by 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 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Flow batteries are rechargeable batteries that use electrolytes containing dissolved metal salts for energy storage. They employ redox chemistry to convert chemical potential energy directly into electricity. Flow batteries consist of two independent electrolyte reservoirs or tanks containing the redox couples in liquid form which are separated by an ion permeable membrane. The electrolyte solutions are pumped from the reservoirs through the electrochemical cell where the redox reactions take place, thereby allowing the storage or generation of electrical energy. Flow batteries have advantages over traditional battery technologies such as lithium-ion as they offer greater scalability allowing for higher power levels from a single system with minimal changes to system design. Their ability to adjust electrical capacity by adjusting electrolyte volume or surface area of electrodes also makes them highly flexible.
Market key trends:
Rising adoption of renewable energy sources and increasing investments in grid energy storage solutions are major factors driving the growth of the flow battery market. Government measures to increase the share of renewables in overall energy production along with incentives for setting up decentralized systems is fueling demand. Flow batteries are well suited for stationary grid energy storage applications as they offer long duration storage and are able to decouple power and energy. Growing deployment of flow batteries for microgrid and backup power systems in telecom towers, industrial units, data centers etc. is also augmenting market expansion. Further, ongoing research and development activities focused on improving design, efficiency and reducing costs of vanadium and hybrid flow batteries are expected to make these battery technologies more competitive against Lithium-ion alternatives, thereby supporting market growth over the forecast period.
Porter’s Analysis:
Threat of new entrants: The flow battery market has relatively high production costs and regulatory requirements which pose entry barriers for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate since the flow batteries have advantages over conventional batteries but still need to gain widespread acceptance.
Bargaining power of suppliers: The market has numerous component suppliers, limiting their individual bargaining power.
Threat of new substitutes: Alternatives such as lithium-ion batteries pose a threat but flow batteries have advantages for large stationary storage applications.
Competitive rivalry: The market has few global players and competition is expected to intensify with the projected market growth.
Key Takeaways
The Global Flow Battery Market Size is expected to witness high growth, exhibiting a CAGR of 12% over the forecast period, due to increasing demand for large-scale energy storage solutions for renewables integration and backup power applications. Flow batteries can store more energy than lithium-ion batteries and have a longer lifespan, driving their adoption.
The regional analysis indicates that Asia Pacific will dominate the market, growing at a CAGR of over 13% during the forecast period. Rising renewable energy installations in China, India, and Australia along with supportive government policies are fueling market growth in the region.
Key players operating in the flow battery market are VRB Energy, H2 Inc., ESS Tech Inc., Stryten Energy, Vanadis Power GmbH, CellCube Energy Storage Systems Inc., Primus Power Corporation, Dalian Rongke Power Co. Ltd., RedFlow Ltd., and Invinity Energy Systems PLC. Strategic partnerships and product innovations are some of the strategies being adopted by these companies to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
