Due to increasing demand for electricity, rising government policies for providing electricity to remote places, need to change traditional energy generation methods due to its increasing prices, market deregulation, power quality problems, and due to the pressure to limit carbon dioxide emissions the global flywheel energy storage market is expected to see growth during the forecast period (2021–2030).
The COVID-19 pandemic had a negative impact on supply chains and manufacturing units around the globe. This was primarily due to the imposition of complete lockdowns and other strict regulations in order to curb the spread of coronavirus. Therefore, the disruption in the operations of manufacturing units has negatively affected the growth of the market for flywheel energy storage systems.
The flywheel energy storage market is categorized into uninterrupted power supply (UPS), distributed energy generation (DEG), and others (frequency regulators and power quality), based on application. Among these, the UPS category is expected to grow at the highest rate during the forecast period. This will be due to the increase in the demand for a continuous electricity supply across all sectors and surging need for effective power backup alternatives, to overcome the frequent power outages in developing regions.
The flywheel energy storage market is categorized into automotive, data center, aerospace, defense, and others, based on end-user. The data center category held the largest share in the market in 2020, and it would grow rapidly in the coming years. This will primarily be due to the fact that in the case of transient power failures, flywheel energy storage systems deliver fast power to the associated systems, thereby giving backup generators time to start.
Globally, North America accounted for the largest market share in the flywheel energy storage market in 2020 owing to the increasing number of projects related to the conservation of power by using renewable sources, which also helps maintain a balanced ecosystem. The Asia-Pacific (APAC) market is expected to witness significant growth over the forecast period owing to the growing demand for a continuous power supply, along with the government efforts to supply clean power to factories.
Players in the global flywheel energy storage industry are involved in mergers and acquisitions to gain a significant position. For instance, in May 2019, NRStor Inc. announced the acquisition of a 5-Megawatt (MW) energy storage facility, which is located adjacent to a 20-MW wind farm and existing Hydro One electrical infrastructure, in Clear Creek, Ontario.
Some of the major players in the market for flywheel energy storage systems are ABB Ltd., Beacon Power LLC, STORNETIC GmbH, VYCON Inc., Active Power Inc., Rotonix USA Inc., Williams Grand Prix Engineering Limited, and Amber Kinetics Inc.