Liquid Air Energy Storage (LAES) Global Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application

Liquid Air Energy Storage (LAES) Market Summary

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.

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. Show more