Mechanical Energy Storage Market - Forecasts from 2025 to 2030
Description
The mechanical energy storage market, growing at a 6.48% CAGR, is anticipated to reach USD 20.119 billion in 2030 from USD 14.696 billion in 2025.
Mechanical energy storage, utilizing technologies such as pumped hydro storage (PHS), compressed air energy storage (CAES), and flywheels (FES), presents a viable large-scale alternative to electrochemical battery storage. This sector, which currently holds the largest share of global energy storage capacity, is experiencing significant growth. The market's expansion is driven by its applicability across commercial, residential, and industrial segments, with demand fueled by the systems' substantial energy storage capabilities and rapid recharging characteristics.
A primary driver for the mechanical energy storage market is the continued expansion and endorsement of pumped hydropower storage. The market is segmented by technology into PHS, CAES, and FES, with the PHS segment holding the dominant market share. This leadership position is attributable to PHS technology being well-established and proven, whereas other megawatt-scale mechanical storage technologies largely remain in developmental phases. PHS technology accounts for an overwhelming majority of all installed energy storage capacity worldwide, having long been recognized as a dependable solution for large-scale storage and grid-balancing services.
The selection of PHS as the recommended long-term energy storage source for achieving greenhouse gas reduction targets in jurisdictions such as California underscores its critical role in the future energy landscape. This growing recognition of PHS, alongside other renewable energy sources, for meeting stringent climate goals is a key factor propelling the demand for mechanical energy storage systems and driving overall market growth.
A second major market driver is the comparatively low energy installation cost of mechanical storage systems. When evaluated on a cost-per-kilowatt-hour basis, technologies like PHS and CAES offer a significant economic advantage over other forms of energy storage. The installation costs for PHS and CAES are substantially lower than those for alternative storage technologies, which can range from an order of magnitude higher to several times more expensive. This cost-effectiveness, combined with increasing global concern over the environmental impact of fossil fuels, is accelerating the adoption of mechanical energy storage.
International energy agencies project a substantial increase in the amount of energy storage required globally to meet climate objectives and limit global warming. This imperative to transition away from fossil fuels, viewed in conjunction with the favorable installation economics of mechanical storage systems, positions the market for rapid global expansion as governments and utilities seek cost-effective solutions to integrate renewable energy and ensure grid stability.
From a geographical perspective, the Asia-Pacific region is established as the leader in the mechanical energy storage market and is anticipated to witness the strongest growth during the forecast period. This dominance is fueled by several concurrent trends. The region is experiencing a surge in renewable energy projects, which inherently creates a parallel demand for complementary energy storage technologies to manage intermittency. Furthermore, rising environmental awareness is stimulating demand for hybrid vehicles that utilize mechanical energy storage systems.
The expanding population in Asia-Pacific has led to a proliferation of commercial and industrial hubs. These facilities are increasingly turning to mechanical energy storage systems as a strategy to manage power consumption, reduce costs, and enhance overall energy efficiency. The region, led by nations such as China and Japan, already possesses the world's largest pumped storage hydropower capacity, cementing its central role in the market.
Active development continues to reinforce this leadership. Major state-owned corporations have announced plans to commence construction on hundreds of new pumped hydro projects, targeting a massive combined generating capacity. Similarly, new projects, such as a pumped hydro storage facility in Western Australia, continue to be initiated. These developments, characterized by their multi-megawatt-hour energy storage and megawatt-scale power output, are expected to significantly boost the deployment of mechanical energy storage systems within the region and contribute substantially to global market growth. The confluence of ambitious national projects, the needs of a growing industrial base, and the drive for renewable integration solidifies Asia-Pacific's position as the focal point for the mechanical energy storage industry.
Key Benefits of this Report:
Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.
What do businesses use our reports for?
Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence
Report Coverage:
Historical data from 2022 to 2024 & forecast data from 2025 to 2030
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others.
Segmentation:
MECHANICAL ENERGY STORAGE MARKET BY ENERGY TYPE
Kinetic Energy
Potential Energy
MECHANICAL ENERGY STORAGE MARKET BY SYSTEM TYPE
Pumped Hydropower Storage System
Flywheel Energy Storage System
Compressed Air Storage System
Liquified Air Energy Storage System
MECHANICAL ENERGY STORAGE MARKET BY END-USER
Power & Energy
Transportation
Others
MECHANICAL ENERGY STORAGE MARKET BY GEOGRAPHY
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
India
Japan
South Korea
Indonesia
Thailand
Others
Mechanical energy storage, utilizing technologies such as pumped hydro storage (PHS), compressed air energy storage (CAES), and flywheels (FES), presents a viable large-scale alternative to electrochemical battery storage. This sector, which currently holds the largest share of global energy storage capacity, is experiencing significant growth. The market's expansion is driven by its applicability across commercial, residential, and industrial segments, with demand fueled by the systems' substantial energy storage capabilities and rapid recharging characteristics.
A primary driver for the mechanical energy storage market is the continued expansion and endorsement of pumped hydropower storage. The market is segmented by technology into PHS, CAES, and FES, with the PHS segment holding the dominant market share. This leadership position is attributable to PHS technology being well-established and proven, whereas other megawatt-scale mechanical storage technologies largely remain in developmental phases. PHS technology accounts for an overwhelming majority of all installed energy storage capacity worldwide, having long been recognized as a dependable solution for large-scale storage and grid-balancing services.
The selection of PHS as the recommended long-term energy storage source for achieving greenhouse gas reduction targets in jurisdictions such as California underscores its critical role in the future energy landscape. This growing recognition of PHS, alongside other renewable energy sources, for meeting stringent climate goals is a key factor propelling the demand for mechanical energy storage systems and driving overall market growth.
A second major market driver is the comparatively low energy installation cost of mechanical storage systems. When evaluated on a cost-per-kilowatt-hour basis, technologies like PHS and CAES offer a significant economic advantage over other forms of energy storage. The installation costs for PHS and CAES are substantially lower than those for alternative storage technologies, which can range from an order of magnitude higher to several times more expensive. This cost-effectiveness, combined with increasing global concern over the environmental impact of fossil fuels, is accelerating the adoption of mechanical energy storage.
International energy agencies project a substantial increase in the amount of energy storage required globally to meet climate objectives and limit global warming. This imperative to transition away from fossil fuels, viewed in conjunction with the favorable installation economics of mechanical storage systems, positions the market for rapid global expansion as governments and utilities seek cost-effective solutions to integrate renewable energy and ensure grid stability.
From a geographical perspective, the Asia-Pacific region is established as the leader in the mechanical energy storage market and is anticipated to witness the strongest growth during the forecast period. This dominance is fueled by several concurrent trends. The region is experiencing a surge in renewable energy projects, which inherently creates a parallel demand for complementary energy storage technologies to manage intermittency. Furthermore, rising environmental awareness is stimulating demand for hybrid vehicles that utilize mechanical energy storage systems.
The expanding population in Asia-Pacific has led to a proliferation of commercial and industrial hubs. These facilities are increasingly turning to mechanical energy storage systems as a strategy to manage power consumption, reduce costs, and enhance overall energy efficiency. The region, led by nations such as China and Japan, already possesses the world's largest pumped storage hydropower capacity, cementing its central role in the market.
Active development continues to reinforce this leadership. Major state-owned corporations have announced plans to commence construction on hundreds of new pumped hydro projects, targeting a massive combined generating capacity. Similarly, new projects, such as a pumped hydro storage facility in Western Australia, continue to be initiated. These developments, characterized by their multi-megawatt-hour energy storage and megawatt-scale power output, are expected to significantly boost the deployment of mechanical energy storage systems within the region and contribute substantially to global market growth. The confluence of ambitious national projects, the needs of a growing industrial base, and the drive for renewable integration solidifies Asia-Pacific's position as the focal point for the mechanical energy storage industry.
Key Benefits of this Report:
Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape future market developments.
Actionable Recommendations: Utilize the insights to exercise strategic decisions to uncover new business streams and revenues in a dynamic environment.
Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.
What do businesses use our reports for?
Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive Intelligence
Report Coverage:
Historical data from 2022 to 2024 & forecast data from 2025 to 2030
Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
Competitive Positioning, Strategies, and Market Share Analysis
Revenue Growth and Forecast Assessment of segments and regions including countries
Company Profiling (Strategies, Products, Financial Information, and Key Developments among others.
Segmentation:
MECHANICAL ENERGY STORAGE MARKET BY ENERGY TYPE
Kinetic Energy
Potential Energy
MECHANICAL ENERGY STORAGE MARKET BY SYSTEM TYPE
Pumped Hydropower Storage System
Flywheel Energy Storage System
Compressed Air Storage System
Liquified Air Energy Storage System
MECHANICAL ENERGY STORAGE MARKET BY END-USER
Power & Energy
Transportation
Others
MECHANICAL ENERGY STORAGE MARKET BY GEOGRAPHY
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
India
Japan
South Korea
Indonesia
Thailand
Others
Table of Contents
149 Pages
- 1. EXECUTIVE SUMMARY
- 2. MARKET SNAPSHOT
- 2.1. Market Overview
- 2.2. Market Definition
- 2.3. Scope of the Study
- 2.4. Market Segmentation
- 3. BUSINESS LANDSCAPE
- 3.1. Market Drivers
- 3.2. Market Restraints
- 3.3. Market Opportunities
- 3.4. Porter’s Five Forces Analysis
- 3.5. Industry Value Chain Analysis
- 3.6. Policies and Regulations
- 3.7. Strategic Recommendations
- 4. TECHNOLOGICAL OUTLOOK
- 5. MECHANICAL ENERGY STORAGE MARKET BY ENERGY TYPE
- 5.
- 1. Introduction
- 5.2. Kinetic Energy
- 5.3. Potential Energy
- 6. MECHANICAL ENERGY STORAGE MARKET BY SYSTEM TYPE
- 6.
- 1. Introduction
- 6.2. Pumped Hydropower Storage System
- 6.3. Flywheel Energy Storage System
- 6.4. Compressed Air Storage System
- 6.5. Liquified Air Energy Storage System
- 7. MECHANICAL ENERGY STORAGE MARKET BY END-USER
- 7.
- 1. Introduction
- 7.2. Power & Energy
- 7.3. Transportation
- 7.4. Others
- 8. MECHANICAL ENERGY STORAGE MARKET BY GEOGRAPHY
- 8.
- 1. Introduction
- 8.2. North America
- 8.2.1. USA
- 8.2.2. Canada
- 8.2.3. Mexico
- 8.3. South America
- 8.3.1. Brazil
- 8.3.2. Argentina
- 8.3.3. Others
- 8.4. Europe
- 8.4.1. Germany
- 8.4.2. France
- 8.4.3. United Kingdom
- 8.4.4. Spain
- 8.4.5. Others
- 8.5. Middle East and Africa
- 8.5.1. Saudi Arabia
- 8.5.2. UAE
- 8.5.3. Others
- 8.6. Asia Pacific
- 8.6.1. China
- 8.6.2. India
- 8.6.3. Japan
- 8.6.4. South Korea
- 8.6.5. Indonesia
- 8.6.6. Thailand
- 8.6.7. Others
- 9. COMPETITIVE ENVIRONMENT AND ANALYSIS
- 9.1. Major Players and Strategy Analysis
- 9.2. Market Share Analysis
- 9.3. Mergers, Acquisitions, Agreements, and Collaborations
- 9.4. Competitive Dashboard
- 10. COMPANY PROFILES
- 10.1. Amber Kinetics
- 10.2. Siemens AG
- 10.3. Hydrostor Inc
- 10.4. Elytt Energy
- 10.5. Langley Holdings Plc
- 10.6. Stornetic
- 10.7. Powerthru
- 10.8. Teraloop
- 10.9. Beacon Power LLC
- 10.10. Ridge Energy Storage and Grid Services LP
- 11. APPENDIX
- 11.1. Currency
- 11.2. Assumptions
- 11.3. Base and Forecast Years Timeline
- 11.4. Key Benefits for the Stakeholders
- 11.5. Research Methodology
- 11.6. Abbreviations
- LIST OF FIGURES
- LIST OF TABLES
Pricing
Currency Rates
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