CAES (Compressed Air Energy Storage) helps commercial and public utility companies manage their energy consumption by identifying low-demand periods and storing electricity in compressed air during those hours. Additionally, stored air is released to operate wind turbines and generate electricity when there is a significant demand for electricity. Alternative energy storage technologies are less efficient, cost-effective, and require less maintenance than CAES.
The Compressed Air Energy Storage Market is expected to reach USD 224.3 billion during the forecast period at a 24.9% CAGR.
Covid-19 Impact & Market Status:
The global CAES industry has been impacted by the COVID-19 outbreak. To curb the spread of the disease, many governments have implemented lockdown measures, which have resulted in factory closures. Short-term delays and snags in energy storage projects have been caused by supply chain disruption. The need for renewable energy remains high. As a result, demand for energy storage has risen dramatically. The compressed air energy storage sector is expected to benefit from the relaxing of lockdowns. The global CAES market is predicted to increase gradually in the long run.
During the projection period, the isothermal segment is predicted to grow at a rapid rate. Heat exchangers are used in isothermal storage to maintain the interior and external temperatures constant. Heat is discharged into atmosphere when air is compressed. Heat is drawn in from the outside once the air is released to spin the turbine and generate energy.
IN the coming years, the North American region is estimated to emerge as the fastest-growing regional market. Advances in the renewable energy sector amidst rapid power grid adoption, more specifically across countries such as the USA is expected to sustain the growth of the global compressed air energy storage market.
The power station sector holds a considerable portion of the market because it keeps track of low-demand periods and stores electricity in the form of compressed air in mines to use when demand is high.
The global compressed air energy storage market, which was anticipated to be worth US$2.9 million in 2020, is expected to expand to US$19.5 million by 2029, with a CAGR of 23.9 percent over the analysed period.
CAES is used to reduce the load on the electrical system by increasing storage capacity during peak demand periods. This allows energy companies to provide enough electricity for the entire service zone without having to ramp up production during peak hours. CAES produces significantly less CO2 than other energy generation systems. Adiabatic techniques can nearly eliminate emissions totally. By lowering dependency on fossil fuel-powered grids, it gives an environmentally sustainable energy choice.
Energy storage includes compressed air storage, pumped hydro storage, and battery storage. The technical cost per unit of stored energy for pumped storage is £50/kWh, while electrochemical storage costs more than £500/kWh. As a result, compressed air energy storage appeals because the suggested method costs £1-£10 per kWh every stored unit of energy.
The technical cost per unit of stored energy for pumped storage is £50/kWh, while electrochemical storage costs more than £500/kWh.As a result, compressed air energy storage appeals since the suggested approach costs £1-£10 per kWh per unit of stored energy.
The co-location of renewable energy producing facilities with energy storage assets drives energy storage. This helps to stabilise electricity output and guarantees that the system has enough energy during times of high demand. As a result, the CAES market is predicted to grow from 2022 to 2029.l
Over the projected period, the compressed air energy storage market is expected to be limited by high capital expenditures and a lack of technological progress.
The major market players of CAES Market are LLC, Bright Energy Storage Technologies, APirlight Energy Holding SA, Hydrostor, Company, General Compression Ltd., LightSail Energy, Siemens AG, ALACAES, Gaelectric SustainX, Apex Compressed Air Energy Storage, The Ridge Group, STORELECTRIC LIMITED,Magnum Development, LDresser-Rand - A Siemens Business, and Pacific Gas and Electric.
Major Developments in Compressed Air Energy Storage Market:
Hydrostor, a Canadian business, stated on April 29, 2021 that it would build two advanced CAES projects totaling 500MW/5GWh, each of which would be the world's largest non-water Energy Storage system.
Augwind, an Israeli firm, began developing an AirBattery to compete with Lithium-ion batteries on January 23, 2021.The company inked a memorandum of understanding with EDF's local unit to deploy its unique AirBattery technology with a five-megawatt solar array with a 120-megawatt-hour storage capacity.
Compressed Air Energy Storage Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||US$19.5 million|
|Growth Rate||CAGR of 23.9 % during 2021-2028|
|Segment Covered||Type, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||LLC, Bright Energy Storage Technologies, APirlight Energy Holding SA, Hydrostor, Company, General Compression Ltd., LightSail Energy, Siemens AG, ALACAES, Gaelectric SustainX, Apex Compressed Air Energy Storage, The Ridge Group, STORELECTRIC LIMITED,Magnum Development, LDresser-Rand - A Siemens Business, and Pacific Gas and Electric.|
Key Segments of Compressed Air Energy Storage Market
- By Type
- By Application
- Power Station
- Distributed Energy System
- Automotive Power
- By Region
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa