Flywheel Energy Storage Market Size, Share & Trends Analysis Report By Rim Type (Solid Steel, Carbon Composite), By Application (Power Distribution, Hybrid and Electric Vehicles, UPS, Microgrids, Distributed Energy Generation, Others), By End-User (Healthcare, Transportation, Utilities and Renewables, Telecommunication, Data Centers, Industrial and Manufacturing, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global flywheel energy storage market size was valued at USD 331 million in 2021 and is anticipated to reach an expected value of USD 684 million by 2030 at a CAGR of 9.5% over the forecast period (2022–2030).

The flywheel energy storage market is projected to grow rapidly, backed by the growing demand for clean and renewable energy worldwide. These systems are widely used to store and supply kinetic energy, particularly from renewable sources. Further, energy storage has become a significant focus of attention because of the rapid increase in electricity demand in many parts of the world. Flywheel energy storage has gained significant traction in the past few years. Itis expected to witness huge demand from the growing commercial and residential infrastructure owing to its profound advantages.

The ongoing demand for uninterrupted electricity to support industrial and residential activities and the rising burden of the huge cost of power cuts on the manufacturing plants are major factors accelerating the market growth. According to the International Energy Agency (IEA), by 2035, the developing nations will represent 80% of the total growth in energy production and consumption. The flywheel energy storage system's lower environmental impact is further banking the market growth in the coming years. Several fundamental factors contribute to the demand for low-cost energy storage solutions, such as the need for new infrastructure and the improvement of existing grids.

Market Dynamics

Market Driver

Adoption of Clean Energy to Boost the Demand for Energy Storage Systems

Many countries are shifting towards renewable energy, such as wind and solar power, to respond to the growing energy demands. The renewable energy sector is witnessing high investments and faster growth, strongly supported by government initiatives and lower source costs. However, rapidly changing climatic conditions are contributing to the intermittent sourcing of renewable energy. Today, the available resources have many drawbacks, such as high maintenance, lower capacities, limited operating conditions, among many others. This has led to the search for tools to maintain and stabilize the overall power system's voltage and frequency.

Flywheels energy storage systems are integrated into the renewable plants for its high durability and quick function to restore local power. As the competition in the market is fierce, many significant players are innovating and developing solutions, i.e., mainly designed for high-cycle times, thus reducing the overtime costs. Extended duration discharge, low maintenance costs, and high reliability make flywheels energy storage systems a desirable option. The below-mentioned info-graph depicts the comparison of the total cost of ownership of different types of storage systems.

The flywheel energy storage systems have a lower cost as they are easy to set up with no installation costs and are a permanent energy storage system. Due to its high efficiency, renewable facilities can achieve up to 98% of power efficiency and quality protection. Compared to traditional batteries, flywheels are known to use 90% lesser carbon during manufacturing and eliminate the need to remove and recycle thousands of batteries. The above factors' confluence is expected to bolster the demand for flywheels in the next five years.

Growing Residential and Commercial Construction Globally to Drive the Demand

Population demographics in countries across the world play an essential role in the development of energy storage markets. Countries with a denser population in the urban areas are expected to need even high voltage power distribution. Energy storage has become essential as it helps in meeting electricity demands during peak times, such as in the summers for air conditioners and winters for heaters. Due to the shortage, electricity becomes expensive during peak times as power plants are ramping up production to accommodate the rising energy use. Flywheels'energy storage allows power grids to adjust for the needs of residential, commercial, and industrial applications.

Growing urban populations in developing countries such as Africa and the Middle East is driving the need for significant investments in the betterment of electricity infrastructure. Moreover, the regions have a large population base living without electricity access, potentially driving the energy storage sector's growth for isolated communities. The population's high growth rate and the mix of the urban and rural population in the emerging economies determine the flywheel energy storage market's size and structure.

Regional Analysis

The regional analysis has been made considering the growing demand for energy and flywheel energy storage in North America, Europe, Asia Pacific, South America, the Middle East, and Africa.

U.S. and Canada To Hold Lion's Share in Flywheel Energy Storage Systems

North America region dominates the global flywheel energy storage market due to rising energy needs and rapid commercialization in the countries. A growing country's economy means more demand for energy, particularly in the form of electricity for different industries' functioning. According to the U.S. Energy Information Administration (EIA), in 2019, energy production exceeded energy consumption in the U.S. on an annual basis for the first time since 1957. There is a need to store the excess energy for consumption in the future, particularly when demand exceeds supply.

The country's energy consumption is expected to grow across several industrial sectors, which will further boost electricity generation demand in the upcoming years. Moreover, the power grid infrastructure in many parts of the U.S. is aging and is struggling to meet the growing electricity demand. Flywheel energy storage systems are ideal solutions and upgrades to the power grid infrastructure owing to their flexibility and attractive features.

The U.S. utilities and energy department are making significant investments for an efficient supply of power. According to the Smart Grid System Report 2018 of the U.S., there was an approximately USD 144 billion investment in electricity generation and distribution infrastructure improvement. The growing importance of flywheel energy storage systems to bridge the gap between supply and demand for power is projected to uplift the regional market growth.

Higher Number of Wind Plants in Europe To Stimulate the Demand for Energy Storage Systems

Europe's flywheel energy storage market is evolving rapidly with substantial economic growth and significant growth in renewable energy deployment. It is expected to be the largest market for flywheel energy storage systems due to the expansion of wind power plants. The government's efforts to reduce carbon emissions have compelled the customers to replace the new coal power plants with renewables and other distribution sources. In late 2015s, the Paris Agreement was signed by around 197 countries to limit carbon emissions and reduce global warming to less than 20C. Further, the IEA has projected a USD 13.5 trillion investment in the member countries to achieve the set targets.

The government mandates and lower costs of renewable energy have significantly reduced the dependency on coal-powered plants. As per the Wind Europe Organization, the region installed 11.7 GW of new wind energy in 2018. Flywheels are emerging as an ideal solution for providing stability and clean power sources, which is irreplaceable by large-scale power plants. The waste or curtailment of renewable sources presents a key opportunity for flywheels energy storage systems with long durability to utilize these resources in their full capacities.

Segmental Analysis

Cloud Technologies to Boost the Flywheel UPS Segment

The flywheel UPS system segment is projected to hold the highest market share in the global flywheel energy storage market during the forecast period 2020–2030. Today, electricity is crucial in all fields, particularly in critical facilities. When the main power is disrupted, the applications need backup power to ensure the functioning and running. The flywheel-based UPS offers customers a wide range of advantages over the battery UPS systems. Moreover, these storage systems are an ideal alternative over its peers, owing to their improved carbon footprint and real-time monitoring capabilities.

The flywheel UPS' advanced technology allows remote monitoring and alarm notifications, coupled with messages and emails for critical events, thereby allowing the user to make timely decisions. The rising trend of cloud computing and visualization has increased the number of data centers globally, which propels the demand for flywheel energy storage systems. As data centers comprise sensitive information, many huge companies invest in backup solutions for power monitoring and protection of the data. The potential market growth of cloud technologies in healthcare and other crucial industries is predicted to uplift the segmental growth during the forecast period.

Impact of covid-19

The COVID-19 outbreak has cast uncertainties for industries worldwide. With government guidelines for lockdown and social distancing norms, the manufacturing companies are operating with half of their workforce capacities. Moreover, the sealing of international borders has led to supply chain disruptions. Severe lockdowns have limited the movement of people and distancing among civilians. Despite the plummeted growth of the businesses, the dairy industry is considered as an essential industry observed to have a positive growth during these unprecedented times.  Globally, the consumer demand for shelf-stable foods has soared due to its extended storing property.

In March 2020, India witnessed an almost 20% surge in the sale of packaged UHT milk and other dairy products amid the COVID crises. In the past few months, the UHT milk market observed a sudden growth as consumers stock up for uncertain times.  From the supply side, the key players, in order to avoid the unforeseen challenges due to supply chain disruptions, have increased manufacturing of UHT milk, which can be delivered within three months. Unlike its counterparts, it helps the key players mitigate losses from spoilage and contamination, thereby facilitating the gradual growth of the market in the coming years.

Recent Developments

• In Aug 2019, VYCON unveiled the VDC-XXT flywheel model, an eco-friendly system for clean energy storage solutions.
• In May 2019, Energiestro entered into a partnership with Voltalia to introduce the new innovative storage solution- flywheels made of concrete.