by Flow batteries have emerged as an important energy storage solution due to their ability to store electricity over long durations of time. Flow batteries are different from conventional batteries as they utilize electrolyte liquid stored in external tanks instead of a solid or gel form. This helps in scaling up the energy capacity by just increasing the size of electrolyte tanks. Flow batteries are useful for smoothing the intermittency of solar and wind power as they can economically store energy for over 10 hours making them suitable for providing backup support to renewable energy installations. The global flow battery market possesses significant opportunities given the expansion of renewable energy farms which require energy storage solutions to address challenges related to variability in power generation from natural sources. 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 key trends:
One of the major trends driving the flow battery market is the growing investments by governments and private equity firms in utility-scale energy storage projects. Flow batteries have emerged as a promising technology to support large-scale energy storage needs of utilities and the integration of renewable energies into the grid. Technological advancements are also driving the demand as flow battery manufacturers focus on developing high energy density batteries with lower costs. For example, researchers are exploring possibilities of using alternate low-cost electrolytes such as polysulfides and organic compounds instead of expensive vanadium to develop affordable and high performance systems. Moreover, several companies are working towards developing novel membrane technologies to enhance battery lifespan and overcome issues of cross-contamination between electrolyte tanks. Such innovations and focus on cost reduction will foster market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the flow battery market is low due to the presence of major key players and the requirement of high initial capital investments to set up production facilities.
Bargaining power of buyers: The bargaining power of buyers in the flow battery market is high given the presence of large utility companies and telecom tower operators who procure batteries in bulk.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the raw materials used in manufacturing flow batteries such as zinc, vanadium, and polysulfide are available from a large number of suppliers globally.
Threat of new substitutes: The threat of substitutes is moderate as other energy storage technologies like lithium-ion batteries and pumped hydro storage are complementing flow batteries in off-grid and on-grid applications.
Competitive rivalry: The competitive rivalry in the Flow Battery Market Scope is high owing to the presence of global and regional players competing on the basis of product quality, distribution network, and pricing.
Key Takeaways
The global flow battery market is expected to witness high growth over the forecast period owing to increasing demand for sustainable energy sources.
Regional analysis – Asia Pacific dominates the global flow battery market and is expected to grow at the fastest rate during the forecast period due to huge investments by governments in renewable energy integration and increasing demand for industrial energy storage solutions in China, Japan, and South Korea.
Key players – 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. VRB Energy is one of the leading manufacturers of vanadium redox flow batteries globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
