Liquid Air Energy Storage Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 2.51 Billion
CAGR (2026-2031)	16.17%
Fastest Growing Segment	LNG Terminals
Largest Market	Europe
Market Size (2031)	USD 6.17 Billion

Market Overview

The Global Liquid Air Energy Storage Market will grow from USD 2.51 Billion in 2025 to USD 6.17 Billion by 2031 at a 16.17% CAGR. Liquid Air Energy Storage (LAES) is a thermodynamic process that utilizes electricity to cool ambient air to cryogenic temperatures, liquefying it for storage in insulated tanks, before expanding the liquid back into a gas to drive a turbine for power generation when required. The primary drivers supporting the market's growth are the critical necessity to integrate intermittent renewable energy sources, such as wind and solar, into power grids and the escalating demand for long-duration energy security to ensure grid resilience. These fundamental operational needs are distinct from transient market trends, serving as the core structural impetus for the technology’s adoption.

A significant challenge that could impede the expansion of the Global Liquid Air Energy Storage Market is the substantial upfront capital expenditure required for specialized cryogenic infrastructure, which remains high compared to established conventional storage alternatives. Despite this financial barrier, the sector is witnessing significant planned activity. According to the 'Long Duration Energy Storage Council', in '2024', the global deployment pipeline for long-duration energy storage technologies, which encompasses liquid air systems, was recorded at 0.22 terawatts. This figure highlights the massive scale of projected capacity intended to support future decarbonization efforts.

Key Market Drivers

Supportive Regulatory Frameworks and Government Funding Initiatives function as the critical catalyst for de-risking the commercialization of liquid air energy storage technologies. Since cryogenic systems involve substantial upfront infrastructure costs, public and private sector financing is essential to bridge the gap between pilot phases and full-scale utility deployment. This financial backing validates the technology's bankability and enables the construction of first-of-a-kind commercial plants. A definitive example of this momentum occurred when a consortium of investors mobilized significant capital to advance UK-based infrastructure. According to Highview Power, June 2024, in the 'Highview Power secures £300m investment for UK’s first commercial-scale liquid air energy storage plant' press release, the company successfully raised £300 million to construct one of the world's largest liquid air facilities. This influx of capital highlights how targeted funding directly converts theoretical market potential into tangible construction activity.

Escalating Demand for Long-Duration Energy Storage Solutions is simultaneously driving market expansion, as grid operators urgently require technologies capable of shifting renewable energy over periods exceeding four hours. Unlike conventional lithium-ion batteries, liquid air systems are uniquely positioned to provide the prolonged discharge times necessary to balance intermittent wind and solar generation on a gigawatt scale. This operational capability is exemplified by the technical specifications of upcoming facilities designed to stabilize national grids. According to the UK Infrastructure Bank, June 2024, in the 'UKIB invests in Highview Power to support energy security' announcement, the new facility in Manchester is engineered to deliver a storage capacity of 300 megawatt-hours, sufficient to power substantial infrastructure for six hours. Furthermore, the scalability of this technology fuels aggressive future planning. According to Centrica, June 2024, in the 'Centrica invests in Highview Power' statement, the strategic partnership formed around this technology aims to execute a deployment program targeting 2.5 gigawatt-hours of total capacity, underscoring the shift toward massive, grid-centric storage assets.

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Key Market Challenges

The substantial upfront capital expenditure required for specialized cryogenic infrastructure constitutes a primary barrier to the rapid expansion of the Global Liquid Air Energy Storage Market. Unlike modular battery solutions that offer scalability with lower initial financial risk, liquid air systems rely on heavy industrial components, such as high-grade liquefaction units, insulated storage tanks, and expansion turbines. These complex thermodynamic systems demand significant initial funding, which elevates the investment risk profile and extends the payback period for project developers. Consequently, this financial intensity limits the pool of available capital, as investors often favor established technologies with lower entry costs and faster potential returns.

The magnitude of this cost barrier is quantifiable when analyzing the sector's roadmap to competitiveness. According to the 'Long Duration Energy Storage Council', in '2024', obtaining market competitiveness requires long-duration energy storage technologies to achieve a capital cost reduction of nearly 60 percent by 2030. This profound cost-performance gap currently stalls widespread deployment, as utilities and grid operators remain hesitant to commit to large-scale liquid air projects without clearer evidence of near-term economic viability comparable to incumbent storage options.

Key Market Trends

Moving beyond small-scale pilot demonstrators, the market is aggressively pivoting toward the development of large-scale, commercial standalone facilities designed to replace baseload fossil fuel generation. This trend is characterized by a transition from megawatt-level prototypes to multi-gigawatt portfolios capable of providing grid stability over extended periods. This massive scaling is evident in recent corporate strategies aiming to deploy regional storage hubs rather than isolated assets. According to Renewables Now, October 2024, in the 'Highview Power's 10-GWh storage plans boosted by new UK scheme' article, Highview Power announced plans to develop four commercial-scale plants in the UK by 2030, totaling 10 gigawatt-hours of capacity. Such substantial pipelines indicate that the technology is maturing into a primary utility-grade asset class capable of supporting national energy security strategies.

Simultaneously, there is a growing emphasis on adopting modular construction techniques where liquefaction and power recovery units are pre-assembled in shipping containers, enabling faster on-site deployment and scalability. This approach allows liquid air energy storage to be deployed in space-constrained urban or industrial environments without the extensive civil engineering required for larger legacy plants. Startups are actively capitalizing on this demand for flexible, decentralized storage solutions to complement utility-scale infrastructure. According to Silicon Canals, March 2024, in the 'Munich-based phelas secures €4.1M for its long-duration energy storage tech' article, the company raised €4.1 million to scale its modular, containerized liquid air energy storage system to megawatt scale. This investment underscores the industry's parallel track of developing versatile, compact systems alongside massive commercial projects.

Segmental Insights

Based on recent industry analysis, the LNG Terminals segment is recognized as the fastest-growing area within the Global Liquid Air Energy Storage Market. This rapid expansion is driven by the high operational synergy achieved by integrating storage systems with Liquefied Natural Gas infrastructure. During the regasification process, LNG terminals release significant amounts of cold energy that is typically wasted. Liquid air storage systems can capture and utilize this cold energy to assist in the air liquefaction process, drastically reducing electricity consumption. This integration substantially improves overall system efficiency and lowers operational costs, stimulating adoption across the sector.

Regional Insights

Europe holds a dominant position in the global liquid air energy storage market, driven by early technology commercialization and stringent decarbonization mandates. The region benefits significantly from established operational projects, particularly in the United Kingdom, where government funding supports long-duration storage infrastructure. Furthermore, the European Union enforces regulatory frameworks that prioritize grid stability and renewable energy integration, creating a favorable investment climate for cryogenic storage solutions. This alignment of industrial capability and policy support ensures Europe remains the primary hub for liquid air energy storage development.

Recent Developments

In September 2025, Highview Power announced that two of its planned liquid air energy storage projects in the UK were accepted as eligible for the government's "Cap and Floor" investment support scheme. The projects, located in Hunterston, Scotland, and Killingholme, England, were each designed to provide a storage capacity of 3.2 GWh. This regulatory approval marked a critical step towards the development of large-scale long-duration energy storage infrastructure, which is essential for managing the intermittency of renewable power generation and ensuring national energy security.
In July 2024, Sumitomo SHI FW and Siemens Energy signed a Memorandum of Understanding to collaborate on the global development of liquid air energy storage solutions. This partnership intended to combine Sumitomo's proprietary technology with Siemens Energy's expertise in turbomachinery, generators, and compressors. The collaboration aimed to create efficient, standardized solutions for the operation and maintenance of long-duration energy storage plants. By pooling their technical and commercial resources, the companies sought to accelerate the deployment of this technology to support grid stability and the transition to renewable energy worldwide.
In June 2024, Highview Power raised £300 million to construct a commercial-scale liquid air energy storage facility in Carrington, Manchester. The funding round was led by the UK Infrastructure Bank and Centrica, alongside a syndicate of investors including Rio Tinto, Goldman Sachs, KIRKBI, and Mosaic Capital. This 300 MWh project, designed to deliver 50 MW of power for six hours, represented a significant milestone as the first large-scale commercial deployment of the company's technology in the UK. Construction was scheduled to begin immediately, with commercial operations targeted for early 2026.
In March 2024, Phelas secured €4.1 million in seed funding to advance its proprietary liquid air energy storage technology. The investment round was led by E44 Ventures, with participation from Axon Partners Group, Deutsche Telekom hub:raum Fund, and other investors. The company announced plans to use the capital to scale its "Aurora" system to megawatt capacity and deploy it across the European Union. This modular and scalable technology aims to provide a cost-effective solution for long-duration energy storage, facilitating the seamless integration of renewable energy sources into the power grid.

Key Market Players

L’AIR LIQUIDE S.A.
Cryostar Company
Advanced Energy Industries, Inc.
Highview Enterprises Ltd
Linde plc
Axiom Energy Conversion Ltd
Green Hydrogen Systems A/S
H2 Energy
Sumitomo Heavy Industries Ltd.
Highview Enterprises Ltd

By Capacity	By Application	By Region
5-15 MW 16-50 MW 50-100 MW 100 MW+	Power Generation Power Transmission & Grid Support Renewable Energy Integration LNG Terminals Other	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Liquid Air Energy Storage Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Liquid Air Energy Storage Market, By Capacity:

5-15 MW
16-50 MW
50-100 MW
100 MW+

Liquid Air Energy Storage Market, By Application:

Power Generation
Power Transmission & Grid Support
Renewable Energy Integration
LNG Terminals
Other

Liquid Air Energy Storage Market, By Region:

North America

United States
Canada
Mexico

Europe

France
United Kingdom
Italy
Germany
Spain

Asia Pacific

China
India
Japan
Australia
South Korea

South America

Brazil
Argentina
Colombia

Middle East & Africa

South Africa
Saudi Arabia
UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Liquid Air Energy Storage Market.

Available Customizations:

Global Liquid Air Energy Storage Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Liquid Air Energy Storage Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Liquid Air Energy Storage Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Capacity (5-15 MW, 16-50 MW, 50-100 MW, 100 MW+)

5.2.2. By Application (Power Generation, Power Transmission & Grid Support, Renewable Energy Integration, LNG Terminals, Other)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Liquid Air Energy Storage Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Capacity

6.2.2. By Application

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Liquid Air Energy Storage Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Capacity

6.3.1.2.2. By Application

6.3.2. Canada Liquid Air Energy Storage Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Capacity

6.3.2.2.2. By Application

6.3.3. Mexico Liquid Air Energy Storage Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Capacity

6.3.3.2.2. By Application

7. Europe Liquid Air Energy Storage Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Capacity

7.2.2. By Application

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Liquid Air Energy Storage Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Capacity

7.3.1.2.2. By Application

7.3.2. France Liquid Air Energy Storage Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Capacity

7.3.2.2.2. By Application

7.3.3. United Kingdom Liquid Air Energy Storage Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Capacity

7.3.3.2.2. By Application

7.3.4. Italy Liquid Air Energy Storage Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Capacity

7.3.4.2.2. By Application

7.3.5. Spain Liquid Air Energy Storage Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Capacity

7.3.5.2.2. By Application

8. Asia Pacific Liquid Air Energy Storage Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Capacity

8.2.2. By Application

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Liquid Air Energy Storage Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Capacity

8.3.1.2.2. By Application

8.3.2. India Liquid Air Energy Storage Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Capacity

8.3.2.2.2. By Application

8.3.3. Japan Liquid Air Energy Storage Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Capacity

8.3.3.2.2. By Application

8.3.4. South Korea Liquid Air Energy Storage Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Capacity

8.3.4.2.2. By Application

8.3.5. Australia Liquid Air Energy Storage Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Capacity

8.3.5.2.2. By Application

9. Middle East & Africa Liquid Air Energy Storage Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Capacity

9.2.2. By Application

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Liquid Air Energy Storage Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Capacity

9.3.1.2.2. By Application

9.3.2. UAE Liquid Air Energy Storage Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Capacity

9.3.2.2.2. By Application

9.3.3. South Africa Liquid Air Energy Storage Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Capacity

9.3.3.2.2. By Application

10. South America Liquid Air Energy Storage Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Capacity

10.2.2. By Application

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Liquid Air Energy Storage Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Capacity

10.3.1.2.2. By Application

10.3.2. Colombia Liquid Air Energy Storage Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Capacity

10.3.2.2.2. By Application

10.3.3. Argentina Liquid Air Energy Storage Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Capacity

10.3.3.2.2. By Application

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Liquid Air Energy Storage Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. L’AIR LIQUIDE S.A.

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. Cryostar Company

15.3. Advanced Energy Industries, Inc.

15.4. Highview Enterprises Ltd

15.5. Linde plc

15.6. Axiom Energy Conversion Ltd

15.7. Green Hydrogen Systems A/S

15.8. H2 Energy

15.9. Sumitomo Heavy Industries Ltd.

15.10. Highview Enterprises Ltd

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

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