The global flow battery market size is estimated to be USD 210.3million in 2021and projected to reach USD 485.6million by 2026, at a CAGR of 17.8%.

A flow battery is a battery that separates two liquids with a membrane and circulates them to exchange ions. By separating the liquid electrolyte, flow batteries offer long cycle life and can utilize the entire discharge range. It also has a low internal discharge rate. The biggest advantage of flow batteries is that they can be packed in large quantities. Interest in flow batteries has grown significantly with the increasing need for storage of renewable energy sources. High-capacity flow batteries with huge electrolyte tanks can store large amounts of electricity. Furthermore, increasing installation of telecom towers and increasing adoption of flow batteries in utility applications are driving the growth of the flow battery market. In addition, increasing demand for power supplies leading to increased number of data centers and rising technological innovations with improved capabilities of flow batteries are expected to drive market growth in the near future.

Utilities are one of the earliest application areas for flow batteries to address the penetration of renewable energy throughout the grid. In utilities, flow batteries are ideal for extensive discharge duration in MW scale power increment. It also avoids power interruptions and transfers energy during network service interruptions. Most of the flow battery installation projects around the world meet utility requirements. With the increasing need for electrification in rural and urban areas in recent years, governments and private companies are improving their power grid systems to meet energy demands. Governments of various countries are also investing heavily in expanding their power grids due to the increasing demand for electricity.

Photovoltaic systems are increasingly being adopted in residential applications as they help reduce greenhouse gas emissions and electricity bills. However, photovoltaic systems are not suitable for grid integration because the intermittent nature of solar radiation causes unexpected fluctuations in the collected solar energy. Battery energy storage systems serve as an alternative to photovoltaic systems. Flow batteries allow homes and small businesses to maximize energy storage, reduce energy costs and avoid power outages. Inherent features such as long life, modularity and large storage capacity make flow batteries very suitable for residential and commercial applications.

Flow batteries have emerged as potential alternatives to conventional batteries, including lithium-ion, lead-acid, and sodium-based batteries. However, the high cost of flow batteries may act as a major restraining factor for market growth. The total cost associated with flow batteries, including components, materials, installation, and repair and maintenance costs, represents a significant investment for small businesses. Also, the components and chemicals used in most flow batteries are relatively expensive. 

Type Insights

By type, redox flow battery segment accounted for the largest redox flow battery market share in 2022. The growth of the redox flow battery segment is driven by rapidly increasing demand for efficient, flexible and long-lasting energy storage systems in utility, commercial and industrial applications. In addition, due to the features of the redox flow battery, which has a long life with almost no deterioration of the electrodes and electrolyte, a high level of safety that does not contain combustibles, and can be used in extreme environments, it is suitable for large-scale applications. Redox flow batteries have applications in microgrids, utilities, commercial and industrial facilities.

Material Insights

By material, All Vanadium segment accounted for the largest redox flow battery market share in 2022. Vanadium is anticipated to expand at a 22.4% CAGR. Flow batteries with vanadium materials are mainly used and commercialized for utility, commercial, and military applications. This is the most researched and most commercialized type of flow battery. Redox flow batteries with vanadium materials are electrochemical energy storage systems suitable for a wide range of renewable energy applications and are being developed to reduce the carbon footprint of power generation.

Storage Insights

Large scale segment is expected to hold the largest share in flow battery market in 2022. A large-scale flow battery is the most common type of flow battery. Flow batteries have always been bulky and require more space as their design includes two large external tanks where the electrolytes are stored. These batteries are based on reversible chemical reactions. Besides, the charging and discharging of large-scale flow batteries do not degrade the electrolytes or the cell, resulting in extended battery life compared to other batteries. Large-scale flow batteries are durable and relatively efficient and are limited in their storage capacity by the size of the tanks. Increasing number of flow battery installation projects across the globe is estimated to fuel the demand for large-scale storage systems in the coming years.

Application Insights

By application, utility services segment dominated the global market with largest market share in 2022. Due to their large and heavy weight, flow batteries are considered suitable for utility, commercial and industrial customers who desire long term and hourly energy storage. Most flow batteries contain a vanadium electrolyte that can be reliably charged and discharged for multiple cycles without degradation. This is made possible by the electrochemical properties of vanadium, which allows electrons to be easily removed from the element and then separated again.

Regional Insights

By region, Asia-Pacific is the largest regional market in the redox flow battery market, which acquired around 40% market share in 2022. Increasing adoption of energy storage solutions in industry and utilities, and increasing number of operational projects involving flow battery installations are expected to fuel the growth of the regional market during the forecast period. Countries such as China, Japan, India and Australia are working on massive increases in energy storage capacity through battery technology, which could improve electrical stability. In addition, increasing investments in renewable energy, energy efficiency regulations, increasing power generation capacity, electrification of the transport sector, and cost reductions due to technological advancements in the developing countries of the Asia-Pacific region are all driving the growth of the flow battery market.

Key Companies Insights

Key players are focusing on technology collaborations, partnerships, mergers and acquisitions strategies to gain competitive advantage and expand product portfolios and business footprints. Accurately predicting the cost and performance of vanadium flow battery stacks is necessary to accelerate the commercialization of flow batteries. A research team at the Dalian Institute of Chemistry and Physics (DICP) of the Chinese Academy of Sciences proposed a strategy based on machine learning, artificial intelligence (AI). The use of Al helps predict performance and cost and optimize vanadium flow batteries. This technology contributes to increased efficiency, directs vanadium flow battery research and development activities, and reduces research time. It also predicts with high accuracy the energy efficiency, voltage efficiency, power and energy costs of vanadium flow battery systems, and electrolyte utilization of vanadium flow battery stacks.

Some of the key players operating in the global flow batteries market include:

·         Elestor BV

·         ESS, Inc

·         H2

·         Invinity Energy Systems

·         JenaBatteries GmbH

·         Kemwatt SAS

·         Largo Clean Energy

·         Lockheed Martin Corporation

·         nanoFlowcell Holdings Ltd

·         Primus Power

·         Redflow Ltd

·         SCHMID Group

·         Sumitomo Electric Industries, Ltd

·         UniEnergy Technologies LLC (UET)

·         ViZn Energy Systems, Inc

·         Volterion GmbH

·         VoltStorage GmbH

·         VRB Energy

·         Other Players

Segments

By Type

·         Hybrid

·         Redox

By Material

·         All Vanadium

·         All Iron

·         Zinc–Bromine

·         Hydrogen-Bromine

·         Polysulfide Bromine

·         Organic

·         Others

By Storage

·         Compact

·         Large Scale

By Application

·         Utilities

·         Commercial

·         Industrial

·         Military

·         EV Charging Station

·         Off Grid & Micro grid Power

·         Other

By Geography

·         North America

o   U.S.

o   Canada

o   Mexico

·         Europe

o   U.K.

o   Germany

o   France

o   Italy

o   Spain

o   Russia

·         Asia-Pacific

o   Japan

o   China

o   India

o   Australia

o   South Korea

o   ASEAN

·         Latin America

o   Brazil

o   Argentina

o   Colombia

·         MEA

o   South Africa

o   Saudi Arabia

o   UAE

o   Egypt

Global Flow Batteries Market: Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent sub-markets of various marketspaces. The key players in the markets are identified through secondary research, and their market contributions in different applications across regions and globally were determined through primary and secondary research. This entire process included the study of the annual and financial reports of the top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analysed to arrive at the final quantitative and qualitative data. This data has been consolidated, and detailed inputs and analysis from Analytics Market Research added before being presented in this report.

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