Molten Salt Thermal Energy Storage Market to Hit USD 6.5 Billion by 2035 at 13.15% CAGR Amid Clean Energy Push

The Molten Salt Thermal Energy Storage Market is experiencing rapid growth, propelled by the global shift toward low-carbon energy and long-duration storage needs. With a market value of USD 1.67 billion in 2024, it is anticipated to rise to USD 1.89 billion by 2025 and reach an impressive USD 6.5 billion by 2035, expanding at a compound annual growth rate (CAGR) of 13.15% during the forecast period.

Molten salt thermal energy storage (TES) systems offer efficient heat retention and dispatchability, making them highly suitable for concentrating solar power (CSP) plants and hybrid renewable energy setups. As countries focus on clean, dispatchable energy, molten salt TES emerges as a reliable solution for round-the-clock power delivery.

Market Drivers

A key driver of the market is the increasing global focus on decarbonization. Countries are transitioning to renewable energy to meet their net-zero goals, and molten salt storage plays a vital role in addressing the intermittency issues of solar and wind power.

Rising deployment of Concentrated Solar Power (CSP) projects, especially in regions with high solar irradiance like the Middle East, North Africa, and parts of the U.S. and China, significantly contributes to the market. Molten salt TES enables CSP plants to store energy during the day and deliver power even after sunset.

The market also benefits from government-backed renewable energy initiatives, including incentives, subsidies, and mandates promoting energy storage infrastructure. Policies supporting grid stability and renewable integration are boosting investments in molten salt-based solutions.

The growing need for long-duration energy storage as an alternative to lithium-ion batteries is gaining attention. Unlike batteries, molten salt TES can operate for decades with minimal degradation and lower environmental risk, making it a preferred choice for utility-scale applications.

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Key Market Trends

One of the most significant trends is the integration of molten salt TES with hybrid renewable energy systems. Developers are increasingly coupling CSP with photovoltaic (PV) panels and wind turbines to ensure consistent energy supply, leveraging the thermal capacity of molten salt for nighttime or cloudy-day generation.

Technological advancements in salt composition, insulation, and heat exchanger design are improving efficiency and reducing costs, making molten salt TES more competitive with battery energy storage.

Another trend is the emergence of decentralized and modular molten salt TES systems, which can be installed at industrial facilities or remote locations. These systems provide both electricity and process heat, supporting industrial decarbonization efforts.

The use of molten salt storage in thermal-to-electric conversion systems for off-grid and microgrid applications is gaining popularity, especially in rural and island regions where consistent power is critical.

Regional Analysis

North America

North America, particularly the U.S., is a major contributor to the molten salt thermal energy storage market. Projects in states like California and Arizona benefit from high solar exposure and supportive energy transition policies. The DOE’s focus on long-duration storage is creating fresh opportunities for molten salt adoption.

Europe

Europe is investing heavily in advanced energy storage solutions to meet its ambitious climate targets. Spain, with its history of CSP projects, remains a leader in molten salt TES. Germany and Italy are exploring thermal storage integration into district heating systems and industrial processes.

Asia-Pacific

Asia-Pacific is emerging as a high-growth region. China’s massive renewable energy ambitions, paired with its support for CSP development, drive the molten salt TES market. India and Australia are also exploring TES to stabilize renewable-powered grids and serve remote areas.

Middle East and Africa

Countries like Saudi Arabia, the UAE, and Morocco are pioneering large-scale CSP projects with integrated molten salt storage, tapping into their abundant solar resources. These projects aim to diversify energy portfolios and reduce fossil fuel dependency.

Latin America

Chile’s Atacama Desert region, rich in solar resources, is positioning itself as a CSP and molten salt TES hub. Brazil and Mexico are also showing increasing interest in TES to complement wind and solar investments.

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Challenges and Constraints

Despite its potential, the molten salt thermal energy storage market faces several challenges. The high initial investment cost and longer payback periods compared to lithium-ion batteries can deter investors, especially in markets without subsidies or favorable financing mechanisms.

Limited awareness and technical expertise also hamper adoption, particularly in emerging markets where energy infrastructure is underdeveloped. Engineering, procurement, and construction (EPC) complexities for large CSP + TES projects require specialized knowledge.

There are materials and operational constraints as well. Molten salts require high operating temperatures and must be handled carefully to avoid corrosion, leakage, or freezing—factors that can complicate maintenance and system design.

Moreover, competitive pressure from electrochemical storage technologies—which offer smaller footprints and modular flexibility—continues to challenge the market. Molten salt TES systems are more viable at scale but less so for distributed applications without proper infrastructure.

Opportunities

The molten salt thermal energy storage market presents multiple high-impact opportunities. A primary one lies in the decarbonization of industrial heat, which accounts for a large share of global CO₂ emissions. Molten salt TES systems can provide high-temperature process heat efficiently, helping heavy industries transition to clean energy.

Energy export potential is also growing. Countries investing in CSP and molten salt TES could export surplus clean electricity via high-voltage transmission lines to neighboring regions, as seen in North Africa’s solar initiatives targeting Europe.

Urban district heating systems integrated with molten salt TES offer another opportunity. These setups can store excess solar or wind power as thermal energy and supply heating to residential or commercial zones during peak demand.

The rise of green hydrogen production could also be bolstered by molten salt TES. By ensuring consistent energy supply to electrolyzers, TES enables stable hydrogen production even during variable renewable energy availability.

Research funding and public-private collaborations can accelerate innovation in salt mixtures, reduce costs, and improve thermal cycling durability, expanding market reach and system longevity.

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Conclusion

As global energy systems undergo a fundamental transformation, the Molten Salt Thermal Energy Storage Market is well-positioned to support the next generation of clean, resilient, and flexible grids. With a projected CAGR of 13.15% from 2025 to 2035, the market is on track to grow from USD 1.89 billion to USD 6.5 billion, driven by its unmatched capability to provide long-duration, high-efficiency storage at scale.

While challenges around costs, technical complexity, and competition persist, the unique advantages of molten salt TES—including thermal efficiency, longevity, and compatibility with CSP—ensure its relevance in future energy architectures. As countries invest in sustainable infrastructure and industry transitions to greener operations, molten salt TES is likely to play a crucial role in the global storage landscape.

Key Companies in the Molten Salt Thermal Energy Storage Market Include:

Fluor Corporation

SolarReserve

GEO2 Technologies

ACWA Power

Siemens

Tessera Solar

ENGIE

BrightSource Energy

Abengoa

Sener Group

Nextera Energy

Greenfield Solar

Malta Inc

Iberdrola

Molten Salt Thermal Energy Storage Market Segmentation Insights

Molten Salt Thermal Energy Storage Market Application Outlook

Concentrated Solar Power Plants

Industrial Process Heat

District Heating

Molten Salt Thermal Energy Storage Market Storage Type Outlook

Sensible Heat Storage

Latent Heat Storage

Thermochemical Storage

Molten Salt Thermal Energy Storage Market Material Type Outlook

Sodium Nitrate

Potassium Nitrate

Solar Salt

Molten Salt Thermal Energy Storage Market End Use Outlook

Utility

Commercial

Residential

Molten Salt Thermal Energy Storage Market Regional Outlook

North America

Europe

South America

Asia Pacific

Middle East and Africa

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