Flow Battery Market Is Poised To Grow Substantially Supported By...

Flow Battery Market Is Poised To Grow Substantially Supported By Increasing Demand For Cheaper And Scalable Grid-Level Storage Solutions

Posted 2023-12-19 11:03:23

Flow batteries have gained significant popularity in recent years as a promising energy storage technology for grid-level applications. Flow batteries enable the decoupling of power and energy capacity, allowing for scalable energy storage systems. The systems use liquid electrolytes containing dissolved metals or salts to facilitate the electrochemical reaction necessary for charging and discharging. Most flow battery technologies rely on inexpensive, widely available redox materials like vanadium and hydrogen bromine. Their modular design also allows the storage capacity to be scaled up or down over time by adding more electrolyte storage tanks without replacing the entire system.

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 5.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

The increasing demand for cost-effective grid-level energy storage solutions is expected to be a major driver for the flow battery market over the forecast period. Flow batteries offer advantages over lithium-ion batteries typically used in stationary storage applications by decoupling power and energy rating which allows independent scalability. Their ability to provide backup power during grid outages and integrate renewables into the grid at a utility-scale more economically than other battery technologies is boosting adoption. The relatively low cost and long cycle life of flow batteries also provide an edge over other alternatives. As grid storage needs grow exponentially driven by the renewable energy build-out worldwide to replace coal and other fossil fuels, flow battery technology, with its enhanced scalability and grid integration characteristics, is well-positioned to tap the potentially huge market opportunity. The low cost and high scalability make flow batteries an attractive and economically viable solution for utilities dealing with intermittent renewable energy resources like wind and solar. This is expected to substantially drive market revenues during the forecast period.

SWOT Analysis

Strength: Flow batteries have three main strengths. Firstly, they have independent scalability of power and storage which makes them suitable for large scale energy storage applications. Secondly, they have very long cycle life and can last over 10,000 cycles. Thirdly, they have flexible configurations which allows them to have optimal storage and discharge durations as required by an application.

Weakness: Flow batteries have relatively low energy density compared to lithium ion batteries which limits their use in applications requiring high energy density. Also, they use liquid electrolytes which increases costs related to tank material, pumps and piping.

Opportunity: The increasing demand for grid-scale energy storage due to growing renewable power offers significant growth opportunity for flow batteries. They are ideally suited for storing renewable energy from solar and wind due to low cost per kW capability. Rapid drop in battery costs is also expanding the addressable markets for flow batteries.

Threats: Technology threats comes from continuous improvements in lithium ion and solid-state batteries increasing their viability for static and mobile grid support applications. Rising raw material costs and global supply constraints also poses threat due to flow batteries reliance on vanadium.

Key Takeaways

The global flow battery market is expected to witness high growth over the forecast period supported by need for reliable energy storage and long duration stationary storage applications. Regional analysis indicates that Asia Pacific region dominates currently due to strong demand from China, Japan and Australia. Rapid addition of renewable energy and government initiatives are driving growth in this region. Europe and North America are other major regional markets growing at a steady pace for flow batteries.

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. The global flow battery market is moderately concentrated with top players accounting for around 50% share. VRB Energy is the global leader with over 300MWh of installations worldwide. ESS Inc. and Redflow are other prominent companies focusing on developing innovative flow battery technologies.

The global flow battery market is expected to witness high growth. Regional analysis related content comprises Asia Pacific currently dominates the global flow battery market. Key players related content comprises 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.