May 25, 2024

Flow Battery Is Expected To Be Flourished By Increasing Demand For Energy Storage Solutions

The global flow battery market is composed of different types of flow batteries that utilize redox chemistry to facilitate storage of electrical energy. Flow batteries allow storage of large amounts of electrical energy within a liquid redox solution flowing through the system. Flow batteries find wide usage in various applications where bulk energy storage is required, such as storing energy from renewable sources like solar and wind. They are also useful for load shifting and backup power in order to store excess energy produced during off-peak hours and supply it during peak demand periods. Key product types include vanadium redox flow batteries and hybrid flow batteries that employ redox-active organic and inorganic materials.

The global Flow Battery Market is estimated to be valued at Us$ 957.44 Mn in 2024 and is expected to exhibit a CAGR Of 8.0% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Increasing demand for energy storage solutions: Flow battery technology provides a viable solution for storing electricity generated from renewable energy sources such as solar and wind energy. With growing focus on integrating renewable sources into the energy mix, the demand for large-scale energy storage systems is increasing. Flow batteries have ability to store large amounts of energy for long durations, which makes them suitable for this application. Growth in renewable energy sector will thus drive the demand for flow batteries over the forecast period.

Rising demand for backup power solutions: Flow batteries are a reliable energy storage solution for storing power from non-renewable energy sources as well as for providing backup power during power outages. They are useful for load shifting applications and ensuring undisrupted power supply. Increasing demand from telecom industry, healthcare facilities, data centers and other businesses that require backup power will support the growth of flow battery market.

 

Segment Analysis

The global flow battery market is dominated by the vanadium redox battery segment. Vanadium redox batteries use vanadium salts dissolved in acid as the electrolyte and the electrolytes can provide more energy storage power output. As they use low cost and abundant vanadium, vanadium redox batteries operate at room temperature, have very long shelf lives of over 15 years and cycle lives of over 15,000 cycles. This makes vanadium redox batteries ideal for utility-scale applications requiring long term energy storage of over 4 hours. Hence the vanadium redox battery segment holds over 60% share of the global flow battery market.

PEST Analysis

Political: Flow batteries can help support energy and grid security goals as they enable integration of more renewable energy sources like solar and wind in the grid through long duration energy storage. Most countries have strategic plans and policies to increase renewable energy adoption which favors growth of the flow battery market.

Economic: Long lifecycles and maintenance-free operations of flow batteries reduce overall costs of energy storage compared to alternatives. Declining costs of battery components like vanadium and membrane will further aid its competitiveness and adoption.

Social: Rising concerns about climate change is driving investments in cleaner energy sources and technologies. Flow batteries enable transition to more sustainable energy systems by supporting higher renewable power integration into the grid through their ability to store power over long durations.

Technological: Advancements are ongoing to develop lower cost membrane and electrolyte materials to allow flow batteries to store more energy at a lower price point. Research is also being done to explore new chemistries beyond vanadium that promise even better performance characteristics.

Key Takeaways

The Global Flow Battery Market Demand is expected to witness high growth over the forecast period of 2024-2031 at a CAGR of 8.0% to reach a market size of US$1,932.91 Mn by 2031 from US$ 957.44 Mn in 2024 due to the increasing need for long-duration energy storage solutions to support grid reliability and integration of more renewable energy sources.

Regional analysis:

 

Asia Pacific region dominated the global flow battery market and is expected to maintain its lead position over the forecast period. This is attributed to favorable government policies supporting renewable energy adoption and ongoing renewable integration projects in countries like China, Japan, South Korea and India.

Key players:

 

Key players operating in the flow battery market are AssurX, Sparta Systems, Oracle Corporation, Xybion Corporation, Sarjen Systems Pvt. Ltd., MDI Consultants, AB-Cube, QVigilance, Qserve, and ZEINCRO. AssurX and Sparta Systems are leaders in quality management software and are expanding their product portfolios to include flow batteries. Oracle Corporation offers integrated risk management and regulatory change management capabilities relevant to flow battery manufacturers and component suppliers.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it