Electro-Mechanical Energy Storage Systems Market Size - By Technology (Flywheel, CAES), By Application (Electric Energy Time Shift, Electric Supply Capacity, Black Start, Renewable Capacity Firming, Frequency Regulation) & Forecast, 2024 - 2032

Electro-mechanical Energy Storage Systems Market Size

Electro-mechanical Energy Storage Systems Market size was valued at USD 2.4 billion in 2023 and is anticipated to grow at a CAGR of 8% between 2024 and 2032, owing to the increasing demand for renewable energy integration and grid stability. As renewable energy sources like wind and solar become more prevalent, the need for efficient energy storage solutions to manage their intermittent nature is critical. Electromechanical storage systems, including flywheels and pumped hydro storage, offer reliable, high-capacity energy storage options that can rapidly respond to fluctuations in energy supply and demand.
 

Technological advancements are enhancing the efficiency, lifespan, and cost-effectiveness of these systems, making them more attractive to utilities and industries. Government policies and incentives promoting clean energy adoption further propel market growth. Additionally, the rise of smart grids and advancements in grid infrastructure support the deployment of sophisticated storage solutions. Major players like Hitachi Energy, ABB, Siemens, and Voith are investing in research and strategic acquisitions, bolstering their market presence and driving innovation. For instance, In November 2023, Schneider Electric invested $1.7M in a cutting-edge battery lab in Bengaluru (Bangalore) which will be equipped with cutting-edge tools, modern safety systems, and dedicated testing chambers.

Electro-mechanical Energy Storage Systems Market Trends

EMESS, with their ability to provide fast response times and high-power densities, are becoming crucial for grid stability. Utilities and grid operators are investing in these systems to manage intermittency issues associated with renewable sources like solar and wind. There is a heightened need for technologies, which can stabilize fluctuations in power supply, is increasing renewable energy integration into the grid.
 

Flywheel-based EMESS are seeing advancements in materials science and engineering, leading to improved energy densities and longer operational lifetimes. These systems are valued for their rapid response capabilities, providing grid operators with instantaneous energy support during frequency regulation and grid balancing. Beyond grid applications, EMESS are gaining traction in industrial and commercial sectors. Industries are adopting these systems to manage peak demand charges more efficiently, thereby reducing overall energy costs. Commercial buildings are also utilizing EMESS to optimize energy consumption and enhance energy resilience.
 

Electro-mechanical Energy Storage Systems Market Analysis

Based on the technology, the flywheel segment is projected to cross USD 1.5 billion by 2032, on account of its superior characteristics such as high efficiency, rapid response times, and long operational lifetimes. Flywheel systems boast high round-trip efficiency, typically ranging from 85% to 95%. This efficiency translates to minimal energy losses during storage and retrieval cycles, making them attractive for applications where maximizing energy utilization is critical, such as in grid stabilization and industrial settings.
 

Based on application, the electro-mechanical energy storage systems market from electric energy time shift segment is anticipated to grow with CAGR of more than 4% through 2032, due to the advancements in renewable energy integration and smart grid technologies. These innovations enable efficient management and storage of electricity, reducing dependency on fossil fuels and enhancing grid stability.
 

Increasing adoption of energy storage solutions like batteries and pumped hydro facilitates storing excess energy generated during off-peak hours for use during peak demand periods, thereby optimizing resource utilization. Such developments not only support sustainability goals but also bolster resilience against grid disruptions, making the electric energy time shift segment crucial in future energy landscapes.
 

Europe electro-mechanical energy storage systems market is expected to surpass USD 2 billion by 2032, attributed to robust government support, stringent environmental regulations, and rapid adoption of renewable energy technologies. Policies like the European Green Deal drive investments in sustainable energy solutions, including electric energy time shift technologies.
 

The commitment by countries such as France, Italy, UK and Germany to reducing carbon emissions and achieving energy independence further accelerates the deployment of energy storage systems, facilitating grid stability and enhancing energy efficiency. As industries and consumers alike prioritize cleaner energy sources, the demand for advanced storage solutions grows, positioning Europe as a key market for the burgeoning electric energy time shift segment.
 

The U.S. plays a pivotal role in this market due to its vast energy infrastructure, significant renewable energy potential, and technological innovation. With ambitious climate goals and increasing adoption of renewable sources are pressing need for efficient energy storage solutions to stabilize the grid and manage fluctuating supply and demand. The country's leadership in battery storage technology and ongoing investments in smart grid initiatives further solidify its influence. As energy resilience becomes crucial, the U.S. market drives advancements in storage capabilities, shaping global trends and contributing to the sector's rapid evolution.
 

Electro-mechanical Energy Storage Systems Market Share

Toshiba, ABB, and Siemens hold significant market share in the electro-mechanical energy storage systems industry since these companies possess extensive experience and expertise in electromechanical systems, including energy storage technologies. They have invested heavily in research and development, leading to innovations that enhance efficiency, reliability, and scalability of energy storage solutions.
 

Electro-mechanical Energy Storage Systems Market Companies

Major players operating in the electro-mechanical energy storage systems industry are:

• AES Corporation
• ABB
• Duracell, Inc.
• Duke Energy
• Furukawa Battery Co., Ltd.
• Fluence
• General Electric
• Hitachi Energy Ltd.
• Johnson Controls
• LG Energy Solutions
• Nextra Energy
• Panasonic Corporation
• Samsung SDI Co., Ltd
• SCHMID Group
• Sonnen
• Siemens
• Toshiba Corporation
   

Electro-mechanical Energy Storage Industry News

• In January 2022, Voith GmbH & Co, KGaA strategically acquired a majority stake in Green Highland Renewables to expand its role in the maintenance, operation, and advancement of hydropower facilities, thereby strengthening its position in the industry. This acquisition was aimed at increasing Voith's engagement in the hydropower sector and bolstering its capabilities to innovate and enhance renewable energy infrastructure.
   
• In May 2022, Toshiba Corporation introduced the 125 VDC SCiB ESS, a new energy storage solution that integrates LTO battery chemistry with a modular, flexible cabinet design. This innovation is specifically designed for seamless integration into DC load applications and Uninterruptible Power Systems (UPS), offering enhanced versatility and expandability.
   

The electro-mechanical energy storage systems Market research report includes in-depth coverage of the industry with estimates & forecast in terms of “MW & USD Million” from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Technology

• Flywheel
• CAES

Market, By Application

• Electric Energy Time Shift
• Electric Supply Capacity
• Black Start
• Renewable Capacity Firming
• Frequency Regulation
• Others

The above information has been provided for the following countries across the regions:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina