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Overview
New York, NY – August 19, 2025 – The Global Flywheel Energy Storage Systems (FESS) Market is forecasted to grow from USD 412.3 million in 2024 to USD 1,003.3 million by 2034, achieving a CAGR of 9.3% from 2025 to 2034. North America’s USD 204.9 million investment in grid modernization has significantly boosted the adoption of FESS. Flywheel Energy Storage Systems (FESS) are mechanical devices that store kinetic energy in a rapidly spinning rotor. When electricity is supplied, the flywheel accelerates to high speeds, storing energy that can be converted back to electricity on demand.
Known for their fast response times, long cycle life, and minimal maintenance, FESS are ideal for short-duration applications such as grid frequency regulation, uninterruptible power supply (UPS) systems, and renewable energy balancing. The global push for cleaner, reliable energy solutions is propelling the FESS market. The rise of renewable energy sources like solar and wind has heightened the need for rapid-response storage to stabilize grid fluctuations. FESS excel in delivering or absorbing power instantly, making them critical for grid stability.
Demand is also growing in sectors requiring high power quality and reliability, such as data centers, hospitals, and industrial facilities. These sectors benefit from FESS’s ability to provide instantaneous backup power during grid disturbances or outages. For instance, Chakratec raised USD 4.4 million to advance its flywheel technology for DC fast charging applications. Emerging opportunities include integrating FESS into hybrid energy storage systems and smart grid infrastructure. Governments and utilities are increasingly adopting modular, scalable storage solutions to enhance grid resilience and support decentralization.
Key Takeaways
- The Global Flywheel Energy Storage Systems Market is expected to be worth around USD 1,003.3 million by 2034, up from USD 412.3 million in 2024, and is projected to grow at a CAGR of 9.3% from 2025 to 2034.
- In the Flywheel Energy Storage Systems Market, solid steel rims held a dominant 46.7% share.
- Flywheel rotors accounted for 49.2%, making them the leading component in system construction.
- UPS applications led demand, capturing a strong 38.1% share in the global market usage.
- The North American demand was driven by power backup needs across a 49.7% share in critical infrastructure sectors.
Report Scope
| Market Value (2024) | USD 412.3 Million |
| Forecast Revenue (2034) | USD 1,003.3 Million |
| CAGR (2025-2034) | 9.3% |
| Segments Covered | By Rims Type (Carbon Fiber, Composites, Solid Steel), By Component (Flywheel Rotor, Motor-Generator, Magnetic Bearings, Others), By Application (UPS, Distributed Energy Generation, Transport, Data Centres, Others) |
| Competitive Landscape | Amber Kinetics, Inc., Bc New Energy (Tianjin) Co., Ltd. (BNE), Beacon Power, LLC, Energiestro, Kinetic Traction Systems, Inc., Langley Holdings plc, Dumarey Group, Stornetic GmbH, VYCON, Inc. |
Key Market Segments
By Rim Type Analysis
Solid steel rims lead the Flywheel Energy Storage Systems Market with a 46.7% share in 2024. Their dominance stems from high strength, durability, and cost-effectiveness in high-speed rotational applications. Widely used in industrial and grid-scale systems, solid steel rims excel in handling mechanical stress and ensuring consistent performance over long cycles. Their compatibility with standard manufacturing processes and low maintenance needs make them ideal for utility-scale deployments.
Additionally, their resistance to wear and environmental degradation reduces replacement costs, enhancing economic viability for stable, short-duration energy storage. The simplicity of solid steel rims also boosts energy storage efficiency and operational safety, critical for applications like frequency regulation and backup power. As energy infrastructure prioritizes stability, solid steel rims are expected to maintain their lead in rim-type preferences across key sectors.
By Component Analysis
The flywheel rotor commands a 49.2% share in the component segment of the Flywheel Energy Storage Systems Market in 2024. As the core component for storing and releasing kinetic energy, the rotor’s performance directly impacts system efficiency, speed, and reliability. Advanced rotors, built with robust materials and precision engineering, withstand high mechanical stress and rotational speeds, ensuring safety and longevity.
Their high energy density and ability to support rapid charge-discharge cycles with minimal energy loss make them vital for utility and industrial-scale systems. With growing demand for resilient, fast-response storage in energy grids and industrial settings, investment in rotor technology remains robust, solidifying its dominant position in the component landscape.
By Application Analysis
Uninterruptible Power Supply (UPS) applications hold a 38.1% share of the Flywheel Energy Storage Systems Market in 2024. Flywheel-based UPS systems are favored for their rapid response, long lifespan, and low maintenance compared to battery-based alternatives, making them ideal for critical infrastructure like data centers, healthcare facilities, and manufacturing plants. These systems mitigate power interruptions that could cause significant operational and financial losses. Unlike chemical-based storage, flywheel UPS systems avoid degradation and cycling limitations, driving their adoption in environments requiring high reliability and power quality.
Regional Analysis
North America dominated the Flywheel Energy Storage Systems Market in 2024, capturing a 49.7% share, valued at USD 204.9 million. This leadership is fueled by strong demand for reliable power solutions in data centers, healthcare, and industrial sectors, supported by mature energy infrastructure and investments in grid stability and clean energy.
Europe follows as a key player, driven by energy transition goals and grid-balancing needs in renewable-heavy networks. Asia Pacific shows steady growth, propelled by urbanization and expanding power infrastructure in countries prioritizing energy reliability. Latin America and the Middle East & Africa exhibit moderate growth, driven by industrial progress and the gradual adoption of advanced energy storage solutions.
Top Use Cases
- Grid Frequency Regulation: Flywheel systems quickly adjust power output to stabilize grid frequency, smoothing fluctuations from renewable energy sources like wind and solar. Their fast response ensures reliable power delivery, making them ideal for maintaining grid stability in modern energy networks with high renewable integration.
- Uninterruptible Power Supply (UPS): Flywheels provide instant backup power for critical facilities like data centers and hospitals. Their rapid discharge capability ensures seamless power during outages, offering a low-maintenance, long-lasting alternative to traditional battery-based UPS systems, with minimal environmental impact.
- Rail Transit Energy Recovery: Flywheels capture and store energy from braking in subways and trains, reusing it for acceleration or station operations. This boosts energy efficiency, reduces costs, and supports eco-friendly transit systems by cutting electricity use and carbon emissions.
- Renewable Energy Integration: Flywheels store excess energy from solar or wind during low-demand periods, releasing it when needed. Their high efficiency and quick response help balance intermittent renewable sources, ensuring a steady power supply for homes and businesses.
- Electric Vehicle Support: Flywheels enhance electric vehicle performance by storing energy during braking and releasing it for acceleration. Their compact design and high power density improve vehicle efficiency, making them a promising solution for sustainable transportation and charging infrastructure.
Recent Developments
1. Amber Kinetics, Inc.
Amber Kinetics continues to advance its flywheel technology with a focus on long-duration energy storage. Their M32 flywheel system is being deployed in microgrid and utility-scale applications, offering high cycle life and low maintenance. Recent projects include collaborations with renewable energy developers to enhance grid stability. The company is also exploring hybrid storage solutions combining flywheels with batteries.
2. BC New Energy (Tianjin) Co., Ltd. (BNE)
BNE has expanded its flywheel energy storage systems for industrial and renewable applications, focusing on frequency regulation and UPS solutions. Their high-speed flywheels are being tested in China’s power grids to improve efficiency. The company is also working on cost reductions to compete with lithium-ion batteries.
3. Beacon Power, LLC (a subsidiary of GE Renewable Energy)
Beacon Power, now under GE, has deployed its flywheel systems for grid frequency regulation in North America. Recent developments include integrating flywheels with renewable energy projects to smooth power fluctuations. GE is also researching next-gen flywheels with higher energy density.
4. Energiestro
Energiestro is developing low-cost, concrete-based flywheels for residential and commercial solar storage. Their patented design aims to provide long-duration storage at a fraction of lithium-ion costs. Recent prototypes show promise for off-grid applications, with pilot projects underway in Europe.
5. Kinetic Traction Systems, Inc.
This company focuses on flywheel-based kinetic energy recovery systems (KERS) for transportation, including rail and heavy vehicles. Recent tests show improved energy efficiency in regenerative braking systems. They are also exploring stationary FESS for industrial energy savings.
Conclusion
Flywheel Energy Storage Systems are gaining traction as a versatile, eco-friendly solution for modern energy challenges. Their fast response, long lifespan, and low maintenance make them ideal for grid stabilization, backup power, and renewable energy integration. As demand for reliable and sustainable energy grows, flywheels are poised to play a key role in shaping a resilient energy future.
