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The flywheel energy storage market size is estimated to increase by USD 200.38 million and grow at a CAGR of 9.13% between 2022 and 2027. Market expansion hinges on diverse factors, notably the burgeoning data center construction market, the rising demand for frequency regulation, and the cost-saving advantages of low-maintenance design in flywheel energy storage systems (ESS). However, several challenges impede this growth trajectory. These include stiff competition from fossil fuels, the proliferation of Li-ion battery energy storage systems, and the escalating adoption of lithium-ion batteries in UPS systems. Navigating these obstacles demands strategic innovation and a nuanced understanding of evolving market dynamics. The ability to capitalize on opportunities while mitigating risks is essential for stakeholders in the energy storage sector to sustain growth and remain competitive amidst a rapidly evolving landscape shaped by technological advancements and shifting consumer preferences.
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The market share growth by the composite rims segment will be significant during the forecast period. Composite rims are a major types. 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 the 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.
These 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 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 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 Energy Storage Association spearheads advancements in energy storage, promoting solutions like battery storage and flywheel energy storage to meet diverse needs. High-power maglev flywheel systems, harnessing kinetic energy, offer rapid responses crucial for frequency regulation in applications ranging from data centers to Formula 1 cars. They ensure uninterrupted power supply, mitigating disruptions caused by natural disasters or power cuts in critical sectors like manufacturing plants. These innovations align with global efforts towards clean and renewable energy, benefiting commercial and residential infrastructure and aiding developing nations in their energy transition. By adhering to industrial standards, flywheel systems integrate seamlessly with electricity infrastructure, contributing to reliable, sustainable solutions for electricity demand and enhancing uninterrupted electricity access worldwide.
Key Market Driver
Growth in the data center construction market is the key factor driving the growth of the global 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 market during the forecast period.
Growth in advanced energy storage market is the primary trend in the global 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.
Growing adoption of lithium-ion batteries in UPS systems is a major challenge to the growth of the 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 Li ion 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.
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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is propelled by various factors, notably the increasing focus on renewable energy sources and the drive towards clean and renewable energy in both commercial and residential infrastructure. Investments are buoyed by incentives like energy investment tax credits and the demand for low-cost energy storage solutions to combat power cuts and ensure uninterrupted electricity supply in critical sectors like manufacturing plants and data centers. High-power maglev flywheels offer high reliability and quick function, catering to applications ranging from frequency regulation to hybrid projects and uninterrupted power supply systems. These developments align with global efforts towards carbon emissions reduction, as outlined in initiatives like the Paris Agreement and supported by organizations such as the International Energy Agency (IEA) and Wind Europe Organization. The market's growth trajectory hinges on advancements in smart grid systems and the adoption of innovative solutions for electricity generation and distribution infrastructure improvement, ensuring a sustainable transition towards a greener future.
In the rapidly evolving energy landscape, various product/service types have emerged to meet different needs. Leading applications of these technologies include data center applications, frequency regulation applications, and energy storage for passenger vehicles. With increasing energy production and consumption, there is a rising demand for low-cost energy storage solutions that can efficiently balance energy needs. Data center applications are among the most critical, requiring stable energy sources to support continuous operations. Frequency regulation applications help maintain grid stability by adjusting to fluctuations in energy demand. Passenger vehicles, particularly electric vehicles, benefit from advanced energy storage solutions that extend range and reduce costs.
In the realm of energy storage, high-power maglev flywheel systems represent a cutting-edge solution harnessing kinetic energy to address the growing demands of the renewable energy sector. With the ability to store and release energy rapidly, these flywheels offer a reliable alternative to traditional battery storage methods, particularly in distributed energy generation setups. Their versatility extends across various applications, from data center backup to hybrid vehicles and industrial operations. As industry developments continue to evolve, these flywheel systems adhere to industrial standards and compliances, ensuring seamless integration into existing electricity infrastructure. They play a pivotal role in mitigating environmental impact by facilitating the transition to renewable sources while providing low-cost energy storage solutions for developing nations and isolated communities. With real-time monitoring capabilities and remote alarm notifications, flywheel systems offer a robust, efficient, and eco-friendly solution for diverse energy storage needs, driving the global shift towards sustainable energy deployment.
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 forecasting, 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 the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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