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Flywheel Energy Storage Systems Market

The market for Flywheel Energy Storage Systems was estimated at $477 billion in 2025; it is anticipated to increase to $644 billion by 2030, with projections indicating growth to around $870 billion by 2035.

Report ID:DS2407008
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
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Energy & Power
Energy Storage
Flywheel Energy Storage Systems
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Global Flywheel Energy Storage Systems Market Outlook

Revenue, 2025

$477B

Forecast, 2035

$869B

CAGR, 2026 - 2035

6.2%

The Flywheel Energy Storage Systems (FESS) industry revenue is expected to be around $476.7 billion in 2026 and expected to showcase growth with 6.2% CAGR between 2026 and 2035. Building on this outlook, Flywheel Energy Storage Systems are emerging as a critical component of modern grid-scale energy storage, underpinned by stringent decarbonization mandates, accelerating renewable energy integration, and the need for instantaneous power quality support. Distributed Energy Generation and UPS solutions together account for 48.8% of market adoption, underscoring the strategic role of flywheels in stabilizing intermittent resources while safeguarding sensitive loads such as data centers and industrial facilities. The dominance of Mechanical Technology, which generated approximately $208.33 billion in sales in 2025, reflects a strong preference for proven mechanical energy storage architectures that offer superior durability and very high cycling capability. Ongoing investments in grid modernization, microgrid resilience, and mission-critical backup power continue to reinforce the relevance of Flywheel Energy Storage Systems as operators seek fast-response assets that reduce downtime risks and optimize lifetime operating costs.

Flywheel Energy Storage Systems convert electrical energy into rotational kinetic energy using high-speed flywheels, advanced magnetic bearings, and power electronics, enabling rapid charge-discharge cycles with minimal performance degradation over time. Key features such as high power density, long service life, low maintenance requirements, and the absence of hazardous chemicals make these systems attractive for applications ranging from distributed energy generation and uninterruptible power supply infrastructure to frequency regulation and industrial power quality enhancement. Major use cases span data center UPS, healthcare and telecommunications backup, transportation and rail systems, and grid-interactive microgrids that require precise, real-time balancing support. Recent trends driving demand include the integration of flywheels into hybrid storage architectures with batteries, increasing deployment alongside renewable assets for firming and ramp-rate control, and the adoption of digital monitoring platforms that enhance reliability and optimize performance across diverse operating environments.

Flywheel Energy Storage Systems market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2025-2035
Flywheel Energy Storage Systems Market Outlook

Market Key Insights

  • The Flywheel Energy Storage Systems market is projected to grow from $476.7 billion in 2025 to $870 billion in 2035. This represents a CAGR of 6.2%, reflecting rising demand across Uninterruptible Power Supply (UPS), Distributed Energy Generation, and Data Centres.

  • Amber Kinetics Inc., Langley Holdings plc, and VYCON Inc. are among the leading players in this market, shaping its competitive landscape.

  • U.S. and China are the top markets within the Flywheel Energy Storage Systems market and are expected to observe the growth CAGR of 4.0% to 6.0% between 2025 and 2030.

  • Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 7.1% to 8.6%.

  • Transition like towards Renewable Energy has greater influence in United States and China market's value chain; and is expected to add $17 billion of additional value to Flywheel Energy Storage Systems industry revenue by 2030.

  • The Flywheel Energy Storage Systems market is set to add $393 billion between 2025 and 2035, with manufacturer targeting Distributed Energy Generation & Transport Application projected to gain a larger market share.

  • With

    increasing energy storage demand, and

    Technological Advancements in the Flywheel Industry, Flywheel Energy Storage Systems market to expand 82% between 2025 and 2035.

flywheel energy storage systems market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
Flywheel Energy Storage Systems - Country Share Analysis

Opportunities in the Flywheel Energy Storage Systems

Rapid deployment of renewable-powered microgrids for remote islands, mines, and rural electrification in Asia-Pacific is also creating demand for FESS that enhance microgrid stability and reduce diesel dependence. Mechanical and hybrid configurations provide long-lifecycle storage with virtually unlimited cycling, ideal for solar-plus-storage or wind-plus-storage clusters. While mechanical technology still leads globally at $208.33 billion revenue in 2025, hybrid systems should outpace in regional growth, capturing emerging microgrid projects that prioritize resilience, low maintenance, and modular expansion across off-grid and weak-grid communities.

Growth Opportunities in North America and Asia-Pacific

In North America, Flywheel Energy Storage Systems are gaining strongest traction in UPS and data centre applications, where hyperscale facilities and mission-critical industrial sites are prioritizing kinetic energy storage for ultra-fast response, high power quality, and improved energy resilience. The leading regional opportunities lie in integrating flywheel energy storage into hybrid UPS architectures and grid-scale storage projects that combine frequency regulation with behind-the-meter reliability, enabling premium service offerings for utilities and data infrastructure operators. Competitive dynamics are defined by established UPS and power electronics manufacturers partnering with specialist flywheel vendors, while new entrants focus on compact, modular designs optimised for microgrids and harsh operating environments. Key regional drivers include rising outage costs, stricter service-level expectations from digital economy clients, and public–private investment in resilient infrastructure that favours long-lifetime, low-maintenance storage technologies over conventional battery-only systems.
In Asia-Pacific, Flywheel Energy Storage Systems adoption is led by distributed energy generation and transport segments, particularly in metro rail, ports, and renewable-rich industrial corridors where high cycling and space constraints favour robust kinetic energy storage over chemical batteries. The most attractive opportunities centre on integrating flywheel energy storage into rail traction substations, port crane recovery systems, and renewable-heavy microgrids, enabling operators to stabilise voltage, enhance power quality, and capture regenerative braking energy while reducing lifecycle operating costs. Competitive intensity is increasing as regional power equipment manufacturers and local engineering firms co-develop application-specific flywheel solutions, often competing against lithium-ion and ultracapacitor providers on total cost of ownership and safety rather than on capital cost alone. Principal drivers include rapid urbanisation, government support for low-carbon transport, grid modernisation programmes in emerging economies, and a strong policy push for technologies that improve system reliability without adding significant environmental or fire-safety risks.

Market Dynamics and Supply Chain

01

Driver: Rising Demand for Reliable Power Backup and Growth of Data Centres Worldwide

The flywheel energy storage systems market is also driven by the rising demand for reliable power backup and the rapid expansion of data centres globally. In critical infrastructure such as hospitals, commercial buildings, and industrial plants, uninterrupted power supply is also essential, prompting adoption of high-speed flywheels that provide instantaneous energy during outages. Separately, the exponential growth of data centres and cloud computing facilities has also increased the need for resilient, low-maintenance energy storage solutions. Flywheel systems, with their rapid response, long lifecycle, and ability to handle frequent charge-discharge cycles, offer a superior alternative to traditional battery-based UPS. Together, these factors propel market growth by encouraging technology upgrades, ensuring energy reliability, and supporting sustainable and cost-efficient operations across commercial, industrial, and IT-intensive sectors worldwide.
Technological innovation is also a key driver for flywheel energy storage adoption. Modern high-speed FESS with magnetic or low-friction bearings provide higher energy density, reduced mechanical losses, and enhanced operational efficiency. Advanced designs allow seamless integration with UPS, microgrids, and renewable energy systems, enabling fast charge-discharge cycles and improved frequency regulation. These improvements reduce maintenance requirements and extend system life compared to conventional mechanical flywheels, making them attractive for commercial, industrial, and distributed energy applications. The continuous development of modular, scalable flywheel systems is also expanding deployment opportunities and increasing adoption in reliability-focused sectors.
02

Restraint: High Initial Investment and Limited Economies of Scale Restrict Flywheel Adoption in Cost‑Sensitive Segments

A primary restraint for flywheel energy storage systems is the high upfront cost relative to conventional battery systems, especially in smaller commercial and residential applications. The advanced materials, precision engineering, and high‑speed rotating components increase capital expenditure, limiting adoption where budget constraints prevail. For example, small data centers or local microgrid projects may opt for lithium‑ion battery UPS systems due to lower initial investment, even if long‑term lifecycle costs favor flywheels. This cost barrier slows market growth, dampens revenue expansion for manufacturers, and delays broader penetration in price‑sensitive markets.
03

Opportunity: Grid-Scale Flywheel Energy Storage for Renewable Integration in Europe and Mission-Critical Data Center Backup in North American Cloud Hubs

Europe’s accelerating renewable build-out is straining grid inertia and ancillary services, creating a prime opening for grid-scale Flywheel Energy Storage Systems that deliver ultra-fast frequency regulation services and improve renewable integration. Mechanical flywheel technology, already generating $208.33 billion globally in 2025 and projected to reach $274.87 billion by 2030 at 5.7% CAGR, is expected to dominate this segment, supporting smart grid infrastructure and decarbonized power systems. The main growth hotspot will be utility-scale installations paired with wind and solar in congestion-prone transmission corridors.
North American hyperscale and colocation operators are seeking battery alternatives to strengthen data center energy resilience, opening a high-value niche for Flywheel Energy Storage Systems in mission-critical uninterruptible power supply architectures. Magnetic and hybrid high-speed flywheels offer fast-response power backup, minimal footprint, and superior cycling versus conventional batteries. Hybrid technology, rising globally from $118.23 billion in 2025 to $176.57 billion by 2030 at 8.35% CAGR, is poised for the fastest growth in this opportunity, especially within large campus-style cloud facilities and edge nodes.
04

Challenge: Technical Complexity and Integration Challenges Hamper Large‑Scale Flywheel Deployments

Another significant restraint is the technical complexity and integration difficulty of flywheel systems within existing power infrastructures. FESS requires precise control systems, alignment with UPS and grid management software, and specialized installation expertise, increasing project timelines and operational risk. For instance, integrating modular flywheels into legacy distributed energy systems or microgrids often demands tailored engineering and extended testing, raising costs and delaying commissioning. These challenges deter some utilities and developers from investing, altering demand behavior and slowing adoption in large‑scale industrial and utility segments.

Supply Chain Landscape

1

Kinetic Components

Langley Holdings plcEnergiestro
2

Flywheel Energy-Storage Systems

Amber Kinetics Inc.Beacon Power LLC
3

Grid-Scale Integration

VYCON Inc.Langley Holdings plc
4

End-User Applications

Renewable Energy MicrogridsData Center UPSIndustrial Power Quality
Flywheel Energy Storage Systems - Supply Chain

Use Cases of Flywheel Energy Storage Systems in Uninterruptible Power Supply (UPS) & Distributed Generation

Uninterruptible Power Supply (UPS) : In UPS systems, flywheel energy storage systems are widely used to provide short-term, high-reliability power backup for critical loads. End-users such as hospitals, manufacturing plants, and commercial buildings often deploy high-speed, mechanical flywheels with magnetic or low-friction bearings to deliver instantaneous energy during power interruptions. Unlike chemical batteries, FESS offer longer operational life, lower maintenance, and rapid response, ensuring seamless power continuity. Their ability to handle frequent charge-discharge cycles without degradation makes them ideal for applications where reliability and resilience are essential, maintaining operational stability and protecting sensitive equipment from downtime.
Distributed Energy Generation : FESS play an important role in distributed energy generation by balancing supply and demand fluctuations in microgrids and renewable power setups. Small-scale renewable operators, such as solar farms or local wind installations, often use medium-capacity flywheels to stabilize voltage and frequency, absorb intermittent generation, and improve grid quality. The rapid charge-discharge capabilities allow energy to be stored during excess generation and released instantly when demand rises. This enhances energy efficiency, reduces curtailment of renewables, and ensures stable operation for community-scale or industrial microgrids, promoting reliable decentralized energy management.
Data Centres : In data centres, FESS are increasingly deployed as a reliable alternative to traditional battery backup for uninterrupted operations. Large cloud providers and enterprise data facilities typically implement high-speed, modular flywheels integrated with UPS systems to bridge short power outages and voltage sags. FESS deliver fast, repeatable, and maintenance-friendly energy storage that protects servers and network infrastructure from downtime. Their durability and environmentally friendly design reduce reliance on chemical batteries, lower cooling requirements, and support sustainable operations, ensuring continuous data availability while minimizing operational and lifecycle costs for critical IT infrastructure.

Recent Developments

Recent developments in flywheel energy storage systems show increasing integration with microgrids, UPS solutions, and renewable energy systems to enhance grid stability and power reliability. A key market trend is the adoption of high‑speed magnetic bearing flywheels that deliver rapid energy discharge with minimal maintenance. These systems are increasingly used in data centres and industrial backup power applications as alternatives to chemical batteries. Advancements in energy storage technology and improved system efficiency are driving broader deployment across distributed energy and critical infrastructure.

October 2025 : Amber Kinetics Inc. signed a Strategic Development and supply agreement with Indian Energy, a Native American–owned microgrid developer. The deal covers purchase of containerized flywheel systems and grants Indian Energy exclusive rights to market Amber Kinetics’ technology across Native American reservations in the United States, representing a potential multi‑thousand‑unit opportunity and significant expansion of FESS deployment.
September 2024 : BC New Energy (Tianjin) Co. Ltd. served as the technology provider for the world’s largest grid‑connected flywheel energy storage facility (30 MW) in Changzhi City, Shanxi Province, China. This high‑capacity project demonstrates FESS viability for utility‑scale frequency regulation and grid stabilization, marking a significant market expansion in Asia’s energy storage landscape.

Impact of Industry Transitions on the Flywheel Energy Storage Systems Market

As a core segment of the Energy Storage industry, the Flywheel Energy Storage Systems market develops in line with broader industry shifts. Over recent years, transitions such as towards Renewable Energy and Incorporation of Advanced Material Technology have redefined priorities across the Energy Storage sector, influencing how the Flywheel Energy Storage Systems market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

towards Renewable Energy

The accelerating transition toward renewable energy is redefining the strategic role of FESS, shifting them from niche power quality solutions to critical assets for grid stability and renewable integration. By delivering ultra-fast response, high-cycle durability, and precise frequency regulation, flywheel technology mitigates intermittency from wind and solar integration, enabling utilities and grid operators to reduce reliance on conventional peaking plants. This shift is especially pronounced across the United States and China, where flywheels are becoming embedded in the energy storage market value chain for advanced grid infrastructure and microgrids. As policy-driven decarbonization and large-scale renewable deployments intensify, this structural transition is projected to add approximately $17 billion in additional revenue to the global FESS industry by 2030, firmly positioning the technology as a high-growth, grid-critical storage solution.
02

Incorporation of Advanced Material Technology

The incorporation of advanced material technology is transforming the flywheel energy storage systems industry. Modern FESS now use high-strength carbon fiber composites instead of traditional steel for flywheels, significantly increasing rotational speed, energy density, and storage efficiency. This innovation has had a marked impact on industries that require high-performance energy solutions. In the aerospace sector, carbon-fiber flywheels contribute to longer-lasting satellite power systems with reduced mass, while in the automotive industry, electric and hybrid vehicles benefit from improved energy recovery and extended operational life. By enhancing performance, durability, and efficiency, these material advancements are driving adoption of FESS across critical, high-tech applications while supporting the development of lighter, more reliable, and sustainable energy storage solutions.