Flywheel Energy Storage Market Size, Share & Trends Analysis Report By Application (UPS, Distributed Energy Generation, Transport, Data Centers), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

The global flywheel energy storage market size accounted for USD 263.7 million in 2018 and is estimated to expand at a CAGR of 8.9% by 2025 owing to the growing demand for Uninterruptible Power Supply (UPS).

The primary function of flywheel is energy storage. It stores electric energy in the form of kinetic energy with the help of a rotor. The market for energy storage is growing at a significant pace. Experts believe that energy storage is an alternative to fossil fuels and can reduce dependency on them. This, in turn, can results in various countries meeting their carbon targets and striking a balance between energy supply and consumption by optimizing demand and supply effectively.

Flywheel energy storage systems find application in transportation and aerospace industries. Growing automotive industry has driven the demand for these systems.China, Thailand, India, and Indonesia are expected to witness a rise in automobile production owing to high demand, which in turn is anticipated to further drive the demand.

Cast iron, steel, and carbon fiber are the main raw materials used for manufacturing a flywheel storage system.Manufacturers located all over the world, cater to various end-use industries. Carbon fiber is the most expensive raw material, as the fiber can be processed to make it as small as 0.005 mm in diameter and can be used in a variety of applications such as aerospace and textile. Cast iron, which is an alloy of iron and carbon, and consists higher amount of carbon than steel, is another important raw material used for flywheel manufacturing.

The market is consolidated in nature with the presence of a number of small- and large-scale manufacturers. These players adopt strategies such as mergers and acquisitions, expansions, new product developments, joint ventures, and collaborations, to gain greater market share.

U.S. is the largest market for energy storage both in terms of, installed capacity and the number of projects. U.S. is home to some of the biggest IT companies, such as Google and Yahoo. Data storage is one of the primary requirements in these companies, which is one of the main reasons for the high demand of data centers in this country. Problems arising due to interruptions and fluctuations of power supply have resulted in increased regional demand for UPS systems, especially from the commercial sector.

Application Insights

Based on application, the market has been segmented into UPS, distributed energy generation, transport, data centers, and others. Growing demand for energy storage devices and uninterrupted power supply, particularly in commercial work stations drive the market on global scale.

UPS is anticipated to be driven by growing demand for energy backup, particularly from the commercial sector. Growing industrial and commercial sectors, heavy dependence on digital equipment, and automation technologies have resulted in growing demand for UPS systems. In terms of revenue, UPS is projected to expand at a CAGR of 6.3% over the forecast period.

Distributed energy generation involves generation of power at the place of consumption. It eliminates cost, inefficiencies, and complexities related to power generation. In terms of revenue, the segment held the market share of 22.86% in 2018. It is anticipated to witness the fastest CAGR of 11.8% over the forecast period.

Data center, which is used to store large amounts of data centrally in a business, makes use of flywheel to generate uninterrupted power supply. As compared to batteries, flywheels can be recharged quickly after use, can be more efficient for applications more than 500 KW, and have a longer life time. In terms of capacity, data center is expected to expand at a decent CAGR of 7.8% over the forecast period. Growing commercial sector, which needs continuous power supply, is providing momentum to the market.

Regional Insights

North America led the flywheel energy storage market in 2018, owing to high demand for power storage systems and uninterrupted power supply, particularly from the commercial sector. The North America market is characterized by growing demand for UPS systems, to maintain a continuous supply of power for commercial and industrial applications. Similarly, growing demand for data centers for storing large amounts of data has resulted in the regional growth.

Europe was the second largest regional segment in terms of capacity, with 8.97% market share in 2018, and expected to reach 23,288.6 KW by 2025. Germany, U.K., and Italy are the biggest markets for energy storage in this region. Growing automobile industry, particularly in countries such as Germany and Italy are expected to drive regional expansion over the forecast period.

Frequent power cuts have increased the importance of energy storage systems in Asia Pacific, which is expected to drive demand for UPS and data centers. In terms of revenue, Asia Pacific was valued at USD 20,398.1 thousands in 2018. The region is projected to grow significantly over the forecast period.

Flywheel Energy Storage Market Share Insights

Key market participants include Active Power; Amber Kinetics, Inc.; Beacon Power, LLC; Calnetix Technologies, LLC; Piller Group GmbH; Powerthru; Power Tree; Temporal Power Ltd.; Rotonix USA, Inc.; Pentadyne Power Corporation; and VYCON, Inc.

Active Power; Amber Kinetics, Inc.; Beacon Power, LLC; and Calnetix Technologies, LLC account for majority of services in the market. These companies focus on optimum business growth by introducing numerous growth strategies. Some of the major manufacturers are exploring new markets and expanding their presence in emerging economies including India, Brazil, Mexico, Saudi Arabia, and UAE. Many companies are investing heavily in R&D and continue to introduce new products.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2025. For the purpose of this study, Grand View Research, Inc. has segmented the global flywheel energy storage market report on the basis of application and region:

• Application Outlook (Capacity, KW; Revenue, USD Thousand, 2015 - 2025)

  • Uninterruptible Power Supply (UPS)

  • Distributed Energy Generation

  • Transport

  • Data Centers

  • Others

• Regional Outlook (Capacity, KW; Revenue, USD Thousand, 2015 - 2025)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • South Korea

    • Japan

  • Central & South America

    • Brazil

  • Middle East and Africa