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Compressed Air Energy Storage (CAES) Market Trends

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

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Compressed Air Energy Storage Market Trends

Many governments are offering incentives and subsidies to boost energy storage development, including CAES, as part of their decarbonization strategies. These policies drive research, funding, and implementation in both developed and emerging markets. Hybrid storage solutions that combine CAES with other technologies (such as batteries or renewable generation) are emerging. These combined solutions promise enhanced performance, reliability, and cost-effectiveness. Moreover, the modernization of power grids is encouraging the adoption of advanced energy storage technologies. CAES provides long-duration storage, which is needed to manage grid stability and reliability.

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).