How Will Rising Energy Demand Help Flywheel Energy Storage Market Grow?

The flywheel energy storage market growth between 2021 and 2030 will thrive on the surging need for electricity in remote places, the increasing preference for traditional energy generation methods, and the rising number of government policies regarding electricity production. Flywheel storage systems play a vital role in traditional power generating plants, as they help meet the soaring energy demand and solve power quality problems, such as limiting CO2 emissions, data errors, automatic resets, and equipment/circuit board failures.

The burgeoning demand for electricity in BRICS nations and other emerging economies, owing to the rapid industrialization in these countries, is one of the key growth drivers of the market. Flywheel energy storage systems are necessary for aggregate traditional generating plants, as they help meet soaring power demand and supplement intermittent RES for their integration into electrical networks. In addition, the soaring demand for backup power will also increase the deployment of flywheel energy storage systems.

According to P&S Intelligence, in 2020, the data center category, within the end user segment, accounted for the largest share in the flywheel energy storage market. This is credited to the wide-scale deployment of energy storage systems in data centers of large IT corporations, such as Google. In situations of a transient power outrage, flywheel energy storage systems offer instant power to the connected systems, which, in turn, provides backup generators time to start. Due to these factors, the category will also retain its market lead in the coming years.

Globally, the North American flywheel energy storage market generated the highest revenue in 2020, and it is expected to retain its dominance in the coming years as well. This can be owed to the increasing number of flywheel projects to conserve energy in the region. Flywheels are being connected with renewable energy sources to make sure that the intermittent nature of renewable energy becomes more consistent. Whereas, the APAC market is projected to display the fastest growth in this decade, owing to the surging requirement for the continuous power supply. 

Therefore, the rising energy need in developing countries is expected to drive the demand for flywheel energy storage systems in the coming years.

Increasing Demand for Stable Grids Driving Need for Energy Storage

The rising requirement for reducing the reliance on gas, coal, and oil for power generation is massively pushing up the demand for energy storage systems. These systems are required in renewable-energy power plants for dealing with the variable power outputs provided by renewable energy sources. These systems smoothen out the power supply, thereby ensuring that the electricity needs are met during the peak hours. Apart from this, storage technologies also enable quick power discharge to the grid.

This rapid response is necessary for ensuring that the grid remains stable during hours of peak energy demand. Unlike the conventionally used fossil fuel-based energy production systems that take a long time to produce and deliver power, these storage technologies help utilities save time. As a result, the global energy storage market size stood at 171,039.3 Megawatts (MW) in 2019 and it is predicted to rise to 240,956.9 MW by 2030. According to the estimates of the market research company, P&S Intelligence, the market will progress at a CAGR of 3.3% from 2020 to 2030.

Geographically, the energy storage market is expected to boom in the Asia-Pacific (APAC) region in the forthcoming years. This will be because of the increasing engineering, procurement, and construction (EPC) activities in the regional countries such as China, India, and Japan. In addition to this, the burgeoning requirement for stable and smart grids and the increasing production of renewable energy are also driving the demand for energy storage systems in the region. 

Hence, it can be safely said that the market will grow massively in the upcoming years, primarily because of the increasing generation of renewable energy, lack of stable grids in several countries, and fluctuating prices of conventional energy sources such as oil and coal.