Liquid Air Energy Storage Market Size, Share, and Industry Analysis By Storage Capacity (5 - 15 MW, 15 - 50 MW, 50 - 100 MW, and Above 100 MW), By Application (Home Energy Storage, Grid Electricity and Power Stations, Air Conditioning, and Others), and Regional Forecast, 2025-2032

The Liquid Air Energy Storage (LAES) system includes a charging system, energy storage, and a discharge system. The charging system is an industrial air liquefaction plant where electricity is used to reject heat from the outside air, creating liquid air ("cryogen"). Liquid air is stored at low pressure in an insulated tank, which acts as an energy reserve. When power is needed, liquid air is drawn from the reservoir, pumped to high pressure, and vaporized. It produces gaseous air that can be used to do worthwhile work: a piston engine or turbine that can be cast-off to generate electricity. There are several LAES techniques, and they are distinguished by the thermodynamic process used.

• In China, by the end of 2022, operational energy storage projects have reached 8.7 GW, which is more than 110% growth since the previous year of 2021. Central China accounted for 16.1%, followed by East China at 14.7%, whereas North and Northwest China together topped the storage capacity with 57.2%.

The global air-liquid energy storage market is primarily driven by its low capital and operating costs. Hydro-air energy storage is an advanced cold storage technology that uses low-pressure equipment and granite tendon (a cost-effective and widely available material) to help reduce overall maintenance costs and ensure long service life. It also uses a waste unit that includes a standard gearbox to help keep costs down. In addition, the governments of various countries offer their support to promote the development and implementation of this technology. The U.K. government supports companies such as Highview Power and Viridor. It has invested in a number of projects to promote the research, development, and commercialization of liquid air energy storage.

However, the COVID-19 pandemic adversely impacted the LAES market, as many companies reduced the workforce, and half of the operational cost of many plants was shelved. The adverse impact of the oil & gas market affected the LAES market in the long run, with a shortage of labor force, closure of the industry, and many future project developments being stopped.

KEY INSIGHTS

The report covers the following key insights:                                                         

• Recent Advancements in the Liquid Air Energy Storage Market


• Key Industry Trends


• Regulatory Landscape for the Liquid Air Energy Storage Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

SEGMENTATION

ANALYSIS BY STORAGE CAPACITY

Based on storage capacity, the market is segmented into 5 - 15 MW, 15 - 50 MW, 50 - 100 MW, and Above 100 MW. 50 – 100 MW capacity is dominating the market as many companies find this category feasible for the storage of liquid energy as many industrial units working in manufacturing steel plants and the oil & gas sector need 50 to 100 MW energy every day. Dynamic modeling is performed for data centers with a 100 MW liquid air storage power plant with a storage capacity of 300 MWh. The combined coordinated cost of electricity from wind, solar, and lithium-ion battery (Li-ion) storage systems typically exceeds USD 200 per megawatt-hour. Long-term storage solutions using hydrogen and green ammonia energy can bring it under USD 100 in more than 100 MW, but these technologies are still in a relatively early stage of development. Companies, such as Linde AG, Messer Group, Mitsubishi, and Highview invest massive capital in the mass storage market.

ANALYSIS BY APPLICATION

Based on application, the market is divided into home energy storage, grid electricity & power stations, air conditioning, and others. The grid electricity & power stations segment leads the market as the storage capacity is necessary to store the generated power, and even after transmission and distribution, it gets stored before its end-user application at any place. With the growing need for electricity around the globe, it is becoming essential to store power so that grid electricity is followed by home energy storage in the LAES market.

REGIONAL ANALYSIS

The liquid air energy storage market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Europe dominates the market; the U.K., Germany, and France are lucrative investment destinations for the European liquid air energy storage market. Europe's dominance is due to a number of factors, including investments in LAES, favorable government attitudes toward LAES, focus on renewable energy generation, and key players. According to the European Patent Office, 88% of patents in the field of energy storage are directed to electrochemical batteries and 45% to lithium ions. In North America, the growth of transmission lines and vast distribution of electricity networks is helping the LAES market to grow. In Asia Pacific, as the development cost of LAES is high, the growth is slower. Similar is the case of Latin America, and Middle East & Africa, with the exception of Saudi Arabia and UAE, where capital investments in liquid energy storage are high as it has many oil & gas refineries with the addition of an emerging IT hub, which requires massive data centers in the region.

KEY PLAYERS COVERED

The report includes profiles of key players, such as MAN Energy Solutions, Sumitomo Heavy Industries, GE, Linde, Messer, Atlas Copco, Siemens AG, and Highview Power.

KEY INDUSTRY DEVELOPMENTS                                                               

• In April 2021, Highview Power, the world's leading provider of long-term energy storage solutions, selected a LAES turbine solution from MAN Energy Solutions for Highview Power for its CRYOBattery™ installation, a 50 MW liquid-air energy storage device - minimum 250 MWh. – located in Carrington Village, Greater Manchester, U.K.


• In February 2020, Highview Power collaborated with Sumitomo Heavy Industries, Ltd. and received USD 46 million in funding to expand cryogenic energy storage projects.