The Liquid Air Energy Storage (LAES) market is emerging as a promising solution for large-scale energy storage needs, particularly in the context of integrating renewable energy into the grid. LAES offers the ability to store and release energy through the liquefaction and vaporization of air, providing long-duration energy storage without the use of hazardous materials. This technology is gaining traction due to its ability to support grid stability, enhance the integration of renewable energy sources, and optimize energy shifting for peak demand periods.
Highview Power, for example, has secured several partnerships to deploy large-scale LAES systems, including a notable project in the UK. Sumitomo Heavy Industries is working on expanding its LAES capabilities in Asia, while MAN is focusing on providing customized solutions for grid integration and large-scale energy storage projects across Europe and North America.
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Market Size
The global LAES market is expected to experience substantial growth, with the market valued at approximately USD 2.3 billion in 2023. The market is projected to grow at a compound annual growth rate (CAGR) of around 7.5% from 2024 to 2029, driven by increasing investments in renewable energy, the demand for grid balancing solutions, and the push for energy storage technologies that support decarbonization goals.Market Share & Trends Analysis
By Product Type
The LAES market can be segmented based on the type of application:- Renewables Integration: LAES is gaining significant attention for its potential to integrate renewable energy sources like wind and solar into the grid. As renewable energy generation fluctuates, LAES systems can store excess energy during periods of high generation and release it when demand exceeds supply.
- Network Reinforcement Deferral: LAES helps in deferring costly investments in network reinforcement by providing a buffer during peak load periods, reducing the strain on existing infrastructure.
- Energy Shifting: The ability to store energy and shift it to times of peak demand is one of LAES’s most valuable applications, making it attractive for utilities and large-scale industrial users seeking to optimize energy costs and enhance grid stability.
By Key Players
The key players in the global LAES market include:- MAN: A leader in developing and implementing LAES technology, MAN has been at the forefront of advancing large-scale energy storage solutions. The company focuses on both energy storage systems for renewables integration and grid stabilization applications.
- Sumitomo Heavy Industries: Sumitomo is involved in the commercialization of LAES technology, providing solutions that support the stability of power grids and help integrate renewable energy into the energy mix.
- Highview Power: Known for its pioneering work in the LAES space, Highview Power is focused on large-scale cryogenic energy storage solutions, with ongoing projects in Europe, the United States, and other regions, contributing significantly to the growth of the sector.
By Region
The LAES market is divided into key regional segments:- North America: North America is expected to hold a significant share of the global LAES market, with a projected market share of approximately 40% by 2029. The growing demand for renewable energy integration and the increasing push for sustainable energy storage solutions are driving market growth in the region. Major projects in the U.S. and Canada are helping expand the market.
- Europe: Europe is expected to contribute around 30% of the market share by 2029, primarily due to supportive government policies aimed at renewable energy adoption and grid modernization. Several large-scale LAES projects are underway, particularly in the United Kingdom and Germany.
- Asia-Pacific: The Asia-Pacific region is expected to grow at the fastest rate, with a projected CAGR of 8.5%, driven by the rapid expansion of renewable energy capacity in countries like China and India, along with an increasing focus on energy storage solutions to manage grid stability and energy demand.
- Latin America and Middle East & Africa: Although smaller in market share, these regions are expected to experience gradual growth in the LAES sector as interest in renewable energy and energy storage technologies increases, particularly in countries with high renewable energy potential like Brazil and South Africa.
Market News on Policy and Companies
The LAES market is benefitting from growing global efforts to decarbonize energy systems. Many countries are introducing policies that support energy storage technologies as part of their broader renewable energy strategies. Additionally, technological advancements in cryogenic energy storage are contributing to the reduction in capital and operational costs, making LAES a more attractive solution for utilities and large energy consumers.Highview Power, for example, has secured several partnerships to deploy large-scale LAES systems, including a notable project in the UK. Sumitomo Heavy Industries is working on expanding its LAES capabilities in Asia, while MAN is focusing on providing customized solutions for grid integration and large-scale energy storage projects across Europe and North America.
Segment Forecasts (2024-2029)
Growth in Key Segments
- Renewables Integration: This application is expected to grow at a CAGR of 7.8%, driven by the increasing adoption of renewable energy and the need for efficient storage solutions to manage variable generation.
- Network Reinforcement Deferral: Expected to grow at a CAGR of 7.0%, as utilities seek to defer or reduce investments in new infrastructure by using LAES as an alternative to costly grid upgrades.
- Energy Shifting: Projected to grow at a CAGR of 7.3%, as demand for energy shifting to optimize electricity costs increases in both developed and developing markets.
Regional Insights
The Asia-Pacific region is expected to account for more than 30% of the global LAES market share by 2029. The region’s significant investments in renewable energy, coupled with increasing concerns over energy security, make it a key driver of the LAES market. North America and Europe will continue to be strong markets for LAES, with steady growth driven by government incentives and the increasing need for grid stability solutions.This product will be delivered within 1-3 business days.
Table of Contents
Chapter 1 Executive SummaryChapter 2 Abbreviation and Acronyms
Chapter 3 Preface
Chapter 4 Market Landscape
Chapter 5 Market Trend Analysis
Chapter 6 Industry Chain Analysis
Chapter 7 Latest Market Dynamics
Chapter 8 Trading Analysis
Chapter 9 Historical and Forecast Liquid Air Energy Storage (Laes) Market in North America (2019-2029)
Chapter 10 Historical and Forecast Liquid Air Energy Storage (Laes) Market in South America (2019-2029)
Chapter 11 Historical and Forecast Liquid Air Energy Storage (Laes) Market in Asia & Pacific (2019-2029)
Chapter 12 Historical and Forecast Liquid Air Energy Storage (Laes) Market in Europe (2019-2029)
Chapter 13 Historical and Forecast Liquid Air Energy Storage (Laes) Market in MEA (2019-2029)
Chapter 14 Summary For Global Liquid Air Energy Storage (Laes) Market (2019-2024)
Chapter 15 Global Liquid Air Energy Storage (Laes) Market Forecast (2024-2029)
Chapter 16 Analysis of Global Key Vendors
List of Tables and Figures
Companies Mentioned
- MAN
- Sumitomo Heavy Industries
- Highview Power
