Flow Battery Market by Battery Type (Redox, Hybrid), Material (Vanadium, Zinc Bromine, Organic, Iron), Storage (Large-scale, Small-scale), Application (Utilities, Commercial & Industrial, EV Charging Stations) and Region - Global Forecast to 2028
Flow Battery Market
Flow Battery Market and Top Companies
Sumitomo Electric Industries Ltd.
Sumitomo Electric Industries, Ltd. is one of the leading manufacturers of optical fiber cables and electric wires. The company operates through five business segments, namely, Automotive, Info Communications, Electronics, Energy & Environment, and Industrial Materials. It offers redox flow batteries through the Energy & Environment segment. These redox flow batteries are ideal for use in power grid systems and are well known for their safety features, long life, and operation in flexible working environments. Sumitomo Electric offers various products and solutions under various categories that include raw materials, components, modules, end products, and systems. These products and solutions find applications in numerous industries, including automotive, IT, electronics, and energy & environment.
UniEnergy Technologies
UniEnergy Technologies is engaged in the manufacturing of energy storage systems. The company majorly provides grid-scale energy storage systems and new advanced redox flow batteries, which stores electrical energy in the form of liquid electrolytes, to various industry leaders in the related fields. The primary product provided by the company is an advanced vanadium redox flow battery named ReFlex battery. The ReFlex battery finds applications in various micro-grids, utilities, and commercial and industrial projects. The battery is well known for its characteristics such as flexibility and resiliency in the working environment, compact size, safety, 1GWh cycling capacity, and capability of 100kW–10MW storage.
ViZn Energy Systems
ViZn Energy Systems provides safe, versatile, and economical energy storage solutions. The company offers hybrid zinc/iron flow batteries that utilize alkaline electrochemical components dissolved in electrolytes for energy storage. These flow batteries are designed for applications in utilities, microgrids, solar and wind plants, military and public sectors, and industrial and commercial projects. The batteries are known for their robust performance, safety, low lifecycle cost, and high power.
Primus Power
Primus Power is one of the leading providers of low-cost, fade-free, grid-scale, and long-duration energy storage solutions. The company provides a zinc bromide flow battery, namely, EnergyPod2, which exhibits provides long-duration, full power, multi-decade life without any fire risk and electrode stack replacement. The energy storage solutions by Primus Power serve multiple storage applications for numerous commercial and industrial, data center, microgrid, and utility customers. The company is gaining demand for flow batteries on the global level—EnergyPod2 is being shipped worldwide.
ESS, Inc.
ESS, Inc. is one of the leading manufacturers of energy storage systems. The company offers iron flow battery systems as an energy storage solution known for their water-based, non-hazardous, safe, and fully recyclable functioning. It provides these flow batteries for applications in utility-scale, commercial, and industrial projects, microgrids, distributed energy management systems (DERMS), and virtual power plants (VPPs). The iron flow batteries are designed to provide more than 20,000 power cycles and fast electrical response time with low maintenance needs. The batteries are featured to have a life of over 20 years. The solutions offered by the company include the Energy Warehouse (EW) and Energy Center (EC), which act as platforms for energy storage using iron, salt, and water for the electrolyte.
Flow Battery Market and Top applications
Utilities
The role of flow batteries in the utility application segment is mostly as a buffer between the demand for electricity and available energy from the electric grid. The flow batteries have the capability to store and discharge a reliable amount of electricity, which helps utility owners to avoid overproduction. Besides, utilities require batteries that are resilient, have long-operating life, and are capable of dealing with a large amount of renewable energy penetration across the grid. The vanadium redox flow batteries are majorly used in utilities for longer discharge durations. The growing need for electricity in rural and urban areas has increased the focus on the enhancement of the electric grid systems.
Commercial & Industrial
Commercial & Industrial applications are impacted by the interrupted power supply, machine downtime, and blackouts, which can hamper businesses to a large extent as power outages lead to damage to the production lines and products and delay deliveries. Unexpected power dropouts can last from minutes or hours to days or weeks in some locations. Here, flow batteries play a vital role and help commercial and industrial companies reduce utility costs and improve power quality and reliability. They also reduce the risk of production loss during blackouts or shortage of power supply. Battery storage systems facilitate the installation of renewable energy systems for cost-effective and eco-friendly power supply and generation of revenues by selling unused energy or grid-stabilizing services.
Flow Battery by top TYPE
Redox flow battery
Redox flow battery batteries have the capability of converting chemical energy into electrical energy via reversible reduction and oxidation of working fluids. The reaction is reversible, which enables the battery to be charged, discharged, and recharged. The benefits provided by the redox flow battery, such as long operational life with nearly no degradation of electrodes and electrolytes, high safety as it is free of combustible materials, and capability to operate under extreme conditions, have made it ideal for large applications as it scales-up in a more cost-effective manner than other batteries. Redox flow batteries find applications in microgrids, utilities, and commercial and industrial facilities.
[210 Pages Report] The global Flow Battery Market Size is expected to grow from USD 289 Million in 2023 to USD 805 Million by 2028, at a CAGR of 22.8% from 2023 to 2028.
The need for efficient and scalable energy storage systems has increased over the years with the expansion of the energy & power industry. Flow batteries are ideal for this purpose and are currently being adopted in utilities, industrial, commercial, and residential applications. The growing deployment of flow batteries for grid-scale applications across the world is driving market growth.
Flow Battery Market Forecast to 2028
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Market Dynamics
DRIVERS: Growing investments in renewable energy
Storing renewable energy is one of the major applications of a flow battery. Both developed and developing countries, such as the US, India, China, Australia, and Japan, have been revising their energy policies to embrace a considerable portion of energy generation sourced from renewable energy resources, such as wind and solar. Financial support by government bodies and associated long-tem returns worldwide are increasing investments in renewable energy. Renewable sources have become the preferred choice for expanding, upgrading, and modernizing power systems worldwide.
RESTRAINTS: Lack of standards for development of flow battery systems
Various companies manufacture flow batteries, which differ in their functional design, technical specifications, materials, energy storage capacity, etc. Thus, comparing the performance of two flow battery systems or using two different products has become difficult for end customers. This creates the need to develop concrete standards related to flow battery development. It is also observed that the flow battery for different applications varies in function, property, size, and structure; for instance, the flow battery for grid-scale applications differs from the one used for residential applications. Besides, flow batteries are primarily custom-made. The systems are designed according to the requirements of end users, which may also lead to cost variations and compatibility issues.
OPPORTUNITIES: Growing demand for backup power in data centers
Data centers employ energy storage systems as a backup solution to address power outages when diesel power generators stop functioning. The increasing requirement for uninterrupted power supply (UPS) in significant data centers and service providers, aiming to construct more lightweight physical infrastructure while minimizing capital and operational expenses, is projected to open up prospects for battery storage technologies, including flow batteries. Flow batteries offer advantageous attributes such as high energy capacity and storage capabilities that make them well-suited for data center applications. Moreover, given that batteries utilized in data centers are typically replaced every four years in normal conditions, there is an anticipated demand for flow batteries due to their extended minimum lifespan of 20 years.
CHALLENGES: Presence of alternative energy storage technologies
The presence of alternative energy storage technologies poses a significant challenge for flow batteries as it reduces their adoption in various applications. These alternatives include lithium-ion batteries, and lead-acid batteries, each offering its own set of advantages. For instance, lithium-ion batteries are widely preferred due to their higher energy density, lower cost, and faster charge/discharge capabilities. At the same time, lead-acid batteries are known for their affordability and easy maintenance. Consequently, potential customers may opt for these alternatives instead of flow batteries. Furthermore, the manufacturers of flow batteries face fierce competition from the providers of these widely adopted conventional batteries, including lithium-ion, lead-acid, and sodium-based battery technologies.
Flow Battery Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers such as Sumitomo Electric Industries, Ltd. (Japan) and Lockheed Martin Corporation (US). These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Along with the well-established companies, there are a large number of startups and small companies operating in this market such as Redflow Limited (Australia), Invinity Energy Systems (UK), Vanadis Power GmbH (The Netherlands), and Enerox GmbH (Austria).
Hybrid flow batteries segment is expected to grow at a substantial growth rate during the forecast period.
Hybrid flow batteries are the new generation and non-pure forms of flow batteries. In recent years, hybrid flow batteries have gained traction for large-scale energy storage applications. Their capacity to efficiently store substantial amounts of energy and swiftly release it renders them well-suited for grid-scale energy storage, the integration of renewable energy sources, and backup power systems. Moreover, the design of hybrid flow batteries facilitates convenient maintenance and holds the potential for extended operational lifetimes, distinguishing them from other energy storage technologies.
The market for zinc bromine material is projected to gain significant market share during the forecast period.
Zinc bromine flow batteries offer several advantages for energy storage. They feature a circulating electrolyte that allows for easy thermal management and uniform reactant supply. They can store and convert energy effectively with good specific energy and energy efficiency. These batteries are made of low-cost and readily available materials, with recyclable components produced using conventional manufacturing processes. They provide flexibility in system design and can operate at ambient temperatures. Zinc-bromine flow batteries are already available in the market, making them a viable option for energy storage needs.
The market for small-scale storage segment is expected to gain a substantial market share during forecast period
As the name entails, small-scale flow batteries are smaller and portable. They have been recently developed, and mostly hybrid flow batteries are built in a compact storage type. These batteries can be used in EV charging stations, residential, telecommunication, and commercial applications. Many companies are focusing on developing compact/small-scale flow batteries for residential applications, which is expected to boost this segment's growth.
Flow Battery Market by Region
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The market in Asia Pacific is projected to grow with the highest CAGR from 2023 to 2028.
The flow battery market in Asia Pacific has been studied for China, Japan, India, Australia, and the rest of Asia Pacific. The growing demand for flow batteries in the region is attributed to the high adoption of these batteries in major economies such as Japan and Australia. The adoption of flow batteries in these countries is growing rapidly in the utilities, commercial and industrial applications. Furthermore, given the region’s large scale industrial development in developing economies such as China and India is driving the growth of the flow battery market in the region. Additionally, the increasing investments to drive the adoption of renewable energy in the region is further presenting opportunities for the flow battery market to thrive in the forecast period.
Key Market Players
Sumitomo Electric Industries, Ltd. (Japan), VRB Energy (Canada), Invinity Energy Systems (UK), Largo Inc. (Canada), Enerox GmbH (Austria), Redflow Limited (Australia), Stryten Energy (US), ViZn Energy Systems (US), Lockheed Martin Corporation (US), Jenabatteries GmbH (Germany), SCHMID Group (Germany), Elestor BV (The Netherlands), Primus Power Solutions (US), and ESS Inc. (US) are among a few top players in flow battery market.
Flow Battery Market Report Scope:
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Report Metric |
Details |
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Growth Rate |
22.8% |
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Estimated Market Size in 2023 |
USD 289 Million |
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Projected Market Size in 2028 |
USD 805 Million |
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Market Size Available for Years |
2019–2028 |
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Base Year |
2022 |
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Forecast Period |
2023–2028 |
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Units |
Value (USD Million) |
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Segments Covered |
Battery Type, Material, Ownership, Storage, and Application |
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Geographic Regions Covered |
North America, Asia Pacific, Europe, and RoW |
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Companies Covered |
Major Players: Sumitomo Electric Industries, Ltd. (Japan), VRB Energy (Canada), Invinity Energy Systems (UK), Largo Inc. (Canada), Enerox GmbH (Austria), Redflow Limited (Australia), Stryten Energy (US), ViZn Energy Systems (US), Lockheed Martin Corporation (US), Jenabatteries GmbH (Germany), SCHMID Group (Germany), Elestor BV (The Netherlands), Primus Power Solutions (US), ESS Inc. (US) and Others- (Total 26 players have been covered) |
Flow Battery Market Highlights
This research report categorizes the flow battery market by material, battery type, storage, ownership, application and region.
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Subsegment |
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By Battery Type: |
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By Material: |
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By Ownership: |
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By Storage: |
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By Application: |
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Recent Developments
- In June 2023, Invinity Energy Systems provided 2 MWh of energy storage to OPALCO for a solar plus storage project in San Juan County, Washington (US). The project involves installing nine Invinity VS3 vanadium flow batteries alongside a 2.75 MWp solar array on San Juan Island.
- In February 2023, Sumitomo Electric Industries, Ltd. announced the expansion of its redox flow battery business in the US. This expansion will help the company to identify the possibilities of establishing a manufacturing system for redox flow batteries in North America.
- In January 2023, Redflow Limited batteries were installed by an integration partner, Seven20 Electrical, at three radar locations in Yeoval, Hillston, and Brewarrina as part of the BoM’s hybrid solar, battery, and diesel solution.
Frequently Asked Questions (FAQ):
What is the total CAGR expected to be recorded for the flow battery market during 2023-2028?
The global flow battery market is expected to record a CAGR of 22.8% from 2023–2028.
What are the driving factors for the flow battery market?
Growing investments in renewable energy and a surge in remote telecommunication tower installations are some of the driving factors for the flow battery market.
Which application will grow at a fast rate in the future?
The utility application is expected to grow at an impressive CAGR during the forecast period. The growing emphasis on grid modernization in the utility industry is driving the sector's adoption of energy storage systems such as flow batteries.
Which are the significant players operating in the flow battery market?
Sumitomo Electric Industries, Ltd. (Japan), VRB Energy (Canada), Invinity Energy Systems (UK), Largo Inc. (Canada), Enerox GmbH (Austria), and Redflow Limited (Australia) are among a few top players in the flow battery market.
Which region will grow at a fast rate in the future?
The flow battery market in Asia Pacific is expected to grow at the highest CAGR during the forecast period.
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The study involved four major activities in estimating the current size of the flow battery market. Exhaustive secondary research has been done to collect information on the market, peer, and parent markets. The next step has been to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches have been employed to estimate the total market size. After that, market breakdown and data triangulation methods were used to estimate the market size of segments and subsegments. Two sources of information-secondary and primary-have been used to identify and collect information for an extensive technical and commercial study of the flow battery market.
Secondary Research
Secondary sources include company websites, magazines, industry news, associations, and databases (Factiva and Bloomberg). These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, articles by recognized authors, regulatory bodies, trade directories, and databases. Secondary research helps in identifying the key players, their product offerings, and recent developments. It also assists in identifying the key drivers, restraints, opportunities, and challenges that are influencing market growth.
Primary Research
Primary sources mainly consist of several experts from the core and related industries, along with preferred flow battery providers, distributors, alliances, standards, and certification organizations related to various segments of this industry’s value chain.
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts such as Chief Experience Officers (CXOs), Vice Presidents (VPs), and Directors from business development, marketing, product development/innovation teams, and related key executives from flow battery providers, such as Sumitomo Electric Industries, Ltd. (Japan), ViZn Energy Systems (US), Primus Power Solutions (US), ESS Inc. (US), and Redflow Limited (Australia); research organizations, distributors, industry associations, and key opinion leaders. Following is the breakdown of primary respondents.
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Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the total size of the flow battery market. These methods have also been used extensively to estimate the size of various subsegments in the market. The following research methodology has been used to estimate the market size:
- Major players in the industry and markets have been identified through extensive secondary research.
- The industry’s value chain and market size have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the overall market has been split into several segments and subsegments. The market breakdown and data triangulation procedures have been employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The market has also been validated using both top-down and bottom-up approaches.
Top-Down Approach
In the top-down approach, the overall market size has been used to estimate the size of the individual market (mentioned in market segmentation) through percentage splits from secondary and primary research. For specific market segments, the size of the most appropriate immediate parent market has been used to implement the top-down approach. The bottom-up approach has also been implemented for data obtained from secondary research to validate the market size of various segments.
Bottom-Up Approach
The bottom-up approach has been used to arrive at the overall size of the flow battery market from the revenues of the key players and their market shares. Calculations based on revenues of key companies identified in the market led to the estimation of their overall market size.
Market Definition
A flow battery is an electrochemical cell that comprises two chemical components dissolved in a liquid within the system and separated by a membrane. The flow battery technology relies on an electrode and electrolyte that store active chemicals separately until power is needed. They exchange ions across the membrane, thereby generating electricity. Flow batteries are considered safer than most used lithium-ion batteries as they are resistant to high temperatures and exhibit a longer operational life, making them suitable for storing and releasing renewable energy from solar panels and wind turbines.
Key Stakeholders
- Flow Battery Manufacturers
- Government Bodies and Policymakers
- Industry-standard Organizations, Forums, Alliances, and Associations
- Market Research and Consulting Firms
- Raw Material Suppliers and Distributors
- Research Institutes and Organizations
- Testing, Inspection, and Certification Providers
- Distributors and Resellers
- End Users
Report Objectives
- To define and forecast the flow battery market regarding battery type, material, storage, and application.
- To describe and forecast the flow battery market and its value segments for four regions—North America, Europe, Asia Pacific, and the Rest of the World (RoW), along with their respective countries.
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze micro-markets concerning individual growth trends, prospects, and contributions to the overall market
- To study the complete value chain and allied industry segments of the flow battery market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the market
- To strategically profile key players and comprehensively analyze their market position regarding ranking and core competencies, along with a detailed market competitive landscape.
- To analyze strategic approaches such as agreements, collaborations, and partnerships in the flow battery market
- To provide an analysis of the recession impact on the growth of the market and its segments
Available Customizations
Based on the given market data, MarketsandMarkets offers customizations in the reports according to the client’s specific requirements. The available customization options are as follows:
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Flow Battery Market