Flywheel Energy Storage System Market Size, Share & Trends Analysis Report By Application (UPS, Distributed Energy Generation, Transport, Data Centers), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global flywheel energy storage system market size was valued at USD 312.1 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 7.4% from 2020 to 2027. Rising demand for continuous and clean electricity supply in end-use markets along with the growing energy storage industry is expected to drive the market over the forecast period. Flywheel offers a kinetic energy storage option while using the inertia of a rotor to store and regenerate power. The system is primarily used for grid balancing, renewable integration, and providing power supply to islands and isolated grids. The clean energy storage system is anticipated to serve as a reliable alternative to fossil fuels and can minimize dependency on them, thereby supporting in reducing carbon emissions.

In the U.S., the market is anticipated to witness significant growth on account of growing installed capacity and the rising number of flywheel projects across the country. Increasing electricity demand across the commercial sector that includes facilities such as large size data centers are bound to drive the demand for uninterruptible power supply systems. In addition, favorable government policies regarding clean power generation are expected to positively influence the industry landscape.

Flywheel energy storage system proves to be an economical technology up to a certain kilowatt scale and is not a promising solution for large scale installations. However, research and development in several areas including electrical machines, magnetic bearings, and high strength composite material created from expensive carbon fiber, are expected to commercialize the flywheel energy storage systems over the forecast period.

The flywheel energy storage system has some clear advantages over chemical batteries such as the ability to work in extremely low temperatures, longer life, and high-power density from storing significant amount of energy in a short time. Moreover, the charging and discharging of a flywheel incur extremely minor losses, thereby making the electrical storage system achieve an efficiency of around 97.0%.

Application Insights 

Others segment occupied the largest market revenue share of 44.9% in 2019 owing to the growing need for flywheel energy storage systems in grid balancing applications. The stable power grid achieves balance through the correction of momentary imbalances in generation and load. Flywheel generators efficiently regulate these constant power system fluctuations owing to their faster ramp rates when compared to conventional power generators. This in turn reduces the operating costs of existing power generation plants.

Distributed energy consumption accounts for the fastest CAGR over the forecast period owing to the growing demand for isolated grids in remote industrial operations, remote communities, and islands. Flywheel storage is integrated with renewable sources such as wind energy and solar energy, reducing the dependence of remote areas on liquid fossil-fueled generators for power supply.

The data center application segment occupied a significant market share in 2019 and is anticipated to witness a high growth rate in the flywheel energy storage system market over the forecast period. Large IT companies such as Google are continuously deploying, spinning, and charged flywheels at their massive data centers. In the case of transient power failures, the flywheel energy provides quick power to the connected systems, thereby offering time to the back-up generators to start again.

The UPS application segment is anticipated to attain significant growth over the forecast period owing to the advancement in automation technologies, rising dependence on electronic equipment, and continuously growing commercial and industrial sectors. Flywheel UPS acts as a reliable power-backup source, preventing any losses during frequent power outages across various facilities.

Regional Insights

North America accounted for the largest market share of 78.0% in terms of revenue. It is the largest market for flywheel energy storage system in terms of revenue and power capacity, with the U.S. occupying the majority of regional market share. In the U.S., flywheels are integrated with renewable sources in order to provide storage capacity for balancing the intermittent nature of renewables. Moreover, around 40.0% of carbon emissions in the U.S. are sourced from electricity generation. Hence, clean technologies such as flywheel energy generation and storage are expected to reduce carbon emissions by a significant amount.

Europe was the second-largest regional segment in terms of capacity in 2019 and is projected to witness significant growth over the forecast period. Favorable government initiatives regarding clean energy generation and storage have provided a prominent boost to market growth. The U.K., Germany, and France are among the major countries deploying the flywheel technology in various end-use applications.

Frequent power outages in developing economies such as China and India are expected to propel market growth across the Asia Pacific. Flywheels offer a long lifetime and are unaffected by the charge-cycle number. These characteristics make it a robust energy storage solution for various end-use markets including the ever-growing industrial and commercial sectors of Asia Pacific economies.

The rising demand for distributed power generation coupled with the growing penetration of renewable energy across several Asia Pacific countries is further expected to intensify the regional market growth. Operators store surplus renewable energy in the flywheel systems and use it later during peak demand periods for local power generation and grid power supply.

Key Companies & Market Share Insights

Industry participants are focusing on minimizing the flywheel energy storage system cost in order to enhance the technology commercialization process across various end-use sectors. Market players practice several growth opportunities such as strategic partnerships with other local companies to set up flywheel energy storage systems across various regions. These strategies enable companies to enhance their foothold in the global market. Some of the prominent market players in the flywheel energy storage system market include:

• Active Power

• Beacon Power, LLC

• Amber Kinetics, Inc.

• Calnetix Technologies, LLC.,

• Piller Group GmbH

Flywheel Energy Storage System Market 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 in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global flywheel energy storage system market report on the basis of application and region:

• Application Outlook (Power Capacity, kW; Revenue, USD Million, 2016 - 2027)

  • UPS

  • Distributed Energy Generation

  • Transport

  • Data centers

  • Others

• Regional Outlook (Power Capacity, kW; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia