MOLTEN SALT THERMAL ENERGY STORAGE MARKET Size and trends

Molten Salt Thermal Energy Storage Market Size and Trends

The global molten salt thermal energy storage market is estimated to be valued at USD 2.22 Bn in 2025 and is expected to reach USD 4.27 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 9.8% from 2025 to 2032.

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Market Driver - Increasing demand for renewable energy sources

The global energy landscape is witnessing a gradual yet steady shift towards more sustainable sources of energy that have a lower environmental impact. Renewable energy solutions such as solar and wind power have seen tremendous growth in recent years due to favorable government policies and advancements in technology which have brought down costs significantly. However, intermittent nature remains one of the key challenges for the large-scale integration of these renewable resources into the existing electricity grids. Effective energy storage plays a vital role in addressing the mismatch between the energy generation and demand profile.

Molten salt thermal energy storage systems are ideally suited to overcome this intermittency issue by storing excess heat or cold produced from renewable sources for later use. The thermal energy is stored in the form of sensible heat in molten salts which can retain high temperatures even after remaining still for long durations. This minimizes heat loss and makes it highly suitable for later conversion to electricity to meet demand during off-peak supply periods from renewables. Another salient feature is the capability of molten salt to operate at very high temperatures ranging from 300 to 600 degrees Celsius. This high operating temperature allows for effective integration with solar thermal plants for electricity generation well after the sun goes down.

With governments and regulatory bodies across major economies setting ambitious targets to increase the share of renewable power sources, the need for cost-effective long duration energy storage solutions has risen tremendously. The flexibility and technical advantages of molten salt storage over alternative options have made it a preferred technology solution, especially for utility-scale solar thermal and wind power projects. Countries with very high solar irradiation like Spain, the U.A.E, India, South Africa, Saudi Arabia, and Australia have already recognized this potential to balance renewable supply using molten salt storage. Strong policy push for renewables along with declining technology costs is expected to drive significant growth in the molten salt thermal energy storage market in the coming years.