Compressed Air Energy Storage Market Size, Share & Industry Analysis, By Type (Diabatic, Adiabatic, Isothermal), By Storage (Traditional CAES Storage, Liquid Gas CAES Storage), By Application (Power Station , Distributed Energy System, Automotive Power) And Regional Forecast, 2024-2032
KEY MARKET INSIGHTS
Compressed Air Energy Storage (CAES) assists private and public utility companies in managing electricity demands by identifying the time of low demand and storing electricity in the form of compressed air during such intervals. Furthermore, stored air is released to power wind turbines and generates electricity when the demand is high. CAES is more efficient, cost-effective, and low-maintenance compared to other energy storage technologies.
Based on the type, the CAES market is classified into diabatic, adiabatic, and isothermal. The isothermal segment accounts for a significant share in the market as isothermal CAES maintains the internal and external temperature balanced and equal. Also, estimates suggest it will maintain its attractiveness during the forecast period, as it provides greater efficiency and is an overall better alternative.
Based on the application, the global market is classified into power stations, distributed energy systems, and automotive power. The power station segment accounts for the significant share in the market as it maintains a track of the period of low demand and stores electricity in the form of compressed air in the mines and uses it in the time of high demand.
Energy storage providers across the globe are searching for alternates for unpredictable mainstream sources of energy. For instance, The U.S. has decided to replace most traditional electricity generation, which uses coal, with a more natural and environment-friendly infrastructure. Furthermore, in the UK, Nottingham University professor Seamus Garvey found underwater solutions for CAES generation and storage to reduce the cost of production and meet the growing reliability for renewable energy in the region. This factor is likely to drive the global compressed air energy storage market during the forecast period.
The critical market restraint for the market is the high cost of capital investment required in the compressed air energy storage infrastructure. In addition, inadequate technological advancements and a lack of proper application with the current interface affect the market's growth, making it stagnant.
Key Market Driver -
Growing Reliance on Renewable Energy Sources to Increase Investment in CAES
Key Market Restraint -
High Initial Cost to Slow Market Growth
Key Players Covered:
Some of the major companies in the compressed air energy storage market are Airlight Energy Holding SA, Apex Compressed Air Energy Storage, LLC, Bright Energy Storage Technologies, Hydrostor, Magnum Development, Pacific Gas and Electric Company, The Ridge Group, Siemens AG, STORELECTRIC LIMITED, ALACAES, Dresser-Rand - A Siemens Business, General Compression Ltd., LightSail Energy, SustainX, and Gaelectric.
Regional Analysis:
The compressed air energy storage market is studied across different regions like North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America accounts for a significant share of the global market, as the conversion rate from traditional Energy Storage to CAES is rapid and is likely to boost the market. The North American market is also growing due to the rising population and the demand for energy storage in the U.S. and Canada.
Asia-Pacific is the fastest-growing region for the compressed air energy storage market, owing to China, India, Australia, and South Korea. China and Japan are on their to compete with the countries like the U.S. and U.K. Along with India, South Korea, and Australia, which are coming up with more CAES projects, the Asia-Pacific region significantly impacts the CAES market.
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Segmentation
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By Storage |
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By Application |
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By Geography |
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Key Industry Developments
- On April 29, 2021, Hydrostor, a Canadian company, announced the construction of two 500MW/5GWh advanced CAES projects, each of which will be the world’s largest Energy Storage system that does not use water.
- On January 23, 2021, Augwind, an Israeli company started the process of developing an AirBattery to rival the Lithium-ion batteries. The company secured a 120 MWh storage capacity memorandum of understanding with the local unit of French energy giant EDF to install its proprietary AirBattery technology alongside a five MW solar array.
- Ongoing
- 2023
- 2019-2022
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