Global Compressed Air Energy Storage Market to Undergo Significant Growth by 2031 with Improvements in Compressor Technologies

Compressed air energy storage (CAES) is growing in popularity because it offers several socio-economic advantages as well as environmental protection benefits. CAES is a high-efficiency energy storage technique that allows energy stored at one time to be utilized later. This technology can be applied widely during off-peak hours and can be used to meet high demand for energy during peak load hours.

The demand for compressed air energy storage has been increasing in recent years due to the growing urbanization and worldwide population, which has caused a significant increase in energy demand. In order to improve air quality, the global compressed air energy storage market is greatly focusing on reducing hazardous carbon dioxide emissions. Compressed air energy storage is a green energy storage option that can aid in the achievement of net zero carbon emission targets. Carbon emissions can be eliminated using adiabatic CAES processes. Furthermore, the need for renewable energy that lowers the release of dangerous greenhouse gases is rising globally. All these factors are expanding the growth of the global compressed air energy storage market at a rapid pace.

Newest Insights in the Compressed Air Energy Storage Market

Compressed air energy storage is becoming increasingly popular due to the increasing need for energy that is pure and that does not release harmful greenhouse emissions. As per a report by Research Dive, the global compressed air energy storage market is anticipated to surpass a revenue of $31,827.7 million in the 2022–2031 timeframe. The North America region is predicted to experience dominant growth in the years to come. This is because the region has a huge demand for compressed air energy storage due to the decreased need for fossil-fuel based energy generation by meeting the energy demands with the aid of dependable, efficient CAES systems in the region.

How are Market Players Responding to the Rising Demand for Compressed Air Energy Storage?

Market players are expanding their product offerings, improving product quality, increasing production capacity, and collaborating with other market players to meet the rising need for power plants and related infrastructure. Some of the foremost players in the compressed air energy storage market are General Compression Ltd (GCL), Siemens Energy AG, Hydrostor Inc., Pacific Gas and Electric Company, LightSail Energy, Bright Energy Storage Technologies, Apex Compressed Air Energy Storage, LLC, ALACAES, Ridge Energy Storage and Grid Services LP, Storelectric Limited, and others. These players are focused on implementing strategies such as mergers and acquisitions, novel developments, collaborations, and partnerships to reach a leading position in the global market. For instance:

• In June 2021, Energy Internet Corporation (EIC), a startup firm focusing to offer long-term renewable energy to data centers, partnered with Lummus Technology, an industrial process company, to use compressed air for energy storage.
   
• In September 2022, the Chinese Academy of Sciences, a national academy for the natural sciences of the People's Republic of China, developed a 100 Megawatt compressed air energy storage system in the Hebei province of China. The facility has an annual storage capacity of over 132 million kWh.
   
• In January 2023, Central Coast Community Energy (3CE), a government organization that purchases power at a fair price from clean and renewable energy sources, signed a 25-year agreement with Hydrostor (a long-duration energy storage solutions provider) for the development of a compressed-air energy storage plant. Once complete, this facility will be the largest compressed air energy storage project in the world, storing 500 megawatts of electricity.

COVID-19 Impact on the Global Compressed Air Energy Storage Market

The unpredicted rise of the coronavirus pandemic in 2020 adversely impacted the global compressed air energy storage market. During the pandemic period, healthcare facilities around the world crumbled as a result of the dramatic increase in the number of patients infected with the novel coronavirus. Because of this, the majority of government spending was focused on improving healthcare systems around the globe. As a result, the construction of CAES plants was temporarily put on hold or delayed. Furthermore, the market got negatively impacted by the closure of manufacturing and production facilities due to manpower shortages and a delay in the availability of raw materials. However, as per market analysts, the compressed air energy storage market is likely to recover soon in the post-pandemic period.