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The flywheel energy storage market size is estimated to grow at a CAGR of 9.13% between 2022 and 2027. The market size is forecast to increase by USD 200.38 million. The growth of the market depends on several factors, including the growth in data center construction market, the increasing need for frequency regulation, and the low-maintenance design reducing operating costs of flywheel energy storage systems (ESS).
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Growth in advanced energy storage market is the primary trend in the global flywheel energy storage market. The growing electricity demand worldwide, coupled with the need to overcome grid-related issues and eliminate the demand-supply gap, has driven power utilities to adopt advanced ESSs. These systems find high application in large utility-scale power projects to meet grid demand and peak periods. Many countries are investing heavily in R and D initiatives to improve the efficiency and operations of advanced ESSs.
Moreover, the global advanced energy storage industry is thriving due to numerous reasons, such as the increased need for power management in electrical grids, the rise in power consumption, and growth in the infrastructure or construction market worldwide. With the growth in the global advanced energy storage market, the global flywheel energy storage market is also set to grow during the forecast period.
The market share growth by the composite rims segment will be significant during the forecast period. Composite rims are a major type of flywheel energy storage system. These rims are typically made from carbon-fiber composites and are designed to be extremely strong and lightweight. The composite material used in these rims allows for high rotational speeds and efficient energy storage.
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The use of composite rims in flywheel energy storage systems offers many benefits, including high efficiency, fast response times, and low maintenance requirements. However, the cost of these systems is currently a significant challenge to wider adoption, and ongoing research and development are needed to make them more affordable and accessible. According to the UN Sustainable Energy for All initiative, approximately USD 45,000 million worth is expected for access to modern electricity.
Flywheel energy storage systems are considered important in these investments, which enable better utilization of existing and new energy resources. Therefore, the energy sector's considerable investments are projected to propel the demand for flywheel energy storage systems which will boost the growth of the market in focus through the composite rims segment during the forecast period.
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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The rise in investments and state-level participation in grid storage projects have fueled the growth of the flywheel energy storage market in North America. The demand for advanced grid storage facilities is bolstered by favorable government policies, the growing need to reduce CO2 emissions, and the necessity to overcome the intermittent nature of renewables. Issues related to grid reliability and safety and battery development are the driving forces in this market.
The flywheel energy storage market in North America, like many other industries, was negatively affected by the COVID-19 pandemic in 2020. However, the initiation of large-scale vaccination drives and the resumption of supply chain operations revived the growth of the market in 2021. The reopening of manufacturing units and recommencement of operations in end-user industries such as automotive further boosted the growth of the regional market. The flywheel energy storage market in North America is also being driven by government initiatives and regulations aimed at reducing greenhouse gas (GHG) emissions and promoting clean energy sources. In addition, technological advancements in flywheel energy storage systems, such as improvements in materials and designs, are expected to further boost regional flywheel energy storage market growth during the forecast period.
Market Driver
Growth in the data center construction market is the key factor driving the growth of the global flywheel energy storage market. Data center growth is driven by increasing demand for cloud-based service offerings and the need for improved digitalization in many countries. The data center market has shown good growth in developed countries such as the United States and the United Kingdom. Developing regions such as APAC and Latin America are also seeing significant growth. This increase in data center demand is expected to continue throughout the forecast period. The demand for cloud-based services is driving communication service providers (CSPs) such as Google, Microsoft, and AWS to deploy hyperscale data center facilities to expand their data center footprint. It also contributes to the growth of data centers by colocation and communication service providers.
Moreover, in most countries of Eastern Europe, Africa, and Southeast Asia, government agencies are also establishing data centers. As UPS is a necessary infrastructure in a data center, many projects are currently involved in adopting UPS systems of N+1 and 2N redundancy, thus driving the UPS energy storage market during the forecast period. Owing to this increase in the adoption of UPS systems and the rise in UPS projects, the use of flywheels will also grow, as flywheels are mainly used to provide load leveling for UPS in data centers. Flywheel ESSs are the replacement for battery-based UPS systems, as flywheel technology has the benefit of being virtually maintenance-free as compared with battery-based UPS, which is maintenance-intensive and less reliable. Thus, growth in the construction of data centers will fuel the growth of the global flywheel energy storage market during the forecast period.
Growing adoption of lithium-ion batteries in UPS systems is a major challenge to the growth of the global flywheel energy storage market. Lithium-ion provides an extended backup time and requires minimal maintenance and less space in a data center when compared with lead acid. The lifetime of a lithium-ion battery is also almost ten years, which is twice the life of a lead acid. Many UPS manufacturers in the market, namely Vertiv and Schneider Electric, are offering UPS systems that use lithium-ion batteries. Cost is the only factor responsible for the limited adoption of lithium-ion batteries. Lithium-ion battery costs more than twice the same value as valve-regulated lead-acid (VRLA) systems. This trend is changing as lithium-ion battery prices have declined considerably in the past two to three years, increasing their adoption among modern data center facilities.
Moreover, the lithium-ion battery price has been decreasing drastically in the past few years, owing to the lithium-ion battery adoption in UPS systems being on the rise. As UPS systems are significant contributors to flywheel ESSs, the increasing adoption of lithium-ion batteries and lead-acid batteries in UPS systems poses a substantial threat to the flywheel energy storage market during the forecast period. Thus, the growing adoption of lithium-ion batteries in UPS systems will impede the growth of the global flywheel energy storage market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Flywheel Energy Storage Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Active Power Solutions Ltd.: The company offers flywheel energy storage systems such as Cleansource Plus SMS, Cleansource Plus MMS, Cleansource Plus UPS.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The flywheel energy storage market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Flywheel Energy Storage Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.13% |
Market growth 2023-2027 |
USD 200.38 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.34 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 30% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Active Power Solutions Ltd., Amber Kinetics Inc., Beacon Power LLC, Calnetix Technologies LLC, ENERGIESTRO, FREQCON GmbH, Langley Holdings Plc, Omnes Energy, Oxto Ltd., POWERTHRU, PUNCH Flybrid, Revterra, Rotonix USA Inc., Schneider Electric SE, Schwungrad Energie, Siemens AG, Stantec Inc., STORNETIC GmbH, The Boeing Co., and VYCON Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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