia Pacific region is anticipated to grow at a healthy CAGR over the forecast period owing to various factors such as rapidly increasing energy demand, a surging urban population, establishment of new infrastructure and increasing need for cooling systems. Furthermore, stringent emission reduction regulations, the adoption of energy-efficient systems, and increasing renewable energy installations are key factors propelling this market. The Middle East & Africa region is one of the fastest-growing regions due to high temperatures, rising commercialization, and economic growth.

KEY INDUSTRY PLAYERS

Market Players to Boost R&D Investments and Focus on Expanding Customer Reach

The global cold thermal energy storage market is considerably fragmented, with different key players operating at the national, regional, and global levels. The industry participants are significantly focusing on developing high-performance thermal storage with enhanced operational characteristics to fortify their global foothold. Considering all the scenarios, EVAPCO, Inc., Baltimore Aircoil Company, and Omega Thermo Products held significant market share in the global market due to their better-performing storage devices and established supply chain. They are expected to remain the market leaders in the upcoming years.

LIST OF KEY MARKET PLAYERS PROFILED:

• CALMAC (U.K.)


• Baltimore Aircoil Company (U.S.)


• Vogt Ice LLC (U.S.)


• Nostromo Energy (Israel)


• BeKa Heiz- und Kühlmatten GmbH (Germany)


• Trane (Ireland)


• Viking Cold Solutions, Inc. (U.S.)


• NETenergy (U.S.)


• EVAPCO, Inc. (U.S.)


• EnergiVault (U.K.)


• Omega Thermo Products (U.S.)


• Fullwood Packo Group (U.K.)


• Kilkenny Cooling Systems (Ireland)

KEY INDUSTRY DEVELOPMENTS:

• August 2021 - Emirates Central Cooling Systems Corporation (Empower) announced that the company had secured a contract to supply 3,700 refrigeration tons (RT) of district cooling energy for Marsa Al Arab, one of the most significant marine tourism and leisure destinations being developed on Jumeirah beaches, Dubai. According to the company, the first phase of the district cooling services will start by the end of the year 2021. An AED6-billion (USD 1.63 billion) development, Marsa Al Arab comprises two artificial islands situated on both sides of Burj Al Arab hotel and spread across a total area of 4 million sq. ft.


• July 2021 - Baltimore Aircoil Company announced the acquisition of Italy-based company Eurocoil SPA, a leading manufacturer of heat exchangers serving the European commercial and refrigeration industries. The addition of Eurocoil increases Baltimore Aircoil’s manufacturing capacity in the region while adding additional heat exchanger capabilities used for BAC’s existing evaporative hybrid and adiabatic cooling products.

REPORT COVERAGE

The market research report highlights leading regions worldwide to better understand the ongoing market trends. Furthermore, the report provides insights into the latest industry trends and analyzes technologies being deployed globally. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the industry.

Report Scope & Segmentation