The liquid air energy storage market was USD 1,472.9 million in 2023, and it will rise to USD 4,887.6 million, powering at an 18.8% compound annual growth rate, by 2030.

The growth is because of the increasing need for power because of globalization as well as industrialization. The possible uses of this technology comprise grid support or load following services, emergency backup power, and peaking power. Also, these systems possess the possibility to provide additional services like frequency regulation and voltage control.

Moreover, it is a long-duration energy storage (LDES), flexible technology. It utilizes air to generate electricity; the air is kept as a liquid by cooling it down and, after, transformed to a gaseous form to boost turbines.

Compared to the present storage technologies, liquid air energy storage has numerous benefits, such as easy setup and a high energy density, and it also aids in peak shaving and load leveling. This assists in decreasing the effectiveness of power systems, reducing the peak-time load on the grid, regulating the grid frequency, and allowing effective power plant utilization.

Furthermore, emergency backup is an important application, where LAES enables consumers to prevent downtimes from a main grid outage. Specifically for the industrial sector, which consumes an enormous amount of energy globally, demand-side management provides the possibility for substantial energy expense savings.

The 5–15 MW category, on the basis of capacity, accounted for approximately 35% share in the liquid air energy storage market.

The electricity heat industry is the greatest emitter of greenhouse gases globally, emitting around 14.65 Gt in 2022. Governments of numerous nations have set aims to attain net-zero by 2050, for which emission cutback directives have been employed across different sectors, including manufacturing, transportation, and electricity heat.

This aim could be accomplished with the acceptance of the LAES technology because it keeps a high volume of air in tiny areas, with zero emissions. Moreover, this sector is concentrating on improvements in the energy grid, with popular subjects for research being smart grids, total grid flexibility, and renewable grids.

North America is the largest contributor to the industry. The U.S. has financed in renewable power for a substantial time and set high targets for the future. For example, according to reports, around 90 projects for energy storage have been commissioned in California.

APAC will advance significantly, with a 19.2% compound annual growth rate, during this decade. This is mainly because of the region's speedy economic development as well as industrialization.

With the surging need for power, coupled with increasing industrialization, the liquid air energy storage industry will continuously advance in the coming years.

Source: PS Intelligence