Global Flywheel Energy Storage System Market By Component (Rotor System, Bearing System, Generator System) By Application (Uninterrupted Power Supply, Power Quality, Frequency Regulation, Voltage Control, & Others) By End User (Transportation, Data Centres, Aerospace, Renewable Energy, Defence, & Others) By Region, Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 492.39 Million
CAGR (2026-2031)	11.08%
Fastest Growing Segment	Generator System
Largest Market	North America
Market Size (2031)	USD 924.96 Million

Market Overview

The Global Flywheel Energy Storage System Market will grow from USD 492.39 Million in 2025 to USD 924.96 Million by 2031 at a 11.08% CAGR. The Global Flywheel Energy Storage System Market centers on mechanical devices that store kinetic energy by accelerating a rotor to high speeds within a vacuum-sealed enclosure, subsequently converting this rotational energy back into electricity during discharge. The market is primarily propelled by the critical necessity for grid stability services, specifically frequency regulation, where the technology’s rapid response time and high cycle life offer distinct advantages over conventional alternatives. Additionally, the increasing demand for uninterruptible power supply (UPS) solutions in data centers and critical industrial infrastructure acts as a robust catalyst for adoption, supporting growth independent of broader renewable energy trends.

However, the widespread expansion of the market faces a significant hurdle in the form of high initial capital costs compared to electrochemical battery solutions like lithium-ion, which limits deployment to niche high-power applications. This economic barrier is particularly acute for long-duration storage needs where flywheels are less cost-competitive. Highlighting the technology's scaling capabilities despite these challenges, according to the China Energy Storage Alliance (CNESA), in 2024, the world's largest utility-scale flywheel energy storage project with a capacity of 30 MW was successfully connected to the grid in Shanxi, China. This development illustrates the industry's progress in delivering grid-scale capacity.

Key Market Drivers

The Increasing Demand for Grid Stability and Frequency Regulation is a primary catalyst for the Global Flywheel Energy Storage System Market, driven by the technology's ability to provide immediate bursts of power. Unlike chemical batteries, flywheels operate on kinetic principles, allowing them to absorb and inject electricity with sub-second latency, which is essential for balancing the fluctuations caused by intermittent renewable energy sources. This rapid actuation capability is becoming a key technical differentiator. For instance, according to ESS News, November 2024, in the 'Torus unveils flywheel, battery energy storage, AI-driven cybersecurity solutions' article, the newly launched Torus Nova Spin system offers a response time of less than 250 milliseconds, demonstrating the speed required for modern grid resilience. Such instantaneous response times make flywheels superior for frequency regulation markets where reaction speed directly correlates with grid reliability and revenue generation.

Simultaneously, the Expansion of Data Center Infrastructure Requiring Reliable UPS Solutions is significantly boosting market adoption. As digital transformation accelerates, data centers are consuming vast amounts of power, necessitating robust uninterruptible power supply (UPS) systems to prevent data loss during outages. Flywheels are increasingly favored over lead-acid batteries in these facilities due to their smaller footprint and lower cooling requirements. Underscoring the magnitude of this demand driver, according to the International Energy Agency, in January 2024, global data center electricity consumption was projected to potentially reach 1,000 TWh by 2026, doubling from 2022 levels. To meet the scale of these energy needs, large-scale storage projects are securing substantial funding; according to ESS News, September 2024, in the 'China connects its first large-scale flywheel storage project to grid' article, the 30 MW Dinglun Flywheel Energy Storage Power Station involved a total investment of RMB 340 million, highlighting the significant capital flowing into this sector.

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Key Market Challenges

The high initial capital expenditure associated with flywheel energy storage systems constitutes a substantial barrier to widespread market adoption. Although the technology offers operational durability, the upfront financial investment remains significantly higher than that of established electrochemical competitors such as lithium-ion batteries. This cost disparity renders flywheels economically less attractive for long-duration storage applications, thereby confining their deployment to niche power-intensive sectors rather than general energy management.

The restrictive impact of this economic limitation is evident in recent installation figures, which highlight the continued dominance of lower-cost alternatives. According to the China Energy Storage Alliance (CNESA), in April 2024, flywheel energy storage accounted for merely 0.4 percent of the total cumulative installed capacity of new energy storage technologies in China. This low market penetration rate underscores how high capital costs continue to suppress the technology's expansion capabilities within the broader global energy storage landscape, preventing it from securing a substantial share of the mainstream grid capacity market.

Key Market Trends

The deployment of Hybrid Flywheel-Battery Storage Systems is emerging as a pivotal trend designed to overcome the cycle-life limitations of standalone electrochemical batteries. By integrating high-power flywheels with high-energy lithium-ion batteries, operators can assign rapid, short-duration power fluctuations to the flywheel, thereby shielding the chemical battery from frequent cycling and thermal stress. This synergistic approach effectively extends the operational lifespan of the battery component while optimizing the overall system for both frequency regulation and longer-duration discharge needs. Evidencing the growing scale of this technological convergence, according to the China Energy Storage Alliance (CNESA), in May 2024, construction commenced on a pioneering independent hybrid energy storage project in Shanxi Province that combines flywheel and lithium technology with a substantial capacity of 200 MW.

Simultaneously, the Integration into Electric Vehicle (EV) Fast-Charging Infrastructure is gaining traction as a critical solution to grid capacity constraints. Flywheel systems are being installed at charging stations to function as kinetic power boosters, drawing energy from the grid at a low, steady rate and releasing it in the high-intensity bursts required for ultra-fast EV charging. This application eliminates the need for expensive upgrades to local transmission lines, allowing high-speed chargers to operate reliably in areas with weak grid connections. Illustrating this market expansion, according to EV Tech Insider, in October 2024, ZOOZ Power announced that its flywheel-based kinetic booster technology was successfully live and operational at four distinct charging sites across Germany, validating the commercial viability of mechanical storage in the e-mobility sector.

Segmental Insights

The generator system segment is currently identified as the fastest-growing category within the global flywheel energy storage system market. This accelerated expansion is primarily driven by the increasing demand for reliable uninterruptible power supply solutions in data centers and critical industrial facilities. These systems function effectively as mechanical batteries, providing essential ride-through power during electrical disturbances without the degradation issues associated with traditional chemical batteries. Furthermore, the push for grid modernization and sustainable energy storage is encouraging industries to adopt these durable generator units for efficient frequency regulation and power quality assurance.

Regional Insights

North America maintains a dominant position in the global flywheel energy storage system market due to extensive grid modernization initiatives and supportive regulatory frameworks. The Federal Energy Regulatory Commission incentivizes fast-responding energy resources through pay-for-performance mandates, creating a favorable environment for flywheel deployment in frequency regulation. This market leadership is further strengthened by the significant presence of data centers requiring reliable uninterruptible power supply systems. Consequently, the region continues to prioritize infrastructure upgrades and projects supported by the Department of Energy to enhance overall grid resilience.

Recent Developments

• In October 2024, Amber Kinetics unveiled its new containerized Flywheel Energy Storage System at the Miramar Airshow in San Diego, California. The system was developed to allow for above-ground installations, offering a plug-and-play solution designed to meet the resilience needs of military and commercial applications. This product launch marked a significant advancement in the company's technology, enabling more flexible deployment options compared to previous underground models. The containerized unit was scheduled for further testing at the Marine Corps Air Station to validate its performance for critical energy security and microgrid support.
• In September 2024, Arteche entered the energy storage market by acquiring a strategic stake in Teraloop, a Finnish company specializing in flywheel technology. This investment established Arteche as the exclusive distributor of Teraloop’s flywheel solutions under the co-branded name "Arteche powered by Teraloop" across several global markets. The collaboration aimed to integrate Teraloop's sustainable, bushingless rotor technology into Arteche's grid reliability portfolio, specifically to enhance capacitor bank lifespans and support electric vehicle charging infrastructure. This move underscored the growing industry trend of combining mechanical storage with grid stabilization equipment.
• In April 2024, QuinteQ Energy and Rhenus Logistics successfully completed a pilot project focused on peak shaving for port cranes at the Waalhaven Terminal in Rotterdam. The project utilized QuinteQ’s flywheel energy storage technology to manage the high-power peaks associated with lifting heavy loads, thereby reducing the strain on the local electrical grid. This collaboration demonstrated the capability of flywheels to recover braking energy and provide the high-power bursts required by industrial port equipment. The successful demonstration highlighted the potential for kinetic storage to facilitate port electrification and reduce operational costs.
• In February 2024, Piller Power Systems successfully commissioned its advanced Uninterruptible Power Supply (UPS) technology at a prominent semiconductor wafer manufacturing facility in North America. The installation featured the company’s PB60 Kinetic Flywheel energy storage units, which were selected to provide megawatt-scale power protection without relying on chemical batteries. This deployment was part of a major production expansion and aimed to ensure a continuous, carbon-free power supply for sensitive manufacturing processes. The project demonstrated the viability of flywheel-based UPS systems in delivering high reliability and sustainability for critical industrial infrastructure.

Key Market Players

• Active Power Inc.
• Amber Kinetics Inc.
• Beacon Power LLC
• Calnetix Technologies LLC
• Piller Group GmbH
• Powerthru
• VYCON Inc.
• Stornetic GmbH
• Energiestro
• Oxto Energy

By Component	By Application	By End User	By Region
Rotor System Bearing System Generator System	Uninterrupted Power Supply Power Quality Frequency Regulation Voltage Control & Others	Transportation Data Centres Aerospace Renewable Energy Defence & Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Flywheel Energy Storage System Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Flywheel Energy Storage System Market, By Component:

• Rotor System
• Bearing System
• Generator System

• Flywheel Energy Storage System Market, By Application:

• Uninterrupted Power Supply
• Power Quality
• Frequency Regulation
• Voltage Control
• & Others

• Flywheel Energy Storage System Market, By End User:

• Transportation
• Data Centres
• Aerospace
• Renewable Energy
• Defence
• & Others

• Flywheel Energy Storage System Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE