The Global Flywheel Energy Storage Market Size Was Valued At USD 297.6 Million In 2021. The Market Is Projected To Grow From USD 316.8 Million In 2022 To USD 551.9 Million By 2030, Exhibiting A CAGR Of 8.3% During The Forecast Period.

Flywheel Energy Storage Market Overview:

Flywheel energy storage has shown higher-than-anticipated demand across all regions compared to pre-pandemic levels because to the unprecedented and overwhelming COVID-19 pandemic. According to our research, the global market for flywheel energy storage grew by 4.9% in 2020 compared to 2019.

A rotor that has been accelerated to a very high speed is used in flywheel energy storage (FES), which keeps the energy in the system as rotational energy. Due to energy conservation, the system's flywheel rotates less when energy is removed from it. The system moves faster when more energy is added. These devices use an electric energy source that is converted into kinetic energy and stored.

Market Dynamics:

Latest Trends:

Rising Adoption of Renewable Energy Production to Produce Profitable Opportunities for Market Expansion

To address the rising demand for power, distributed generation (DG) and renewable energy sources (RES) are seen as supplements. However, there are significant difficulties with energy supply derived from renewable sources because of their sporadic character over a variety of periods, leading to reliability issues.

This has led to a careful analysis of both currently available and soon-to-be developed energy storage systems. Flywheels work across a wide temperature range without degrading over time, in contrast to many other energy storage devices that are constrained by fire risks, chemical corrosion, temperature constraints, and short lifespans. They don't have expensive management and operating expenses.

In this approach, flywheels offer a more economical option in addition to one that is more energy-efficient. Market potential are stimulated by an increase in energy production from renewable energy sources.

Driving Factors:

Increasing Energy Storage to Meet Growing Electricity Demand installation that stimulates market expansion

When there is a high demand, a high generation cost, or when there is no other accessible generation option, Energy Storage Systems (ESS) can balance the supply and demand of electrical energy by utilising stored energy. Energy prices have risen as a result of the rising energy demand in several developing nations, including Brazil, Russia, India, China, and South Africa. In order to combine conventional power plants to fulfil rising demand and complement intermittent RES for their integration into the electrical grid, ESS is a crucial requirement.

Although there are datasets that quantify the storage capacities of current power systems, the global installed capacity for energy storage currently faces challenges due to a lack of widely available data and divergent definitions of what should be included in the baseline. Nevertheless, various governmental regulations have passed regulatory orders to address these problems.

Increasing Production of Eco-Friendly Storage Systems to Promote Market Development

To support various energy storage applications, there is a strong demand for energy storage systems that are dependable, economical, durable, and ecologically responsible. The development of flywheel technology for energy storage has been considerably accelerated by improvements in material, bearing, and power electronics technology.

As this technology for energy storage continues to progress and become more widely used, market players are increasing their production capacity, which is driving up the demand for FES.

The goal of top energy storage company Amber Kinetics, Inc. in June 2022 was to double the number of energy storage devices it produced by boosting the production capacity of its factory in Sto. Tomas, Batangas. The company anticipates selling its flywheels to other nations that require energy storage systems once the second factory is operational. A flywheel weighs around 2.5 tons, and the output of the current facility is up to 70-80% destined for the neighbourhood market.

Restraining Factors:

High component costs and lower energy density will limit market expansion.

A leading technique for energy storage is the flywheel energy storage system (FESS). FESS has a higher power output than batteries, measured in Watts (W), but it cannot store as much energy, measured in Watt-Hours (Wh), for a long period. As a result, its adoption is expected to be lower when longer-term energy storage is needed.

Additionally, these systems have very significant capital costs because they need specialised components, like magnetic bearings, to operate at high speeds with a finely balanced system that provides adequate mechanical performance. As a result, the system's capital expense rises.

Segmentation Analysis:

By Application Analysis:

The market has been divided into Uninterrupted Power Supply (UPS), distributed energy production, transportation, data centers, and others based on application.

The segment with the largest market share is uninterrupted power supply. Worldwide need for constant and uninterrupted electricity is rising quickly. The International Energy Association (IEA) estimates that in 2021, the world's energy demand will increase by 6%. Increased interruptions and changes in the energy supply are a result of the expanding demand. This raises the need for constant power supply.

Since flywheel energy storage is renowned for offering quicker power backup, the distributed energy generation sector is another profitable application. Distributed energy generation is primarily installed in disaster-prone locations so that these areas can obtain electricity when a crisis strikes.

Regional Insights:

The majority of the global market for flywheel energy storage is located in Asia Pacific. One of the key market development drivers is the increasing need for uninterruptible power. Due to its high efficiency and extended service life, flywheel energy storage technology is being widely adopted in China, South Korea, Japan, India, and the Philippines. The market for flywheel energy storage is expanding due to the increased need for uninterrupted electricity and rising investments in storage technology.

The most attractive market for energy storage is in North America. The majority of the installed capacity in the North American region is located in the United States. But Canada is making significant efforts to increase the efficiency of its flywheel energy storage system. Both nations have projects in the works for flywheel energy storage, and some projects are already planned for the future. The aforementioned elements fuel the market's expansion.

During the projection period, Europe is expected to have tremendous growth. Energy storage installation has increased in popularity in Europe as a result of the switch to renewable energy sources to become carbon-neutral. Due to its enormous power capacity and environmentally benign characteristics, the flywheel is a popular technology. Thus, the aforementioned elements fuel market expansion.

Latin America is probably going to grow during the prediction period. The area is undergoing a significant energy transformation. Several nations are quickly converting from conventional energy sources like hydroelectricity and crude oil to a varied energy mix that includes a range of greener fuels. To meet the demand for power in all of Latin America is a challenge for the area. Energy storage system capacity is being increased and invested in by numerous countries, including Brazil, Jamaica, Argentina, Chile, and others.

During the projection period, growth is anticipated in the Middle East and Africa area. The region is seeing a sharp rise in the demand for and construction of energy storage systems as a result of the population's expanding need for constant access to electricity. In the GCC, there are also more data centres being built. In the UAE, there are 9 data centres, and Saudi Arabia has 22. Flywheel energy storage systems are also frequently used in these data centres because of their advantages, including great efficiency and dependability, simple maintenance, and additional storage capacity.

Scope Analysis

Recent Development:

• July 2022 - Active Power partners with Central Power to provide a live POWERHOUSE outage demonstration with a Central Power standby generator. POWERHOUSE features the company's flagship CLEANSOURCE PLUS MMS 1.33 MW UPS with automatic transfer.
• June 2022 - Adaptive Balancing Power will deliver a new charging infrastructure with flywheel storage, allowing the region to switch to electric buses without expanding the power grid. The pantograph charging station using the high-performance flywheel mass storage device is expected to go into operation in September. The test phase of normal driving operations is scheduled for 18 months. After successful testing, the infrastructure model is also transferred to other regions.
• May 2022 - Sartorius, a global life sciences company, announces the use of Piller's UPS system with flywheel power backup at its production facility in Göttingen, Lower Saxony, Germany. With the UPS solution, Piller Group provided Sartorius Group with comprehensive 24/7 support from the Piller service team.
• November 2021 - Active Power will add markets and regions with new flywheel installations as it helps the industry transition to net-zero operations.
• July 2021 - The Development Bank of the Philippines (DBP) approved a loan of PHP 750 million to Amber Kinetics Philippines (AKP) to help FES production, expansion and deployment.

Market Segmentation

By Application:

• Uninterrupted Power Supply (UPS)
• Distributed Energy Generation
• Data Centers
• Transport
• Others

By Companies:

• Active Power (U.S.)
• Amber Kinetics, Inc (U.S.)
• Beacon Power, LLC (U.S.)
• Calnetix Technologies, LLC (U.S.)
• Piller Group GmbH (Germany)
• Powerthru (U.S.)
• VYCON, Inc (U.S.)
• Stornetic GmbH (Germany)
• Energiestro (France)
• Oxto Energy (U.K.)
• Revterra (U.S.)
• Adaptive Balancing Power GmbH (Germany)
• Others