Compressed Air Energy Storage Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Method, By Storage, By Application, By End-use Industry, By Region and Competition

Global compressed air energy storage market is expected to thrive during the forecast period, 2024-2028 due to the growth in iron & steel and other end users industry.

Compressed air energy storage (CAES) technology is a promising solution to the energy storage problem. It offers high storage capacity and has a long life cycle. Despite its low energy efficiency and limited installation locations, the system's benefits outweigh its drawbacks, providing a viable solution for balancing the supply and demand of electricity from renewable energy sources. With continued development and implementation of CAES technology, it is expected to play an important role in future energy storage systems.

CAES technology can store energy by compressing air in storage tanks or underground caverns to high pressure and later release it to generate electricity. Compressed air is stored in storage tanks, usually large underground caverns, and can be stored for long periods of time until needed. When power demand increases, compressed air is released and passed through a turbine to generate electricity. The heat generated in the process of compressing air is usually wasted. However, in CAES systems, the heat generated during compression is captured and stored in a thermal energy storage system. This stored heat can be used to preheat the compressed air before it enters the turbine, making the process more efficient. CAES technology has several advantages over other energy storage systems. First, it has a large storage capacity and can store energy for a long time. Second, it is a clean technology that emits no pollutants or greenhouse gases during energy production. In addition, CAES systems can be located close to power plants and grids, reducing transmission losses and improving operational efficiency.

CAES systems can be constructed from small to large capacities. CAES technology provides moderate response speed and good partial load performance. Practical applications of large CAES plants include grid applications for load shifting, peak shaving, frequency and voltage control. CAES can operate in intermittent renewable energy applications, especially wind power, to smooth the power output, and has received attention from academic researchers and the industrial sector.

There is a growing demand for clean energy that reduces dangerous greenhouse gas emissions. Energy demand is increasing significantly due to urbanization and the growth of the world population. This has increased the need for infrastructure and power plants. Compressed air energy storage systems offer untapped potential to generate sustainable energy and thus help meet the world's growing energy needs. Additionally, the compressed air is stored in his CAES system, so he doesn't have to run the compressor as often. This increases compressor life and reduces general wear and tear on the compressor. These factors are expected to offer great opportunities to accelerate the compressed air storage market in the coming years.

Enhanced Air Quality and Compressor System Stability is Expected to Drive the Global Compressed Air Energy Storage Market

Compressed air energy storage is improving air quality by reducing harmful carbon dioxide emissions. For example, the adiabatic CAES process can result in zero CO2 emissions. This will reduce our dependence on fossil fuel energy grids. Compressed air storage is therefore an environmentally friendly energy storage solution that helps meet net zero carbon emission targets. Using CAES as additional energy storage provides grid stability during peak power consumption. This minimizes the load on the electrical infrastructure and enhances energy security. Even on small farms, this technology offers a reliable and stable power generation option. These factors are expected to increase the size of the compressed air energy storage market in the coming years.

Growing Need for Sustainable Energy

The demand for sustainable energy, which helps reduce harmful greenhouse gas emissions, is growing around the world. This is due to global population growth and urbanization and has increased the demand for power plants and the necessary infrastructure. Compressed air energy storage systems have untapped potential in renewable energy generation and can help meet growing energy demands. Additionally, the compressed air is stored in CAES system, so it doesn't have to run the compressor as often. This increases compressor life and reduces overall compressor wear. These factors are expected to offer a great opportunity to boost the market's growth.

Latest Investments fuelling the Global Compressed Air Energy Storage Market Growth

In 2018, the Institute of Engineering Thermophysics, Chinese Academy of Sciences has commissioned a 100 MW Compressed Air Energy Storage (CAES) facility in Zhangjiakou City, Hebei Province, China. The project was designed by the Institute of Engineering Thermophysics, Chinese Academy of Sciences. The plant can generate more than 132 million kWh of electricity annually, powering 40,000 to 60,000 households during peak electricity consumption. CAES has the advantages of large storage capacity, low investment cost, long life, safety, and environmental friendliness. It is considered one of the most promising technologies for large-scale energy storage. The plant is based on multi-stage high capacity compressors and expanders and highly efficient supercritical heat storage and heat exchange. The company started a demonstration project in 2018 after developing two compressed air storage systems with capacities of 1.5 MW and 10 MW respectively in 2013 and 2016.

In 2022, the Australian Renewable Energy Agency (ARENA) announced support for the development of Hydrostor's Advanced Compressed Air Storage Project (A-CAES) in New South Wales. The large-scale project in historic Broken Hill mining area to use 200 MW/1,600 MWh of Canadian firm Hydrostor's proprietary A-CAES technology to support grid stability and renewable energy integration is intended for. Around USD28.42 million were raised to build Hydrostor's Silver City energy storage project, built in an abandoned mine. Hydrostor will receive ARENA's contribution if it can achieve the planned financial completion of the project by the end of 2023. The estimated total cost is expected to be around USD437.79 million. It is expected to be one of the largest compressed air storage systems in the world, capable of storing renewable low voltage energy for up to eight hours.

In 2022, Goldman Sachs invested USD250 million to help the company build more than 1 GW/8.7 GWh of Advanced Compressed Air Energy Storage (A-CAES) projects in California and Australia. Hydrostor's A-CAES process uses renewable energy or power from the grid to power the compressor. Once the heat is extracted for reuse in the thermal process, the compressed air is sent underground and stored in caverns where it can be converted into electricity as needed. According to the company, A-CAES allows to store energy from five hours to several days. The financial giant pays Hydrostor based on the achievement of project milestones. The funding is expected to also help energy storage companies expand into markets with immediate demand for flexible energy storage.

Market Segmentation

Global compressed air energy storage market is segmented on the basis of method, storage, application, end-use industry, and region. Based on method, the market is bifurcated into diabatic, adiabatic, and isothermal. Based on storage, the market is further bifurcated into traditional caes storage and liquid gas caes Storage. Based on application, the market is bifurcated into energy management, backup and seasonal reserves, and renewable integration. Based on end-use industry, the market is bifurcated into power station, distributed energy system, and automotive power. Based on region, the market is further bifurcated into North America, Asia-Pacific, Europe, South America, and Middle East & Africa.

Market Players

Some of the major market players in the global compressed air energy storage market are Siemens Energy AG, General Compression Ltd (GCL), Hydrostor Inc., Pacific Gas and Electric Company, Apex Compressed Air Energy Storage, LLC, Ridge Energy Storage and Grid Services LP, Storelectric LTD, Bright Energy Storage Technologies, Magnum Development LLC, and MAN Energy Solutions SE.

Report Scope:

In this report, the global compressed air energy storage market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Compressed Air Energy Storage Market, By Method:

• Diabatic
• Adiabatic
• Isothermal

Compressed Air Energy Storage Market, By Storage:

• Traditional CAES Storage
• Liquid Gas CAES Storage

Compressed Air Energy Storage Market, By Application:

• Energy Management
• Backup and Seasonal Reserves
• Renewable Integration

Compressed Air Energy Storage Market, By End-use Industry:

• Power Station
• Distributed Energy System
• Automotive Power

Compressed Air Energy Storage Market, By Region:

• North America
• United States
• Canada
• Mexico
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Australia
• Europe
• Germany
• United Kingdom
• France
• Spain
• Italy
• South America
• Brazil
• Argentina
• Colombia
• Middle East
• Saudi Arabia
• South Africa
• UAE

Competitive Landscape

• Company Profiles: Detailed analysis of the major companies present in the compressed air energy storage market.

Available Customizations:

• With the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
• Company Information
• Detailed analysis and profiling of additional market players (up to five).