Flywheel Energy Storage Market Size, Share & COVID-19 Impact Analysis, By Application (Uninterrupted Power Supply, Distributed Energy Generation, Data Centers, Transport, and Others) and Regional Forecast, 2023-2030

The global flywheel energy storage market size was valued at USD 281.29 million in 2022. The market is projected to grow from USD 301.86 million in 2023 to USD 535.26 million by 2030, exhibiting a CAGR of 8.53% during the forecast period.

Flywheel energy storage is a mechanical energy storage system that utilizes the kinetic energy of a rotating mass, or flywheel, to store and release energy. Flywheels store energy by spinning a heavy rotor at high speeds. When excess electricity is available, the motor accelerates the flywheel, converting electrical energy into kinetic energy. When power is needed, the kinetic energy is converted back into electricity as the flywheel decelerates. is trend of storing energy and conserving it while using it has boosted the market growth in the renewable energy sector.

COVID-19 IMPACT

Lockdowns and Restrictions Cause Project Delays, Impacting Global Operations

Various economies across the globe faced unmatched challenges from COVID-19, with people suffering from health, family, and financial conditions. Businesses also faced significant challenges. According to the Energy Storage Association (ESA) survey, industry stakeholders revealed devastating impacts on the energy storage industry.

Subsequently, major renewable and fossil-based energy-producing countries, such as China and the U.S., took stern actions to impede the growth of the novel coronavirus. Various governments across all the regions presented stringent action plans to reduce the spread of infection. The imposition of lockdowns and travel bans caused delays in several planned projects across the energy storage industry.

Furthermore, various stimulus packages were suggested by the Energy Storage Association (EPA) for the further development of the energy storage industry. The package includes:

• Modify energy investment tax credits (ITC) to allow businesses to monetize them directly and immediately, including explicit inclusion of energy storage technologies.


• USD 600 million in grants for distributed energy resources, including energy storage, for resilience and cost-savings.


• USD 250 million for demonstration projects of energy storage across electric systems.

Flywheel Energy Storage Market Trends

Increasing Hybrid Projects is Responsible for More Upcoming Opportunities in Flywheel Energy Storage

The increasing number of hybrid projects is contributing to the growing demand for flywheel energy storage systems (FESS). Hybrid projects combine multiple sources of energy generation, often incorporating renewable sources, such as wind and solar, alongside traditional power generation methods. Flywheel energy storage plays a very important role in these projects for several reasons. The alternating nature of renewable energy sources can lead to fluctuations in power generation.

For Instance, in May 2022, the high-power maglev flywheel and battery storage AGC frequency regulation project, run by a thermal plant of China Huadian Corporation in Shuozhou, formally began construction in March 2022. It is now an operational project in China, which is the first flywheel battery storage project cast off in frequency regulation. It made the R&D process of the flywheel and battery control system ready to operate in mid-August and started its operation by the end of 2022.

Flywheel Energy Storage Market Growth Factors

Growing Electricity Demand for Increasing Energy Storage Installation to Drive Market Growth

Energy Storage Systems (ESS) can balance electrical energy supply and demand by consuming stored energy at times of high need, high generation cost, or when no alternative generation is available. The demand for energy continues to increase across various developing countries, such as Brazil, Russia, India, China, and South Africa; hence, this has increased energy prices. ESS is a vital necessity to aggregate traditional generating plants to meet increasing demand and supplement intermittent Renewable Energy Storage (RES) for their integration into the electrical network.

While some datasets exist that quantify the storage capabilities found in today's power systems, the current global installed capacity for energy storage struggles from a lack of widespread and accessible data and conflicting definitions regarding what should be included in the baseline; however, various governmental regulations have passed regulatory orders to overcome this issue.

For instance, in June 2023, Key Energy installed a three-phase FESS at a residence east of Perth, Western Australia. The 8 kW/32 kWh system was installed over two days in an above-ground enclosure, decreasing the time required to install the flywheel system.

Increasing Production Capacities for Environment-friendly Storage Systems to Boost Market Growth

As a counterpart to today’s electrical network, there is a high demand for reliable, cost-effective, long-lasting, and environmentally sound energy storage systems to support various energy storage applications. With advances in materials technology, bearings, and power electronics, the technology of flywheels for energy storage has significantly developed.

With the growing advancement and adoption of this technology in energy storage, various manufacturers operating in the market are enhancing their production capacities, resulting in the demand for FESS.

In June 2022, Amber Kinetics, Inc., a leading energy storage firm, focused on doubling its energy storage systems by increasing the production capacity of its manufacturing facility in Sto. Tomas, Batangas. With the second plant, the company expects to export its flywheels to other countries that need energy storage systems. Up to 70-80% of the existing plant’s output is for the local market, adding that a flywheel weighs about 2.5 tons.

RESTRAINING FACTORS

Availability of Alternative Energy Storage Systems is Hindering Market Growth

The growth of alternative energy storage systems presents some challenges to the flywheel energy storage market growth. Alternative energy storage technologies include batteries, thermal systems, pumped hydropower, compressed air, superconducting magnets, and others.

For instance, according to the International Hydropower Association (IHA), the predicted pumped hydropower storage capacity is anticipated to grow by almost 50% – to about 240 GW by 2030.

In addition, batteries are the most scalable type of grid-scale storage, and the market has witnessed strong growth in recent years. As per the International Energy Association (IEA), worldwide investment in battery energy storage exceeded USD 20 billion in 2022, mainly in grid-scale deployment, which accounted for more than 65% of total spending in 2022.

Flywheel Energy Storage Market Segmentation Analysis

By Application Analysis

Uninterrupted Power Supply Segment to Dominate Due to Rising Demand for Continuous Power Supply

Based on application, the market is segmented into an uninterrupted power supply, distributed energy generation, transport, data centers, and others.

The uninterrupted power supply segment held a larger share in 2022. The demand for continuous and uninterrupted energy is rapidly increasing across the globe. According to the IEA, the global energy demand rose by 6% in 2021. With the rising demand, interruptions and fluctuations are also increasing in the energy supply. This increases the demand for uninterrupted power supply.

For instance, in September 2022, Indian researchers assessed the full range of flywheel storage technologies. They presented a survey of different applications for uninterrupted power supply (UPS), transport, solar, wind, storage, Flexible AC Transmission System (FACTS) devices, and other applications.

The distributed energy generation segment is another lucrative application of flywheel energy storage, as it is known for providing faster power backup. The areas prone to natural disasters majorly install distributed energy generation so that such areas can access electricity during natural disasters.

REGIONAL INSIGHTS

Geographically, this market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Asia Pacific accounts for a majority of the global flywheel energy storage market share. The rising demand for uninterrupted electricity is one of the major growth drivers for the market. China, South Korea, Japan, India, and the Philippines are largely adopting flywheel energy storage technology owing to its high efficiency and long service life advantage. The high demand for continuous electricity and rising investments in storage technology drive the market growth.

For instance, in March 2022, The high-power flywheel + battery storage AGC frequency regulation project, led by a thermal plant of China Huainan Corporation in Shuozhou, formally began construction. When finished, it will be China's first flywheel + battery storage project used in frequency regulation. The project has a budget of USD 4.6 million (33.72 million yuan) using a 5MW/5MWh BESS and a 2MW/0.4MWh flywheel storage system. The R&D process of the flywheel and battery control system will probably be completed, which will be ready to operate in August and will be online by the end of 2022. It will be the first application of the hybrid storage system in the power grid frequency regulation scenario in China.

North America is the most lucrative market as far as energy storage is concerned. The U.S. accounts for the majority of installed capacity in North America. For instance, in April 2021, the trial, staged with obtaining partner Sunbelt Rentals, assessed a FESS delivered by technology firm Punch Flybrid.

However, Canada is working extensively to enhance its flywheel energy storage capacity. Both countries have planned upcoming projects, and a few projects are underway for flywheel energy storage technology. The above factors drive the growth of the market.

For instance, in November 2022, NRStor worked on battery microgrid systems and is building Canada's first large-scale commercial FESS project, which will match carbon-free hydropower. NRStor is also building a 1,000-megawatt-hour battery plan with the Six Nations of the Grand River Development Corporation.

Europe is estimated to grow significantly during the forecast period. The transition toward renewable energy to achieve carbon-neutral status has driven growth for energy storage installation in Europe. Flywheel is a preferred technology owing to its environment-friendly nature and strong power capacity. Thus, the above factors drive market growth.

Latin America is likely to anticipate moderate growth during the forecast period. The region is going through a drastic energy transition. Several countries are rapidly transitioning from traditional sources of energy, such as hydroelectricity and crude oils, to a diverse energy mix, including various cleaner fuels. This challenges the region to meet the electricity demand across Latin America. Brazil, Jamaica, Argentina, Chile, and others are increasingly investing in and enhancing the capacity of energy storage systems.

The Middle East & Africa is expected to witness significant growth during the forecast period. The demand and installation of energy storage systems are widely increasing across the region owing to the rapidly growing demand for continuous electricity among the population. The installation of data centers is also increasing in the GCC. There are 22 data centers in Saudi Arabia and 9 in the UAE. These data centers also tend to adopt flywheel energy storage systems due to their benefits, such as high efficiency and reliability, easy maintenance, and more storage power.

List of Key Companies in Flywheel Energy Storage Market

Leading Players such as Langley Holdings Plc are Introducing Long-Duration Flywheel Energy Storage Systems

Amber Kinetics Inc. is a leading player in the flywheel energy storage market, collaborating with many public and private entities. In September 2023, Orlando Utilities Commission (OUC), a Florida-based water and electric utility company, partnered with Amber Kinetics to install a 64 kWh FESS. Commissioned in April 2022, Amber Kinetics flywheels supports OUC's Grid Integration Laboratory (GIL) research program, among other renewable technologies.

Langley Holdings plc has subsidiaries, such as Piller Group GmbH. Piller’s kinetic energy storage product gives the designer a chance to save space and enhance power density per unit.

• For instance, in March 2022, Pillar Group’s UB-V solutions were being evaluated or have been commissioned to provide more than 1.3 GW of power protection at data centers and other critical facilities in energy, healthcare, manufacturing, and transport across Asia, the U.S., and Europe. The UB-V solution can provide many MWs of reliable power protection on a daily basis and, in turn, give customers the confidence that their critical systems will run continuously.

LIST OF KEY COMPANIES PROFILED:

• Langley Holdings plc (U.K.)


• Amber Kinetics, Inc. (U.S.)


• Beacon Power (U.S.)


• Adaptive Balancing Power GmbH (Germany)


• VYCON, Inc. (U.S)


• Teraloop (Finland)


• Stornetic GmbH (Germany)


• Revterra (U.S.)


• PUNCH Flybrid (U.K.)


• Levistor Ltd (U.K.)


• Energiestro (India)


• Candela (Shenzhen) New Energy Technology Co., Ltd. (China)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: Key Energy installed an 8 kW / 32 kWh three-phase flywheel energy storage system at the property of Sawyers Valley in June 2023. The system includes a single flywheel that can run around 11000 cycles without degradation and boasts a 20 or 30-year lifespan.


• February 2023: Candela New Energy's first megawatt-class magnetic levitation flywheel production line was successfully put into operation in Julongwan Intelligent Equipment Industrial Park, Foshan City. The first set of 1MW/35kWh magnetic levitation flywheel has been positively rolled off the production line.


• October 2022: ABB and S4 Energy recently installed a hybrid battery-flywheel storage infrastructure in the Netherlands. The project features a 10 MW battery system and a 3 MW flywheel system and can supposedly offer a leveled cost of storage ranging between USD 0.020/kWh and USD 0.12/kWh.


• April 2022: The flywheels were installed for OUC's Nanogrid research project at the Gardenia Innovation & Operations Center. The flywheels will be coupled to the research site’s 64-kilowatt (kW) solar array floating on a pond that’s only 70 feet away. Its emerging technologies team began testing the 16-kW flywheels in May 2022. It bought the flywheels from Amber Kinetics.


• April 2022: - China's first 1MW flywheel energy storage device was installed and commissioned at Wannianquan Road Station of Qingdao Metro Line 3 and successfully connected to the grid. According to public data, if one subway trip every three to five minutes is calculated, each subway can save 3-4 kWh of electricity and 500-600 kWh of electricity can be saved in a day.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation