Flywheel Energy Storage Market Size - By Application, Analysis, Share, Growth Forecast, 2025 - 2034

Flywheel Energy Storage Market Size

The global flywheel energy storage market was valued at USD 1.3 billion in 2024 and is expected to reach a value of USD 1.9 billion by 2034, growing at a CAGR of 4.2% from 2025 to 2034. Flywheels are used for uninterruptible power supply (UPS) systems in data centers due to their instant response time and high reliability., thereby increasing product adoption in data centers. Furthermore, flywheels are increasingly being paired with battery systems to create hybrid solutions including long-duration energy and handle power spikes and fast response requirements.
 

Utilities and governments are increasingly investing in smart grid infrastructure and microgrids, especially in remote and off-grid areas. Flywheels provide fast-response, short-duration energy storage, which is ideal for frequency regulation and maintaining grid stability. For instance, the U.S. Department of Energy allocated USD 13 billion in 2023 to modernize the electric grid under the Grid Resilience and Innovation Partnerships (GRIP) program.
 

EV fast-charging stations and rail networks increasingly use flywheel systems to manage high load demand and improve energy efficiency. Flywheels can recover and reuse braking energy in rail and metro systems (regenerative braking). For reference, according to the U.S. Department of Energy, flywheel energy storage systems can achieve an efficiency of up to 85%-90%, making them a reliable solution for energy management.
 

The intermittency of solar and wind energy demands fast, reliable storage systems. Flywheels can smooth out fluctuations and provide immediate power for short intervals, helping to balance renewable inputs with grid demand. They can undergo hundreds of thousands of charge/discharge cycles with minimal degradation. This makes them ideal for applications requiring frequent cycling, such as data centers, industrial automation, and public transit systems.
 

Flywheel Energy Storage Market Trends

The global flywheel energy storage industry reached a value of USD 1.3 billion in 2022, 2023, and 2024. Impact of recent trumps tariffs on imported materials essential for energy storage systems, such as lithium, cobalt, and nickel, have raised production expenses for U.S. manufacturers. Flywheels, unlike batteries, do not rely on toxic chemicals or rare earth elements, making them a more environmentally friendly alternative. Their design results in a significantly lower environmental footprint, contributing to reduced ecological impact. Additionally, flywheels are highly recyclable, which enhances their sustainability compared to batteries. They also require less maintenance over their operational lifespan, reducing long-term costs and resource consumption. These advantages position flywheels as a viable and eco-conscious energy storage solution.
 

The U.S. relies heavily on imports for these minerals, and tariffs have led to higher prices, affecting the affordability of flywheel energy storage solutions. The administration's trade strategies have introduced considerable uncertainty in the energy storage market. Proposed tariff increases, such as raising Section 301 tariffs to 60% on Chinese goods, have left companies uncertain about future costs and supply availability. This unpredictability hampers long-term planning and investment in the flywheel energy storage sector.
 

As renewable energy sources become more prevalent and the need for grid stability intensifies, the demand for energy storage solutions has surged. Recently, flywheel energy storage systems have emerged as a favored choice, thanks to their rapid response times, robust cycling capabilities, and proficiency in delivering short-duration energy services. Notably, flywheel energy storage technology has seen substantial progress, with enhancements in materials, design, and control systems. These innovations have bolstered the efficiency and performance of flywheels, amplifying their appeal across diverse energy storage applications.
 

Industries are increasingly turning to flywheels for applications like voltage stabilization, regenerative braking, and as a source of backup power. For illustration, according to the U.S. Department of Energy, flywheel energy storage systems can achieve efficiencies of up to 85%-95%, making them a reliable option for energy management. In addition, mass transit systems harness flywheels to capture and reuse braking energy, significantly boosting energy efficiency. For instance, the U.S. Federal Transit Administration highlights that regenerative braking systems, including flywheels, can reduce energy consumption in rail systems by up to 30%.
 

Flywheel Energy Storage Market Analysis

• Based on application, the industry can be categorized into utility, transportation, defense & aerospace, and others. The utility segment held a market share of 55.3% in 2024. Utilities are increasingly relying on flywheels for real-time frequency balancing due to their instantaneous response times (sub-second). Regulatory frameworks including FERC Order 755 and 841 in the U.S. promote fast-responding frequency regulation services, where flywheels have a competitive edge over traditional batteries.
   
• Flywheels help mitigate the variability of wind and solar by absorbing or injecting power quickly, stabilizing voltage and frequency. Ideal for short-duration smoothing during cloud transients (solar PV) or gusty winds. With the move towards distributed energy resources (DERs) and smart grids, flywheels can serve as localized storage to support microgrids and virtual power plants (VPPs).
   
• In rail, trams, and metro systems, flywheels capture braking energy and reuse it for acceleration, reducing total energy consumption by up to 30%. They also reduce wear on braking systems, lowering maintenance costs. Flywheels can stabilize voltage and reduce peak load demand in electric vehicle (EV) fast-charging stations. As EV adoption accelerates, demand for grid-friendly charging solutions (like flywheel-buffered systems) is rising.
   
• Flywheels offer rugged, maintenance-free UPS solutions critical for mission-critical defense infrastructure, command centers, and radar systems. They provide instant power during switchover and are resistant to temperature extremes, vibration, and shock. In aerospace, flywheels are used for gyroscopic control, energy storage, and stabilization in satellites. Their lightweight, high-density design and ability to operate in vacuums make them ideal for space-constrained or zero-gravity environments.
   

• The U.S. flywheel energy storage market has reached a value of USD 72 million in 2022, 2023, and 2024. U.S. utilities are deploying flywheel-based energy storage for instantaneous backup and power quality stabilization. Policies like FERC Order 755 & 841 incentivize fast-responding storage solutions (perfect for flywheels) to participate in ancillary service markets (e.g., frequency regulation).
   
• States like California and New York are expanding their renewable targets, increasing the need for fast-cycling energy storage to handle solar/wind fluctuations. The U.S. Department of Defense is investing in microgrids with flywheel storage for base resilience and critical infrastructure protection.
   
• The EU Green Deal and national energy transition policies are pushing for more storage to support growing wind and solar capacity. Flywheels are ideal for grid balancing and short-term renewable smoothing. Europe’s focus on sustainable urban mobility is leading to flywheel deployment in metro systems (regenerative braking), especially in Germany, France, and the UK.
   
• APAC governments are investing in smart grid infrastructure, which benefits from flywheel tech in substations, microgrids, and fast EV charging hubs. Nations such as Japan, China, and India are integrating flywheels into urban rail systems to reduce energy use and peak loads. Countries like China, India, and Southeast Asia are experiencing fast urbanization and rising electricity demand, creating a need for durable, fast-response storage.
   
• Off-grid and islanded operations (e.g., oil & gas fields, mining) benefit from low-maintenance flywheels that deliver fast backup and power conditioning. Flywheels operate efficiently in dusty, hot, and remote environments, where lithium-ion batteries may struggle. Countries like UAE, Saudi Arabia, and South Africa are expanding solar power, and flywheels thrive in hot climates where chemical batteries degrade quickly.
   
• Latin American countries like Chile, Brazil, and Mexico are ramping up solar and wind energy, requiring grid-stabilizing technologies such as flywheels. In rural or remote areas, flywheels are used to stabilize telecom tower power supplies, especially where battery theft or maintenance is a challenge. Flywheels are being tested alongside batteries in hybrid systems, particularly where frequent cycling is needed (e.g., smart cities, island grids).
   

Flywheel Energy Storage Market Share

The top 5 players operating in flywheel energy storage industry include Langley Holdings, Amber Kinetics, VYCON, PUNCH Flybrid, and OXTO Energy, which collectively hold over 35% of the market share. Investors, utilities, and industrial buyers are more confident working with dominant players due to their proven track records, scalability, and service support. This fuels further adoption, reinforcing their market position (a positive feedback loop). Market leaders often invest heavily in R&D, pushing the next generation of flywheel systems—e.g., advanced magnetic bearings, composite rotors, and vacuum enclosures.
 

Dominant firms influence technical standards, which can reduce market fragmentation and help new adopters evaluate and deploy solutions more easily. Larger players can reduce production costs via economies of scale, making flywheel storage more competitive with lithium-ion batteries in select applications (UPS, frequency regulation).
 

Flywheel Energy Storage Market Companies

• VYCON, an American company offering flywheel-based energy storage solutions, VYCON focuses on providing uninterruptible power supply (UPS) systems for critical applications.
   
• Langley Holdings, a UK-based company with subsidiaries like Piller Group GmbH, Langley Holdings plc has been actively involved in deploying flywheel energy storage systems globally. The company’s power solutions segment reported revenue of over USD 698.4 million in 2024.
   
• PUNCH Flybrid, located in the UK, develops flywheel energy storage systems aimed at enhancing energy efficiency in various applications, including transportation.
   
• Amber Kinetics, based in the U.S., Amber Kinetics specializes in advanced flywheel technology and has formed various partnerships to enhance grid integration and renewable energy support. The company reported over USD 62.5 million in 2024.
   
• OXTO Energy, a UK-based company specializing in flywheel energy storage technology, OXTO Energy focuses on providing solutions for grid balancing and energy management.
   

Some of the key players operating across the flywheel energy storage market are:

• Adaptive Balancing Power
• Amber Kinetics
• BC New Energy
• Energiestro
• Langley Holdings
• OXTO Energy
• PUNCH Flybrid
• POWERTHRU
• STORNETIC
• VYCON
   

Flywheel Energy Storage Industry News

• In November 2024, Adaptive Balancing Power (ABP) concluded the "Buffered-HLL" pilot project, demonstrating energy-efficient high-power charging with flywheel storage for electric buses in public transport. The study examined the impact of high-power charging on operations and energy efficiency without requiring grid expansion.
   
• In November 2024, Torus, a Utah-based energy storage company, unveiled a suite of products including a flywheel system (Nova Spin), a long-duration battery system (Nova Pulse), and AI-powered cybersecurity solutions at the 47G Zero Gravity Summit. These offerings are designed for grid stability, backup power, and infrastructure protection. Torus also announced a major commercial real estate project and secured $67M in funding to scale its platform. The flywheel boasts a 25-year lifespan and 95% recyclability.
   
• In April 2024, Amber Kinetics initiated a pilot project in collaboration with Hawaiian Electric, to test a four-hour duration flywheel system at the Campbell Industrial Park generating station on O‘ahu. This system aims to provide renewable firming, peak energy shifting, and ancillary services like voltage smoothing and frequency response.
   
• In April 2204, ABP announced a new generation of high-performance energy storage and charging systems based on kinetic energy flywheel principles. The system features a carbon fiber flywheel rotating at up to 18,000 RPM, capable of quickly storing and releasing large amounts of energy. Initial units are operational in Germany, with plans to scale up production.
   

The flywheel energy storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of “MW & USD Million” from 2021 to 2034 for the following segments:

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Market, By Application

• Utility
• Transportation
• Defense & Aerospace
• Others

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

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
• Rest of World