Home > Energy & Power > Energy Storage Systems > Compressed Air Energy Storage > Compressed Air Energy Storage (CAES) Market

Compressed Air Energy Storage (CAES) Market Size

Report ID: GMI5929
Published Date: Dec 2024
Report Format: PDF

Download Free Sample

Compressed Air Energy Storage Market Size

The global compressed air energy storage market was valued at USD 1.6 billion in 2024 and is expected to witness a CAGR of 7.6% from 2025 to 2034. With the global shift towards renewable energy sources, especially solar and wind, CAES is gaining traction as a flexible and scalable energy storage solution. These renewable sources are intermittent, making large-scale storage technologies like CAES essential for stabilizing the grid. There is a growing push for sustainable and clean energy solutions. CAES offers environmental benefits as it doesn’t rely on toxic materials like batteries, and its operations emit little to no greenhouse gases.

To get key market trends

Download Free Sample

CAES technology is witnessing improvements due to innovations in materials, enhanced system efficiency, and cost reductions. According to the U.S. Department of Energy, advancements in CAES are expected to increase energy density by up to 50% over the next decade. Current research emphasizes boosting energy density and efficiency, alongside better integration with renewable energy sources. These advancements aim to position CAES as a more competitive alternative to other storage technologies, such as pumped hydro storage and lithium-ion batteries.

Compressed Air Energy Storage Market Report Attributes
Report Attribute	Details
Base Year:	2024
Compressed Air Energy Storage Market Size in 2024:	USD 1.6 Billion
Forecast Period:	2025 to 2034
Forecast Period 2025 to 2034 CAGR:	7.6%
2034 Value Projection:	USD 3.7 Billion
Historical Data for:	2021 – 2024
No. of Pages:	80
Tables, Charts & Figures:	20
Segments covered:	Technology, Application
Growth Drivers:	Expansion of the renewable energy market Heightened focus on supply security Supportive regulatory environment
Pitfalls & Challenges:	Concerns regarding safety

Learn more about the key segments shaping this market

Download Free Sample

Authors: Ankit Gupta, Vinayak Shukla

Frequently Asked Questions (FAQ) :

The global market for compressed air energy storage was reached USD 1.6 billion in 2024 and is projected to grow at a 7.6% CAGR from 2025 to 2034, driven by the expansion of renewable energy sources like solar and wind.

The isothermal technology segment is expected to reach USD 92.7 million by 2034, as it minimizes heat loss during compression and expansion, improving energy efficiency and reducing costs.

The black start application segment is anticipated to grow at a CAGR of over 7.8% through 2034, led by the increasing need for rapid power restoration due to grid vulnerabilities and natural disasters.

The U.S. compressed air energy storage market is projected to exceed USD 1.1 billion by 2034, supported by government initiatives such as grants, tax credits, and funding programs to promote clean energy technologies.

Key players in the industry include ALACAES, APEX CAES, AUGWIND Energy, Cheesecake Energy, Corre Energy, Energy Dome, Green-Y Energy, Hydrostor, Pacific Gas and Electric Company, Sherwood Power, Siemens, Storelectric, TerraStor Energy, and Zhongchu Guoneng Technology (ZCGN).