Mechanical Energy Storage Market Report 2025 (Global Edition)

Global Mechanical Energy Storage Market Report 2025 Market Size Split by Type Outlook: (Traditional Sensor, Smart Sensor), by Application Outlook: (LED Lighting, Security, Digital Electronics, Others)...

Mechanical Energy Storage Market Report Description

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Impact of Trumph Tariff on Energy and Power Industry

In 2025, global trade entered a turbulent phase as the U.S., under President Donald Trump, introduced aggressive "Liberation Day Tariffs" to address trade imbalances. These tariffs, ranging from 10% to 46%, heavily impacted the energy and power sector, which relies on global supply chains for critical components like rare earth metals, solar panels, wind turbines, and lithium. The U.S.–China trade war escalated, with reciprocal tariffs and China's trade surplus with the U.S. reaching USD 102.6 billion. Retaliatory tariffs from the EU and Canada further disrupted energy supply chains, raising material costs and causing delays in key projects.

The U.S. imposed a 20% tariff on rare earths, impacting EVs and clean tech; 25% on solar panels, increasing installation costs; 15–25% on wind turbine parts, affecting project timelines; and 10–15% on oil and gas equipment, pushing producers to rethink supply networks. Sub-sectors like renewables, EVs, oil & gas, and power generation are all experiencing rising costs, supply bottlenecks, and delayed investments. For instance, solar and wind projects now face 10–30% higher costs, and EV producers are struggling with battery input inflation.

China remains central to the U.S. energy supply chain, with even indirect imports via countries like Vietnam and Malaysia tightly linked to Chinese inputs. As a result, U.S. energy firms are exploring alternative sourcing from Southeast Asia, Latin America, and domestic production to reduce exposure. However, switching suppliers requires significant investment, coordination, and time.

In this volatile environment, market research is critical. It helps energy firms map supplier risks, track price trends, and explore alternative sourcing. It enables supply chain optimization through AI and predictive analytics, while regulatory tracking and scenario planning allow companies to anticipate future disruptions. Energy firms like NextEra and First Solar are responding by diversifying suppliers, investing in local production, and leveraging digital tools to improve procurement and adapt to tariff-driven challenges. Those using data-driven strategies and flexible operations are best positioned to thrive amid rising trade tensions.

Competitive Landscape of the Mechanical Energy Storage Market

Companies that specialize in flywheel technology, compressed air energy storage (CAES), and pumped hydro storage (PHS) are major competitors in the competitive mechanical energy storage sector. Leading companies are spending money on cost savings, efficiency gains, and technology development. However, business expansion is hampered by competition from alternative energy storage options, especially batteries. Mechanical energy storage is still essential for grid stability and long-duration storage in renewable energy systems.

In December 2023, ABB announced an agreement with Gravitricity, a UK-based gravity energy storage startup, to investigate how hoist experience and technologies might speed up the development and installation of gravity energy storage systems in former mines. (Source:https://new.abb.com/news/detail/110473/abb-and-gravitricity-to-collaborate-on-energy-storage-systems-using-end-of-life-mine-shafts-and-hoist-technology) In December 2021, Siemens AG and LG Energy Solution, a storage battery manufacturer, signed a Memorandum of Understanding (MoU). The purpose of this collaboration is to digitalize the battery production process. (Source:https://press.siemens.com/global/en/pressrelease/siemens-joins-forces-lg-energy-solution-towards-more-intelligent-leaner-and-cleaner) In July 2021, Voith Hydro, a leading global supplier of hydropower and pumped storage equipment, and the Swedish company Mine Storage, a specialist in underground pumped storage concepts, announced a development partnership to become forerunners in a new underground pumped storage market—offering so-called mine storage. (Source:https://voith.com/corp-en/news-room/press-releases/voith-hydro-and-swedish-mine-storage.html)

Top Companies Market Share in Mechanical Energy Storage Industry: (In no particular order of Rank)

• Voith Group
• ENERGIESTRO
• OXTO Energy
• Active Power Plant Operations
• Stantec
• Stornetic GmbH
• Amber Kinetics Inc.
• Hydrostor
• Apex CAES
• LightSail Energy
• SustainX.
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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Regional Analysis of the Mechanical Energy Storage Market

Which Region Dominates the Mechanical Energy Storage Market in 2024?

According to Cognitive Market Research, North America currently dominates the Mechanical Energy storage market, and the region is expected to have significant growth during the projected period. The market for mechanical energy storage is anticipated to increase in North America due to rising investments in energy storage technologies, renewable energy, and grid modernization. Flywheels, compressed air energy storage (CAES), and pumped hydro are examples of mechanical storage technologies that have been more in demand due to the region's commitment to reducing carbon emissions and enhancing grid reliability. The growing need to incorporate intermittent renewable sources and government policies and incentives that support clean energy initiatives also increases the use of mechanical energy storage. With its advanced infrastructure and cutting-edge technologies, North America is a driving force behind market expansion.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expected to make significant gains during the projected period, with the greatest compound annual growth rate (CAGR). The market for mechanical energy storage is anticipated to increase significantly in Asia Pacific due to the region's fast industrialization, urbanization, and rising energy consumption. The demand for effective energy storage systems to handle fluctuating electricity from solar and wind sources is being driven by the region's massive renewable energy initiatives, especially in China and India. The use of mechanical energy storage devices, such as compressed air energy storage (CAES) and pumped hydro, is being encouraged by government programs and investments in sustainable energy infrastructure, as well as growing worries about energy security. Asia Pacific is positioned as a significant growth region due to its rising energy sector.

The current report Scope analyzes Mechanical Energy Storage Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Switzerland, Luxembourg, Rest of Europe)
• Asia Pacific (China, Japan, South Korea, India, Australia, Singapore, Taiwan, South East Asia, Rest of APAC)
• Latin America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East (Saudi Arabia, Turkey, UAE, Egypt, Qatar, Rest of Middle East)
• Africa (Nigeria, South Africa, Rest of Africa)

The above graph is for illustrative purposes only.

North America Mechanical Energy Storage Market Analysis

According to Cognitive Market Research, the global Mechanical Energy Storage market size was estimated at USD 4824.5 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 1929.80 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.2% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Mechanical Energy Storage market with a market size of USD 1522.61 million in 2024 and is projected to grow at a CAGR of 5.0% during the forecast period. The United States is making significant investments to modernize its energy infrastructure, and mechanical storage technologies are essential to maintaining grid stability.
• The Canada Mechanical Energy Storage market had a market share of USD 231.58 million in 2024 and is projected to grow at a CAGR of 6.0% during the forecast period. Because of Canada's enormous hydroelectric capacity, pumped hydro storage, or PHS is a crucial tool for supply and demand balance.
• The Mexico Mechanical Energy Storage market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 175.61 million in 2024.

Europe Mechanical Energy Storage Market Analysis

According to Cognitive Market Research, the global Mechanical Energy Storage market size was estimated at USD 4824.5 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 1447.35 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.5% from 2024 to 2031.

• The United Kingdom Mechanical Energy Storage market had a market share of USD 243.15 million in 2024 and is projected to grow at a CAGR of 6.3% during the forecast period. In the UK, Energy storage is essential for preserving system stability as our reliance on sporadic renewable energy sources grows.
• The France Mechanical Energy Storage market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 133.16 million in 2024.
• According to Cognitive Market Research, the German Mechanical Energy Storage market size was valued at USD 286.58 million in 2024 and is projected to grow at a CAGR of 5.7% during the forecast period. Germany's emphasis on switching to renewable energy means that effective energy storage technologies, such as mechanical storage, are necessary to control energy production fluctuations.
• The Italy Mechanical Energy Storage market is projected to witness growth at a CAGR of 4.9% during the forecast period, with a market size of USD 124.47 million in 2024.
• The Russia Mechanical Energy Storage market is projected to witness growth at a CAGR of 4.5% during the forecast period, with a market size of USD 224.34 million in 2024.
• The Spain Mechanical Energy Storage market is projected to witness growth at a CAGR of 4.6% during the forecast period with a market size of USD 118.68 million in 2024
• The Luxembourg Mechanical Energy Storage market is projected to witness growth at a CAGR of 5.6% during the forecast period, with a market size of USD 44.87 million in 2024.
• The Portugal Mechanical Energy Storage market is projected to witness growth at a CAGR of 5.3% during the forecast period, with a market size of USD 30.39 million in 2024.
• The Greece Mechanical Energy Storage market is projected to witness growth at a CAGR of 5.8% during the forecast period, with a market size of USD 17.37 million in 2024.
• The Rest of Europe's Mechanical Energy Storage market is projected to witness growth at a CAGR of 4.2% during the forecast period, with a market size of USD 224.34 million in 2024.

Asia Pacific Mechanical Energy Storage Market Analysis

According to Cognitive Market Research, the global Mechanical Energy Storage market size was estimated at USD 4824.5 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 1109.64 million in 2024 and will grow at a compound annual growth rate (CAGR) of 9.0% from 2024 to 2031.

• According to Cognitive Market Research, the China Mechanical Energy Storage market size was valued at USD 499.34 million in 2024 and is projected to grow at a CAGR of 8.5% during the forecast period. Mechanical Energy Storage surged in China due to rapid urbanization and industrial growth, which are driving demand for large-scale mechanical energy storage technologies.
• The Japan Mechanical Energy Storage market is projected to witness growth at a CAGR of 7.5% during the forecast period, with a market size of USD 153.13 million in 2024.
• The India Mechanical Energy Storage market had a market share of USD 133.16 million in 2024 and is projected to grow at a CAGR of 10.8% during the forecast period. India's Policies that encourage renewable energy production, such as solar and wind, necessitate energy storage to balance system supply and demand.
• The South Korean Mechanical Energy Storage market is projected to witness growth at a CAGR of 8.1% during the forecast period, with a market size of USD 110.96 million in 2024.
• The Australian Mechanical Energy Storage market is projected to witness growth at a CAGR of 8.7% during the forecast period, with a market size of USD 57.70 million in 2024.
• The South East Asia Mechanical Energy Storage market is projected to witness growth at a CAGR of 10.0% during the forecast period, with a market size of USD 76.56 million in 2024.
• The Rest of Asia Pacific Mechanical Energy Storage market is projected to witness growth at a CAGR of 8.8% during the forecast period, with a market size of USD 78.78 million in 2024.

South America Mechanical Energy Storage Market Analysis

According to Cognitive Market Research, the global Mechanical Energy Storage market size was estimated at USD 4824.5 Million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD 241.23 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Mechanical Energy Storage market size was valued at USD 103.24 million in 2024 and is projected to grow at a CAGR of 7.0% during the forecast period. Mechanical Energy Storage flourished in Brazil due to Brazil's heavy reliance on hydroelectric electricity, opening up prospects for mechanical storage technologies such as pumped hydro to overcome seasonal energy shortages.
• Argentina's Mechanical Energy Storage market had a market share of USD 40.53 million in 2024 and is projected to grow at a CAGR of 7.3% during the forecast period. Argentina's MES can help improve grid resilience by supplying backup power during emergencies and natural disasters.
• Colombia Mechanical Energy Storage market is projected to witness growth at a CAGR of 6.2% during the forecast period, with a market size of USD 21.47 million in 2024.
• Peru Mechanical Energy Storage market is projected to witness growth at a CAGR of 6.6% during the forecast period, with a market size of USD 19.78 million in 2024.
• Chile Mechanical Energy Storage market is projected to witness growth at a CAGR of 6.7% during the forecast period, with a market size of USD 17.37 million in 2024.
• The Rest of Latin America's Mechanical Energy Storage market is projected to witness growth at a CAGR of 5.5% during the forecast period, with a market size of USD 38.84 million in 2024.

Middle East Mechanical Energy Storage Market Analysis

According to Cognitive Market Research, the global Mechanical Energy Storage market size was estimated at USD 4824.5 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 96.49 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031..

• The GCC Countries Mechanical Energy Storage market is projected to witness growth at a CAGR of 7.5% during the forecast period, with a market size of USD 41.30 million in 2024. Mechanical Energy Storage sales flourish due to the abundance of sunlight in GCC countries, fueling the expansion of solar energy and raising the demand for mechanical storage to store solar energy.
• The Egypt Mechanical Energy Storage market is projected to witness growth at a CAGR of 7.0% during the forecast period, with a market size of USD 10.13 million in 2024.
• The South Africa Mechanical Energy Storage market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 15.25 million in 2024. Mechanical Energy Storage sales flourished in South Africa due to private companies rapidly investing in MES projects in South Africa, realizing the market potential and financial benefits.
• The Turkey Mechanical Energy Storage market is projected to witness growth at a CAGR of 6.2% during the forecast period, with a market size of USD 8.30 million in 2024.
• The Nigeria Mechanical Energy Storage market is projected to witness growth at a CAGR of 5.8% during the forecast period, with a market size of USD 10.13 million in 2024.
• The Rest of the MEA Mechanical Energy Storage market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 11.39 million in 2024.

Mechanical Energy Storage Market Analysis

How are Segments Performing in the Global Mechanical Energy Storage Market?

Mechanical Energy Storage Market Type Segment Analysis

According to Cognitive Market Research, smart sensors are likely to dominate the Mechanical Energy Storage Market over the forecast period. Because smart sensors may offer real-time data analytics, predictive maintenance, and improved operational efficiency, their demand is growing in the mechanical energy storage market. Critical characteristics like temperature, pressure, and rotational speed may be more accurately monitored and integrated into digital systems because of smart sensors. By facilitating quicker reaction times and streamlining energy storage procedures, these sensors enhance system performance, minimize downtime, and promote grid stability. With the increasing complexity of mechanical energy storage devices, such as flywheels and pumped hydro, the use of smart sensors is crucial to their dependable and effective functioning.

The traditional Sensor is the fastest-growing segment in the Mechanical Energy Storage Market. The necessity for energy storage system monitoring, control, and optimization is what drives the market for traditional sensors in the mechanical energy storage sector. Technologies such as compressed air energy storage (CAES), pumped hydro storage (PHS), and flywheels depend on sensors to function effectively. They assist in monitoring variables, including temperature, pressure, flow rates, and rotating speed, offering real-time information for system safety and performance. To support the stability and effectiveness of grid-connected energy storage solutions, the demand for precise and dependable conventional sensors will increase as mechanical energy storage devices proliferate.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Mechanical Energy Storage Industry. Request a Free Sample PDF!

Mechanical Energy Storage Market Application Segment Analysis

According to Cognitive Market Research, the LED lighting segment holds the largest share of the market. Because energy-efficient lighting solutions are becoming crucial for lowering energy consumption, the market for mechanical energy storage is expanding to include LED lighting applications. In a variety of contexts, including commercial, industrial, and street lighting, mechanical energy storage devices like flywheels and compressed air energy storage (CAES) can offer a reliable power source for LED lighting. By storing extra energy and delivering it during periods of high demand or grid instability, these devices aid in ensuring steady lighting performance. Mechanical energy storage technologies will be crucial in bolstering the dependability and efficiency of LED lighting applications as the need for intelligent and sustainable lighting solutions grows.

In the Mechanical Energy Storage Market, digital electronics has been expanding at a rapid pace. The market for mechanical energy storage is growing in the field of digital electronics, where machines that need to run continuously depend on dependable and effective power storage. Flywheels and compressed air energy storage (CAES) are two examples of technologies that can optimize performance, stabilize energy supplies, and supply backup power in vital applications, including data centers, computer equipment, and telecommunications networks. These systems ensure the dependability of digital electronics, which help maintain steady voltage levels, stop power oscillations, and minimize downtime. As the need for energy-efficient solutions increases, mechanical energy storage will play a bigger role in meeting the demands of the digital electronics sector.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Mechanical Energy Storage End-User Outlook: Segment Analysis

Mechanical Energy Storage Market End-User Segment Analysis

According to Cognitive Market Research, the industrial segment holds the largest market share. In the industrial end-user segment, the market for mechanical energy storage is expanding significantly due to the growing demand for cost savings, efficiency, and energy dependability. Energy storage technologies, including flywheels, compressed air energy storage (CAES), and pumped hydro storage (PHS), are used by heavy machinery, manufacturing, and mining industries to balance energy supply and demand, stabilize power, and improve operations. In addition to improving energy management and lowering operating costs, these devices allow enterprises to store excess energy during off-peak hours. Mechanical energy storage is becoming a vital part of industrial energy solutions due to rising environmental objectives and energy efficiency requirements.

In the Mechanical Energy Storage market, the rapidly growing sector is the residential category. The market for mechanical energy storage is growing among residential end users as more and more homes look for dependable and affordable energy solutions. Technologies such as compressed air energy storage (CAES) and flywheels provide backup power and facilitate the integration of renewable energy sources like wind and solar into home energy systems. Households can store extra energy produced during peak hours and use it during times of high demand or unstable grid conditions thanks to these storage options. The increasing demand for energy-efficient and sustainable homes has made mechanical energy storage a desirable alternative for lowering power bills and achieving household energy independence.

• Residential
• Commercial
• Industrial

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Vinayak Bali

Senior Research Analyst at Cognitive Market Research

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