Molten Salt Thermal Energy Storage Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Technology (Parabolic Trough, Fresnel Reflector, and Power Tower), By Region, Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 4.53 Billion
CAGR (2026-2031)	9.17%
Fastest Growing Segment	Parabolic Trough
Largest Market	Asia Pacific
Market Size (2031)	USD 7.67 Billion

Market Overview

The Global Molten Salt Thermal Energy Storage Market will grow from USD 4.53 Billion in 2025 to USD 7.67 Billion by 2031 at a 9.17% CAGR. Molten Salt Thermal Energy Storage is a technology that utilizes salt mixtures, typically combining sodium and potassium nitrates, to retain thermal energy at high temperatures for subsequent electricity generation or industrial heating. The primary drivers propelling this market include the escalating necessity for long-duration, dispatchable energy storage to stabilize power grids against the intermittency of renewable sources like wind and solar. Additionally, global mandates for decarbonization in heavy industries are accelerating the adoption of these systems to provide reliable, zero-carbon process heat, distinct from short-term battery storage trends.

Despite its potential, the market faces hurdles related to deployment costs and technical complexities. According to the China Solar Thermal Alliance, in 2025, molten salt tower technology accounted for approximately 57.4% of the cumulative installed concentrating solar power capacity in China. However, a significant challenge impeding broader market expansion is the high capital expenditure required for the specialized infrastructure and materials needed to withstand the corrosive nature of molten salts at elevated temperatures.

Key Market Drivers

The expansion of Global Concentrated Solar Power (CSP) infrastructure acts as the primary catalyst for the molten salt thermal energy storage market, given the medium's superior heat transfer properties and ability to provide dispatchable baseload electricity. Unlike intermittent photovoltaic systems, CSP plants utilize molten salt to store thermal energy for delayed power generation, effectively bridging the gap between peak solar availability and peak grid demand. This infrastructure build-out is particularly evident in leading markets like China, where state-backed projects are rapidly scaling. According to the China Solar Thermal Alliance, February 2025, in the 'Blue Book of China's Concentrating Solar Power Industry 2024', the nation had 34 CSP projects under construction with a total capacity of 3,300 MW, signaling a robust pipeline that directly drives demand for large-scale molten salt inventories.

Simultaneously, the growth in industrial process heat and thermal management applications is diversifying market opportunities beyond utility-scale power generation. As heavy industries seek to decarbonize high-temperature processes, molten salt technologies are increasingly adopted to replace fossil-fuel boilers with renewable thermal batteries. Supporting this shift, according to the U.S. Department of Energy, June 2025, in the 'U.S. Department of Energy Selects $15M in Projects Advancing Energy Storage' announcement, the agency awarded funding to demonstrate storage technologies capable of supporting critical infrastructure, validating the strategic shift toward resilient, non-lithium storage solutions. To illustrate the market's current scale, according to IRENA, in 2025, the global installed capacity of concentrated solar power reached approximately 6.9 GW by the end of 2024.

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Key Market Challenges

The high capital expenditure required for specialized infrastructure constitutes a substantial barrier to the expansion of the Global Molten Salt Thermal Energy Storage Market. Molten salts operate at extreme temperatures and possess corrosive properties, necessitating the use of premium-grade alloys, heavy-duty pumps, and advanced piping systems to ensure operational safety and longevity. This requirement for durable, high-performance materials significantly elevates the initial financial outlay needed for project development. Consequently, financial stakeholders often view these projects as high-risk ventures compared to less capital-intensive storage alternatives, thereby slowing the rate of final investment decisions and project commissioning.

This financial burden directly limits market growth by restricting the technology to regions with strong subsidy support or specific industrial needs. The cost disparity creates a difficult competitive landscape for developers attempting to secure funding. According to the China Solar Thermal Alliance, in 2024, the unit investment cost for molten salt tower solar thermal power projects was approximately 16,500 yuan per kilowatt. Such elevated upfront costs deter broader commercial adoption, as potential investors frequently struggle to justify the massive capital requirements needed to manage the complex engineering and procurement phases essential for these thermal storage facilities.

Key Market Trends

Retrofitting Decommissioned Coal Power Infrastructure is emerging as a vital strategy to repurpose retiring fossil fuel assets into renewable dispatch centers. By integrating molten salt heaters and storage tanks with existing steam turbines, generators, and transmission lines, utilities can convert conventional plants into thermal energy storage facilities—often termed "Carnot batteries"—at a fraction of the capital cost of greenfield projects. This approach mitigates the risk of stranded assets while providing the grid with essential inertia and long-duration discharge capabilities previously supplied by coal combustion. According to CHN Energy, September 2025, in the 'China Brings Largest Coal Power + Molten Salt Storage Project Online' announcement, the newly commissioned retrofit project at the Suzhou Power Plant utilizes a two-tank system to provide a rated thermal storage capacity of 1,000 MWh, enabling the facility to deliver dispatchable power without direct fossil fuel consumption.

Integration with Next-Generation Nuclear Power Systems represents a sophisticated market evolution, moving molten salt storage applications beyond their traditional association with concentrated solar power. Advanced nuclear designs, particularly sodium-cooled fast reactors, are increasingly incorporating molten salt thermal storage to decouple steady-state reactor operations from variable grid demand. This hybridization allows nuclear plants to run at optimal baseload efficiency while storing excess heat to provide flexible, load-following electricity during peak periods, effectively functioning as a massive thermal battery. According to TerraPower, December 2025, in the 'CEO Statement on Final Safety Review of Natrium Reactor' press release, the facility's integrated molten salt-based energy storage system allows the reactor to boost its net power output from a baseline of 345 MWe to 500 MWe for more than five hours to meet high electricity demand.

Segmental Insights

The Parabolic Trough segment is currently identified as the fastest-growing category within the Global Molten Salt Thermal Energy Storage Market, driven by its extensive technological maturity and proven track record. Utility providers and investors increasingly favor this system due to its superior operational reliability and lower risk profile compared to alternative concentrating solar technologies. Furthermore, continuous advancements in thermal efficiency and component durability have significantly enhanced its cost-competitiveness. This widespread preference for established, dispatchable energy solutions ensures that parabolic trough technology remains the primary choice for meeting international renewable energy mandates and grid stability requirements.

Regional Insights

Asia Pacific currently leads the global molten salt thermal energy storage market, driven largely by extensive renewable energy integration in China. The dominance of this region is attributed to rapid industrial expansion which increases the requirement for consistent electricity supply and grid stability. Government entities such as China's National Energy Administration have established supportive policies prioritizing concentrated solar power projects equipped with storage capabilities. These regulatory measures effectively address carbon reduction goals while mitigating the intermittency of solar energy. As a result, substantial infrastructure development continues to reinforce the market position of the Asia Pacific region.

Recent Developments

• In June 2025, Malta Inc. signed a definitive agreement with BBVA to develop a commercial-scale thermal energy storage plant in Puertollano, Spain. The project involved the installation of a 14 MWh system utilizing the company's proprietary molten salt technology, which converts electricity into heat for long-duration storage. Under the terms of the collaboration, the financial institution committed to a Power Purchase Agreement to support the facility's operations. This initiative marked the company's expansion into the Iberian market, leveraging the region's renewable energy potential to demonstrate the system's ability to provide reliable, dispatchable power and heat for industrial use.
• In November 2024, Vast Renewables secured up to AUD 30 million in funding from the Australian Renewable Energy Agency (ARENA) to advance its concentrated solar thermal technology. This capital was allocated to ramp up manufacturing capabilities and finalize development activities for the VS1 utility-scale project in Port Augusta, South Australia. The planned 30 MW facility was designed to utilize modular towers and a molten salt loop to provide over eight hours of dispatchable thermal energy storage. This financial support marked a critical step toward the construction of the plant, which aims to power green methanol production and stabilize the local energy grid.
• In April 2024, Hyme Energy officially inaugurated its Molten Salt Storage (MOSS) demonstrator project in Esbjerg, Denmark. This facility represented the world’s first deployment of a thermal energy storage system utilizing molten hydroxide salt at a megawatt scale. The project, developed in collaboration with partners such as Alfa Laval and Sulzer, was designed to store renewable energy and discharge it as heat or steam for industrial applications. The launch demonstrated the viability of using hydroxide salts, which melt at lower temperatures than traditional salts, offering a cost-effective solution for decarbonizing energy-intensive industries and stabilizing the grid.
• In January 2024, Kyoto Group AS finalized a loan agreement with Nefco, the Nordic Green Bank, to accelerate the global expansion of its molten salt-based thermal energy storage solution. The EUR 4 million investment was designated to support the commercial scale-up of the company's Heatcube technology, which provides sustainable industrial heating by replacing fossil fuel boilers. This financial backing followed the successful commissioning of the company's first full-scale commercial demonstration plant at a large combined heat and power facility in Denmark. The funding aimed to address the growing demand for efficient renewable energy storage systems in the industrial sector.

Key Market Players

• Yara International ASA
• Acciona, S.A.
• Abengoa SA
• BrightSource Energy, Inc.
• SENER Grupo de Ingenieria, S.A.
• SolarReserve, LLC
• Engie SA
• SCHOTT AG

By Region

North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Molten Salt Thermal Energy Storage Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Molten Salt Thermal Energy Storage Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE