Market Size and Overview:

The Ice Thermal Energy Storage Market was valued at USD 1.1 billion in 2024 and is projected to reach a market size of USD 3.2 billion by the end of 2030. Over the forecast period of 2025-2030, the market is projected to grow at a CAGR of 23.8%.  

Market Size & Trends:

•    The Ice Thermal Energy Storage Market in the North America region dominated the market in 2024.
•    By Type, the Ice-on-Coil system led the market in 2024.
•    By Storage Technology, Static Storage accounted for the largest market revenue share in 2024.
•    By Application, the Commercial Buildings accounted for the largest market revenue share in 2024.

Key Market Statistics:

•    2024 Market Size: $1.1 Billion
•    2030 Estimated Market Size: $3.2 Billion
•    CAGR: 23.8% (2025-2030)
•    North America: Largest market in 2024
•    Asia-Pacific: Fastest-growing region

Ice thermal energy storage is a useful way to handle energy use in buildings and factories. These systems freeze water when electricity demand is low, usually at nighttime. The ice is then saved and used later, during the day when cooling demand is high, for air conditioning or industrial cooling. This approach has several benefits. First, it eases electricity demand during peak hours, which reduces stress on power grids and the need for more power plants. Second, ice storage can lower costs because electricity is cheaper at night, leading to energy bill savings over time. Third, these systems can raise energy use.

                                                    
  
Key Market Insights:

Ice-on-Coil systems dominated the market in 2024 due to their mature technology and high reliability in large-scale applications.

The commercial buildings segment accounted for over 35% of total market revenue.

Static storage is widely used in existing infrastructure retrofits due to lower installation costs and ease of maintenance.

Rapid adoption in Asia-Pacific is driven by large-scale urbanization and government investments in sustainable cooling solutions.

Ice storage systems can run steadily during off-peak hours, leading to energy use overall. Also, the stored ice offers a reliable cooling source, important for some industrial processes or buildings.

Market Drivers:

The demand for energy-smart cooling solutions is growing. 

As cities grow around the world and temperatures rise, power grids are under heavy pressure. One answer to this problem is ice thermal storage. This method helps to use electricity more wisely by moving energy use away from the busiest times of the day to quieter periods. Companies, especially those in the property and hotel industries, are starting to use these systems. The reason is that they want to lower their energy bills and show that they are serious about green practices. By implementing ice thermal storage, these companies can meet standards for green certifications, enhancing their image and attracting environmentally aware customers.

Government support and regulations are also expanding in this area.

Across the globe, many governments are trying to encourage energy saving in different ways. They provide things like tax breaks, financial help, and other encouragements. Ice thermal storage fits well with plans to reduce carbon emissions and save energy. This is particularly true in big markets like the U.S., Europe, and China. Also, building rules that focus on energy saving often require or suggest using thermal storage in heating, ventilation, and air conditioning systems. These rules help make sure that buildings efficiently use energy. They also support wider efforts to protect the environment.

Market Restraints and Challenges:  

The Ice Thermal Energy Storage (ITES) market, while offering good options for energy management, has a few difficulties that influence how quickly it is being accepted. One of the challenges is the cost of getting started. ITES systems can save money in the long run by lowering operating costs. The initial investment can be large. This is particularly true for small to mid-sized businesses without good financial backing. Many businesses might find ITES too expensive at first, keeping them from using it. Another concern is putting ITES systems in older buildings. Older buildings often have specific layouts. There might not be enough room to install new ITES equipment without making big changes to the existing heating, ventilation, and air conditioning (HVAC) systems. These updates can be expensive and difficult, discouraging people from using ITES in older buildings. A big problem is that many people do not know much about ITES tech. In areas that are just starting to use these technologies, facility managers, engineers, and designers might not understand how ITES works. They might not know about the good things ITES can offer or how to set it up properly. Because of this lack of knowledge, the ITES market might grow more slowly, as people stick to more familiar energy solutions.

Market Opportunities:

The Ice Thermal Energy Storage market is seeing a wave of growth opportunities. First off, these systems match well with renewable energy sources like solar and wind. They can hold extra energy as thermal energy, which better load balances and boosts how well microgrids work. This is a big deal as we try to use more green energy. The growth of cities in Asia, the Middle East, and Africa means there's an increased need for district cooling in big building projects. Ice thermal storage is a good option for these systems because it’s sustainable. Plus, it helps lower energy use during peak times, which saves money and lessens the load on power grids. Also, data centers and industrial sites need constant cooling. They are using ice storage increasingly due to its dependability and cost savings when handling heavy energy use. Data centers must have consistent cooling, often running nonstop. Ice thermal storage gives a reliable, affordable cooling answer while cutting energy peaks. Other fields like food processing, petrochemical plants, and the making of medicine are starting to see similar uses. These fields see the benefit of steady cooling and energy management that ice storage provides.

Market Segmentation:

Segmentation by Type: 

•    Ice-on-Coil 
•    Ice Slurry
•    Encapsulated Ice

Ice-on-Coil systems have become dominant in the market because they are easy to find in stores for businesses of all sizes, and production can be increased without much adjustment. These systems are a usual choice when organizations need a reliable and readily available cooling solution. The technology is well-established, and many providers can meet market demands. The ability to scale up or down as needed, without big changes to the setup, makes it a flexible option for different applications, from small retail spaces to big industrial plants.
 
Encapsulated Ice systems are also becoming the fastest-growing segment, especially where their design and upkeep advantages are valued. These systems stand out because they are built in separate units, which means they can be easily added or removed as cooling needs to be changed. This modular aspect not only makes them adaptable to different space requirements but also simplifies repairs; if one part fails, it can be fixed or swapped out without shutting down the whole system. Because of this, Encapsulated Ice systems are becoming a choice for businesses that want a cooling solution that is flexible, easy to manage, and keeps downtime to a minimum. This is especially helpful in sectors where constant, reliable cooling is needed for operations.

Segmentation by Storage Technology: 

•    Static Storage
•    Dynamic Storage

In the current storage solution landscape, static options maintain a dominant position, particularly in buildings where modifications are being made to existing structures. This is often because these systems are simpler to install and integrate into older infrastructures without requiring major overhauls. They serve as a dependable, if less adaptable, option for meeting storage needs.

Looking at growth trends, dynamic storage solutions are experiencing the most rapid expansion. This increase in popularity is largely driven by their flexible design, which allows them to adapt to changing storage requirements and spatial constraints. A chief advantage is their ability to link smoothly with automated systems, which makes operations more streamlined and efficient. In settings where real-time adjustments and automated material handling are important, dynamic storage becomes an increasingly valued investment, shown by market trends that point to ongoing innovation and broadened applications for these advanced systems. As businesses seek more efficient and automated solutions, the demand for dynamic storage is set to continue increasing, reshaping how storage solutions are viewed and implemented.

Segmentation by Application: 

•    Commercial Buildings 
•    Industrial Facilities 
•    District Cooling
•    Others

Commercial buildings dominate the way in energy consumption because they include a lot of office buildings, shopping centers, and college campuses. These places usually need a lot of cooling and heating due to their size and the high number of people using them. The need to keep these buildings comfortable all year increases energy expenditure. Building owners and managers are looking for ways to lower these expenses and improve energy, but the features of business operations and tenant needs make it difficult. New technologies and construction methods are slowly being adopted to match these difficulties

Industrial facilities are seeing fast growth in energy use. This is mainly because manufacturers want to decrease cooling costs. Big factories and processing plants usually have gear that makes a lot of heat, needing complex cooling systems to keep things running smoothly. As energy costs go up and environmental rules become stricter. There is increasing pressure on the industrial sector to find and implement energy measures. This involves upgrading old equipment, using better insulation, and adopting sophisticated energy systems. The goal is to maintain productivity and stay competitive. Manufacturers are investing in ways to make operations more efficient and environmentally friendly because of financial and environmental factors.

                                                            
 
Market Segmentation: Regional Analysis:

•    North America
•    Europe
•    Asia-Pacific
•    Latin America
•    Middle East & Africa

North America currently leads the market, largely because places such as California, Texas, and Florida are quick to embrace new technologies. These states often act as test beds for fresh concepts, helping North America maintain its front-runner position.

The Asia-Pacific area is seeing rapid growth. This speedy expansion is largely because they are putting money into both sustainable infrastructure projects and the creation of what are known as smart cities. Sustainable infrastructure refers to the construction and improvement of systems like transportation, energy, and water management, all designed to have minimal environmental impact. A smart city, on the other hand, integrates technology into its infrastructure and services to improve the quality of life for its residents. This could include things such as advanced traffic management systems, energy-efficient buildings, and public Wi-Fi networks. The focus on these developments in Asia-Pacific is fuelling its speedy market climb.

COVID-19 Impact Analysis:

The COVID-19 pandemic had an initial impact on the construction industry, causing a slowdown in building projects and investments in infrastructure. This, in turn, led to delays in the installation of thermal storage systems, which are often integrated into new construction or major renovation projects. The pandemic also brought attention to the need for reliable and affordable energy systems. As communities and businesses dealt with lockdowns and economic uncertainty, a stable energy supply became vital. Thermal storage, particularly ice thermal storage, emerged as a solution that could contribute to both reliability and cost savings. Following the pandemic, there was a focus on environmentally friendly infrastructure as part of recovery efforts. Governments and organizations began to prioritize projects that could reduce emissions and promote sustainability. This shift in priorities led to renewed interest in energy-efficient heating, ventilation, and air conditioning (HVAC) technologies. Ice thermal storage systems, which can reduce energy consumption and lower peak electricity demand, have become more attractive to meet these goals. The renewed interest in green infrastructure and energy efficiency has played a role in the wider use of ice thermal storage systems. These systems are now being seen as an important part of a sustainable energy future.

Latest Trends and Developments:

The ice thermal energy storage field is seeing changes that improve how well it works, who can use it, and how sustainable it is. One change is the use of smart ice storage systems that connect to building management systems (BMS) and cloud platforms. This lets people control and watch the systems in real-time. Also, more people are using hybrid HVAC models. These models mix ice storage with regular chillers, which makes the systems more flexible and reliable. Another thing is that on-demand cooling services are becoming available. These services use subscription models, which means people don't have to pay as much upfront. This makes the technology easier for more people to use. Changes in phase-change materials (PCMs) are also helping. These materials increase energy density, which means the systems can be smaller. Finally, many projects that use ice thermal storage can now get carbon credits. This helps groups meet their environmental goals and make money from their sustainability efforts. These projects are also starting to be eligible for carbon offsets and energy credits.

Key Players in the Market:

•    CALMAC (Trane Technologies)
•    Baltimore Aircoil Company
•    Ice Energy
•    DN Tanks
•    EVAPCO, Inc.
•    Johnson Controls
•    FAFCO, Inc.
•    Cristopia Energy Systems
•    Abengoa
•    Araner

Market News:

•    In December 2024, Nostromo Energy obtained a $305 million loan guarantee from the U.S. DOE. The funds will support the installation of Ice Brick systems in as many as 193 commercial buildings across California.

•    In September 2024, Exowatt introduced its P3 modular thermal storage platform. Designed to address the power requirements of AI data centers, the platform is supported by $20 million in seed funding.