The global compressed air energy storage market is anticipated to reach $31,827.7 million by 2031, growing from $3,995.4 million in 2021, at a CAGR of 23.6% from 2022 to 2031.
The enormous potential of CAES systems for effective energy storage for power generation is responsible for the post-pandemic rapid rise of the worldwide compressed air energy storage sector. The CAES systems can be utilized for both small- and large-scale energy storage. As a result, load shifting, peak shaving, and frequency & voltage management have potential uses in the compressed air energy storage sector. Since CAES is a sustainable energy storage system that can fulfil the rising energy demands, the compressed air energy storage market is anticipated to expand quickly. In CAES, low-cost power can be produced during peak hours if it is used to store compressed air in an underground cavern. These factors are anticipated to propel the market growth.
Compressed air energy storage devices have high setup and investment costs, which limit market expansion. Additionally, installing CAES facilities requires a drawn-out regulatory process, which is expected to slow market expansion.
As infrastructure (roads) activities increase in both established and emerging nations, the compressed air energy storage market is anticipated to grow (especially medium and heavy commercial vehicles for the movement of goods).
The compressed air energy storage market is segmented into type, storage, application, end-use industry, and region. On the basis of method, the market is classified into diabatic, adiabatic and isothermal. Based on storage, the CAES market is bifurcated into traditional CAES storage and liquid gas CAES storage. On the basis of application, the market is categorized into energy management, backup and seasonal reserves and renewable integration. By end-use industry the market is divided into power station, distributed energy system and automotive power. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, Italy, France, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, United Arab Emirates, South Africa, and rest of LAMEA).
Asia-Pacific is anticipated grow at the fastest CAGR during the projected timeframe. Energy demand and the need for dependable energy storage solutions are rising quickly in nations like China, Japan, India, and others. The government has taken a number of actions to promote environmentally friendly power generation.
The COVID-19 pandemic had left businesses in the compressed air energy storage sector with serious financial worries. Due to import-export limitations, among other things, these businesses have encountered a scarcity of workers due to concerns about the COVID-19 virus. Due to these considerations, the compressed air energy storage market size has suffered during the pandemic. The availability of necessary funds for installing compressed air energy storage systems has been impacted by the government's budget shift toward healthcare institutions. Additionally, these elements have prolonged the CAES approval procedure. The demand for compressed air energy storage was significantly impacted by the aforementioned considerations.
The key players profiled in this report include Siemens Energy AG, General Compression Ltd (GCL), Hydrostor Inc., Bright Energy Storage Technologies, Pacific Gas and Electric Company, Apex Compressed Air Energy Storage, LLC, Ridge Energy Storage and Grid Services LP, ALACAES, Storelectric Limited, and LightSail Energy.
The enormous potential of CAES systems for effective energy storage for power generation is responsible for the post-pandemic rapid rise of the worldwide compressed air energy storage sector. The CAES systems can be utilized for both small- and large-scale energy storage. As a result, load shifting, peak shaving, and frequency & voltage management have potential uses in the compressed air energy storage sector. Since CAES is a sustainable energy storage system that can fulfil the rising energy demands, the compressed air energy storage market is anticipated to expand quickly. In CAES, low-cost power can be produced during peak hours if it is used to store compressed air in an underground cavern. These factors are anticipated to propel the market growth.
Compressed air energy storage devices have high setup and investment costs, which limit market expansion. Additionally, installing CAES facilities requires a drawn-out regulatory process, which is expected to slow market expansion.
As infrastructure (roads) activities increase in both established and emerging nations, the compressed air energy storage market is anticipated to grow (especially medium and heavy commercial vehicles for the movement of goods).
The compressed air energy storage market is segmented into type, storage, application, end-use industry, and region. On the basis of method, the market is classified into diabatic, adiabatic and isothermal. Based on storage, the CAES market is bifurcated into traditional CAES storage and liquid gas CAES storage. On the basis of application, the market is categorized into energy management, backup and seasonal reserves and renewable integration. By end-use industry the market is divided into power station, distributed energy system and automotive power. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, Italy, France, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, United Arab Emirates, South Africa, and rest of LAMEA).
Asia-Pacific is anticipated grow at the fastest CAGR during the projected timeframe. Energy demand and the need for dependable energy storage solutions are rising quickly in nations like China, Japan, India, and others. The government has taken a number of actions to promote environmentally friendly power generation.
The COVID-19 pandemic had left businesses in the compressed air energy storage sector with serious financial worries. Due to import-export limitations, among other things, these businesses have encountered a scarcity of workers due to concerns about the COVID-19 virus. Due to these considerations, the compressed air energy storage market size has suffered during the pandemic. The availability of necessary funds for installing compressed air energy storage systems has been impacted by the government's budget shift toward healthcare institutions. Additionally, these elements have prolonged the CAES approval procedure. The demand for compressed air energy storage was significantly impacted by the aforementioned considerations.
The key players profiled in this report include Siemens Energy AG, General Compression Ltd (GCL), Hydrostor Inc., Bright Energy Storage Technologies, Pacific Gas and Electric Company, Apex Compressed Air Energy Storage, LLC, Ridge Energy Storage and Grid Services LP, ALACAES, Storelectric Limited, and LightSail Energy.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the compressed air energy storage market analysis from 2021 to 2031 to identify the prevailing compressed air energy storage market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the compressed air energy storage market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global compressed air energy storage market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Method
- Diabatic
- Adiabatic
- Isothermal
By Storage
- Traditional CAES Storage
- Liquid Gas CAES Storage
By Application
- Energy Management
- Backup and Seasonal Reserves
- Renewable Integration
By End-use Industry
- Power Station
- Distributed Energy System
- Automotive Power
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- UAE
- Israel
- Rest of LAMEA
Key Market Players
- Siemens Energy AG
- General Compression Ltd (GCL)
- Hydrostor Inc.
- Bright Energy Storage Technologies
- Pacific Gas and Electric Company
- Apex Compressed Air Energy Storage, LLC
- Ridge Energy Storage and Grid Services LP
- ALACAES
- Storelectric Limited
- LightSail Energy
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: COMPRESSED AIR ENERGY STORAGE MARKET, BY METHOD
CHAPTER 5: COMPRESSED AIR ENERGY STORAGE MARKET, BY STORAGE
CHAPTER 6: COMPRESSED AIR ENERGY STORAGE MARKET, BY APPLICATION
CHAPTER 7: COMPRESSED AIR ENERGY STORAGE MARKET, BY END-USE INDUSTRY
CHAPTER 8: COMPRESSED AIR ENERGY STORAGE MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report titled, “Compressed Air Energy Storage Market," the compressed air energy storage market was valued at $4 billion in 2021, and is estimated to reach $31.8 billion by 2031, growing at a CAGR of 23.6% from 2022 to 2031.The compressed air energy storage industry was negatively impacted by the COVID-19 pandemic. This was primarily due to travel and import-export restrictions, stay-at-home orders, and other reasons that have temporarily halted or suspended operations at manufacturing and industrial units. Due to the pandemic's effects on the economy, the clearance process for installing compressed air energy storage (CAES) devices has been delayed. The COVID-19 pandemic had a negative effect on the compressed air energy storage sector. This is mostly due to travel and import-export restrictions, stay-at-home directives, and other factors that have caused manufacturing and industrial units to temporarily cease or suspend operations. The pandemic's impact on the economy has created a delay in the approval procedures needed to install compressed air energy storage (CAES) devices.
Key factors driving the growth of the compressed air energy storage market include the enormous potential of CAES systems for effective energy storage for power generation. The CAES systems can be utilized for both small- and large-scale energy storage. As a result, load shifting, peak shaving, and frequency & voltage management have potential uses in the compressed air energy storage sector. Since CAES is a sustainable energy storage system that can fulfil the rising energy demands, the compressed air energy storage market is anticipated to expand quickly. In CAES, low-cost power can be produced during peak hours if it is used to store compressed air in a subterranean cavern. These factors are driving the global CAES market. The high cost involved in setting a CAES plant is the major factor that is anticipated to hamper the market growth in the near future.
Systems for storing compressed air energy have many benefits that increase energy savings and improve air quality. By improving energy storage during periods of peak demand, CAES aids in lessening the burden on the electrical grid. As a result, energy firms can guarantee that there is enough electricity available during periods of high energy demand. As a result, less alternative energy generation is required, and administrative costs are decreased. CAES lowers carbon emissions while enhancing the stability of the electricity grid during high usage times. Additionally, compared to other energy production techniques, CAES devices require very little maintenance. It is also possible to produce energy on a small scale with this technique. Because CAES systems do not require frequent compressor running, compressor wear is decreased. This is anticipated to encourage the compressed air energy storage market growth.
The compressed air energy storage market is segmented into type, storage, application, end-use industry and region. On the basis of method, the market is classified into diabatic, adiabatic and isothermal. Based on storage the CAES market is bifurcated into traditional CAES storage and liquid gas CAES storage. On the basis of Application, the market is categorized into energy management, backup and seasonal reserves and renewable integration. By end-use industry the market is divided into power station, distributed energy system and automotive power. Region wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, Italy, France, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, Saudi Arabia, United Arab Emirates, South Africa, and rest of LAMEA). In terms of revenue share in 2021, the Compressed Air Energy Storage market was driven by North America.
The key players profiled in the study include The key players profiled in this report include Aarti Steels Limited, Bekaert, HBT RUBBER INDUSTRIAL CO., LTD, Jiangsu Xingda Steel Tire Cord Co. Ltd, Kiswire, Rajratan, Shandong Daye, Shanghai Metal Corporation, SNTAI INDUSTRIAL GROUP LTD, Tianjin Bladder Technology Co.,Ltd. The industry players are investing a lot of effort on the research and development of smart and unique strategies to sustain their growth in the market. For instance, in order to meet California's goal of carbon-free electricity by 2045, Hydrostor, the top developer of CAES systems, and Central Coast Community Energy (3CE) have signed a 25-year power purchase agreement.
Key Market Insights
- Based on method, the isothermal sub-segment emerged as the global leader in 2021 and is projected to grow at the fastest CAGR during the projected timeframe
- Based on storage, the traditional CAES storage sub-segment emerged as the global leader in 2021 and liquid gas CAES storage sub-segment is predicted to show the fastest growth in the upcoming years
- On the basis of application energy management held the highest market share in 2021 and is anticipated to continue its dominance in terms of growth over the forecast period
- Based on end-use industry, power station sub-segment held the highest market share
- Based on region, the North America market registered the highest market share in 2021 and is projected to maintain the position during the forecast period
Companies Mentioned
- Siemens Energy AG
- General Compression Ltd (GCL)
- Hydrostor Inc.
- Bright Energy Storage Technologies
- Pacific Gas and Electric Company
- Apex Compressed Air Energy Storage, LLC
- Ridge Energy Storage and Grid Services LP
- ALACAES
- Storelectric Limited
- LightSail Energy
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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