We are monitoring the impact of COVID-19 on Compressed Air Energy Storage Market Get in touch with us for detailed analysis Know More
Pulished Date October, 2021
ID: 12226
Share on
Share on

Compressed Air Energy Storage Market Segmentation By Type (Diabatic, Adiabatic, and Isothermal); and Region - Industry Forecast of 2021 to 2026

Pulished: October, 2021
ID: 12226
Pages: 180

Compressed Air Energy Storage Market Value & Growth Rate:

The Global Compressed Air Energy Storage Market size was valued at US$ XX billion in 2021 and is anticipated to grow at US$ XX billion by 2026 and increase at a CAGR of 43% during 2021 and 2026. 

Compressed Air Energy Storage Market Scenario:

Compressed air energy storage is primarily used to convert electrical energy into high-pressure compressed air that may be released later drives a turbine generator to produce electricity.  

Moreover, compressed air energy storage (CAES) technology stores energy indefinitely by compressing air in an underground storage reservoir. As a result, it is cost-competitive with other utility-scale energy storage technologies required to serve huge loads. When power prices are low, excess power is taken from the grid and stored as compressed air. Then, to fulfill peak power needs or high price demands, compressed air is expanded. As a result, utilities are heavily investing in renewable energy and compressed air energy storage. CAES (compressed air energy storage) is a technique for storing compressed air in a sealed container. Storage allows users to supplement energy usage during peak demand periods, improve air quality, and preserve system stability in a compressed air system. Allowing the air to deflate through a turbine recovers the energy. In addition, the heat generated during expansion can be used to increase energy efficiency.

Compressed Air Energy Storage Market Drivers:

Renewable energy integration with compressed air energy storage systems and demonstration projects and technological advancements in compressed air energy storage systems are projected to boost the market researched over the projection period. However, owing to several factors, including a lack of investment and technology, the demand for compressed air energy storage systems has remained underdeveloped, preventing the creation of new compressed air energy storage plants. Compressed air energy storage, battery storage, and pumped hydro storage are all common types of energy storage. However, pumped storage has a technical cost per unit of energy held of £50/kWh in terms of energy storage. In comparison, electrochemical storage costs per unit of energy stored of around £500/kWh. As a result, compressed air energy storage is appealing because the suggested technique costs £1-£10/kWh per unit of energy stored.

Furthermore, the co-location of renewable energy-producing facilities with energy storage assets is a fundamental driver of energy storage. This aids in the stabilization of electricity output, ensuring the grid's energy supply during peak demand periods. Therefore, the compressed air energy storage market is predicted to have the significant increase in the market share during 2021-2026. CAES offers a broad range of advantages for energy storage in various applications and types. The most significant factors of the compressed air energy storage include increased air quality, energy savings, less maintenance costs, longer shelf life and improved pressure stability. In addition, CAES is primarily utilized to escalate storage capacity. As a result, it enables energy firms to deliver enough electricity for the entire service region without increasing energy output at peak periods.

CAES can reduce reliance on the electrical grid, lowering energy costs and overhead when used on a smaller scale. The added advantage of CAES is that it can store the compressed air by removing the idea of buying and operating a separate compressor. Basically, CAES emits much less CO2 compared to various energy production technologies. In addition, emissions can be lowered to almost nil using adiabatic procedures. CAES reduces fossil fuel-powered grids reliance, which helps in providing sustainable energy alternative. CAES primarily helps in improving power grid stability when it acts as a supplement energy source. Most probably, it helps decrease the emissions and can increase energy reliability, with the help of putting very much less demand on the electrical system. Compressed air energy storage enables more reliable and steady electrical output on a smaller scale. Another additional feature that propels the global compressed air energy storage market is, when compared to other energy generating methods, CAES devices require very little maintenance. When CAES indulged in small-scale energy generation further reduces compressor maintenance frequency and reduce the maintenance costs.

Compressed Air Energy Storage Market Restraints:

The compressed air energy storage market is anticipated to be hampered by high capital costs and a lack of technological progress over the forecast period. These have a large storage capacity, making them ideal for wind energy applications; nevertheless, their main drawbacks are their high capital cost and the possibility of water loss due to evaporation.

Recent Developments in the Global Compressed Air Energy Storage Market:

Siemens announced that it would develop a thermal energy storage system for the integration of renewable energy integration. This is primarily utilized to offer high power, long duration, and high capacity energy storage range. 

SustainX. Inc. and General Compression Inc. declared that they are going to sign the contract include the merging of their firms to invent a new firm named as GCX Energy Storage. Moreover, both firms have completed utility-scale projects, with a 2 MW by 300 MWh project in Gaines, Texas, and a 1.5 MW by 1 MWh project in Seabrook, New Hampshire.




Market Size Available

2020 – 2025

Base Year


Forecast Period

2021 - 2026



Segments Covered

By Product, Type, Consumption, Distribution Channel and Region

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa



Market Leaders Profiled

Siemens Energy, General Compression, Hydrostor Inc., Bright Energy Storage Technologies, Pacific Gas and Electric Company, Apex Compressed Air Energy Storage, LLC,Ridge Energy Storage and Grid Services LP, ALACAES, Storelectric Ltd, LightSail Energy

Compressed Air Energy Storage Market Segmentation:

By Type:

  • Diabatic 
  • Adiabatic
  • Isothermal

The diabatic type tends to hold the most prominent global compressed air energy storage market growth during 2021-2026. The diabatic compressed air energy storage facilities are a standard system in which the excess heat generated during the compression process is discharged into the atmosphere. As a result, natural gas is commonly used to create the requisite heat during power generation.

As a result, diabatic compressed air energy storage systems have lower efficiency. Despite being simple and considerably less expensive, they are less environmentally friendly than other forms of compressed air energy storage systems. The efficiency of diabatic compressed air energy storage devices is roughly 50%, much lower than the other emerging technologies. In addition, the diabatic compressed air energy storage facilities have lower operating costs than adiabatic and isothermal air energy storage plants. As a result, diabatic plants are more profitable to run in general. On the other hand, the diabatic plants are less environmentally friendly because they require gas to operate. Therefore, as worldwide concerns about climate change grow, various compressed air energy storage plants become more popular than diabatic plants.

Compressed Air Energy Storage Market Regional Analysis: 

The Global Compressed Air Energy Storage Market Report includes the segmentation of Regions:

  1. North America dominated the global compressed air energy storage market during the forecast period. With the rapid substitution of coal-based energy generation with natural gas, the US power sector is undergoing significant upheaval. As a result, Renewables integration has accelerated as costs have decreased and the massive environmental advantages have increased.
  2. Asia Pacific region is estimated to develop at a significantly faster CAGR throughout the forecast period. Furthermore, the market in China, South Korea, India, and Japan is likely to grow substantially in the following years due to favorable government policies and laws that stimulate the use of renewable energy in these countries.
  3. During 2021-2026, Europe is expected to be a critical region in the global compressed air energy storage market. The European Commission's focus on substantial long-term support for energy storage can be attributed to the high development of renewable energy and a significant increase in energy storage in Europe.
  4. Latin America
  5. Middle East & Africa

Impact of COVID-19 on Compressed Air Energy Storage Market:

The COVID-19 outbreak has harmed the global compressed air energy storage business. Lockdown measures implemented by many countries to combat the spread of the disease have resulted in the shutdown of factories. Short-term delays and snags in energy storage projects have come from supply chain disruption. Renewable energy is still in high demand. Therefore, the need for energy storage is increasing. The compressed air energy storage sector is expected to benefit from the relaxation of lockdowns. In the long run, the worldwide compressed air energy storage market is expected to grow gradually.

Compressed Air Energy Storage Market Key Players:

The companies covered in the report include:

  1. Siemens Energy

  2. General Compression

  3. Hydrostor Inc.

  4. Bright Energy Storage Technologies

  5. Pacific Gas and Electric Company

  6. Apex Compressed Air Energy Storage, LLC

  7. Ridge Energy Storage and Grid Services LP


  9. Storelectric Ltd

  10. LightSail Energy




1. Introduction                 

                1.1 Market Definition    

                1.2 Study Deliverables  

                1.3 Base Currency, Base Year and Forecast Periods           

                1.4 General Study Assumptions

2. Research Methodology                           

                2.1 Introduction              

                2.2 Research Phases      

                                2.2.1 Secondary Research

                                2.2.2 Primary Research

                                2.2.3 Econometric Modelling

                                2.2.4 Expert Validation

                2.3 Analysis Design         

                2.4 Study Timeline          

3. Overview                      

                3.1 Executive Summary

                3.2 Key Inferences         

                3.3 Epidemology             

4. Drivers, Restraints, Opportunities, and Challenges Analysis (DROC)                      

                4.1 Market Drivers          

                4.2 Market Restraints    

                4.3 Key Challenges         

                4.4 Current Opportunities in the Market

5. Market Segmentation                              

                5.1 Type              

                                5.1.1 Diabatic

                                5.1.2 Adiabatic

                                5.1.3 Isothermal

                                5.1.4  Y-o-Y Growth Analysis, By Type

                                5.1.5 Market Attractiveness Analysis, By Type

                                5.1.6 Market Share Analysis, By Type

6. Geographical Analysis                              

                6.1 Introduction              

                                6.1.1 Regional Trends

                                6.1.2 Impact Analysis

                                6.1.3 Y-o-Y Growth Analysis



                                6.1.4  Market Attractiveness Analysis



                                6.1.5  Market Share Analysis



                6.2 North America          

                                6.1.1 Introduction

                                6.1.2 United States

                                6.1.3 Canada 

                6.3 Europe         

                                6.2.1 Introduction

                                6.2.2 U.K

                                6.2.3 Spain

                                6.2.4 Germany

                                6.2.5 Italy 

                                6.2.6 France

                6.4 Asia-Pacific 

                                6.3.1 Introduction

                                6.3.2 China 

                                6.3.3 India 

                                6.3.4 Japan 

                                6.3.5 Australia

                                6.3.6 South Korea

                6.5 Latin America            

                                6.4.1 Introduction

                                6.4.2 Brazil

                                6.4.3 Argentina

                                6.4.4 Mexico

                                6.4.5 Rest of Latin America

                6.6 Middle East & Africa

                                6.5.1 Introduction

                                6.5.2 Middle-East

                                6.5.3 Africa

7. Strategic Analysis                       

                7.1 PESTLE analysis         

                                7.1.1 Political

                                7.1.2 Economic

                                7.1.3 Social

                                7.1.4 Technological

                                7.1.5 Legal

                                7.1.6 Environmental

                7.2 Porter’s Five analysis              

                                7.2.1 Bargaining Power of Suppliers

                                7.2.2 Bargaining Power of Consumers

                                7.2.3 Threat of New Entrants

                                7.2.4 Threat of Substitute Products and Services

                                7.2.5 Competitive Rivalry within the Industry

8. Market Leaders' Analysis                        

                8.1 Siemens Energy        

                                8.1.1 Overview

                                8.1.2 Product Analysis

                                8.1.3 Financial analysis

                                8.1.4 Recent Developments

                                8.1.5 SWOT analysis

                                8.1.6 Analyst View

                8.2 General Compression            

                8.3 Hydrostor Inc.           

                8.4 Bright Energy Storage Technologies 

                8.5 Pacific Gas and Electric Company      

                8.6 Apex Compressed Air Energy Storage, LLC     

                8.7 Ridge Energy Storage and Grid Services LP    

                8.8 ALACAES     

                8.9 Storelectric Ltd         

                8.10 LightSail Energy     

9. Competitive Landscape                           

                9.1 Market share analysis            

                9.2 Merger and Acquisition Analysis        

                9.3 Agreements, collaborations and Joint Ventures          

                9.4 New Product Launches          

10. Market Outlook and Investment Opportunities                          


                a) List of Tables

                b) List of Figures              

  • Global, regional and country-level analysis and forecasts of the study market; providing Insights on the major countries/regions in which this industry is blooming and to also identify the regions that are still untapped

  • Segment-level analysis in terms of technology, component, and type along with market size forecasts and estimations to detect key areas of industry growth in detail

  • Identification of key drivers, restraints, opportunities, and challenges (DROC) in the market and their impact on shifting market dynamics

  • Study of the effect of exogenous and endogenous factors that affect the global market; which includes broadly demographic, economics, and political, among other macro-environmental factors presented in an extensive PESTLE Analysis

  • Study the micro environment factors that determine the overall profitability of an Industry, using Porter’s five forces analysis for analysing the level of competition and business strategy development

  • A comprehensive list of key market players along with their product portfolio, current strategic interests, key financial information, legal issues, SWOT analysis and analyst overview to study and sustain the market environment

  • Competitive landscape analysis listing out the mergers, acquisitions, collaborations in the field along with new product launches, comparative financial studies and recent developments in the market by the major companies

  • An executive summary, abridging the entire report in such a way that decision-making personnel can rapidly become acquainted with background information, concise analysis and main conclusions

  • Expertly devised analyst overview along with Investment opportunities to provide both individuals and organizations a strong financial foothold in the market

  1. Global Compressed Air Energy Storage  Market By Region, From 2021-2026 ( USD Billion )

  2. Global Compressed Air Energy Storage  Market By Type, From 2021-2026 ( USD Billion )

  3. Global Diabatic Market By Region, From 2021-2026 ( USD Billion )

  4. Global Adiabatic Market By Region, From 2021-2026 ( USD Billion )

  5. Global Isothermal Market By Region, From 2021-2026 ( USD Billion )

Please wait. . . . Your request is being processed


$ 1234 4255

Click for Request Sample