Flywheel Energy Storage Market Size, Share & COVID-19 Impact Analysis, By Application (Uninterrupted Power Supply, Distributed Energy Generation, Transport, Data Centers, and Others) and Regional Forecast, 2022-2029

The global flywheel energy storage market size was valued at USD 297.6 million in 2021 and is projected to grow from USD 316.8 million in 2022 to USD 551.9 million by 2029, exhibiting a CAGR of 8.3% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with flywheel energy storage experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global flywheel energy storage market exhibited a growth of 4.9% in 2020 as compared to 2019.

Flywheel Energy Storage (FES) uses a rotor accelerated at a very high speed and maintains the energy in the system as rotational energy. When energy is removed from the system, the flywheel's rotation is reduced due to energy conservation. Adding energy to the system increases its speed. These systems use electric energy input, which is stored as kinetic energy.

COVID-19 IMPACT

 Pandemic Delayed Projects Temporarily Impacted the Market Growth

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. have taken stern actions to impede the growth of the novel coronavirus. Various governments across all the regions have presented stringent action plans to contain the spread of infection. The imposition of lockdown and travel bans caused the delay in several planned projects across the energy storage industry.

 LATEST TRENDS

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Rising Transition Toward Renewable Energy Generation to Create Lucrative Opportunities for the Market Growth

Renewable Energy Sources (RES) and Distributed Generation (DG) are considered supplements to meet the growing electricity demand. However, due to their intermittent nature across a range of timescales, there are major challenges associated with energy supply coming from renewables, thus creating reliability problems.

Therefore, this has resulted in a thorough examination of existing and soon-to-be-developed energy storage technologies. Furthermore, while many other energy storage devices are limited due to fire hazards, chemical corrosion, temperature restrictions, and short lifespans, flywheels operate throughout a large temperature range without degradation over time. They do not have high operation and management costs.

In this way, flywheels present not only a more energy-efficient solution but also a more cost-effective one. An increase in energy generation from renewable energy sources spurs market opportunities.

DRIVING FACTORS

Growing Electricity Demand to Increase Energy Storage Installation that Drives 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 energy demand continues to increase across various developing countries, such as Brazil, Russia, India, China, and South Africa; hence, this has increased the energy prices. ESS is a vital necessity to aggregate traditional generating plants to meet increasing demand and supplement intermittent 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.

Increasing Production Capacity for Environment-friendly Storage Systems to Boost the 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 capacity, resulting in the demand for FES.

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

Lower Energy Density and High Component Costs to Hinder Market Growth

Flywheel Energy Storage System (FESS) is a leading technology for storing energy. However, when comparing FESS to batteries, FESS possesses a higher power output, measured in Watts (W), but cannot store as much energy, Watt-Hours (Wh), for a long time, due to which it is likely to lower its adoption where energy storage is required for a longer duration.

Furthermore, the capital cost of these systems is comparatively high due to the need for special materials such as magnetic bearings, which are required at high speed to have a very balanced system to ensure sufficient mechanical performance. This increases the capital cost of the system.

SEGMENTATION

By Application Analysis

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

Based on application, the market has been segmented into Uninterrupted Power Supply (UPS), distributed energy generation, transport, data centers, and others.

The uninterrupted power supply segment holds the majority of the market share. The demand for continuous and uninterrupted energy is rapidly increasing across the globe. According to the International Energy Association (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.

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

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Geographically, the global market has been analyzed across five main regions, 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 flywheel energy storage market growth.

North America is the most lucrative market where energy storage is concerned. The U.S. accounts for a majority of installed capacity in the North American region. 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.

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 the market growth.

Latin America is likely to foresee 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 region is expected to witness 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.

KEY INDUSTRY PLAYERS

Key Market Players are Concentrating on Enhancing Product Portfolios and Forming Collaborative Strategy to Strengthen their Geographical Presence

Various players operate with local, regional, and international footholds across the market. Different companies emphasize producing products that have higher power density and efficiency to enhance their global position. Numerous participants are also producing FESS at the regional or local level. In November 2021, Halliburton invited the developer of flywheel energy storage, Helix Power of Massachusetts, to its cleantech accelerator, a seed funding event wherein partners are connected to Halliburton’s lab facilities in Houston.

LIST OF KEY COMPANIES PROFILED:

• 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)

 KEY INDUSTRY DEVELOPMENTS:

• July 2022 - Active Power partnered with Central Power to bring live POWERHOUSE power outage demonstrations alongside Central Power standby generators. The POWERHOUSE has the company’s flagship CLEANSOURCE PLUS MMS 1.33MW UPS with automatic transfer.


• June 2022 - Adaptive Balancing Power delivered a new charging infrastructure with flywheel storage, enabling switching to e-buses in the area even without expanding the power grids. The pantograph charging station using the high-performance flywheel mass storage will likely go into operation in September. The test phase in regular driving operations is scheduled for 18 months. After a successful test, the infrastructure model will also be transferred to other regions.


• May 2022 - The global life sciences company, Sartorius, announced that it is using Piller’s UPS systems with flywheel power back-up at its production facility in Göttingen, Niedersachsen, Germany. Along with the UPS solution, Piller Group has provided the Sartorius Group with comprehensive 24/7 support from a Piller service team.


• November 2021 - Active Power will add markets and geographies with new flywheel installations as it is helping industries transition to net-zero operations.


• July 2021 - Development Bank of the Philippines (DBP) granted a loan of PHP 750 million to Amber Kinetics Philippines (AKP) to help with production, expansion, and distribution of FES.  

REPORT COVERAGE

An Infographic Representation of Flywheel Energy Storage Market

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

Report Scope & Segmentation