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Global Industry Analysts, Inc. (GIA) launches comprehensive analysis of industry segments, market trends, growth drivers, market share, size and demand forecasts on the global Compressed Air Energy Storage market. Market segmentation includes End-Use (Renewable Energy Integration, Grid Optimization, and T&D Deferral).

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24 November 4:22 a.m., Silicon Valley, California - According to the new market research report, the global market for Compressed Air Energy Storage is projected to grow at a CAGR of 23.9% to reach US$12.8 billion by 2027, driven by rising energy demand due to increasing population and rapid industrialization. The global Compressed Air Energy Storage market will be reset to a new normal which going forwards in a post COVID-19 era will be continuously redefined and redesigned. Renewable Energy Integration, one of the end-use segments analyzed and sized in this study, is forecast to grow at over 24.2% and reach a market size of US$5.7 billion by the end of the analysis period. The United States is forecast to readjust to a 26.2% CAGR. Within Europe, the worst affected by the pandemic, Germany will reach a market size of US$949 million growing at a CAGR of 22.7% over the next couple of years. In addition, over US$909 million worth of projected demand in the region will come from Rest of European markets. In Japan, the Grid Optimization end-use segment will reach a market size of US$113 million by the close of the analysis period. Facing a global backlash over the coronavirus outbreak and spread, China the world's second largest economy faces economic and geopolitical challenges including economic distancing which can likely put China's monopoly of global supply chains in crisis. The T&D Deferral end-use segment in this country against this backdrop will grow at a CAGR of 29% over the next couple of years to create an addressable market opportunity worth US$477 million by the year 2027.

Compressed air energy storage (CAES) systems are designed to store energy for later use. These systems are perfect for utility companies, enabling them to release energy generated during off-peak hours for addressing the requirement during peak load. Compressed air energy storage facilities compress gas or ambient air, which is stored in underground caverns or containers under high pressure. The pressurized gas or air is heated to make it expand and move a turbine for generating electricity. The critical role played by electricity in sustaining all activities has increased the demand for energy storage. Compressed air energy storage is one of the most popular approaches for energy storage and has gained significant attention following its implementation in the 1970s. Increasing population and industrial activity over the last few decades have considerably augmented energy demand, which is estimated to grow 30% by 2040. On the other hand, slow expansion of the energy sector has disrupted the energy demand-supply equation, indicating the need for energy storage to ensure energy supply for future use. Compressed air energy storage systems allow operators to store energy during low-demand periods like night for later use such as day time.

The global compressed air energy storage market is also driven by announcement of numerous projects and increasing integration of these systems with renewable energy generation units. In addition, leading companies serving the market maintain a consistent focus on technological advances and product innovation to differentiate their offerings. These advancements are also intended to overcome issues related to diabatic technology that requires large underground space and uses fuel to decompress air. These developments are anticipated to result in introduction of effective adiabatic compressed air energy storage systems, underwater storage and above-ground storage equipment. In addition to reducing fuel consumption, these systems offer better efficiency and reduce energy wastage. The use of underwater storage allows consistent power supply in coastal regions. On the other hand, diabatic systems are expected to find declining popularity owing to their low efficiency and impact on the environment. The implementation of new technologies is likely to propel the compressed air energy storage market. However, the market remains underdeveloped owing to lack of advanced technology and investments that are preventing development of sophisticated solutions. The market growth is also hindered by generation of waste heat during compression process, which is challenging and cost-intensive to recover. Moreover, the unavailability of energy-efficient systems at the commercial levels is expected to further impede the market expansion. Since compressed air energy storage offers a compelling option for the requirements of uninterrupted power supply and focus on renewable energy, the technology is estimated to experience notable attention in the post-COVID-19 world. The seizure of various projects in the USA, along with the COVID-19 pandemic and lack of vaccine is anticipated to restrain economic activity and power demand, which is bound to affect compressed air energy storage projects. These factors along with delayed investments are anticipated to restrain overall expansion of the market over the short-term.

Research Methodology
This latest edition of the research study is conducted and published by Global Industry Analysts, Inc., in close collaboration with senior executives in the industry driving strategy, business development, marketing, sales, product management, technology and operations. The views, opinions and findings presented are based on validated engagements from a total executive pool size of 896. Among this pool, 179 direct interactions with domain experts were carried out via our proprietary market research platform, MarketGlass. Among the 36 unique participations, a total of 16 validated responses were received as part of this report's primary research outreach program. We are unique in the industry to provide our clients with the validated list executive engagements and the complete project data stack.

Key Competitors Covered in the Report -
Alstom Power, Inc.
Ansaldo Energia SpA
Babcock Power, Inc.
Ambri, Inc.
American Vanguard Corporation
AES Energy Storage LLC
BTEC Turbines LP
Atlas Copco Energas GmbH - Atlas Copco Gas and Process Division
Brayton Energy LLC
Bauer Kompressoren Group
ALMiG Kompressoren GmbH
American Precision Industries (API)

Segments Covered in the Report -
End-Use (Renewable Energy Integration, Grid Optimization, T&D Deferral)

Geographies Analyzed in the Report -
Rest of Europe
Rest of World.

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