Liquid Air Energy Storage (LAES) systems store energy by liquefying air and releasing it to generate electricity, used for renewables integration, network reinforcement deferral, and energy shifting. The industry is characterized by its role in supporting renewable energy grids, offering long-duration storage with low environmental impact. Key trends include advancements in cryogenic technology, integration with renewable energy sources, and scalability for grid applications. The market is propelled by global decarbonization efforts, particularly in Europe and Asia Pacific, and increasing demand for sustainable energy storage solutions to address grid instability.
Sumitomo Heavy Industries, based in Tokyo, Japan, offers LAES solutions for renewable integration, emphasizing scalable designs.
Highview Power, headquartered in London, UK, provides LAES systems for energy shifting, known for its innovative storage solutions.
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Market Size and Growth Forecast
The global LAES market was valued at USD 0.7-1.3 billion in 2024, with an estimated CAGR of 6.0%-8.0% from 2025 to 2030, driven by renewable energy integration.Regional Analysis
- North America is projected to grow at a CAGR of 5.5%-7.5%, with the U.S. leading due to its renewable energy investments, focusing on grid-scale storage.
- Europe is expected to achieve a CAGR of 6.0%-8.0%, with the UK driving demand through its emphasis on decarbonization and grid stability.
- Asia Pacific is anticipated to record the highest growth at 6.5%-8.5%, led by China and Japan, where renewable energy projects fuel demand, with trends toward large-scale LAES systems.
- Rest of the World, particularly Australia, is expected to grow at 5.3%-7.3%, with trends toward energy shifting applications.
Application Analysis
- Renewables integration applications are estimated to grow at a CAGR of 6.5%-8.5%, driven by wind and solar grid integration, with trends toward large-scale storage.
- Network reinforcement deferral applications are projected to grow at 5.8%-7.8%, supported by grid stability needs, with innovations in modular systems.
- Energy shifting applications are expected to grow at 6.0%-8.0%, with trends toward flexible energy dispatch solutions.
Key Market Players
MAN, headquartered in Munich, Germany, develops LAES systems for grid applications, known for its advanced cryogenic technologies.Sumitomo Heavy Industries, based in Tokyo, Japan, offers LAES solutions for renewable integration, emphasizing scalable designs.
Highview Power, headquartered in London, UK, provides LAES systems for energy shifting, known for its innovative storage solutions.
Porter’s Five Forces Analysis
- The threat of new entrants is moderate; high R&D costs create barriers, but growing renewable demand attracts innovators.
- The threat of substitutes is high; battery storage and pumped hydro compete, challenging LAES adoption.
- Buyer power is moderate; utilities negotiate pricing, but specialized technology limits leverage.
- Supplier power is low; cryogenic components are available from multiple sources, reducing influence.
- Competitive rivalry is moderate; few players dominate, but differentiation through scalability and efficiency is key.
Market Opportunities and Challenges
Opportunities
- Global decarbonization drives demand for LAES systems.
- Integration with renewable energy enhances market potential.
- Emerging markets in Asia Pacific offer growth due to grid modernization.
Challenges
- High initial costs for LAES systems limit adoption.
- Competition from battery storage poses market share risks.
- Technical complexity requires skilled expertise for deployment.
Growth Trend Analysis
The LAES market is emerging rapidly, driven by renewable energy demands. On July 10, 2024, Sumitomo SHI FW and Siemens Energy signed an MoU to collaborate on LAES solutions for global markets. On October 15, 2024, Highview Power announced the development of the world’s largest LAES facility in Ayrshire, Scotland, to support renewable energy integration. On January 10, 2025, Statera acquired a 1360 MWh battery project in the UK, indicating competitive pressure from alternative storage solutions. These developments align with a projected CAGR of 6.0%-8.0% through 2030, reflecting the industry’s focus on sustainable energy storage.This product will be delivered within 1-3 business days.
Table of Contents
Chapter 1 Executive SummaryChapter 2 Abbreviation and Acronyms
Chapter 3 Preface
Chapter 4 Market Landscape
Chapter 5 Market Trend Analysis
Chapter 6 Industry Chain Analysis
Chapter 7 Latest Market Dynamics
Chapter 8 Trading Analysis
Chapter 9 Historical and Forecast Liquid Air Energy Storage (Laes) Market in North America (2020-2030)
Chapter 10 Historical and Forecast Liquid Air Energy Storage (Laes) Market in South America (2020-2030)
Chapter 11 Historical and Forecast Liquid Air Energy Storage (Laes) Market in Asia & Pacific (2020-2030)
Chapter 12 Historical and Forecast Liquid Air Energy Storage (Laes) Market in Europe (2020-2030)
Chapter 13 Historical and Forecast Liquid Air Energy Storage (Laes) Market in MEA (2020-2030)
Chapter 14 Summary For Global Liquid Air Energy Storage (Laes) Market (2020-2025)
Chapter 15 Global Liquid Air Energy Storage (Laes) Market Forecast (2025-2030)
Chapter 16 Analysis of Global Key Vendors
Tables and Figures
Companies Mentioned
- MAN
- Sumitomo Heavy Industries
- Highview Power
