Global Flow Battery Market Forecast 2024-2032

In terms of revenue, the global flow battery market is expected to grow at a CAGR of 22.53% during the forecast period 2024-2032. The base year regarded for the studied market is 2023, and the forecasting years are from 2024 to 2032.

Flow batteries, an electrochemical energy storage device, store energy by utilizing metals' varying oxidation states. They are emerging as a competitive alternative to traditional batteries such as lead-acid, lithium-ion, and sodium-based batteries. The global flow battery market is primarily driven by increasing investments in renewable energy sources and the strong demand for utility-scale energy storage solutions.

Flow batteries are particularly well-suited for utility-scale energy storage due to their scalability, long cycle life, and rapid response times. They are ideal for large-scale, long-term power storage applications. Technological advancements in electrolyte design, electrode materials, and internal system architecture are enhancing the performance, efficiency, and cost-effectiveness of flow batteries, further expanding their market potential.

MARKET INSIGHTS

Key growth enablers of the global flow battery market:

Surge in investments for renewable battery integration

The rapidly growing importance of energy storage in the power industry is fostered by increased investment in the renewable energy sector.

Although lithium-ion batteries are commonly used, flow batteries offer advantages for long-term use and applications requiring continuous cycling throughout the day.

Flow batteries can mitigate significant intermittency issues by extending the availability of renewable energy sources such as solar and wind power.

Developers are actively assessing the ability of these technologies to provide power for extended periods and to adjust output without degradation.

Flexibility in sizing, scalability, and long-duration energy storage add to the increased demand for flow battery
Favorable government initiatives and policies to boost market growth

Key growth restraining factors of the global flow battery market:

Decline in cost and increase in adoption of lithium-ion batteries hinder market growth

Flow batteries and lithium-ion batteries offer sustainable energy storage solutions. Utilizing both types of batteries enhances demand management, reducing peak electrical demand and utility costs.

The primary differences between lithium-ion batteries and flow batteries lie in their power density, cost, and space efficiency.

Consequently, the increasing demand for lithium-ion batteries is expected to hinder the growth of the global flow battery market during the forecast period.

However, the market is expected to experience significant growth due to continuous advancements in flow battery technology.

Lack of standardized regulations for flow battery system development
Exorbitant capital investments hamper flow battery market growth

Global Flow Battery Market | Top Market Trends

Flow battery designs have advanced due to ongoing research and development efforts. Cost savings from economies of scale and enhanced manufacturing efficiency have increased the competitiveness of flow batteries. They find application in microgrids and other scenarios requiring energy resilience, providing a reliable power source in remote areas or during grid outages.
As the market for flow batteries continues to grow steadily, businesses and researchers worldwide are focusing on developing and investing in new battery chemistries. These innovations aim to reduce costs and increase power densities for flow batteries. The forecast period presents ample opportunities in the global flow battery market due to advancements in novel chemistries and technologies.

SEGMENTATION ANALYSIS

Market Segmentation - Offering, Battery Type, Material, Ownership, Storage, and Application -

Market by Offering:

Energy Storage System
Battery
Service

Market by Battery Type:

Redox
Hybrid

The hybrid segment under the battery type category is anticipated to grow at a significant rate over the forecast period.

Hybrid flow batteries, the latest innovation in non-pure flow battery types, have gained popularity for large-scale energy storage applications.

Further, they excel in grid-scale energy storage, integrating renewable energy sources and serving as backup power systems due to their efficient energy storage and rapid release capabilities.

Hybrid flow batteries distinguish themselves from other energy storage technologies with a design that simplifies maintenance and potentially extends operational lifetimes.

Market by Material:

Vanadium
Zinc-Bromine
Iron
Other Materials

Market by Ownership:

Customer-Owned
Third-Party-Owned
Grid/Utility-Owned

Market by Storage:

Large Scale
Small Scale

Market by Application:

Grid/Utility

In 2023, the grid/utility application held the largest market share in the global flow battery market.

As utilities manage the grid integration of renewable energy, flow batteries are increasingly applied early on. In utility settings, they act as a buffer between electricity demand and the energy available from the grid.

Flow batteries are ideal for MW-scale power increases in utilities, particularly with their capability for long discharge durations. Moreover, they provide and transfer energy reliably during grid outages.

Utilities require batteries that are robust, durable, and capable of managing high penetration rates of renewable energy sources across the grid.

Hence, the increasing demand for electricity in both urban and rural areas has led to a greater emphasis on improving the electric grid systems.

Commercial and Industrial
EV Charging Station
Other Applications

REGIONAL ANALYSIS

Geographical Study Based on Four Major Regions:

North America: The United States and Canada
Europe: The United Kingdom, Germany, France, Italy, Spain, Nordic Countries, and Rest of Europe
Asia-Pacific: China, Japan, India, South Korea, Vietnam, Thailand, Indonesia, Australia & New Zealand, and Rest of Asia-Pacific

The Asia-Pacific is anticipated to be the most dynamic regional flow battery market.

A significant share of energy generation from renewable sources like wind and solar is now part of the energy policies in countries such as the United States, India, China, and Japan.

Investments in renewable energy are increasing worldwide due to government financial support and associated returns. Renewable energy is becoming the preferred choice for modernizing, extending, and upgrading power infrastructure globally.

The Indian government pledged over $25 billion in 2021 to achieve the ambitious target of generating 175 GW of renewable energy by 2022.

Renewable energy sources such as wind, solar, biomass, waste, geothermal, small hydro, and marine accounted for 55.3% of new power generation last year. Consequently, the global flow battery market is expected to grow throughout the forecast period.

Rest of World: Latin America, the Middle East & Africa

COMPETITIVE INSIGHTS

Major players in the global flow battery market:

Invinity Energy Systems
Redflow Limited
Sumitomo Electric Industries Ltd
ViZn Energy Systems

Key strategies adopted by some of these companies:

OPALCO acquired 2 MWh of energy storage from Invinity Energy Systems for a solar plus storage project in San Juan County, Washington. The project, set to install nine Invinity VS3 vanadium flow batteries and a 2.75 MWp solar array on San Juan Island, was initiated in June 2023.
Sumitomo Electric Industries Ltd announced plans to expand its redox flow battery business in the United States, aiming to assess the feasibility of establishing a redox flow battery manufacturing system in North America. This expansion was declared in February 2023.
Redflow Limited batteries were installed as part of the Bureau of Meteorology's hybrid solution, which includes battery, solar, and diesel components, across three radar locations in Hillston, Yeoval, and Brewarrina by integration partner Seven20 Electrical in January 2023.

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Frequently Asked Questions (FAQs):

What is a flow battery?

A: According to the International Flow Battery Forum, a flow battery is a rechargeable battery where the electrolyte flows from one or more tanks through one or more electrochemical cells. The power of a flow battery system is determined by how these electrochemical cells are electrically connected, either in series or parallel. A key feature of flow battery systems is the separation of the energy rating from the power rating.

Which applications are driving the demand for the global flow battery market?

A: The need for flow battery systems has increased due to the rise in renewable energy integration, grid modernization initiatives, and technological improvements.

What are the key challenges in the global flow battery market?

A: High start-up costs and technological constraints are major obstacles to the global flow battery market's expansion.

Product Code: 90574

1. RESEARCH SCOPE & METHODOLOGY

1.1. STUDY OBJECTIVES
1.2. METHODOLOGY
1.3. ASSUMPTIONS & LIMITATIONS

2. EXECUTIVE SUMMARY

2.1. MARKET SIZE & ESTIMATES
2.2. MARKET OVERVIEW
2.3. SCOPE OF STUDY
2.4. CRISIS SCENARIO ANALYSIS
- 2.4.1. IMPACT OF COVID-19 ON THE GLOBAL FLOW BATTERY MARKET
2.5. MAJOR MARKET FINDINGS
- 2.5.1. HIGH INTEREST IN VANADIUM FLOW BATTERIES
- 2.5.2. FLOW BATTERY PROJECTS ARE GAINING MOMENTUM

3. MARKET DYNAMICS

3.1. KEY DRIVERS
- 3.1.1. SURGE IN INVESTMENTS FOR RENEWABLE BATTERY INTEGRATION
- 3.1.2. FLEXIBILITY IN SIZING, SCALABILITY, AND LONG-DURATION ENERGY STORAGE ADD TO THE INCREASED DEMAND FOR FLOW BATTERY
- 3.1.3. FAVOURABLE GOVERNMENT INITIATIVES AND POLICIES TO BOOST MARKET GROWTH
3.2. KEY RESTRAINTS
- 3.2.1. DECLINE IN COST AND INCREASE IN ADOPTION OF LITHIUM-ION BATTERIES HINDER MARKET GROWTH
- 3.2.2. LACK OF STANDARDIZED REGULATIONS FOR FLOW BATTERY SYSTEM DEVELOPMENT
- 3.2.3. EXORBITANT CAPITAL INVESTMENTS HAMPER FLOW BATTERY MARKET GROWTH

4. KEY ANALYTICS

4.1. KEY MARKET TRENDS
- 4.1.1. IMPROVEMENTS IN FLOW BATTERY TECHNOLOGY AND COST REDUCTIONS
- 4.1.2. ENERGY RESILIENCE AND MICROGRID STORAGE
- 4.1.3. INTEREST FROM UTILITIES AND ENERGY COMPANIES
4.2. PORTER'S FIVE FORCES ANALYSIS
- 4.2.1. BUYERS POWER
- 4.2.2. SUPPLIERS POWER
- 4.2.3. SUBSTITUTION
- 4.2.4. NEW ENTRANTS
- 4.2.5. INDUSTRY RIVALRY
4.3. GROWTH PROSPECT MAPPING
- 4.3.1. GROWTH PROSPECT MAPPING FOR UNITED STATES
- 4.3.2. GROWTH PROSPECT MAPPING FOR GERMANY
- 4.3.3. GROWTH PROSPECT MAPPING FOR CHINA
- 4.3.4. GROWTH PROSPECT MAPPING FOR BRAZIL
4.4. MARKET MATURITY ANALYSIS
4.5. MARKET CONCENTRATION ANALYSIS
4.6. VALUE CHAIN ANALYSIS
- 4.6.1. DESIGN & SOFTWARE PROVIDERS
- 4.6.2. PROTOTYPE PRODUCTION
- 4.6.3. DISTRIBUTION
- 4.6.4. APPLICATIONS

5. MARKET BY OFFERING

5.1. ENERGY STORAGE SYSTEM
- 5.1.1. MARKET FORECAST FIGURE
- 5.1.2. SEGMENT ANALYSIS
5.2. BATTERY
- 5.2.1. MARKET FORECAST FIGURE
- 5.2.2. SEGMENT ANALYSIS
5.3. SERVICE
- 5.3.1. MARKET FORECAST FIGURE
- 5.3.2. SEGMENT ANALYSIS

6. MARKET BY BATTERY TYPE

6.1. REDOX
- 6.1.1. MARKET FORECAST FIGURE
- 6.1.2. SEGMENT ANALYSIS
6.2. HYBRID
- 6.2.1. MARKET FORECAST FIGURE
- 6.2.2. SEGMENT ANALYSIS

7. MARKET BY MATERIAL

7.1. VANADIUM
- 7.1.1. MARKET FORECAST FIGURE
- 7.1.2. SEGMENT ANALYSIS
7.2. ZINC-BROMINE
- 7.2.1. MARKET FORECAST FIGURE
- 7.2.2. SEGMENT ANALYSIS
7.3. IRON
- 7.3.1. MARKET FORECAST FIGURE
- 7.3.2. SEGMENT ANALYSIS
7.4. OTHER MATERIALS
- 7.4.1. MARKET FORECAST FIGURE
- 7.4.2. SEGMENT ANALYSIS

8. MARKET BY OWNERSHIP

8.1. CUSTOMER-OWNED
- 8.1.1. MARKET FORECAST FIGURE
- 8.1.2. SEGMENT ANALYSIS
8.2. THIRD-PARTY-OWNED
- 8.2.1. MARKET FORECAST FIGURE
- 8.2.2. SEGMENT ANALYSIS
8.3. GRID/UTILITY-OWNED
- 8.3.1. MARKET FORECAST FIGURE
- 8.3.2. SEGMENT ANALYSIS

9. MARKET BY STORAGE

9.1. LARGE-SCALE
- 9.1.1. MARKET FORECAST FIGURE
- 9.1.2. SEGMENT ANALYSIS
9.2. SMALL-SCALE
- 9.2.1. MARKET FORECAST FIGURE
- 9.2.2. SEGMENT ANALYSIS

10. MARKET BY APPLICATION

10.1. GRID/UTILITY
- 10.1.1. MARKET FORECAST FIGURE
- 10.1.2. SEGMENT ANALYSIS
10.2. COMMERCIAL AND INDUSTRIAL
- 10.2.1. MARKET FORECAST FIGURE
- 10.2.2. SEGMENT ANALYSIS
10.3. EV CHARGING STATION
- 10.3.1. MARKET FORECAST FIGURE
- 10.3.2. SEGMENT ANALYSIS
10.4. OTHER APPLICATIONS
- 10.4.1. MARKET FORECAST FIGURE
- 10.4.2. SEGMENT ANALYSIS

11. GEOGRAPHICAL ANALYSIS

11.1. NORTH AMERICA
- 11.1.1. MARKET SIZE & ESTIMATES
- 11.1.2. NORTH AMERICA FLOW BATTERY MARKET DRIVERS
- 11.1.3. NORTH AMERICA FLOW BATTERY MARKET CHALLENGES
- 11.1.4. NORTH AMERICA REGULATORY FRAMEWORK
- 11.1.5. KEY PLAYERS IN NORTH AMERICA FLOW BATTERY MARKET
- 11.1.6. COUNTRY ANALYSIS
  - 11.1.6.1. UNITED STATES
  - 11.1.6.1.1. UNITED STATES FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.1.6.2. CANADA
  - 11.1.6.2.1. CANADA FLOW BATTERY MARKET SIZE & OPPORTUNITIES
11.2. EUROPE
- 11.2.1. MARKET SIZE & ESTIMATES
- 11.2.2. EUROPE FLOW BATTERY MARKET DRIVERS
- 11.2.3. EUROPE FLOW BATTERY MARKET CHALLENGES
- 11.2.4. EUROPE REGULATORY FRAMEWORK
- 11.2.5. KEY PLAYERS IN EUROPE FLOW BATTERY MARKET
- 11.2.6. COUNTRY ANALYSIS
  - 11.2.6.1. UNITED KINGDOM
  - 11.2.6.1.1. UNITED KINGDOM FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.2.6.2. GERMANY
  - 11.2.6.2.1. GERMANY FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.2.6.3. FRANCE
  - 11.2.6.3.1. FRANCE FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.2.6.4. ITALY
  - 11.2.6.4.1. ITALY FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.2.6.5. SPAIN
  - 11.2.6.5.1. SPAIN FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.2.6.6. NORDIC COUNTRIES
  - 11.2.6.6.1. NORDIC COUNTRIES FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.2.6.7. REST OF EUROPE
  - 11.2.6.7.1. REST OF EUROPE FLOW BATTERY MARKET SIZE & OPPORTUNITIES
11.3. ASIA-PACIFIC
- 11.3.1. MARKET SIZE & ESTIMATES
- 11.3.2. ASIA-PACIFIC FLOW BATTERY MARKET DRIVERS
- 11.3.3. ASIA-PACIFIC FLOW BATTERY MARKET CHALLENGES
- 11.3.4. ASIA-PACIFIC REGULATORY FRAMEWORK
- 11.3.5. KEY PLAYERS IN ASIA-PACIFIC FLOW BATTERY MARKET
- 11.3.6. COUNTRY ANALYSIS
  - 11.3.6.1. CHINA
  - 11.3.6.1.1. CHINA FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.3.6.2. JAPAN
  - 11.3.6.2.1. JAPAN FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.3.6.3. INDIA
  - 11.3.6.3.1. INDIA FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.3.6.4. SOUTH KOREA
  - 11.3.6.4.1. SOUTH KOREA FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.3.6.5. VIETNAM
  - 11.3.6.5.1. VIETNAM FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.3.6.6. THAILAND
  - 11.3.6.6.1. THAILAND FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.3.6.7. INDONESIA
  - 11.3.6.7.1. INDONESIA FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.3.6.8. AUSTRALIA & NEW ZEALAND
  - 11.3.6.8.1. AUSTRALIA & NEW ZEALAND FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.3.6.9. REST OF ASIA-PACIFIC
  - 11.3.6.9.1. REST OF ASIA-PACIFIC FLOW BATTERY MARKET SIZE & OPPORTUNITIES
11.4. REST OF WORLD
- 11.4.1. MARKET SIZE & ESTIMATES
- 11.4.2. REST OF WORLD FLOW BATTERY MARKET DRIVERS
- 11.4.3. REST OF WORLD FLOW BATTERY MARKET CHALLENGES
- 11.4.4. KEY PLAYERS IN REST OF WORLD FLOW BATTERY MARKET
- 11.4.5. REGIONAL ANALYSIS
  - 11.4.5.1. LATIN AMERICA
  - 11.4.5.1.1. LATIN AMERICA FLOW BATTERY MARKET SIZE & OPPORTUNITIES
  - 11.4.5.2. MIDDLE EAST & AFRICA
  - 11.4.5.2.1. MIDDLE EAST & AFRICA FLOW BATTERY MARKET SIZE & OPPORTUNITIES

12. COMPETITIVE LANDSCAPE

12.1. KEY STRATEGIC DEVELOPMENTS
- 12.1.1. MERGERS & ACQUISITIONS
- 12.1.2. PRODUCT LAUNCHES & DEVELOPMENTS
- 12.1.3. PARTNERSHIPS & AGREEMENTS
12.2. COMPANY PROFILES
- 12.2.1. CELLCUBE ENERGY STORAGE SYSTEMS INC
  - 12.2.1.1. COMPANY OVERVIEW
  - 12.2.1.2. PRODUCTS LIST
  - 12.2.1.3. STRENGTHS & CHALLENGES
- 12.2.2. DALIAN RONGKE POWER CO LTD
  - 12.2.2.1. COMPANY OVERVIEW
  - 12.2.2.2. PRODUCTS LIST
  - 12.2.2.3. STRENGTHS & CHALLENGES
- 12.2.3. ELESTOR BV
  - 12.2.3.1. COMPANY OVERVIEW
  - 12.2.3.2. PRODUCTS LIST
  - 12.2.3.3. STRENGTHS & CHALLENGES
- 12.2.4. ENEROX GMBH
  - 12.2.4.1. COMPANY OVERVIEW
  - 12.2.4.2. PRODUCTS LIST
  - 12.2.4.3. STRENGTHS & CHALLENGES
- 12.2.5. ESS TECH INC
  - 12.2.5.1. COMPANY OVERVIEW
  - 12.2.5.2. PRODUCTS LIST
  - 12.2.5.3. STRENGTHS & CHALLENGES
- 12.2.6. INVINITY ENERGY SYSTEMS
  - 12.2.6.1. COMPANY OVERVIEW
  - 12.2.6.2. PRODUCTS LIST
  - 12.2.6.3. STRENGTHS & CHALLENGES
- 12.2.7. LOCKHEED MARTIN CORPORATION
  - 12.2.7.1. COMPANY OVERVIEW
  - 12.2.7.2. PRODUCTS LIST
  - 12.2.7.3. STRENGTHS & CHALLENGES
- 12.2.8. PRIMUS POWER SOLUTIONS
  - 12.2.8.1. COMPANY OVERVIEW
  - 12.2.8.2. PRODUCTS LIST
  - 12.2.8.3. STRENGTHS & CHALLENGES
- 12.2.9. REDFLOW LIMITED
  - 12.2.9.1. COMPANY OVERVIEW
  - 12.2.9.2. PRODUCTS LIST
  - 12.2.9.3. STRENGTHS & CHALLENGES
- 12.2.10. SCHMID GROUP
  - 12.2.10.1. COMPANY OVERVIEW
  - 12.2.10.2. PRODUCTS LIST
  - 12.2.10.3. STRENGTHS & CHALLENGES
- 12.2.11. STRYTEN ENERGY
  - 12.2.11.1. COMPANY OVERVIEW
  - 12.2.11.2. PRODUCTS LIST
  - 12.2.11.3. STRENGTHS & CHALLENGES
- 12.2.12. SUMITOMO ELECTRIC INDUSTRIES LTD
  - 12.2.12.1. COMPANY OVERVIEW
  - 12.2.12.2. PRODUCTS LIST
  - 12.2.12.3. STRENGTHS & CHALLENGES
- 12.2.13. VANADIS POWER GMBH
  - 12.2.13.1. COMPANY OVERVIEW
  - 12.2.13.2. PRODUCTS LIST
  - 12.2.13.3. STRENGTHS & CHALLENGES
- 12.2.14. VIZN ENERGY SYSTEMS
  - 12.2.14.1. COMPANY OVERVIEW
  - 12.2.14.2. PRODUCTS LIST
  - 12.2.14.3. STRENGTHS & CHALLENGES
- 12.2.15. VRB ENERGY
  - 12.2.15.1. COMPANY OVERVIEW
  - 12.2.15.2. PRODUCTS LIST
  - 12.2.15.3. STRENGTHS & CHALLENGES