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Compressed Air Energy Storage Market Overview
The key trend identified in the global compressed air energy storage market is growing demand for efficient energy storage systems that result in declining the usage of diabatic energy storage system, due to its low efficiency as compared to other storage systems. The adiabatic energy storage system is approximately 20% more efficient than diabatic storage system, but currently is in developing stage. Further, diabatic compressed air energy storage plants require gas-firing for operation that results in the environmental pollution, which is also hindering the market growth.
Compressed air energy storage (CAES) is a way to store energy generated at one time for use at another time. At utility scale, energy generated during periods of low energy demand (off-peak) can be released to meet higher demand (peak load) periods. In a CAES plant, ambient air or another gas is compressed and stored under pressure in an underground cavern or container. When electricity is required, the pressurized air is heated and expanded in an expansion turbine driving a generator for power production. The compressed air energy storage market is segmented based on type and geography.
The compressed air energy storage market is categorized into adiabatic, isothermal, and diabatic, based on type. Among these, diabatic compressed air energy storage system holds significant share in the market, due to its simple design along with lower operating cost than adiabatic and isothermal compressed air energy storage systems. Further, the adiabatic and isothermal energy storage systems are in developing stage, therefore the market is monopolized by the diabatic storage system.
Based on region, the compressed air energy storage market is classified into North America, Europe, Latin America (LATAM), Asia-Pacific (APAC), and the Middle East and Africa (MEA). Globally, North America accounts for substantial share in the market, owing to the increasing demand for electricity storage systems. For instance, as per the environmental and energy study institute, the U.S. generated 4 billion megawatt-hours (MWh) of electricity, but only had 431 MWh of electricity storage available in 2017.
Compressed Air Energy Storage Market Dynamics
The growing demand for energy is one of the key drivers that boosts the compressed air energy storage market. Further, rising concern about environmental impacts of fossil fuels is also impacting the market growth in a positive way. For instance, the International Energy Association (IEA) estimated that, in order to keep global warming below 2 °C, the world is expected to require 266 GW of energy storage by 2030, up from 176.5 GW in 2017. Under the current trend, Bloomberg New Energy Finance predicted that the global energy storage market will hit that target, and grow quickly to a cumulative 942 GW by 2040.
One of the key factors hindering the growth of the compressed air energy storage market is waste heat generation during compression, which is difficult to recover, because it is a complex process that requires additional cost. Further, no availability of high efficiency energy storage systems at commercial level may also restraining the market.
Compressed Air Energy Storage Market Competitive Landscape
Some of the major companies operating in the global compressed air energy storage market are Siemens AG, Hydrostor Inc., Apex Compressed Air Energy Storage LLC, Ridge Energy Storage and Grid Services LP, LightSail Energy, SustainX Inc., Airlight Energy, Storelectric Ltd., Pacific Gas and Electric Company, and Magnum Development LLC.
The study provides the historical as well the forecast market size for various countries, including the U.S., Canada, France, Germany, the U.K., Italy, Spain, Japan, China, India, South Korea, Brazil, Argentina, Saudi Arabia, and South Africa.
Compressed Air Energy Storage Market Size Breakdown by Segment
The Compressed Air Energy Storage Market Report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Type