Flywheel Energy Storage Market Report Scope & Overview:

The Flywheel Energy Storage Market was valued at USD 447.36 Million in 2025 and is expected to reach USD 918.60 Million by 2035, growing at a CAGR of 7.46% from 2026-2035.

The Flywheel Energy Storage Market is witnessing strong growth as data center operators, grid planners, rail networks, and port authorities seek reliable energy storage solutions capable of responding within milliseconds and supporting millions of charge-discharge cycles with minimal performance degradation. The revenues in this report cover fully integrated flywheel energy storage systems and their installation, including flywheel-based UPS systems, while excluding chemical battery systems, supercapacitors, vehicle powertrain flywheels, and engine-related flywheels. China has advanced the commercial deployment of flywheel technology through grid-scale installations, including a 30 MW facility in Shanxi equipped with 120 magnetic levitation flywheel units. Meanwhile, U.S.-based start-ups are expanding domestic manufacturing capabilities for steel and composite flywheel rotors, supporting technological development and broader commercialization.

⮞In September 2025, Torus announced a USD 200 million investment from Magnetar to speed deployment of its flywheel and battery power plants for utilities, data centers, and industrial customers. The Utah company plans a 540,000-square-foot GigaOne factory in Salt Lake City, targeting more than 1 GW of output per quarter within three years.

U.S. Flywheel Energy Storage Market Outlook

The U.S. Flywheel Energy Storage Market was valued at USD 138.37 Million in 2025 and is expected to reach USD 259.01 Million by 2035, growing at a CAGR of 6.47% from 2026-2035.

The Flywheel Energy Storage Market in the U.S. is growing as data centers, utilities, and companies include storage that can manage sudden variations in power flow without using any chemicals. The North American market was valued at USD 164.36 million in 2025, with the U.S. having a market share of 84.19%, which means the country will have a market value of 138.37 million out of the rounded North American value. There are more than 230 installations by Torus in Utah, while Beacon Power runs frequency regulation plants in New York and Pennsylvania. Amber Kinetics, Qnetic, and Revterra are based in California, New York, and Texas. Short discharge duration and high upfront cost against batteries still limit wider adoption.

⮞In March 2026, Qnetic reported that it is fitting out a factory in Sacramento, California, for low-volume manufacturing of its Q500 flywheel, rated 500 kWh and 125 kW. The New York company plans two years of field testing with EPRI and the National Lab of the Rockies, and opened a USD 2.1 million in a funding round that month.

By Application, UPS Dominates the Flywheel Energy Storage Market and Data Centers Grows Fastest

The uninterruptible power supply duty generates the biggest source of income as flywheels fill in the short interval between the utility failure and the generator coming on for those who do not want to risk batteries catching fire or being replaced. The Active Power CleanSource series and Piller’s line of products with flywheels offer cabinets ranging from 250 kW up to several megawatts and have a 20-year lifespan and tens of seconds ride-through time. The rotary type brings more capacity including HITEC provides dynamic solutions with ratings of 3,000 kVA, while Rolls-Royce sells mtu Kinetic PowerPacks in quantities of 1,500 kW.

Data centers are advancing fastest since training clusters for artificial intelligence generate power load shifts beyond the capabilities of traditional systems to handle. As pointed out in the whitepaper published by Qnetic, the load can vary in the range of hundreds of megawatts over several seconds, Revterra addresses GPU power load shifts on the order of milliseconds, while Torus promotes its Nova Spin product that generates 800 volts direct current with a ten times higher charge rating, completing a single cycle in just twelve minutes. Honghui Energy provides medium-voltage Star River flywheel UPS system rated between 1 MW and 20 MW.

⮞In September 2026, HITEC Power Protection launched the PowerPRO3 Dynamic UPS, a platform of up to 3,000 kVA whose redesigned Kinetic Energy Module stores 10.7 MJ, up from 7.9 MJ, within the footprint of its predecessor. The company says the earlier platform has more than 140 installations worldwide, and the new unit is certified for 100 percent hydrotreated vegetable oil.

By Rotor Material, Solid Steel Dominates the Flywheel Energy Storage Market and Carbon Composite Grows Fastest

Solid steel rotors lead due to the low cost, accessibility, and machinist familiarity with forged steel, which keeps prices low for rotors with low speed and large mass. Torus uses a steel rotor spinning in a vacuum casing with magnetic bearings, while Revterra uses a steel rotor in their kinetic stabilizer, operating at 3,600 RPM to match the grid frequency. The use of steel rotors also helps to bypass the delamination and fatigue problems associated with wound fibers, giving an advantage to utility companies and insurance companies who prefer known modes of failure. There are forging supply chain facilities in North America, Europe, and China.

Carbon composite segment is expected to lead the market due to higher rim speeds, which stores more energy per kilogram and opens the door to multi-hour duration. Qnetic uses high-speed composite rotors on magnetic bearings in vacuum enclosures, and its Pulsar prototype is reported at 200 kWh and 130 kW. Composite construction lowers rotating mass, cuts bearing loads, and reduces standby losses. The material is costlier and demands rigorous burst containment and quality testing, so adoption depends on independent validation, which explains why utilities and research institutes are funding field programs before committing to large orders.

⮞In August 2026, Qnetic entered the EPRI deRISKED program for an independent evaluation of its Pulsar grid-scale flywheel, sponsored by the Sacramento Municipal Utility District. The system uses a high-speed composite rotor in a vacuum enclosure on magnetic bearings, and EPRI will receive prototype and pilot-scale test data.

By Component, Flywheel Rotor Dominates the Flywheel Energy Storage Market and Magnetic Bearings Grows Fastest

The rotor is the costliest and most distinctive part of any flywheel as its mass, geometry, and rim speed set the stored energy and the safety case. Consequently, many companies design their products based on their rotor design, such as Torus, Qnetic, and Revterra, where HITEC improved the storage energy of its Kinetic Energy Module to 10.7 MJ from 7.9 MJ through adjusting the rotational speed and mass of the rotor in the same footprint. Candela claims that they control flywheel materials, motors, magnetic bearings, and controllers in its supply chain.

The swap from mechanical to magnetic bearings is the fastest-moving change inside the machine, as contact bearings get worn and produce friction. Calnetix has claimed that its active magnetic bearings are used in flywheels, and its Ultraforce motor generators are installed in flywheel-based energy storage systems for any power ratings. The Revterra employs passive-stable magnetic bearings, whereas the Shanxi Dinglun unit uses high-speed magnetic levitation bearings. Levitation decreases maintenance needs, allows operation in the deep vacuum, and is responsible for the twenty years of the system lifetime, according to such vendors as Honghui Energy. Increased production will decrease costs of bearings and controllers and increase their share of the whole system.

⮞In February 2026, Candela New Energy, a Chinese maker of magnetic levitation flywheel systems for frequency regulation, announced a strategic investment from Daoxi Technology, with terms undisclosed. The company says it offers megawatt-scale systems for wind, solar, and thermal plants and controls its core components across the supply chain.

By End-User, Utilities & Renewables Dominates the Flywheel Energy Storage Market and Transportation Grows Fastest

Utilities and renewable developers account for the largest purchases due to the requirements that the need for frequency regulation and inertia requires equipment capable of handling repeated cycling. The Shenzhen Energy Group controls the Dinglun power plant with a capacity of 30 MW in Shanxi, which is a RMB 340 million plant consisting of 120 units utilizing BC New Energy technology, while the National Energy Huozhou Power Plant has installed flywheels for its frequency modulation thermal energy project. In the USA, Rocky Mountain Power is collaborating with Torus for up to 70 MW of Utah demand response.

Rail operators, highway agencies, and port terminals are the quickest adopters, using flywheels to flatten power peaks without grid upgrades. VYCON's REGEN recovers the braking energy of the electric rail while Dumarey Green Power offers F-Boost flywheel recovery for vehicles, while Levistor offers a flywheel that helps the electric vehicle get 100 miles of driving range in just five minutes of charging. Adaptive Balancing Power is getting ready for the trial of Berlin S-Bahn application while QuinteQ reduces peaks of cranes in ports.

⮞In April 2026, DB Energie and Adaptive Balancing Power announced plans to test a flywheel energy store on the Berlin S-Bahn DC network under the Peak_S pilot project, with operation set for 2027 followed by a 12-month trial. The flywheel will capture braking energy through the conductor rail and release it to start electric multiple units, easing load on rectifier substations.

Regional Analysis

North America Flywheel Energy Storage Market Insights

North America accounted for 36.74% of the Flywheel Energy Storage Market in 2025, equal to USD 164.36 Million, and is projected to register a CAGR of 6.19% from 2026 to 2035. The United States contributes 84.19% of the regional total, equal to USD 138.37 Million when applied to the rounded North America figure. Demand rests on uninterruptible power supplies for data centers, hospitals, and fabrication plants, supported by Active Power in Austin, Calnetix in Cypress, California, and Torus in Utah.

Utah has become the busiest center for new hybrid projects, where Torus agreed to supply nearly 26 MWh of battery and flywheel storage to the Gardner Group property portfolio and works with Rocky Mountain Power on demand response. In California, Amber Kinetics operates from Union City and Qnetic is preparing a Sacramento line, while Revterra in Houston completed its first commercial unit and aimed to deliver to its first paying customer in 2025. NOVVA Data Centers ordered two Kinetic PowerPacks for Colorado Springs. Beacon Power's plants in Stephentown, New York, and Hazle Township, Pennsylvania, still operate as frequency regulation plants. Canada and Mexico add smaller volumes.

⮞In January 2025, Rocky Mountain Power and Torus signed a memorandum of understanding to deploy up to 70 MW of Torus Nova Spin and Nova Pulse storage as Utah demand response, integrated with the utility's Wattsmart Battery program. The systems respond in under 250 milliseconds, and completion was expected within 12 to 18 months.

Asia Pacific Flywheel Energy Storage Market Insights

Asia Pacific had a market share of 29.38%, amounting to around USD 131.43 Million of the Flywheel Energy Storage Market in 2025, and it is also the fastest-growing region, expected to have a CAGR of 9.22% between 2026 and 2035. The Asia Pacific Flywheel Energy Storage Market is driven by the rapid expansion of renewable energy capacity, increasing electricity consumption, and the growing need for grid stability. Countries such as China, India, Japan, South Korea, and Australia are investing in solar and wind power, increasing the requirement for fast-response energy storage technologies to manage fluctuations in electricity generation.

The China Flywheel Energy Storage Market is gaining momentum from the country's strong focus on modernizing its power infrastructure, expanding renewable energy integration, and strengthening electricity grid flexibility. The increasing penetration of solar and wind power is creating demand for advanced frequency regulation and rapid-response balancing solutions to maintain stable electricity supply.

⮞In December 2025, Huachi Kinetic Energy supplied the core flywheel units for a fire-storage joint frequency modulation project at the National Energy Huozhou Power Plant, with grid connection of the first two flywheels instructed on December 31. Groundbreaking took place on September 10, 2025, and the first construction phase is complete.

Europe Flywheel Energy Storage Market Insights

Europe accounted for 24.46% market share of the Flywheel Energy Storage Market in 2025 which is valued at around USD 109.42 Million, with a forecasted CAGR of 6.93% between 2026 and 2035. Well-known uninterruptible power supply manufacturers dominate the supply chain, with Piller from Osterode, Germany, which is a subsidiary of Langley Holdings, and HITEC Power Protection being among the prominent suppliers, with its Dynamic UPS solution featuring over 140 installations. Younger companies focus on the issue of congestion, including QuinteQ constructs flywheels in modular form from Culemborg, The Netherlands, while Teraloop from Helsinki, Finland, features 1 MW in less than 10 milliseconds, and Levistor and Dumarey Green Power from the United Kingdom.

The most evident adoption is seen in ports and rail. The 100 kW/5 kWh modules by QuinteQ have reduced crane peak loads up to 65% at the Rhenus's Waalhaven port in Rotterdam, while a more recent pilot in the Steinweg's Moerdijk port reduced peaks by 70%. ABP has a plan to test a flywheel with DB Energie in Berlin's S-Bahn train system. The 100 kW installation by Teraloop has been operating in the Azores dairy since April 2024, while in Ireland, at the Shannonbridge B site, a 160 MWh battery is paired with a flywheel-based synchronous condenser with 4,000 MWs of inertia.

⮞From May 20 to July 1, 2025, QuinteQ Energy and Steinweg Delta Marine Terminal ran a flywheel pilot at the Port of Moerdijk, Netherlands, which cut crane peak power demand by 70 percent. The companies are exploring a full-scale rollout at Moerdijk and other Steinweg sites with grid limits.

MEA & Latin America Flywheel Energy Storage Market Insights

The share of Middle East & Africa in the Flywheel Energy Storage Market in 2025 stood at 5.17%, amounting to USD 23.13 Million, and is expected to grow at a CAGR of 7.84% during 2026-2035, the second-highest CAGR among all other regions. The market in this region is driven by the applications of data center & research computing due to its resistance to heat. Rolls-Royce provided twelve mtu Kinetic PowerPacks of 1.6 MW each, which are able to withstand high humidity and temperature up to 50 °C for the Shaheen III supercomputer site of King Abdullah University of Science and Technology in Saudi Arabia. German manufacturers target the Gulf region through exhibitions, with Dubai hosting the largest energy exhibition in the region.

⮞In September 2026, Piller Germany exhibited its CleanSource flywheel UPS, rated 250 kW to 1,200 kW, at the German Pavilion of Middle East Energy 2026, held 1-3 September at the Dubai World Trade Centre after a postponement. The battery-free unit, built by Active Power of Austin, Texas, targets data centers, defense, healthcare, and industrial sites.

Latin America held 4.25% of the Flywheel Energy Storage Market in 2025, equal to USD 19.01 Million, and is projected to register a CAGR of 6.66% from 2026 to 2035. Brazil is the center of demand, where about 150 mtu Kinetic PowerPack units operate in data centers, food and beverage plants, and pharmaceutical facilities, including vaccine production. Local overhaul capacity reduces transport costs and downtime for owners of these rotary systems, and creates a service base for later replacements. Elsewhere in the region, adoption is limited by import costs and the dominance of battery-based backup, and grid-scale flywheel projects remain rare.

Market Dynamics

Growth Drivers: AI Data Center Power Smoothing and Grid Inertia and Frequency Regulation Needs

First driver includes AI data centers, since training clusters cause load fluctuations, which batteries and generators are unable to regulate properly. According to Revterra, GPU loads may change by more than 90 percent within milliseconds, according to Qnetic, gigawatt-scale sites may have ramping rates exceeding 1,000 MW per second, while Torus claims that Microsoft has decreased total cost of ownership by 40 percent using a flywheel-based UPS. Flywheels react in milliseconds, they cycle without wear and do not have thermal runaway problems, which is why operators are trying them together with batteries at 800VDC and medium voltage.

The second driver includes grid inertia and frequency regulation requirements. Replacing synchronous generators with wind and solar creates the need for inertia and response. Eirgrid plans to increase non-synchronous generation to 80 percent and uses a battery combined with a flywheel-based synchronous condenser producing 4,000 MWs of inertia at the Shannonbridge B site. In China, Dinglun operates 30 MW of flywheels for regulation, and 20 MW is being added by Qinghai, and now operators consider mechanical energy storage as a routine tool.

⮞In August 2026, China Green Development Investment Group broke ground on a 20 MW flywheel installation at the Golmud Dongyue storage station in Qinghai, beside 150 MW and 600 MWh of lithium iron phosphate batteries and a 5 MW supercapacitor system. The national research project aims to offset inertia lost as wind and solar expand, and the wider station is due for commissioning in 2027.

Restraints: Short Duration and Battery Competition and Commercialization and Validation Risk

Limited discharge time and battery competition reduce the potential market size. Shorter time on-line of less than 60 seconds in case of rotary UPSs, Torus claims 12 minutes for one cycle, and even Qnetic’s Q500 is capable of just four hours at full power. Batteries now seem to be prevailing in all multi-hour bids, and Golmud facility uses its flywheel rated 20 MW with batteries of 150 MW and 600 MWh. Dinglun plant costs RMB 340 million for 30 MW of capacity, which means that customers need convincing cycle life and responsiveness rather than energy savings.

Commercialization and validation risks impede newcomers. Qnetic claims its prototypes will be limited to 100 kWh to 200 kWh capacity until it gains qualifications data, Revterra announced the team of eight people for developing its first commercial installation, while some startups depend on crowdfunding or venture financing. Utilities require independent confirmation, that is why EPRI is running Pulsar evaluation, while National Highways tests Levistor. Also, flywheel rotors need stringent safety and testing, and any early failure can affect the entire industry.

Opportunities: Hybrid Flywheel-Battery Plants and Rail, Port, and Mobile Power Applications

The hybrid flywheel-battery systems represent the largest market because of a combination of millisecond performance and hours of energy storage. Torus couples Nova Spin with the lithium iron phosphate Pulse, Golmud facility will incorporate the flywheels, batteries and super capacitors, while Shannonbridge B will have flywheel-based condenser in conjunction with 160 MWh batteries under one Siemens Energy controller. Kawasaki Heavy Industries and Amber Kinetics develop a combination of virtual synchronous generator software and flywheel in microgrids. The systems make possible cycling batteries less often, extending their life and providing inertia income, increasing content per megawatt.

The use of rail, port, offshore and mobile power represents a second market. Pilots of QuinteQ prove that cranes can work without power network improvements, Dumarey Green Power's Peak Power 200 system was used to power a remotely operated vehicle offshore and a tower crane in Austria, while Levistor targets charging stations on motorways. Adaptive Balancing Power and VYCON solve the issue of braking recovery in electric rail. Every application involves no diesel or network reinforcement, thus savings can be easily accounted for.

⮞In August 2025, Dumarey Green Power reported that its Peak Power 200 flywheel, developed at Silverstone Park, powered a work-class remotely operated vehicle with ROVOP and Genny Hire, saving 322 liters of diesel per 50-hour week. It also supplied peak power to a 75 kW tower crane in Austria and stabilized power for an MRI scanner in the United Kingdom.

Flywheel Energy Storage Market Key Players are:

• Piller Power Systems (Langley Holdings plc)

• Active Power (Langley Holdings plc)

• Amber Kinetics, Inc.

• Torus Inc. (Flywheel and LFP Battery Hybrid Systems)

• Qnetic (Pre-Commercial)

• VYCON, Inc. (Calnetix Technologies, LLC)

• Rolls-Royce Power Systems AG (mtu Kinetic PowerPack)

• HITEC Power Protection B.V.

• QuinteQ Energy B.V.

• Adaptive Balancing Power GmbH

• Teraloop Oy (Pre-Commercial)

• Dumarey Green Power (Successor to PUNCH Flybrid)

• Levistor Ltd. (Pre-Commercial)

• Revterra Corporation (Pre-Commercial)

• Beacon Power, LLC

• Beijing Honghui International Energy Technology Development Co., Ltd. (Honghui Energy)

• Huachi Kinetic Energy (Beijing) Technology Co., Ltd.

• BC New Energy (Tianjin) Co., Ltd.

• Candela (Shenzhen) New Energy Technology Co., Ltd.

Flywheel Energy Storage Market Report Scope: