Market Research Report
Compressed Air Energy Storage
|Compressed Air Energy Storage|
Published: July 1, 2022
Global Industry Analysts, Inc.
Content info: 137 Pages
Delivery time: 1-2 business days
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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.
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