The compressed air energy storage market is projected to grow at a CAGR of 23.7% during 2024–2030, to reach USD 26,605.3 million by 2030. This will be due to the increase in the global population, accompanied by a surge in the overall power demand. Along with this, the escalating need for alternatives to coal-based energy generation is a major driver for the market.
Compressed air energy storage (CAES) permits energy to be stored once and utilized later. Moreover, adiabatic CAES is an advanced variation of this technology as it focuses on maintaining adiabatic conditions, which are characterized by no heat transfer to the environment during the compression and expansion process. This results in the minimization of energy loss and increase in efficiency. It also offers the advantage of grid stability as it can swiftly respond to the changes in electricity demand, hence helping manage peak loads.
The traditional category is expected to have the larger share during the forecast period, based on storage. This is because the conventional technology is cost-effective and reliable. This method involves the use of large underground geological formations to store compressed air. Moreover, the approach is characterized by its high operational efficiency, due to which it is widely used around the world.
Likewise, the liquid gas category will witness a robust CAGR over this decade, as it is an innovative approach to CAES. It is different from the traditional approach as it stores energy in liquid air or liquid nitrogen at low temperatures. The stored energy is further converted to a gas when electricity is required. Essentially, it has a high energy conversion efficiency, and its environmental impact depends on the energy source utilized for compression and the type of cryogenic liquid used. Thus, when powered by clean energy sources, liquid-gas CAES has the potential to deliver even more-significant environmental advantages.
Energy management is the dominating category in the compressed air energy storage market, under segmentation by application. This is because CAES holds a significant potential for application in power plants as it reduces the dependence on fossil-fuel-based energy sources. Thus, it could be utilized in large power plants for multiple functions, such as frequency control, voltage regulation, load shifting, and peak load management.
Some of the key players in the global compressed air energy storage market are Siemens AG, Hydrostor Inc., Pacific Gas and Electric Company, and Apex Compressed Air Energy Storage LLC.