The Flow Battery Market is estimated to be valued at US$ 831.11 Bn or 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.
Flow batteries are rechargeable batteries where the charge carriers (ions) flow between anode and cathode which are separated by membranes. Flow batteries have high energy density, are environment friendly, and have long cycle life. They are ideal for large scale energy storage at utility grids and commercial buildings requiring continuous power backup for several hours.
Market key trends:
The flow battery market is witnessing high growth owing to rising focus on decarburization of grids. Many countries have pledged to reduce greenhouse gas emissions and shift towards renewable resources of energy like solar and wind power. However, intermittent nature of these sources require energy storage solutions to match demand and supply. Flow batteries are suitable for storing excess renewable energy produced during off-peak hours and dispatching it when needed. Their flexible design allows scaling up capacity by increasing electrolyte volume. This property makes flow batteries ideal for utility scale stationary storage supporting stability of grids with high renewable penetration.
Threat of new entrants: The flow battery market has moderate threat of new entrants due to high capital requirement for manufacturing plants and supply chains. However, new battery chemistries are attracting venture capital investments for technology development.
Bargaining power of buyers: Buyers in the flow battery market have moderate bargaining power due to the availability of different battery types that can provide similar energy storage solutions. However, flow batteries provide long duration storage options not available through other chemistries.
Bargaining power of suppliers: Suppliers of raw materials like vanadium, zinc and bromine have moderate bargaining power due to concentration of suppliers for some materials and availability of substitutes.
Threat of new substitutes: There is moderate threat from new energy storage technologies like lithium-ion batteries for short duration storage and pumped hydro for long duration storage. However, flow batteries provide unique multi-hour storage capabilities.
Competitive rivalry: The market is moderately competitive due to presence of global players and new entrants developing novel chemistries.
Strength: Flow batteries provide long duration storage of 4-12 hours ideal for renewable energy integration. They have unlimited cycle life and no capacity degradation over time.
Weakness: Flow batteries have high upfront capital costs compared to lithium-ion batteries. They also have lower energy density requiring larger tank sizes.
Opportunity: Increasing deployments of renewable energy is driving demand for long duration stationary storage solutions. Governments are providing policy support for energy storage projects.
Threats: Technology improvements can enhance performance of competing chemistries, reducing the cost advantages of flow batteries. Supply constraints and price volatility of raw materials is also a challenge.
The Global Flow Battery Market Size is expected to witness high growth, exhibiting a CAGR of 12% over the forecast period, due to increasing investments in large scale energy storage projects for renewable energy integration and microgrids. The Asia Pacific region is currently the fastest growing market for flow batteries owing to rising renewable energy installations in countries like China, India, Japan and government support.
Regional analysis: The Asia Pacific region currently dominates the global flow battery market, accounting for more than 30% of the total share in 2023. Countries like China, Japan, South Korea and India are witnessing massive investments in grid-scale energy storage projects to support their renewable energy goals which is driving the demand. North America is another major regional market led by the US due to wide presence of vanadium-based flow battery manufacturers and many pilot projects for utility-scale energy storage.
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. The market is moderately consolidated with few global players dominating. Many new startups are also entering with innovative chemistries and affordable systems.