U.S. Flywheel Energy Storage Market Size, Share & COVID-19 Impact Analysis, By Application (Uninterrupted Power Supply, Distributed Energy Generation, Transport, Data Centers, and Others), and Country Forecast, 2023-2030

The U.S. flywheel energy storage market size was worth USD 66.79 million in 2022 and is projected to grow at a CAGR of 7.13% during the forecast period. 

Flywheel energy storage is a technology that stores energy in the form of kinetic energy by spinning a massive wheel at high speeds. This stored kinetic energy can be converted back into electrical energy when needed. Further mentioned are some key points about flywheel energy storage such as exceptional efficiency, high power density, and minimal environmental impact. The flywheel energy storage was primarily driven by its unique advantages, such as fast response time and long life cycle, which made it suitable for certain niche applications.

The COVID-19 pandemic negatively impacted the U.S. market. Many industries, including the energy sector, experienced disruptions in supply chains that affected the manufacturing and availability of components for flywheel energy storage systems. The pandemic led to project delays across various industries. Flywheel energy storage projects were postponed or slowed down, impacting their deployment and commercialization during the pandemic.

U.S. Flywheel Energy Storage Market Trends

Increased Focus on Energy Storage Capacity Propel Market Growth

Traditionally, flywheel energy storage systems were known for storing and releasing relatively small amounts of energy over short durations, typically in the range of a few seconds to a few minutes. These systems were primarily used for applications requiring rapid and high-power response, such as smoothing out voltage and frequency fluctuations in the electrical grid. As the understanding of flywheel technology improved, researchers and engineers began exploring its applicability in various sectors beyond grid stabilization. These applications demanded larger energy storage capacities to meet their specific requirements.

For instance, in April 2022, flywheels were installed for OUC's nanogrid research project at the Gardenia Innovation & Operations Center. The flywheels will be coupled to the research site’s 64-kilowatt (kW) solar array floating on a pond that’s only 70 feet away. Its emerging technologies team will begin testing the 16-kW flywheels sometime in May 2022. It bought the flywheels from Amber Kinetics.

U.S. Flywheel Energy Storage Market Growth Factors

Growing Demand for Electricity is Expected to Drive the Market Growth

As electricity demand grows, power grids experience increased stress and higher variability in power supply and demand. Flywheel energy storage systems can help maintain grid stability by providing rapid-response energy to counteract sudden fluctuations. This is crucial to ensure a reliable power supply even during peak demand periods. The demand for electricity is closely tied to the growth of renewable energy sources, such as wind and solar. These sources are often intermittent, with power generation dependent on weather conditions.

For instance, according to the U.S. Energy Information Administration (EIA), total U.S. electricity consumption in 2022 was around 4.05 trillion kWh, the largest amount recorded and 14 times higher than electricity consumption in 1950.

RESTRAINING FACTORS

Availability of Alternate Energy Storage Systems Hinders Market Growth

The availability of alternative energy storage systems, such as lithium-ion batteries, has posed challenges to the U.S. flywheel energy storage market growth. These alternatives have gained popularity due to their maturity and cost-effectiveness. However, flywheels still have advantages in certain applications where their fast response times and high life cycle are critical, such as in some grid stabilization. The flywheel energy storage market might witness disturbance to evolve as alternative energy storage technologies advance.

For instance, according to the International Hydropower Association (IHA), the predicted pumped hydropower storage capacity is anticipated to grow by almost 50% to about 240 GW by 2030. In addition, batteries are the most scalable type of grid-scale storage, and the market has witnessed strong growth in recent years. As per IEA, global investment in battery energy storage exceeded USD 20 billion in 2022, mainly in grid-scale deployment, which account for more than 65% of total spending in 2022. After exceptional growth in 2022, battery energy storage investment is anticipated to hit another record high and exceed USD 35 billion in 2023, based on the projects in the pipeline and new capacity targets set by governments

U.S. Flywheel Energy Storage Market Segmentation Analysis

By Application Analysis

Based on application, the market is segmented into uninterrupted power supply, distributed energy generation, transport, data centers, and others.

The uninterrupted power supply segment is dominating the market. The uninterrupted power supply (UPS) segment dominates the market for several Flywheel-based UPS systems and is exceptionally well-suited for critical applications where uninterrupted power is essential. This includes data centers, hospitals, financial institutions, telecommunications, and industrial facilities. These sectors cannot afford even the briefest power interruptions, making flywheel UPS systems highly desirable.

List of Key U.S. Flywheel Energy Storage Market Companies

In terms of the competitive landscape, the U.S. flywheel energy storage market share depicts the presence of established and emerging players, such as U.S. Amber Kinetics, Inc., which is one of the major players in the U.S. market. Some of the other companies with a considerable presence in the U.S. market are Beacon Power, VYCON, Inc., Revterra, and Langley Holdings plc. where Langley Holdings plc is deploying multiple projects in the country and globally as well to expand their businesses and by delivering strong portfolio to the end-user.

LIST OF KEY COMPANIES PROFILED:

• Amber Kinetics, Inc (U.S.)


• Revterra (U.S.)


• Piller Power System (U.S.)


• Powerthru (U.S.)


• Energiestro (U.S.)


• PUNCH Flybrid (U.S.)


• Kinetic Traction Systems, Inc. (U.S.)


• Beacon Power (U.S.)


• Active Power (U.S.)


• Calnetix Technologies (U.S.)

KEY INDUSTRY DEVELOPMENTS: 

• July 2022- Revterra raises USD 6 million in Series A funding in global investors provision development of grid-stabilizing kinetic battery. Revterra’s flywheel technology will also play an important role in achieving future plans.


• May 2022-   Sartorius, the global life sciences company, is using Piller’s UPS systems with flywheel power back-up in its new production facility for filter membranes in Göttingen, Niedersachsen, Germany. Along with the UPS solution, Piller Group has also provided the Sartorius Group with comprehensive 24/7 service support from a Piller service team.


• March 2022- Pillar Group’s UB-V solutions were being evaluated or have been commissioned to provide more than 1.3 GW of power protection at data centers and other critical facilities in energy, healthcare, manufacturing, and transport across Asia, the U.S., and Europe. The UB-V solution can provide many MWs of reliable power protection on a daily basis and, in turn, give customers the confidence that their critical systems will run continuously.

REPORT COVERAGE

The U.S. flywheel energy storage market report provides a detailed analysis of the market. It focuses on key aspects, such as an overview of the technological advancements and prevalence of flywheel energy storage in the U.S. Additionally, it includes information about new product launches, key industry developments, such as mergers, partnerships, & acquisitions and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the market over recent years.

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