Mechanical Energy Storage Market Size and Outlook 2031

Report Description

Forecast Period	2027-2031
Market Size (2025)	USD 20.07 Billion
CAGR (2026-2031)	7.22%
Fastest Growing Segment	Flywheel Energy Storage (FES)
Largest Market	Asia Pacific
Market Size (2031)	USD 30.49 Billion

Market Overview

The Global Mechanical Energy Storage Market will grow from USD 20.07 Billion in 2025 to USD 30.49 Billion by 2031 at a 7.22% CAGR. The Global Mechanical Energy Storage Market comprises systems that store electricity in the form of kinetic or potential energy, utilizing technologies such as pumped hydropower, compressed air, and flywheels to discharge power when needed. The primary drivers supporting market growth include the escalating demand for grid modernization to accommodate intermittent renewable energy sources and the universal push for decarbonization which necessitates reliable load-balancing solutions. According to the International Hydropower Association, in 2024, global pumped storage hydropower capacity grew by 6.5 GW in the preceding year to reach a total of 182 GW. This statistic underscores the continued reliance on mechanical systems as a cornerstone of energy infrastructure.

Despite this positive momentum, the market faces a significant challenge regarding the high initial capital expenditure required for facility construction. Large-scale mechanical storage projects often entail substantial upfront costs and lengthy development timelines which can deter investment and impede rapid deployment in cost-sensitive regions.

Key Market Drivers

The integration of intermittent renewable energy sources serves as a primary catalyst for the Global Mechanical Energy Storage Market. As nations accelerate the deployment of wind and solar assets to meet decarbonization targets, grid operators require robust buffering mechanisms to manage the inherent variability between power generation and consumption. Mechanical systems, particularly pumped hydropower and gravity-based solutions, function as essential shock absorbers that store excess renewable output during peak production hours and release it during generation deficits. This capability is critical for maintaining network equilibrium as variable renewable capacity expands. According to the Global Wind Energy Council, April 2024, in the 'Global Wind Report 2024', the global wind industry installed a record 117 GW of new capacity in 2023, a statistic that directly highlights the growing necessity for storage infrastructure capable of managing large-scale power fluctuations.

Concurrently, the escalating demand for long-duration energy storage solutions is propelling the adoption of advanced mechanical technologies. Unlike electrochemical batteries which often face economic and technical limitations beyond four hours of discharge, mechanical options such as compressed air energy storage (CAES) provide cost-effective utility-scale balancing over extended periods. These systems are increasingly favored for their ability to ensure supply reliability during prolonged weather events or seasonal shifts. According to the China Energy Media Group, April 2024, in the 'Hubei Yingcheng 300 MW Compressed Air Energy Storage Project' report, the world's largest compressed air energy storage station was connected to the grid with a capacity of 300 MW, demonstrating the commercial viability of this technology for long-duration needs. Furthermore, indicative of the broader sector momentum, according to the LDES Council, in June 2024, the cumulative global pipeline for long-duration energy storage projects exceeded 140 GW, reflecting substantial market interest in non-battery alternatives.

Download Free Sample Report

Key Market Challenges

The high initial capital expenditure associated with establishing mechanical energy storage facilities serves as a substantial barrier to market expansion. Technologies such as pumped hydropower and compressed air energy storage necessitate massive civil engineering works, specialized heavy equipment, and extensive land acquisition, all of which contribute to exorbitant upfront costs. This financial burden restricts the pool of potential investors primarily to large utilities or state-funded entities, effectively locking out smaller private players and delaying project commencement in developing economies where capital is scarce.

Consequently, the pace of installation lags significantly behind the global requirements for net-zero transitions. The magnitude of this financial hurdle is evident in the investment gaps identified by industry bodies. According to the International Hydropower Association, in 2024, meeting the target of doubling global capacity by 2050 requires a cumulative investment of approximately US$3.7 trillion, equating to roughly US$130 billion annually. This stark funding requirement highlights the difficulty in securing adequate capital, thereby stalling the rapid deployment needed to support grid modernization and decarbonization efforts.

Key Market Trends

The scaling of Liquid Air Energy Storage (LAES) is emerging as a pivotal trend, shifting the technology from pilot phases to widespread commercial deployment. Unlike location-dependent pumped hydro, LAES utilizes surplus electricity to liquefy air for storage in tanks, offering the geographic flexibility essential for modernizing diverse power grids. This technological maturity is now attracting substantial capital for large-scale infrastructure projects, validating its role in future energy systems. A testament to this acceleration occurred when, according to Energy-Storage.news, June 2024, Highview Power secured a landmark investment of £300 million to construct a 300 MWh commercial-scale LAES facility in the UK. This funding signals robust investor confidence in cryogenic storage as a scalable, location-independent solution for stabilizing power networks.

Concurrently, the retrofitting of decommissioned mines for underground mechanical storage is gaining traction as a method to repurpose legacy industrial assets. This strategy leverages existing deep shafts to move heavy weights, generating gravitational potential energy while addressing land scarcity issues. By utilizing pre-built vertical infrastructure, developers can circumvent the massive civil engineering costs associated with greenfield projects and revitalize dormant industrial zones. Highlighting the growth of this niche, according to PV Magazine Australia, October 2024, Green Gravity secured $9 million in Series A funding to deploy its gravitational technology in disused mine shafts. Such developments illustrate the market's strategic move towards circular economy principles by transforming abandoned mining sites into critical energy assets.

Segmental Insights

Industry analysis identifies Flywheel Energy Storage (FES) as the fastest-growing segment in the Global Mechanical Energy Storage Market. This growth is primarily driven by the escalating demand for grid stability and frequency regulation services required to support the integration of intermittent renewable energy sources. Flywheels provide superior power density and near-instantaneous response times, making them essential for smoothing power fluctuations in modern grids. Consequently, utility providers are adopting this technology to maintain power quality and operational resilience, favoring its extended lifecycle and minimal maintenance needs over conventional chemical battery alternatives.

Regional Insights

Asia Pacific holds the leading position in the global mechanical energy storage market, driven by rapid industrialization and substantial investments in renewable energy infrastructure. The dominance of the region stems from the urgent need to stabilize electrical grids against the intermittency of wind and solar power. Nations such as China actively promote these technologies through policy frameworks. Specifically, China’s National Energy Administration enforces mandates to improve power system regulation capabilities, which directly fuels the adoption of pumped hydro and compressed air systems. Consequently, this strategic focus on energy security cements the region's market leadership.

Recent Developments

In November 2024, a developer of advanced compressed air energy storage signed a long-term lease agreement with the New South Wales Government in Australia for the Silver City Energy Storage Centre. This binding agreement secured the land usage for a 65-year period, allowing the company to proceed with the construction of a 200-megawatt, 1,600-megawatt-hour facility near Broken Hill. The project was designed to utilize surplus renewable energy to compress air into underground caverns, providing a large-scale, long-duration storage solution to enhance grid reliability and replace aging backup diesel generation in the region.
In June 2024, a developer of liquid air energy storage secured a £300 million investment to construct a major long-duration energy storage facility in Manchester, United Kingdom. The funding round was led by the UK Infrastructure Bank and a multinational energy services company, which also joined as a strategic partner. The capital was allocated to build a plant in Carrington with a storage capacity of 300 megawatt-hours and an output of 50 megawatts. This project utilized proprietary cryogenic technology to store energy by compressing and cooling air, intending to stabilize the grid and integrate renewable power.
In March 2024, a leading gravity storage solutions provider announced that its first commercial-scale EVx gravity energy storage system had been successfully connected to the grid in Rudong, China. The facility, which possessed a capacity of 25 megawatts and 100 megawatt-hours, achieved this milestone in partnership with a local environmental services firm and a renewable energy developer. This achievement marked the world's first utility-scale non-pumped hydro gravity storage system to reach such a stage. The company also confirmed that construction had commenced on three additional grid-scale deployments in the region to support renewable energy balancing.
In February 2024, a Scottish energy storage developer finalized an agreement with a regeneration company to deploy a gravity energy storage system in Finland. The collaboration involved transforming a disused auxiliary shaft at the Pyhäsalmi mine, which is one of Europe's deepest metal mines, into a full-scale prototype. The project was designed to utilize a 530-meter deep shaft to hoist and lower heavy weights, thereby storing and releasing energy. This initiative aimed to demonstrate the technology's capability to provide balancing services to the Finnish electricity grid with a capacity of up to 2 megawatts.

Key Market Players

Schneider Electric SE
General Electric Company
Toshiba Corporation
Hydrostor Inc.
Redflow Limited
AES Corporation
Centrica plc
S&C Electric Company
Eos Energy Storage LLC
Samsung SDI Co., Ltd

By Type	By End-User	By Region
Pumped Hydro Storage (PHS) Compressed Air Energy Storage (CAES) Flywheel Energy Storage (FES)	Utilities Industrial Sector Commercial Sector	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

Mechanical Energy Storage Market, By Type:

Pumped Hydro Storage (PHS)
Compressed Air Energy Storage (CAES)
Flywheel Energy Storage (FES)

Mechanical Energy Storage Market, By End-User:

Utilities
Industrial Sector
Commercial Sector

Mechanical Energy Storage 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

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Mechanical Energy Storage Market.

Available Customizations:

Global Mechanical Energy Storage Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Global Mechanical Energy Storage Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Product Overview

1.1. Market Definition

1.2. Scope of the Market

1.2.1. Markets Covered

1.2.2. Years Considered for Study

1.2.3. Key Market Segmentations

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Overview of the Market

3.2. Overview of Key Market Segmentations

3.3. Overview of Key Market Players

3.4. Overview of Key Regions/Countries

3.5. Overview of Market Drivers, Challenges, Trends

4. Voice of Customer

5. Global Mechanical Energy Storage Market Outlook

5.1. Market Size & Forecast

5.1.1. By Value

5.2. Market Share & Forecast

5.2.1. By Type (Pumped Hydro Storage (PHS), Compressed Air Energy Storage (CAES), Flywheel Energy Storage (FES))

5.2.2. By End-User (Utilities, Industrial Sector, Commercial Sector)

5.2.3. By Region

5.2.4. By Company (2025)

5.3. Market Map

6. North America Mechanical Energy Storage Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.2. Market Share & Forecast

6.2.1. By Type

6.2.2. By End-User

6.2.3. By Country

6.3. North America: Country Analysis

6.3.1. United States Mechanical Energy Storage Market Outlook

6.3.1.1. Market Size & Forecast

6.3.1.1.1. By Value

6.3.1.2. Market Share & Forecast

6.3.1.2.1. By Type

6.3.1.2.2. By End-User

6.3.2. Canada Mechanical Energy Storage Market Outlook

6.3.2.1. Market Size & Forecast

6.3.2.1.1. By Value

6.3.2.2. Market Share & Forecast

6.3.2.2.1. By Type

6.3.2.2.2. By End-User

6.3.3. Mexico Mechanical Energy Storage Market Outlook

6.3.3.1. Market Size & Forecast

6.3.3.1.1. By Value

6.3.3.2. Market Share & Forecast

6.3.3.2.1. By Type

6.3.3.2.2. By End-User

7. Europe Mechanical Energy Storage Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.2. Market Share & Forecast

7.2.1. By Type

7.2.2. By End-User

7.2.3. By Country

7.3. Europe: Country Analysis

7.3.1. Germany Mechanical Energy Storage Market Outlook

7.3.1.1. Market Size & Forecast

7.3.1.1.1. By Value

7.3.1.2. Market Share & Forecast

7.3.1.2.1. By Type

7.3.1.2.2. By End-User

7.3.2. France Mechanical Energy Storage Market Outlook

7.3.2.1. Market Size & Forecast

7.3.2.1.1. By Value

7.3.2.2. Market Share & Forecast

7.3.2.2.1. By Type

7.3.2.2.2. By End-User

7.3.3. United Kingdom Mechanical Energy Storage Market Outlook

7.3.3.1. Market Size & Forecast

7.3.3.1.1. By Value

7.3.3.2. Market Share & Forecast

7.3.3.2.1. By Type

7.3.3.2.2. By End-User

7.3.4. Italy Mechanical Energy Storage Market Outlook

7.3.4.1. Market Size & Forecast

7.3.4.1.1. By Value

7.3.4.2. Market Share & Forecast

7.3.4.2.1. By Type

7.3.4.2.2. By End-User

7.3.5. Spain Mechanical Energy Storage Market Outlook

7.3.5.1. Market Size & Forecast

7.3.5.1.1. By Value

7.3.5.2. Market Share & Forecast

7.3.5.2.1. By Type

7.3.5.2.2. By End-User

8. Asia Pacific Mechanical Energy Storage Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.2. Market Share & Forecast

8.2.1. By Type

8.2.2. By End-User

8.2.3. By Country

8.3. Asia Pacific: Country Analysis

8.3.1. China Mechanical Energy Storage Market Outlook

8.3.1.1. Market Size & Forecast

8.3.1.1.1. By Value

8.3.1.2. Market Share & Forecast

8.3.1.2.1. By Type

8.3.1.2.2. By End-User

8.3.2. India Mechanical Energy Storage Market Outlook

8.3.2.1. Market Size & Forecast

8.3.2.1.1. By Value

8.3.2.2. Market Share & Forecast

8.3.2.2.1. By Type

8.3.2.2.2. By End-User

8.3.3. Japan Mechanical Energy Storage Market Outlook

8.3.3.1. Market Size & Forecast

8.3.3.1.1. By Value

8.3.3.2. Market Share & Forecast

8.3.3.2.1. By Type

8.3.3.2.2. By End-User

8.3.4. South Korea Mechanical Energy Storage Market Outlook

8.3.4.1. Market Size & Forecast

8.3.4.1.1. By Value

8.3.4.2. Market Share & Forecast

8.3.4.2.1. By Type

8.3.4.2.2. By End-User

8.3.5. Australia Mechanical Energy Storage Market Outlook

8.3.5.1. Market Size & Forecast

8.3.5.1.1. By Value

8.3.5.2. Market Share & Forecast

8.3.5.2.1. By Type

8.3.5.2.2. By End-User

9. Middle East & Africa Mechanical Energy Storage Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.2. Market Share & Forecast

9.2.1. By Type

9.2.2. By End-User

9.2.3. By Country

9.3. Middle East & Africa: Country Analysis

9.3.1. Saudi Arabia Mechanical Energy Storage Market Outlook

9.3.1.1. Market Size & Forecast

9.3.1.1.1. By Value

9.3.1.2. Market Share & Forecast

9.3.1.2.1. By Type

9.3.1.2.2. By End-User

9.3.2. UAE Mechanical Energy Storage Market Outlook

9.3.2.1. Market Size & Forecast

9.3.2.1.1. By Value

9.3.2.2. Market Share & Forecast

9.3.2.2.1. By Type

9.3.2.2.2. By End-User

9.3.3. South Africa Mechanical Energy Storage Market Outlook

9.3.3.1. Market Size & Forecast

9.3.3.1.1. By Value

9.3.3.2. Market Share & Forecast

9.3.3.2.1. By Type

9.3.3.2.2. By End-User

10. South America Mechanical Energy Storage Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.2. Market Share & Forecast

10.2.1. By Type

10.2.2. By End-User

10.2.3. By Country

10.3. South America: Country Analysis

10.3.1. Brazil Mechanical Energy Storage Market Outlook

10.3.1.1. Market Size & Forecast

10.3.1.1.1. By Value

10.3.1.2. Market Share & Forecast

10.3.1.2.1. By Type

10.3.1.2.2. By End-User

10.3.2. Colombia Mechanical Energy Storage Market Outlook

10.3.2.1. Market Size & Forecast

10.3.2.1.1. By Value

10.3.2.2. Market Share & Forecast

10.3.2.2.1. By Type

10.3.2.2.2. By End-User

10.3.3. Argentina Mechanical Energy Storage Market Outlook

10.3.3.1. Market Size & Forecast

10.3.3.1.1. By Value

10.3.3.2. Market Share & Forecast

10.3.3.2.1. By Type

10.3.3.2.2. By End-User

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Merger & Acquisition (If Any)

12.2. Product Launches (If Any)

12.3. Recent Developments

13. Global Mechanical Energy Storage Market: SWOT Analysis

14. Porter's Five Forces Analysis

14.1. Competition in the Industry

14.2. Potential of New Entrants

14.3. Power of Suppliers

14.4. Power of Customers

14.5. Threat of Substitute Products

15. Competitive Landscape

15.1. Schneider Electric SE

15.1.1. Business Overview

15.1.2. Products & Services

15.1.3. Recent Developments

15.1.4. Key Personnel

15.1.5. SWOT Analysis

15.2. General Electric Company

15.3. Toshiba Corporation

15.4. Hydrostor Inc.

15.5. Redflow Limited

15.6. AES Corporation

15.7. Centrica plc

15.8. S&C Electric Company

15.9. Eos Energy Storage LLC

15.10. Samsung SDI Co., Ltd

16. Strategic Recommendations

17. About Us & Disclaimer

Report Description

Table of content

Figures and Tables

Frequently asked questions

What was the market size of the Global Mechanical Energy Storage Market in 2025?

Which is the dominating region in the Global Mechanical Energy Storage Market?

Which is the fastest growing segment in the Global Mechanical Energy Storage Market?

What is the expected growth rate of the Global Mechanical Energy Storage Market?