Flow batteries, also known as redox flow batteries, are rechargeable battery systems where chemical energy is provided by two chemical components dissolved in liquids contained within storage or reserve tanks located external to the cell. The liquid electrolytes are pumped from the storage tank through the electrolyte chambers of the electrochemical cell, where electrochemical reactions occur and electricity is generated. Key applications of flow batteries include smoothing output from renewable energy sources such as solar and wind, providing backup power supply, and microgrids. The technology offers flexibility in scaling power rating by changing electrolyte volume and provides longer discharge times than lithium-ion batteries.
The global flow battery market is estimated to be valued at US$ 831.11 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
They have flexibility in scaling power ratings, long service life of over 10,000 cycles, and the ability to operate efficiently across a wide range of ambient temperatures that makes them suitable for renewable energy integration and microgrids. The technology is gaining popularity for off-grid and backup power requirements around the world due to their ability to store excess renewable energy and deliver power supply in case of fluctuating renewable energy generation or grid outages.
Growing Emphasis on Clean Energy Transition is Driving Demand for Energy Storage Technologies: Government policies and regulations promoting clean energy adoption along with the declining cost of renewable energy installations are major factors driving the global transition towards a decarbonized economy. Flow batteries are increasingly becoming the technology of choice for large-scale energy storage needs of renewable projects. Their long duration capabilities make them suitable for bridging the gaps between renewable generation and energy demand.
Segment Analysis
The global flow battery market is dominated by the vanadium redox flow battery (VRFB) sub-segment. Currently, VRFBs account for more than 90% of the global flow battery capacity deployed due to their relatively mature and cost-effective technology. Most manufacturers currently offer VRFB systems that are best suited for medium to large-scale energy storage applications over 100kW/100kWh.
PEST Analysis
Political: Growing support from governments worldwide through favorable policies and incentives for deploying energy storage solutions is boosting the flow battery market. Many countries offer subsidies for installations of flow batteries.
Economic: Declining costs of key materials like vanadium and membrane technologies are positively impacting the economics of flow batteries. Their flexible scaling and long operational life offer significant savings over the lifespan.
Social: The increasing focus on renewable energy integration and desire to adopt greener sources of energy are driving the demand for efficient storage technologies like flow batteries.
Technological: Advancements in electrode materials, membranes, and stack designs are improving the power density and efficiency of flow batteries. Many startups are developing hybrid flow battery designs and alternative chemistries to expand the applications.
Key Takeaways
The Global Flow Battery Market Size is expected to witness high growth at a CAGR of 8.0% during the forecast period of 2023 to 2030 to reach a market size of US$ 831.11 billion by 2024.
Regional analysis: Asia Pacific region currently dominates the global flow battery market and is expected to maintain its lead through 2030. China accounts for the major share due to strong government support and the country’s aggressive renewable energy targets. Other fast-growing regional markets include South Korea, Japan, India, and Australia due to rising uptake of flow batteries across multiple applications like energy shifting, backup power, and renewable energy integration.
Key players: Key players operating in the flow battery market are AssurX, Sparta Systems, Oracle Corporation, Xybion Corporation, Sarjen Systems Pvt. Ltd., MDI Consultants, AB-Cube, QVigilance, Qserve, and ZEINCRO. AssurX and Spartan Systems are currently leading the flow battery market with their innovative VRFB solutions tailored for the rapidly growing energy storage sector across utility, industrial and microgrid applications.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it