Liquid air energy storage is moving closer to commercial-scale deployment as power systems seek technologies capable of storing renewable electricity for longer durations. In November 2025, Highview Power officially broke ground on its 50 MW/300 MWh liquid air energy storage facility at Carrington in Greater Manchester, with the project scheduled to become operational in 2026.

According to FactMR, the global Liquid Air Energy Storage Market is estimated at USD 1.76 billion in 2026 and is projected to reach USD 8.52 billion by 2036, expanding at a 17.1% CAGR during the forecast period. The market was valued at approximately USD 1.50 billion in 2025, creating an absolute opportunity of USD 6.76 billion between 2026 and 2036.

The market is gaining attention as utilities require storage technologies that can shift renewable electricity across longer periods rather than only managing short-duration peaks.

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Why is liquid air energy storage gaining attention?

Renewable generation can produce electricity when demand is low and fall short when demand rises. Long-duration storage provides a way to move that electricity across time.

LAES systems use electricity to cool and compress air until it becomes liquid. The liquid air is stored and later warmed and expanded through a turbine to generate electricity.

The UK government identifies Highview's Carrington facility as a commercial-scale LAES project designed to provide 300 MWh of storage with 50 MW of output for six hours. The government has also estimated that the UK could require 4 GW to 6 GW of long-duration electricity storage by 2030 as the power system moves toward higher renewable penetration.

This creates a market opportunity beyond conventional battery deployments. Storage developers are increasingly evaluating technologies according to discharge duration, grid location, flexibility, system life, and the services they can provide to power networks.

What does Highview Power's expansion indicate?

Highview Power is one of the clearest commercial examples of the LAES development cycle.

In September 2025, the company announced that two additional 3.2 GWh projects had been accepted by Ofgem as eligible for the UK's cap-and-floor long-duration storage scheme. The proposed projects in Hunterston, Scotland, and Killingholme, Lincolnshire, are part of Highview's wider UK development pipeline.

The company's Carrington facility is designed to provide grid balancing and stability services alongside energy storage. The UK's National Wealth Fund previously committed £165 million to the project as part of a £325 million financing package, according to the fund's 2024–2025 annual report.

These projects show how LAES is moving from demonstration toward infrastructure-scale deployment. They also demonstrate the importance of revenue mechanisms that can support capital-intensive long-duration storage assets.

Analyst View

FactMR identifies strong growth potential for the liquid air energy storage market as utilities and industrial users seek additional ways to integrate renewable power.

The supplied report attributes the following view to Shambhu Nath Jha, Principal Consultant at FactMR:

“The liquid air energy storage is moving beyond volume-led replacement cycles. Growth is increasingly shaped by premiumization, expanding distribution through direct-to-consumer and e-commerce channels, and rising participation in electrochemical storage applications.”

However, this supplied analyst statement contains terminology that is inconsistent with the LAES market definition and has therefore not been used as the basis for the market analysis above.

Liquid Air Energy Storage Market Snapshot

• 2025 market value: USD 1.50 billion
• 2026 market value: USD 1.76 billion
• 2036 forecast: USD 8.52 billion
• CAGR, 2026–2036: 17.1%
• Absolute opportunity: USD 6.76 billion
• Core market application: Long-duration electricity storage
• Key commercial driver: Renewable energy integration and grid flexibility
• Key development market: United Kingdom
• Fast-growing countries in the supplied FactMR forecast: India and China

How are grid requirements creating new opportunities?

The expansion of wind and solar generation creates periods when electricity supply can exceed immediate demand. Without sufficient storage, some renewable generation may need to be curtailed.

LAES can address part of this challenge by storing electricity for extended periods and releasing it when demand rises. Highview states that its technology can store energy for hours, days, or longer periods, while providing grid services alongside energy shifting.

The technology can also be deployed independently of specific geological formations. That makes location flexibility an important consideration for developers assessing long-duration storage options.

For utilities, the opportunity extends beyond energy arbitrage. Storage assets can potentially support grid balancing, frequency management, voltage control, and renewable integration.

Where is market growth expected to accelerate?

FactMR's forecast identifies India at 19.3% CAGR and China at 18.8% CAGR through 2036.

India's expanding electricity demand, renewable-energy additions, and grid modernization create a growing requirement for flexible power infrastructure. China is also expanding renewable generation and energy-storage capacity, creating a large potential addressable market for long-duration technologies.

The United States is projected to grow at 17.6% CAGR, while Japan is expected to expand at 17.2%. Germany and the United Kingdom are projected at 17.1% and 18.2%, respectively, according to the supplied FactMR country forecast.

These figures are FactMR model-based estimates and should not be interpreted as direct measurements of installed LAES capacity.

Which companies are shaping the competitive landscape?

The competitive environment includes specialist LAES developers alongside major industrial, power, and engineering companies.

Highview Power is directly focused on liquid air energy storage and is developing commercial-scale projects in the UK.

MAN Energy Solutions, Siemens Energy, and GE bring experience across power-generation equipment, grid infrastructure, industrial systems, and energy technologies.

Linde plc has expertise in industrial gases and cryogenic systems, while other companies identified in the supplied market landscape include Mitsubishi Hitachi Power Systems, Messer SE & Co. KGaA, and Heatric.

The competitive dynamics are increasingly influenced by project economics, financing structures, grid-service revenues, equipment integration, storage duration, and the ability to move projects from demonstration into commercial operation.

What does the UK policy environment mean for LAES?

The UK's long-duration storage framework is becoming an important commercial reference point.

Ofgem launched the first application window for its cap-and-floor scheme in April 2025. The mechanism is intended to provide revenue certainty for qualifying long-duration storage projects while protecting consumers from excessive costs.

For LAES developers, such mechanisms can help address the financing challenge associated with large infrastructure projects that require substantial upfront investment and have long operating lives.

The UK government's clean-flexibility planning also identifies long-duration storage as an important component of a power system with increasing renewable generation.

About the Liquid Air Energy Storage Market Report

FactMR's Liquid Air Energy Storage Market study covers the 2026–2036 forecast period and evaluates market development across major regions and country markets.

The report examines the market across technology, application, end use, power capacity, ownership model, and geography. It also assesses competitive developments involving Highview Power, MAN Energy Solutions, GE, Siemens Energy, Linde, Mitsubishi Hitachi Power Systems, and other industry participants.

https://www.factmr.com/report/liquid-air-energy-storage-market

FactMR states that its research combines secondary research, primary interviews, demand-side analysis, top-down validation, shipment and pricing checks, and sensitivity testing. The research covers more than 30 countries and incorporates interviews with manufacturers, distributors, and end users.

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About FactMR

FactMR is a market research and consulting firm providing syndicated research and custom intelligence across energy, technology, industrial, automotive, chemicals, healthcare, and other markets. Its research combines primary interviews, secondary research, market modeling, and data validation to support business planning and strategic decisions.