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The flow battery market size is estimated to grow at a CAGR of 22.16% between 2022 and 2027. The market size is forecast to increase by USD 510.03 million. Market growth hinges on factors like the rising need for battery energy storage to manage the intermittent nature of renewable power sources. Furthermore, the surge in innovative power storage technology development contributes significantly. Notably, the benefits of flow batteries play a crucial role in this landscape, offering advantages such as scalability and long-duration power storage capabilities. Flow batteries are gaining traction due to their ability to store large amounts of power efficiently, providing grid stability and resilience. As renewable power adoption expands, the demand for reliable power storage solutions like flow batteries is expected to continue growing, driving further advancements and investments in the battery power storage market.
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This market report extensively covers market segmentation by type (redox and hybrid), variant (large scale and compact), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The Market in the power industry is witnessing significant growth due to the increasing demand for reliable power supply during high-power demands and peak times. Industrial applications, particularly in the renewable energy sector, are driving the market's expansion. Energy storage systems, such as flow batteries, play a crucial role in grid systems by ensuring smooth operations during low-demand periods and reducing downtime. Flow batteries use active materials, including electrolytes, to store energy. Two common types of flow batteries are Fuel Cells and Iron Flow Batteries. Fuel cells use hydrogen as a fuel, while Iron Flow Batteries use iron and chromium ions. Energy policies promoting the use of renewable energy sources, such as wind energy and solar energy, are also contributing to the market's growth. Safety features are a critical consideration in the flow battery market, ensuring the reliable and efficient operation of these systems. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for battery energy storage to address the erratic nature of renewables is the key driver for the growth of the market. The global energy landscape is undergoing a significant shift towards rechargeable electrochemical energy sources, such as flow batteries, due to the rising demand for clean, sustainable, and less carbon-intensive power generation. Renewable power sources, including solar and wind, are gaining popularity, driven by government initiatives and subsidies.
Moreover, flow batteries, which use an electrolyte to store power, offer advantages over traditional power sources during power supply interruptions. Iron flow batteries, specifically those utilizing vanadium and iron, are increasingly being adopted for residential and grid applications. Fuel cells, while an alternative power storage solution, cannot match the scalability and cost-effectiveness of flow batteries. With a rapid increase in the integration of renewable energy, the global market is expected to grow during the forecast period.
Legislative support for battery recycling is the trend that shaping the growth of the market. The market for rechargeable electrochemical energy sources, specifically flow batteries, is subject to increasing regulatory scrutiny due to environmental and economic considerations. Flow batteries, which use iron and vanadium as primary components, offer unique benefits for energy storage. However, their disposal poses significant challenges. These batteries can be dangerous when damaged or overheated, leading to potential explosions. Moreover, the electrolytes used in flow batteries are flammable and toxic, posing a risk to groundwater and soil contamination.
Moreover, to mitigate these risks, governments have implemented strict regulations for the recycling of flow batteries. Iron flow batteries are gaining popularity in residential and grid applications, as they provide a reliable power supply during interruptions. Fuel cells, another power technology, offer an alternative to flow batteries for those seeking a more sustainable power solution. Therefore, regulatory support will lead to a higher recycling rate and boost market growth during the forecast period.
The decline in lithium-ion battery prices affects the growth of the market. The market for rechargeable electrochemical power storage, specifically flow batteries, has faced challenges due to the increasing popularity and affordability of lithium-ion batteries. Power supply interruptions are a significant concern for users, as these batteries rely on an electrolyte to facilitate the reaction between iron and vanadium.
Moreover, fuel cells, on the other hand, have gained traction due to their ability to generate electricity continuously. However, iron flow batteries continue to be used in residential applications and grid or utility settings due to their scalability and long cycle life. These factors will impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative market research and growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market growth analysis, data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The redox segment is estimated to witness significant growth during the forecast period. The redox market is gaining traction due to its system design flexibility, suitability for ambient temperatures, and potential for small-scale storage and portable batteries. This technology is increasingly being used for EV charging stations and grid systems, requiring safety features and high-power demands for smooth operations. Reducing downtime during low-demand periods and peak times is essential for grid stability, making power storage a priority in the renewable energy sector.
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The redox segment was the largest segment and was valued at USD 130.27 million in 2017. Chemistries, such as Iron Flow Battery, sodium-based battery, and lead-acid battery, offer long-term use and a regular cycle. Renewable power sources, like solar PV systems, contribute to reducing greenhouse gas emissions and increasing the use of green power. Such applications of redox current batteries will boost its demand and, in turn, drive the growth of the market during the forecast period.
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North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The North American market is projected to expand due to the rise in renewable energy generation and the growing adoption of electric and hybrid vehicles. The US leads this market, driven by clean energy policies and increased investment in EVs and renewables. Flow batteries offer system design flexibility, performing optimally in ambient temperatures, and are suitable for small-scale storage and portable applications.
Moreover, they are integral to EV charging stations and grid systems, featuring safety mechanisms and utilizing various active materials. Incentives from governments for renewable power and reducing greenhouse gas emissions further boost market growth. Flow batteries, including lead-acid, sodium-based, and Iron Flow Battery, provide reliable power during high-power demands and peak times, ensuring grid stability during low-demand periods and peak electrical demand. Companies like Invinity Energy Systems are commercializing these systems through reseller agreements, contributing to the market's expansion. Flow battery chemistries, such as redox flow batteries, are integrated with solar PV systems to enhance power storage capabilities and promote green power. The integration of renewable sources with power storage systems will boost the market during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The Market encompasses various types of energy storage technologies, one of which is the Flow Battery system. The Power sector increasingly relies on Flow Batteries for their ability to provide large-scale energy storage solutions. Systems such as Sodium-Sulfur, Vanadium Redox, and Zinc-Bromine Flow Batteries are gaining popularity due to their high energy density and long cycle life. The Synthetic fuels industry also utilizes Flow Batteries for energy storage in their processes. The market landscape depends on the Power industry, Industrial applications, Solar energy, incentives energy, Zinc bromine flow batteries, and Zinc iron flow batteries. The Government's renewable energy initiatives and the growing demand for sustainable energy solutions are driving the Market. Companies like Conventional Energy, Compact Energy, and Siemens Gamesa are investing in research and development to improve the efficiency and cost-effectiveness of Flow Battery technology.
Moreover, the Systems market includes components such as Membranes, Electrolytes, and Tanks. The Market for Flow Batteries is expected to grow significantly due to the increasing demand for energy storage solutions in various sectors. The market landscape depends on electrochemical storage system, metals, Vanadium Redox Flow Battery (VRFB), Energy storage systems (ESS), Solar and wind energy, and Zinc iron flow batteries Competition in the market is intense, with key players like LG Chem, Samsung SDI, and Tesla, Inc., competing on the basis of technology, cost, and performance. The Market for Flow Batteries is expected to witness substantial growth in the coming years due to the increasing demand for power storage solutions in various sectors. The Market is driven by factors such as the growing adoption of renewable energy sources, government initiatives, and technological advancements. The Market is expected to reach new heights with the entry of new players and continuous innovation in the technology.
Market Scope |
|
Report Coverage |
Details |
Page number |
148 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 22.16% |
Market growth 2023-2027 |
USD 510.03 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
21.75 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BASF SE, Elestor BV, ENEROX GMBH, Gebr. SCHMID GmbH, HYDRAREDOX IBERIA SL, Invinity Energy Systems plc, Largo Inc., LE System Co. Ltd., Lockheed Martin Corp., nanoFlowcell Management AG, Nel ASA, Primus Power Solutions, Redflow Ltd., StorEn Technologies Inc., Stryten Energy LLC, Sumitomo Electric Industries Ltd., Vanadis Power GmbH, VFlow Tech Pte Ltd., VoltStorage GmbH, and VRB Energy |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Variant
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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