Flywheel Energy Storage Market

Global Flywheel Energy Storage Market Size (2024-2032):

The size of the global flywheel energy storage market was worth US$ 340 million in 2023. The global market is anticipated to grow at a CAGR of 10.55% from 2024 to 2032 and be worth US$ 839 million by 2032 from US$ 376 million in 2024.

Current Scenario of the Global Flywheel Energy Storage Market

Energy has become one of the main driving sources of the world. With dwindling natural resources and increasing demand for energy, managing energy efficiency has become important. One of the main problems with energy is storage. It is very undependable and inept to store energy with present battery systems. Therefore, new technologies for efficient and economical energy storage systems are being explored. Driving energy storage has proven to be one of the most promising technologies for energy storage. Flywheel storage consists of a flywheel that is accelerated to very high speeds and suspended in a vacuum, energy is stored in the form of rotary motion that can be extracted by decelerating the flywheel. With recent advancements, yields of around 80% have been achieved which is the highest compared to any other storage device. Researchers are also working on increasing the capacity, which could result in cheaper shuttles. Driving energy storage is one such emerging electric energy storage technology that has seen significant growth in recent years. The flywheel's energy is stored through the angular movements of a rotating element. One of the main advantages of flywheels is their long life and low maintenance. The low environmental impact of the prospectuses also bodes well for this relatively new electric energy storage technology, paving the way for substantial growth opportunities in the global market. In the United States, the market is expected to experience significant growth due to the increase in installed capacity and the growing number of flyer projects across the country. Growing demand for electricity across the commercial sector, which includes facilities such as large data centres, is sure to drive demand for uninterruptible power systems. In addition, favourable government policies regarding clean energy production are expected to positively influence the outlook for the flywheel energy storage industry.

MARKET DRIVERS

The growing demand for clean and continuous power supply in the end-use markets, coupled with the growing energy storage industry, is expected to drive the market during the forecast period.

The flywheel provides an option of storing kinetic energy while using the inertia of a rotor to store and regenerate energy. The system is mainly used for grid balancing, the integration of renewable energies, and the power supply of isolated grids and islands. The clean energy storage system is expected to serve as a reliable alternative to fossil fuels and can minimize dependence on them, thereby helping to reduce carbon emissions.

MARKET RESTRAINTS

The flywheel energy storage system turns out to be an inexpensive technology up to a certain kilowatt scale and is not a promising solution for large-scale installations. However, research and development in other areas, including electrical machinery, magnetic bearings, and high-strength composite materials produced from costly carbon fiber, are anticipated to commercialize the flywheel energy storage market over the outlook period.

REPORT COVERAGE

MARKET SEGMENTATION

Global Flywheel Energy Storage Market Analysis Application

The data centre applications segment held a significant market share in 2023 and is expected to experience a high growth rate in the drive-thru energy storage systems market during the forecast period. Large IT companies like Google are constantly deploying, spinning, and loading flywheels in their huge data centres. In the event of a transient power failure, the flywheel power supply provides rapid power to the connected systems, giving the standby generators time to restart.

The UPS applications segment is expected to experience significant growth during the outlook period due to advancements in automation technologies, increasing reliance on electronic equipment, and continued growth in business and industrial sectors. The flywheel inverter acts as a reliable backup power source, avoiding losses during frequent power outages in multiple installations.

REGIONAL ANALYSIS

North America accounted for the largest market share with 79.2% in terms of turnover. It is the largest flywheel energy storage market, with the United States occupying the largest share of the regional market. In the United States, flywheels are integrated with renewable sources to provide storage capacity to balance the intermittent nature of renewables. In addition, about 42.0% of carbon emissions in the United States come from electricity generation. Therefore, clean technologies, such as drive-thru energy production and storage, are expected to significantly reduce carbon emissions.

Europe was the second regional segment in terms of capacity in 2023 and is expected to experience significant growth during the outlook period. Supportive government initiatives regarding the production and storage of clean energy have significantly boosted market growth. The UK, Germany, and France are among the major countries implementing flywheel technology in various end applications.

Frequent power outages in developing economies like China and India are expected to boost the market growth in Asia-Pacific. Flywheels provide long life and are unaffected by the number of charge cycles. These characteristics make it a robust energy storage solution for a variety of end-use markets, including the ever-growing industrial and commercial sectors of Asia-Pacific economies. The growing demand for decentralized power generation, coupled with the increasing penetration of renewables in several Asia-Pacific countries, is expected to further boost regional market growth. Operators store excess renewable energy in flywheel systems and later use it during peak periods for local power generation and grid power supply.

KEY PLAYERS IN THE GLOBAL FLYWHEEL ENERGY STORAGE MARKET

Companies playing a promising role in the global flywheel energy storage market include Active Power, Beacon Power LLC, Amber Kinetics, Inc., Calnetix Technologies LLC, Piller Group GmbH, and Others.

RECENT HAPPENINGS IN THE GLOBAL FLYWHEEL ENERGY STORAGE MARKET

• February 11, 2021- Piller Group GmbH has unveiled its new Rotary Inverter (RUPS), UNBLOCK UBT + with POWER BRIDGE PB60 +, which is used for storage devices UPS applications, ideal for environmentally friendly solutions such as reduction of carbon emissions, reduction of wasted electrical pollution, and reduction of toxic chemicals.

• In June 2020, NEC Energy Solutions Inc., part of NEC Corp of Japan, a communications and technology giant, was hit hard by grid-wide commercial battery storage conditions and the crisis of COVID-19, which forced him to proceed with the liquidation of the company.

DETAILED SEGMENTATION OF THE GLOBAL FLYWHEEL ENERGY STORAGE MARKET INCLUDED IN THIS REPORT

This research report on the global flywheel energy storage market has been segmented and sub-segmented based on application, and region.

By Application

• UPS
• Distributed Energy Generation
• Transport
• Data Centers

By Region

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa