Flywheel Energy Storage Market Size - By Technology (Adiabatic, Diabatic, Isothermal), By Application (On Site Power, Black Start, Electric Supply Capacity), Growth Drivers & Forecast, 2023 – 2032

Flywheel Energy Storage Market Size

Flywheel Energy Storage Market size was valued at USD 1.3 billion in 2022 and is projected to grow at a CAGR of 2.4% between 2023 and 2032. Flywheel energy storage has gained traction due to its ability to provide rapid response and high power output. It has found applications in various sectors including grid energy storage, uninterruptible power supply (UPS), renewable integration, and electric transportation. There have been continuous efforts to improve the efficiency, reliability, and power density of flywheel systems. Advancements in composite materials, magnetic bearings, and power electronics have contributed to increased energy storage capacities and reduced losses.
 

The increasing penetration of renewable energy sources and the need for grid stability have driven the demand for energy storage solutions. In the recent years, flywheel energy storage systems have gained traction owing to their fast response times, high cycling capabilities, and ability to provide short-duration energy services. Flywheel energy storage technology has witnessed significant advancements including improvements in materials, design, and control systems. These advancements have enhanced the efficiency and performance of flywheels, which makes them more attractive for various energy storage applications.
 

Flywheel energy storage systems can have higher upfront costs compared to some other energy storage technologies. The cost of materials, manufacturing, and the complexity of the technology contribute to the initial investment required. This cost factor can pose a barrier to entry for some potential customers and limit the flywheel energy storage market growth. Flywheels are typically designed for short-duration energy storage applications, making them more suitable for applications requiring high-power, fast response capabilities rather than long-duration energy storage. The limited energy capacity of flywheels can restrict their applicability in certain use cases that require sustained energy delivery over extended periods. Additionally, ongoing research and development efforts, and market dynamics can mitigate some of these restraints over time.
 

COVID-19 Impact

The global supply chain disruptions caused by the pandemic have affected the manufacturing and distribution of flywheel energy storage systems. Delays in production, transportation, and installation of flywheels have slowed down project timelines and deployments. The economic downturn caused by the pandemic has created financial challenges for project financing and investment in the energy sector. This has led to delays or cancellations of flywheel energy storage projects as investors exercise caution in uncertain market conditions. Restrictions on construction and project implementation due to lockdown measures and social distancing requirements have posed operational challenges for flywheel energy storage projects. These limitations have affected project timelines and hindered the flywheel energy storage business growth.
 

However, the pandemic highlighted the importance of energy resilience and grid stability. Flywheel energy storage systems, with their fast response times and high cycling capabilities, are well-suited for providing grid support services during times of increased demand or grid instability. The need for energy resilience has driven the interest and deployment of flywheel energy storage solutions.
 

Flywheel Energy Storage Market Trends

Flywheel energy storage systems are well-suited for providing frequency regulation and grid support services. Their ability to respond quickly to changes in grid frequency and maintain grid stability makes them valuable for balancing supply and demand. It is being increasingly deployed in microgrid applications, where it can provide reliable and fast-responding energy storage for critical loads. Flywheels offer several benefits, which include high power density, long cycle life, and minimal maintenance requirements, making them suitable for microgrid deployments.
 

The technology is often combined with other energy storage technologies, such as batteries, in hybrid energy storage systems. This combination allows for a broader range of services, including both short-duration and longer-duration energy storage, with complementary characteristics. As with many emerging technologies, the cost of flywheel energy storage systems has been decreasing over time. Continued research, development, and economies of scale are expected to contribute to further cost reductions, making flywheel systems more competitive in the energy storage market.
 

Based on application, the flywheel energy storage market is segmented as utility, transportation, defence & aerospace, and others. The utility segment accounted for over USD 700 million in 2022. Utilities are facing challenges related to integrating renewable energy sources, managing peak demand, and maintaining grid stability. Flywheel energy storage systems offer fast response times and high cycling capabilities making them attractive for providing grid flexibility and stability services. Flywheels are well-suited for providing frequency regulation and grid ancillary services. They can quickly respond to changes in grid frequency, helping to maintain system stability and balance supply and demand. Flywheels are valued for their ability to provide accurate and rapid response to grid frequency deviations.
 

These systems are often integrated into hybrid energy storage configurations. By combining flywheels with other energy storage technologies including batteries, utilities can optimize the benefits of each technology, offering a more comprehensive and versatile energy storage solution. Continuous research and development efforts are focused on improving the performance and efficiency of flywheel energy storage systems. Advances in materials, design, and control systems are enhancing the overall efficiency, cycle life, and power density of flywheels, making them more competitive in the utility-scale flywheel energy storage market. The cost of flywheel energy storage systems has been decreasing over time, driven by advancements in technology and manufacturing processes. This trend, coupled with the scalability of flywheel projects, is making them more economically viable for utility-scale applications.
 

Europe flywheel energy storage industry is likely to showcase CAGR of 2% through 2032 owing to the significant increase in renewable energy generation, particularly from sources including wind and solar power. European countries have been implementing policies and regulations that encourage the adoption of energy storage technologies, including flywheels. Initiatives like the European Green Deal and national renewable energy targets have created a favorable regulatory environment for the deployment of flywheel energy storage systems. Flywheels provide grid operators with fast response times and high cycling capabilities, making them well-suited for providing grid flexibility and stability services.
 

The increasing integration of renewable energy sources will drive flywheel energy storage market demand. These systems are particularly valuable for providing frequency regulation and grid ancillary services. They can respond rapidly to frequency deviations, helping to maintain system stability and support the reliable operation of the grid. The combination of flywheel energy storage with other storage technologies, such as batteries, in hybrid systems is gaining traction in Europe. This hybrid approach allows for a more versatile and optimized energy storage solution that can cater to different applications and system requirements.
 

Flywheel Energy Storage Market Analysis

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

• Langley Holdings plc
• Amber Kinetics, Inc
• POWERTHRU
• STORNETIC GmbH
• Adaptive Balancing Power GmbH
• Energiestro
• VYCON
• Bc New Energy (Tianjin) Co., Ltd (BNE)
• PUNCH Flybrid,
• OXTO Energy
   

Major manufacturers across Asia Pacific and the U.S. are inclined toward mergers & acquisitions, strategic collaborations, partnerships, and joint ventures to further gain a competitive advantage in the market.
 

Flywheel Energy Storage Industry News:

• In August 2019, Vycon announced the launch of new VDC-XXT flywheel model to its VDC product line of clean energy storage solutions. The system can be paired with three-phase uninterruptible power supplies, which brings DC power capacity by using the kinetic energy of the flywheel for power backup. Moreover, the new system has the capability to operate at temperatures of up to 40^oC with long operational life.
   

This flywheel energy storage market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in MW & USD Million from 2019 to 2032, for the following segments:

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By Application

• Utility
• Transportation
• Defense & Aerospace
• Others

The above information is 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