February 25, 2024

Flow Battery Market Driven By Renewable Integration To The Electric Grid

Flow battery systems use two chemical components dissolved in liquids that are stored in external tanks. These liquids are pumped through a cell where electrochemical reactions occur allowing the battery to be charged and discharged. Flow batteries offer notable benefits over traditional battery storage such as longer lifetime, flexible power output, and the ability to be right sized for each application. The global flow battery market enables efficient renewable energy utilization by providing grid-scale energy storage solutions. With increasing solar and wind power installations, flow batteries are playing an important role in storing excess renewable energy for use during off-peak hours or extended periods of low power generation.

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 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the flow battery market is the declining price of the technology. Earlier limited to niche applications, flow batteries are now becoming economical for scaling renewable energy projects due to falling costs. Advances in materials science are helping reduce the expense of manufacturing flow batteries and extend their service life up to 20 years, making them competitive against lithium-ion batteries. Rapidly growing renewable energy capacity additions combined with supportive government policies and investment in clean energy infrastructure across regions are creating demand for large-scale energy storage solutions offered by flow batteries. Technology improvements to enhance their energy density while lowering costs will further drive adoption of flow batteries for grid-scale applications going forward.

Porter’s Analysis
Threat of new entrants: Low entry barriers such as low capital requirements and availability of raw materials attract new players.
Bargaining power of buyers: Large buyers such as utilities and telecom companies have significant bargaining power over suppliers due to bulk purchases.
Bargaining power of suppliers: Suppliers of raw materials such as vanadium have less bargaining power due to availability of various global suppliers.
Threat of new substitutes: New energy storage technologies like lithium-ion batteries and capacitors pose a threat, however flow batteries have an advantage due to scalability.
Competitive rivalry: The market is consolidated with leading global players differentiating by product quality and technology.

Key Takeaways
The Global Flow Battery Market Size is expected to witness high growth.

Regional analysis: The Asia Pacific region dominates the global flow battery market and is expected to grow at a CAGR of around 10% during the forecast period. China holds the largest share in the region’s market due to presence of leading battery manufacturers and supportive government policies for industrialization of flow batteries.

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. The leading players are focusing on new product launches, partnerships and strengthening of global distribution networks to stay ahead of the competition.

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