; Flywheel Energy Storage Market size, share, trend 2034.

Flywheel Energy Storage Market

Flywheel Energy Storage Market Size, Share, and Analysis, By Application (Uninterrupted Power Supply, Distributed Energy Generation, Transport, Data Centers, and Others), By Rim Type (Solid Steel, Carbon Composite), By End-User (Healthcare, Transportation, Utilities and Renewables, Telecommunication, Data Centers, Industrial and Manufacturing, and Others), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034

Published on: Jan-2024
Report Code: FG EP 01818
No. of Pages: 170-350
Report Format: PDF

Flywheel Energy Storage Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 6.2% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 0.7 billion and is projected to reach USD 1.3 billion by the completion of 2034.

Product Overview

Flywheel energy storage is a technique for harnessing kinetic energy and conserving it in a rotating flywheel for later use. The system works by transforming electrical energy into rotational energy, storing it during the high-speed motion of flywheel, and then converting it back to electricity as needed. The flywheel, which is normally made of durable materials, rotates at a very high speed within a controlled environment such as a vacuum, to reduce the loss of energy due to friction. Furthermore, during the production of surplus energy, the extra electricity is used to speed up the rotation of flywheel with the help of a motor. The kinetic energy collected in the spinning flywheel is then transformed back into electricity using a generator as demand rises or during the scarcity of renewable sources. Moreover, this technology provides rapid response times for storing and retrieving energy, which makes it useful for power grid stabilization and managing fluctuating renewable energy sources.

Source: Fatpos Global

Market Highlights

Flywheel Energy Storage Market is projected to grow at a compound annual growth rate (CAGR) of 6.2% from 2024 to 2034

Flywheel Energy Storage Market is anticipated to reach USD 1.3 billion during the forecast period, owing to an increasing emphasis on the inclusion of renewable energy and stability in the grid. The development of this industry has been driven by factors such as the rising use of sustainable energy sources and the need for reliable backup power options. Additionally, various sectors, including transportation, renewable energy, and utilities, have adopted flywheel energy storage systems due to their rapid response time and their ability to offer backup power during grid disturbances. Moreover, technological improvements have led to the creation of efficient and cost-effective flywheel systems, which further stimulates their adoption. Governmental support for the deployment of renewable energy and initiatives which are aimed at modernizing grids have created a favourable environment for the growth of flywheel energy storage market. Therefore, it is expected that this development will continue and flywheel energy storage will address various industrial needs of energy storage, ensuring the growth trajectory of the market.

Source: Fatpos Global

Flywheel Energy Storage Market Segmentation

Uninterrupted Power Supply segment will grow in popularity as the need for constant power supply increases

By Application, Flywheel Energy Storage Market is segmented into Uninterrupted Power Supply, Distributed Energy Generation, Transport, Data Centers, and Others. The Uninterrupted Power Supply (UPS) will dominate the market during the forecast period due to the rising demand for consistent energy provision without disruptions. This surge in energy demand has led to an increase in the frequency of power outages and fluctuations. UPS systems play an essential role in providing continuous power supply, particularly in crucial environments such as data centers, healthcare institutions, and industries where even brief power outages can result in significant operational and financial failures. When a power outage is detected, UPS systems quickly switch to internal batteries to preserve power continuity. Additionally, during outages or fluctuations, they rapidly convert stored DC battery power to AC, ensuring that connected devices have uninterrupted power. Therefore, given the increasing importance of continuous operations, UPS segment remains fundamentally important, providing stable and uninterrupted power supply.

Data Centers segment is projected to grow due to advancements in digital services and the growing significance of data centers

Based on End-User, the Flywheel Energy Storage Market is divided into Healthcare, Transportation, Utilities and Renewables, Data Centers, Industrial and Manufacturing, Others. The data centers segment is projected to lead the market due to the growing dependence on digital services across various sectors. The rapid growth of cloud computing, internet activity, and data storage requires an uninterrupted power supply to ensure smooth functioning. Data centers are important hubs for storing and managing sensitive information, necessitating reliable power sources to prevent downtime and protect data integrity. Additionally, the importance of reliable UPS systems in data centers cannot be overstated as they prevent possible financial losses and data corruption. Therefore, with the exponential rise of digital activities and the essential role of data centers in modern business, their requirement for continuous power supply solidifies the market leadership of this segment. 

 

Source: Fatpos Global

Market Dynamics

Growth Drivers

Integrating Renewable Energy Will Create New Opportunities for Growth

Increasing use of renewable energy sources, such as wind and solar power, results in irregular energy supply. Flywheel energy storage systems offer a solution by swiftly storing surplus energy from peak generation and releasing it according to increasing demand. This process assists in stabilizing grid fluctuations and ensures a steady energy supply for uninterrupted operations. Additionally, with the growing adoption of renewable energy, there's an increasing need for efficient storage solutions like flywheels. They strengthen the reliability of the grid and efficiently handle fluctuating renewables. This reinforces their role as a major contributor to a sustainable energy ecosystem by addressing fluctuating demand and supporting the global shift toward renewable energy sources.

Grid Stability and Resilience Will Open Up New Growth Prospects

Flywheel energy storage systems play a crucial role in safeguarding power grids from disruptions. These systems exhibit rapid response capabilities, which are extremely vital due to the rising frequency of grid disturbances caused by weather events, cyberattacks, or aging infrastructure. Flywheel energy storage systems swiftly inject or absorb energy, aiding in grid stabilization during sudden supply or demand fluctuations. This adaptability ensures a consistent and reliable electricity supply during unforeseen challenges. Hence, flywheel technology provides significant grid protection against various kind of disruptions by offering stability and rapid response mechanisms, that improves their capacity to withstand evolving energy ecosystem.

Restraints

High Costs And Rising Competition May Constrain Market Growth

Flywheel energy storage market encounters significant challenges in maintaining cost competitiveness, despite its efficiency and rapid response time. The initial manufacturing and installation expenses remain relatively high, despite improvements in reliability and efficiency. This presents various obstacles to the widespread adoption of flywheel storage systems, particularly when compared to conventional energy storage technologies like lithium-ion batteries, which has witnessed notable cost reductions. Furthermore, continuous research and development efforts which are focused on optimizing manufacturing processes, are essential to overcome this limitation. Therefore, to sustain a competitive edge in the energy storage industry and promote wider market acceptance, flywheel systems need to modernize production and explore new cost-cutting strategies.

Recent Developments

  • In July 2022, Active Power partnered with Central Power to demonstrate live POWERHOUSE power outage demonstrations with Central Power's standby generators. Active Power's flagship CLEANSOURCE PLUS MMS 1.33MW UPS with automatic transfer capabilities is used in the POWERHOUSE.
  • Adaptive Balancing Power delivered a new charging infrastructure with flywheel storage in June 2022, allowing the area to switch to e-buses without extending power grids. The pantograph charging station with high-performance flywheel mass storage is expected to go online in September. The test phase in regular driving operations will last 18 months. Following a successful test, the infrastructure concept will be expanded to additional locations.
  • Sartorius, a multinational life sciences business, announced the installation of Piller's UPS systems with flywheel power backup at its Göttingen, Niedersachsen, Germany, production facility in May 2022. The collaboration also includes extensive 24-hour support from Piller Group's service team.
  • Active Power, in November 2021, revealed plans to extend its market presence with new flywheel installations, aiding industries in transitioning towards net-zero operations.
  • In July 2021, the Development Bank of the Philippines (DBP) extended a PHP 750 million loan to Amber Kinetics Philippines (AKP) to facilitate FES production, expansion, and distribution.

Flywheel Energy Storage Market

Key Players:

  • Active Power
  • Beacon Power
  • Piller Power Systems
  • Amber Kinetics
  • Kinetic Traction Systems
  • PowerTHRU
  • Temporal Power
  • Vycon Energy
  • Calnetix Technologies
  • Amber Solutions
  • Rotonica
  • Power Tree
  • Pentadyne Power Corporation
  • Stornetic
  • Levant Power
  • Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Flywheel Energy Storage Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North America is expected to lead the market as the region benefits from strong technological innovations and adoption of modern energy storage solutions. Additionally, various rules and regulations that encourage the incorporation of renewable energy have raised the demand for reliable energy storage systems. Furthermore, the region’s dedication towards sustainability, along with an advanced energy infrastructure, has promoted the use of flywheel technology across various industries. Besides, ongoing research programs and government support for green energy projects have greatly contributed to North America's leadership in developing flywheel energy storage systems.

Source: Fatpos Global

Impact of Covid-19 on Flywheel Energy Storage Market

COVID-19 pandemic had a significant impact on the Flywheel Energy Storage Market. Initially, disruptions were observed in manufacturing and supply chains, that resulted in major setbacks. However, the pandemic highlighted the importance of resilient energy solutions. Moreover, with growing adoption of remote work and increasing digital dependance, there was a rising demand for stable energy supply solutions. Therefore, the market adapted to these changing needs, and emphasized the significance of reliable energy storage for grid stability and ensuring uninterrupted power supply. These developing trends contributed in the market expansion in the post-pandemic period.

Flywheel Energy Storage Market is further segmented by region into:

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Flywheel Energy Storage Market Scope and Segments:

ATTRIBUTE

  DETAILS

Study Period

2018-2034

Base Year

2023

Forecast Period

2024-2034

Historical Period

2019-2022

Growth Rate

CAGR of 6.2% from 2024-2034

Unit

Value (USD Billion)

Segmentation

Main Segments List

By Application

  • Uninterrupted Power Supply
  • Distributed Energy Generation
  • Transport
  • Data Centres
  • Others

By Rim Type

  • Solid Steel
  • Carbon Composite

By End-User

  • Healthcare
  • Transportation
  • Utilities and Renewables
  • Telecommunication
  • Data Centres
  • Industrial and Manufacturing
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Frequently Asked Questions (FAQ):

Flywheel Energy Storage Market size was values at USD 0.7 billion in 2023 and is projected to reach the value of USD 1.3 billion in 2034, exhibiting a CAGR of 6.2% during the forecast period.

The Flywheel Energy Storage Market involves systems that store energy in spinning flywheels, offering quick response and efficient storage solutions for power backup, grid stabilization, and managing renewable energy fluctuations.

The Uninterrupted Power Supply segment and the Data Centres segment accounted for the largest Flywheel Energy Storage Market share.

Key players in the Flywheel Energy Storage Market include Active Power, Beacon Power, Temporal Power, Piller Power Systems, Amber Kinetics, Vycon Energy, Calnetix Technologies, PowerTHRU, Rotonica, Kinetic Traction Systems, Amber Solutions, Power Tree, Pentadyne Power Corporation, Stornetic, Levant Power, and Other Prominent Players.

Integrating renewable energy, along with grid stability and resilience are the factors driving the flywheel energy storage market.

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