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1105864

Compressed Air Energy Storage

Published: | Global Industry Analysts, Inc. | 137 Pages | Delivery time: 1-2 business days

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Compressed Air Energy Storage
Published: July 1, 2022
Global Industry Analysts, Inc.
Content info: 137 Pages
Delivery time: 1-2 business days
  • Description
  • Table of Contents

What`s New for 2022?

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Global Compressed Air Energy Storage Market to Reach $10.3 Billion by 2026

Compressed air energy storage represents an advanced approach for compressing air or gas to store energy for satiating high demand at peak hours. The increasing focus on pushing the share of renewable energy in the energy mix along with intermittent nature of solar, wind and hydro has created a strong demand for energy storage technologies. Compressed air energy storage is the second-most prevalent energy storage approach after pumped-hydro technique on account of its enhanced reliability, relatively higher efficiency and economic ability. Growth in the global market is set to be drive by rising energy demand due to increasing population and rapid industrialization. Demand is also spurred by announcement of numerous projects and increasing integration of these systems with renewable energy generation units. Major compressed air energy storage projects including the 290MW and 110MW facilities in Huntorf, Germany and McIntosh, Alabama have proved their effectiveness in energy storage, leading to several new projects, mainly in the US. The market is witnessing strong focus of renewable energy companies on highly effective energy storage systems for supporting future energy supply. Compressed air energy storage technology is anticipated to find increasing applications in the field of offshore wind energy owing to continuing technological advancements.

Amid the COVID-19 crisis, the global market for Compressed Air Energy Storage estimated at US$4 Billion in the year 2022, is projected to reach a revised size of US$10.3 Billion by 2026, growing at a CAGR of 23.9% over the analysis period. Renewable Energy Integration, one of the segments analyzed in the report, is projected to grow at a 24.2% CAGR to reach US$5.7 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Grid Optimization segment is readjusted to a revised 20.1% CAGR for the next 7-year period. This segment currently accounts for a 28.9% share of the global Compressed Air Energy Storage market. Against the backdrop of falling global average cost of generating wind and solar energy, the coming years will witness growing share of renewables in utility energy mix. Such scenario would prompt the deployment of sophisticated energy storage technologies such as CAES to ensure utilities seamlessly step up their renewable energy operations.

The U.S. Market is Estimated at $1.5 Billion in 2022, While China is Forecast to Reach $993.5 Million by 2026

The Compressed Air Energy Storage market in the U.S. is estimated at US$1.5 Billion in the year 2022. The country currently accounts for a 36.76% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$993.5 Million in the year 2026 trailing a CAGR of 24.2% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 19.5% and 25.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 23.7% CAGR while Rest of European market (as defined in the study) will reach US$1.2 Billion by the end of the analysis period. North America represents a key market and growth is being fueled by increasing implementation of energy storage systems and announcement of new projects. Rising adoption of large-scale energy storage systems and massive deployment of renewable energy solutions have enabled the region to exhibit the fastest growth in terms of new projects.

T&D Deferral Segment to Reach $3.3 Billion by 2026

In the global T&D Deferral segment, USA, Canada, Japan, China and Europe will drive the 26.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$658 Million will reach a projected size of US$3.5 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$244.1 Million by the year 2026.

Select Competitors (Total 16 Featured) -

  • Airlight Energy Manufacturing SA
  • Apex Compressed Air Energy Storage, LLC
  • Bright Energy Storage Technologies LLP
  • Hydrostor Inc.
  • Magnum Development LLC
  • Pacific Gas and Electric Company
  • Ridge Energy Storage & Grid Services L.P.
  • Siemens AG
  • Storelectric Ltd.
Product Code: MCP11233

TABLE OF CONTENTS

I. METHODOLOGY

II. EXECUTIVE SUMMARY

  • 1. MARKET OVERVIEW
    • Influencer Market Insights
    • World Market Trajectories
    • Impact of Covid-19 and a Looming Global Recession
    • COVID-19 Pandemic Impacts Compressed Air Energy Storage Systems Market
    • Pandemic Crisis Weakens Economic Environment, Triggering Negative Tide in GDP
    • World Economic Growth Projections (Real GDP, Annual % Change) for 2019, 2020 & 2021
    • Compressed Air Energy Storage (CAES): Bundling Energy for Use at Peak Hours
    • Total Electrical Energy Stored Over Lifetime of Storage Technology
    • CAES Technologies
    • Pushing Efficiency & Maintaining High Pressure
    • Rising Energy Demand Sets Compressed Air Energy Storage Market on Boiling Point: Outlook
    • World Compressed Air Energy Storage Market by End-Use (2020 & 2027): Percentage Breakdown of Sales for Renewable Energy Integration, Grid Optimization, and T&D Deferral
    • Recent Market Activity
    • Drivers Keeping Global Compressed Air Energy Storage Market in Hot Seat
    • Diabatic Technology Enjoys Monopoly in Global Compressed Air Energy Storage Market
    • North America Emerges as Major Hub for Compressed Air Energy Storage Projects
    • World Compressed Air Energy Storage Market by Region (2020 & 2027): Percentage Breakdown of Revenues for Developed and Developing Regions
    • World Compressed Air Energy Storage Market - Geographic Regions Ranked by CAGR (Revenues) for 2020-2027: USA, Canada, China, Asia-Pacific, Rest of World, Europe, and Japan
    • Compressed Air Energy Storage - Global Key Competitors Percentage Market Share in 2022 (E)
    • Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)
  • 2. FOCUS ON SELECT PLAYERS
  • 3. MARKET TRENDS & DRIVERS
    • CAES Helps Clean Energy Sector Gather Full Steam Ahead
    • Intriguing Advantages Widen the Business Case for CASE
    • Compressed Air Energy Storage Emerges as Ideal Companion of Renewable Energy
    • Renewable Energy Sector on Growth Trajectory
    • A Note on Renewable Energy Programs in Select Countries
    • Targets for Electricity Production from Renewable Energy Sources Worldwide by Country
    • Global Wind and Solar Installed Capacity (GW) for the Years 2011, 2017, 2020 and 2022
    • Global Levelized Cost (US$ Per MWh) of Energy Storage Technologies in Utilities by Type: 2015 and 2030
    • Intermittent Nature of Renewable Energy Favors CAES Adoption
    • Electricity Demand Patterns Encourage Market Expansion
    • Global Energy Demand & Growth (In Million Tonnes of Oil Equivalent (Mtoe)) for the Years 1990, 2000, 2010, 2020, 2030 and 2040
    • Demographic Trends and Urbanization Drive Enhance Electricity Demand
    • World Population (in Thousands) by Geographic Region for the Years 2019, 2030, 2050, 2100
    • Degree of Urbanization Worldwide: Urban Population as a % of Total Population by Geographic Region for the Years 1950, 1970, 1990, 2018, 2030 and 2050
    • Growing Importance of Grid Connected Energy Storage Augurs Well
    • Global Energy Production by Energy Source (2017, 2020, 2030 and 2040): Breakdown of Electricity (Billion Kilowatt Hours) and Percentage Share for Petroleum, Nuclear, Natural Gas, Coal and Renewables
    • Grid Modernization Programs Emphasize Grid Connected Energy Storage
    • Global Investments in Electricity Networks and Storage (In US$ Billion): 2000, 2008, 2012, 2016, and 2019
    • Grid Reliability Assurances from CAES Promote Uptake
    • CAES to Help Utilities Realize Zero-Carbon Grid Targets
    • Smart Grids Elevate the Prospects
    • Global Spend on Smart Grid Technologies by Region (2014, 2017 & 2020): Percentage Breakdown of Cumulative Spending for Asia-Pacific (incl. China), Europe, Latin America, and North America
    • Global Market for Smart Grids in US$ Billion) for the Years 2018 and 2020
    • Strong Smart City Investments to Fuel Large-Scale Adoption
    • Number of Smart Cities Worldwide by Geographic Region (2025)
    • Factors Impeding Implementation of CAES
  • 4. GLOBAL MARKET PERSPECTIVE
    • TABLE 1: World Recent Past, Current & Future Analysis for Compressed Air Energy Storage by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
    • TABLE 2: World Historic Review for Compressed Air Energy Storage by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 3: World 10-Year Perspective for Compressed Air Energy Storage by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets for Years 2017, 2021 & 2027
    • TABLE 4: World Recent Past, Current & Future Analysis for Renewable Energy Integration by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
    • TABLE 5: World Historic Review for Renewable Energy Integration by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 6: World 10-Year Perspective for Renewable Energy Integration by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2017, 2021 & 2027
    • TABLE 7: World Recent Past, Current & Future Analysis for Grid Optimization by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
    • TABLE 8: World Historic Review for Grid Optimization by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 9: World 10-Year Perspective for Grid Optimization by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2017, 2021 & 2027
    • TABLE 10: World Recent Past, Current & Future Analysis for T&D Deferral by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
    • TABLE 11: World Historic Review for T&D Deferral by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 12: World 10-Year Perspective for T&D Deferral by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2017, 2021 & 2027

III. MARKET ANALYSIS

  • UNITED STATES
    • Compressed Air Energy Storage Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2022 (E)
    • Small-Scale Renewable Energy Projects: A Threat to Grid-Scale Energy Storage?
    • TABLE 13: USA Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 14: USA Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 15: USA 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • CANADA
    • TABLE 16: Canada Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 17: Canada Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 18: Canada 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • JAPAN
    • Compressed Air Energy Storage Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2022 (E)
    • TABLE 19: Japan Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 20: Japan Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 21: Japan 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • CHINA
    • Compressed Air Energy Storage Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2022 (E)
    • China to Experience Notable Adoption of Energy Storage Systems in Long Term
    • TABLE 22: China Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 23: China Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 24: China 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • EUROPE
    • Compressed Air Energy Storage Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2022 (E)
    • Advanced Energy Storage Gains Momentum in Western Europe
    • TABLE 25: Europe Recent Past, Current & Future Analysis for Compressed Air Energy Storage by Geographic Region - France, Germany, Italy, UK and Rest of Europe Markets - Independent Analysis of Annual Sales in US$ Million for Years 2020 through 2027 and % CAGR
    • TABLE 26: Europe Historic Review for Compressed Air Energy Storage by Geographic Region - France, Germany, Italy, UK and Rest of Europe Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 27: Europe 10-Year Perspective for Compressed Air Energy Storage by Geographic Region - Percentage Breakdown of Value Sales for France, Germany, Italy, UK and Rest of Europe Markets for Years 2017, 2021 & 2027
    • TABLE 28: Europe Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 29: Europe Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 30: Europe 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • FRANCE
    • Compressed Air Energy Storage Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2022 (E)
    • TABLE 31: France Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 32: France Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 33: France 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • GERMANY
    • Compressed Air Energy Storage Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2022 (E)
    • TABLE 34: Germany Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 35: Germany Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 36: Germany 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • ITALY
    • TABLE 37: Italy Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 38: Italy Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 39: Italy 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • UNITED KINGDOM
    • Compressed Air Energy Storage Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2022 (E)
    • TABLE 40: UK Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 41: UK Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 42: UK 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • REST OF EUROPE
    • TABLE 43: Rest of Europe Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 44: Rest of Europe Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 45: Rest of Europe 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • ASIA-PACIFIC
    • Compressed Air Energy Storage Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2022 (E)
    • Asia: A Potential Laden Market
    • TABLE 46: Asia-Pacific Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 47: Asia-Pacific Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 48: Asia-Pacific 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027
  • REST OF WORLD
    • TABLE 49: Rest of World Recent Past, Current & Future Analysis for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral - Independent Analysis of Annual Sales in US$ Million for the Years 2020 through 2027 and % CAGR
    • TABLE 50: Rest of World Historic Review for Compressed Air Energy Storage by End-Use - Renewable Energy Integration, Grid Optimization and T&D Deferral Markets - Independent Analysis of Annual Sales in US$ Million for Years 2017 through 2019 and % CAGR
    • TABLE 51: Rest of World 10-Year Perspective for Compressed Air Energy Storage by End-Use - Percentage Breakdown of Value Sales for Renewable Energy Integration, Grid Optimization and T&D Deferral for the Years 2017, 2021 & 2027

IV. COMPETITION

  • Total Companies Profiled: 16