Flywheel Energy Storage Systems Market Size, Share & Trends Analysis Report By Application (UPS, Distributed Energy Generation, Transport, Data Center, Others), By Region, And Segment Forecasts, 2025 - 2030

Market Size & Trends

The global flywheel energy storage systems market size was estimated at USD 461.11 billion in 2024 and is expected to grow at a CAGR of 5.2% from 2025 to 2030. The market for Flywheel Energy Storage Systems (FESS) is experiencing significant growth driven by several key factors. Rising demand for reliable and clean energy sources is a primary catalyst as industries seek alternatives to fossil fuels amidst increasing regulatory support for clean power generation. The technology's ability to provide uninterrupted power supply (UPS) solutions is particularly appealing in regions with unreliable grid infrastructure, such as developing countries and remote areas.

In addition, integrating flywheel systems with renewable energy sources like wind and solar enhances grid stability by mitigating their variability. Flywheels' long lifespan, high efficiency, and low maintenance requirements compared to traditional batteries further contribute to their attractiveness in various applications, including data centers and distributed energy generation.

Drivers, Opportunities & Restraints

The growing energy storage and automobile industries have boosted the market. Increasing demand from UPS and data center application segments has driven this region's flywheel energy storage systems market. Similarly, distributed energy generation, which involves power generation at the place of consumption, is expected to result in augmented demand for flywheel energy storage systems within this region.

The FESS market presents numerous opportunities driven by the increasing integration of renewable energy sources and the demand for reliable energy storage solutions. As the adoption of solar and wind energy continues to rise, FESS can effectively address the challenges of energy variability by storing excess energy during peak production and releasing it when demand surges, thereby enhancing grid stability.

The market faces several constraints that could hinder its growth. High initial costs are a significant barrier, as the capital required for flywheel systems can range from $1,500 to $6,000 per kWh, making them less attractive compared to other energy storage technologies like lithium-ion batteries, which have seen substantial cost reductions in recent years.

Application Insights

Based on application, others held the market with the largest revenue share of 45.55% in 2024. Frequency regulation applications of flywheels are included in this segment. These applications are gaining importance due to the growing demand for uninterrupted power from commercial workstations and factories. Uninterruptible power supply (UPS) is one of the major application areas of flywheel energy storage systems. Power failures can cause huge losses in businesses and commercial workstations. Flywheel UPS systems can be used to overcome the problems faced by sudden dips or glitches in electric and voltage supplies. Also, since this technology does not involve using fossil fuels, it is environmentally friendly.

Distributed energy generation involves producing power at the place of consumption. This method has several advantages, such as eliminating costs, inefficiencies, and complexities related to power generation compared to centrally generated power. Further, distributed energy generation aids in providing faster power backup in case of natural disasters such as floods and earthquakes. This has been a major driver for deploying distributed energy generation sources in areas prone to natural disasters.

Regional Insights

North America dominated the global flywheel energy storage systems market and accounted for the largest revenue share of over 78.15% in 2024. The U.S. Batteries dominate the market in North America, and flywheels are the most commonly used energy storage systems in this region. The North American market is characterized by a growing demand for UPS systems to maintain a continuous supply of power intended for commercial and industrial applications. The market is driven by several key factors, including abundant natural gas reserves, significant infrastructure expansion, and increasing global demand for cleaner energy sources. The region's extensive shale gas resources provide a solid foundation for LNG production, enabling the U.S. to emerge as a leading exporter, with export capacity expected to double by 2028.

U.S. Flywheel Energy Storage Systems Market Trends

The flywheel energy storage systems market in the U.S. is rapidly expanding, fueled by the increasing need for efficient energy storage solutions and the integration of renewable energy sources. As the country emphasizes sustainable energy practices, flywheel systems are becoming essential for balancing the intermittent nature of renewables like solar and wind, providing reliable backup power, and enhancing grid stability.

Europe Flywheel Energy Storage Systems Market Trends

The flywheel energy storage systems market in Europe is growing due to the expansion of the automobile industry, particularly in countries such as Germany and Italy. This further increases the demand for flywheel energy storage systems in Europe. Germany is known as the automobile and engineering hub of Europe. Some major automobile manufacturers, such as Volkswagen, Mercedes Benz, and Porsche, are headquartered in this country. Thus, the growing automobile industry is one of Germany's biggest flywheel energy storage market drivers.

Germany flywheel energy storage systems market is positioned for significant growth, driven by the country's commitment to renewable energy and sustainability. As part of its broader energy transition strategy, Germany is increasingly integrating flywheel systems to enhance grid stability and support the variable output from renewable sources like wind and solar.

The flywheel energy storage systems market in the UK is characterized by a growing emphasis on renewable energy integration and grid stability, reflecting the country's commitment to reducing carbon emissions and enhancing energy efficiency. Flywheel systems are increasingly recognized for their ability to provide rapid energy discharge and absorption, making them ideal for applications that require quick response times, such as frequency regulation and power quality management.

Asia Pacific Flywheel Energy Storage Systems Market Trends

The flywheel energy storage systems market in Asia Pacific is set for significant expansion, driven by rapid industrialization and increasing energy demands. Countries such as China, India, Japan, and South Korea are increasingly adopting flywheel technology due to its efficiency and long service life, which are crucial for managing the intermittent nature of renewable energy sources like solar and wind. The market is characterized by a growing awareness of the benefits of flywheel systems, including their ability to provide grid stability, frequency regulation, and rapid energy discharge.

China growth of the flywheel energy storage systems market is gaining momentum, driven by the country's ambitious renewable energy goals and increasing energy storage demands. China's strategy to install substantial new energy storage capacity aligns with its commitment to enhancing grid stability and integrating more renewable sources like wind and solar. Recent developments, such as connecting the world's largest flywheel energy storage project in Shanxi Province, highlight the country's focus on innovative energy solutions.

The flywheel energy storage systems market in Japan is characterized by technological advancements, including improvements in efficiency and durability, which make flywheels a viable alternative to traditional battery storage solutions. In addition, government initiatives promoting clean energy technologies and investments in smart grid infrastructure are fostering a favorable environment for adopting flywheel systems. As Japan continues prioritizing sustainable energy practices, the FESS market is expected to support the nation's transition toward a more reliable and eco-friendly energy landscape.

Central & South America Flywheel Energy Storage Systems Market Trends

The flywheel energy storage systems market in Central and South America is emerging as a promising sector, driven by the region's ongoing energy transition and the increasing need for reliable power solutions. Countries such as Brazil, Argentina, and Chile are investing in energy storage technologies to address frequent power interruptions and enhance grid stability.

Middle East & Africa Flywheel Energy Storage Systems Market Trends

The flywheel energy storage systems market in the Middle East and Africa is poised for significant growth, driven by the increasing demand for reliable energy solutions and the integration of renewable energy sources. As many countries in the region seek to diversify their energy mix and enhance grid stability, flywheel systems are gaining traction due to their rapid response capabilities and efficiency in managing power fluctuations. The rising installation of data centers, particularly in Gulf Cooperation Council (GCC) countries, further fuels the demand for FESS, as these facilities require uninterrupted power supply to operate effectively.

Key Flywheel Energy Storage Systems Company Insights

The FESS market is characterized by a competitive landscape featuring several key players that are driving innovation and growth in the sector. Prominent companies include Active Power, Amber Kinetics, Beacon Power, and Stornetic, each contributing unique technologies and solutions tailored to various applications such as uninterruptible power supply (UPS), data centers, and distributed energy generation.

Recent Developments

• In September 2024, A project in China, recognized as the largest flywheel energy storage system globally developed byShenzen Energy Group, was successfully connected to the grid. Located in Changzhi City, Shanxi Province, the Dinglun Flywheel Energy Storage Power Station boasts a total installed capacity of 30 megawatts and features 120 high-speed magnetic levitation flywheel units. Each set of 12 flywheels forms an energy storage and frequency regulation unit, with these units collectively connecting to the grid at a voltage level of 110 kV. This innovative facility represents a significant advancement in energy storage technology.

Flywheel Energy Storage Systems Market Report Scope

Global Flywheel Energy Storage Systems Market Report Segmentation

This report forecasts volume & revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global flywheel energy storage systems market report based on application and region:

• Application Outlook (Volume, Kilo Watts; Revenue, USD Million, 2018 - 2030)

  • UPS

  • Distributed Energy Generation

  • Transport

  • Data Centres

  • Others

• Regional Outlook (Volume, Kilo Watts; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Italy

    • Spain

    • France

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • UAE