Flow Battery Market Size, Share & Trends Analysis Report By Type (Redox, Hybrid), By Material (Vanadium, Iron), By Application (Residential, Grid/Utility), By Storage (Large, Small), By Region, And Segment Forecasts, 2023 - 2030

Flow Battery Market Size & Trends

The global flow battery market size was valued at USD 328.1 million in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 22.6% from 2023 to 2030. The rising demand for energy storage systems globally is the primary factor for market growth. According to the U.S. Department of Energy, the market for global energy storage is projected to reach over 2,500 GWh by 2030. In addition, the increasing number of electric vehicle (EV) charging stations in the world is propelling the market growth. As per the International Energy Agency (IEA), by the end of 2022, the worldwide total of public charging points for EVs had reached 2.7 million units. Approximately 900,000 of these charging points were newly installed in 2022 alone, signifying a significant 55% increase compared to the existing infrastructure from 2021.

A flow battery is a rechargeable energy storage system where an electrolyte flows through one or multiple electrochemical cells originating from one or more reservoirs or tanks. These batteries are used exclusively in stationery markets and are typically aqueous-based. Flow batteries are ideal for storing energy from renewable sources, such as wind and solar. They allow for the efficient storage of surplus energy produced during periods of high generation, for use during periods of low production or high demand, helping stabilize the grid and enhancing the reliability of renewable energy sources. These batteries can provide backup power in case of power outages. These batteries can be rapidly deployed and provide continuous power for long durations, making them a valuable product for critical infrastructures and grid operators.

The demand for these batteries is increasing due to their various advantages over conventional batteries. Some of the primary advantages of flow batteries include scalability, long cycle life, low maintenance, sustainability, energy arbitrage, and peak shaving, among others. The demand for flow batteries is increasing in EV charging stations due to their rapid charging capabilities, scalability, energy cost optimization, and environmental sustainability. The high cost associated with flow batteries is one of the major factors that is expected to hinder market growth. These batteries are expensive to manufacture and install, particularly when compared to other energy storage technologies such as lead-acid batteries and lithium-ion batteries.

Material Insights

The vanadium segment accounted for the maximum share of over 63.2% of the overall revenue in 2022. The majority of flow batteries incorporate vanadium as an electrolyte material. Vanadium redox flow batteries (VRFBs) are commonly utilized in grid energy storage systems. These flow batteries have garnered attention as a promising energy storage technology owing to their unique design and characteristics. The major factors contributing to their predominant use in flow batteries include a wide range of oxidation states, high chemical stability, lower cost compared to hybrid electrolytes, absence of cross-contamination, abundance, environmental compatibility, recyclability, and commercial availability, among other advantages.

Some of the major players offering vanadium flow batteries include WattJoule Corporation, Invinity Energy Systems, VRB ENERGY, Stryten Energy, and Largo Inc., among others. In March 2020, redT Energy, a UK-based energy storage solutions provider, and Avalon Battery, a US-based company, entered into a merger agreement, uniting their businesses to create a global company with a total value of over USD 60.0 million. The merged entity is now officially named Invinity Energy Systems, to establish itself as a leading provider of vanadium flow batteries.

The zinc-bromine segment is expected to grow at a CAGR of 22.7% over the forecast period. Zinc bromine flow batteries are the second-most common flow batteries. Zinc and bromine are more abundant; thus, the cost of zinc-bromine flow batteries is slightly lower as compared to vanadium flow batteries. Increasing demand from the grid/utility sector is expected to propel the segment growth over the forecast period. Zinc and bromine are more environmentally friendly materials than vanadium, and the recycling of zinc-bromine batteries is more straightforward. Zinc-bromine batteries are less prone to corrosion issues compared to vanadium flow batteries, leading to improved reliability.

Type Insights

The redox segment accounted for the maximum share of over 78.3% of the overall revenue in 2022. This is due to its wide range of application areas. Most of the flow batteries used in various industries are vanadium flow batteries, which belong to the category of redox flow batteries. The operation of a flow battery is primarily based on redox reactions, which stands for reduction-oxidation reactions. Flow batteries are often interchangeably referred to as redox flow batteries (RFBs) due to the chemical reactions involved in their operation. Some of the major players offering redox flow batteries are Sumitomo Electric Industries, Ltd., Enerox GmbH, VRB ENERGY, and Stryten Energy, among others.

In December 2022, Enerox GmbH (CellCube), a renowned company operating in vanadium redox flow batteries (VRFB), and North Harbour Clean Energy PTY (NHCE), an Australian company specializing in clean energy storage, have entered into a strategic agreement. This agreement aims to establish a manufacturing facility and an assembly in Eastern Australia, to meet the growing demand for extended energy storage measured in gigawatt-hours (GWh) within the National Electricity Market (NEM).

Hybrid flow batteries incorporate two different materials within a single battery. Examples of hybrid flow batteries include zinc-bromine batteries, iron-chromium batteries, zinc-cerium batteries, bromine-polysulfide batteries, and manganese-hydrogen peroxide batteries, among others. In hybrid flow batteries, the anode and cathode are made of different materials. For instance, a zinc-cerium flow battery uses a zinc-based anode and a cerium-based cathode. Some of the players operating in the hybrid flow batteries include Redox One, Deeya, and Primus Power, among others.

Storage Insights

The large-scale storage segment accounted for the maximum share of over 61.6% of the overall revenue in 2022. This can be attributed to the scalability of large-scale batteries over their smaller counterparts. Flow batteries often benefit from economies of scale; as the system size increases, the cost per unit of energy capacity decreases. Consequently, they prove to be more cost-effective for larger installations where the initial investment can be justified by the increased capacity and longer cycle life. Large-scale flow batteries are extensively utilized within the grid and utility sector, offering various benefits, such as grid stability, mitigation of fluctuations, renewable energy generation, and provision of power during peak demand.

These grid services typically necessitate higher energy capacity and power output, both of which large-scale flow batteries can effectively provide. The small-scale segment is expected to grow at the fastest CAGR of 23.0% over the forecast period. Small-scale flow batteries are smaller and more portable. These batteries find applications in EV charging stations, residential buildings, and the telecommunications sector, among others.

Application Insights

The grid/utility segment emerged as the leading application segment and accounted for the maximum share of over 58.8% of the overall revenue in 2022. This dominance can be attributed to various factors, including the flow battery’s pivotal role in grid integration, supporting grid resilience, reducing energy transmission expenses, realizing environmental advantages, and offering remarkable scalability. Flow batteries provide a reliable and efficient means of storing electrical energy. They can absorb excess electricity when supply exceeds demand and release it when needed, thereby helping stabilize the electrical grid.

This is crucial for maintaining grid reliability, especially when integrating intermittent renewable energy sources like solar and wind. Flow batteries are effective at peak shaving, and ultimately help grid infrastructure. The EV charging stations segment is expected to grow at the fastest CAGR of 24.5% during the forecast period. This growth can be attributed to the increasing production and adoption of electric vehicles worldwide. In addition, government support for renewable resources and electric vehicles is expected to boost the demand, subsequently leading to an increase in the number of EV charging stations. Flow batteries are effective for EV charging stations as they are compact, highly scalable, and environmentally friendly.

Regional Insights

Asia Pacific dominated the market and accounted for a market share of 39.1% in 2022. This can be attributed to the high adoption of flow batteries in major economies such as China, Australia, and Japan. The adoption of these batteries is rapidly increasing in these economies, particularly in utility, industrial, and commercial applications. In addition, various government investments in flow batteries are expected to further propel the market growth. For instance, in August 2023, the Australian government invested USD 24 million in its local flow battery industry. This investment in locally manufactured flow batteries will enhance Queensland's domestic battery capacity, aiding the state in fulfilling its renewable energy commitments.

Europe is expected to grow at a CAGR of 22.7% during the forecast period. Europe is increasingly emphasizing renewable energies, to become the world's first climate-neutral region by 2050, as outlined by the European Commission. In addition, according to the data from the European Environment Agency (EEA), 22% of the EU's energy consumption was derived from renewable sources in 2021. Furthermore, the percentage of energy from renewables used in EU transportation surged from less than 2% in 2005 to 10.2% in 2020. All these factors are expected to drive the demand for flow batteries in the region during the forecast period.

Key Companies & Market Share Insights

The market is highly competitive, with a large number of manufacturers accounting for a majority of the industry share. Mergers, acquisitions, capacity expansions, and innovations are the major business strategies used by key players to grow & maintain their global reach. Some of the prominent participants in the global flow battery market include:

• ESS Inc.

• Redox One

• WattJoule Corporation

• Invinity Energy Systems

• Largo Inc.

• Primus Power

• Sumitomo Electric Industries, Ltd.

• Cell Cube (Enerox GmbH)

• Redflow Ltd.

• VRB Energy

• Elestor

• Jenabatteries GmbH

• Lockheed Martin Corporation

• EverFlow

• Stryten Energy

• ViZn Energy Systems

Flow Battery Market Report Scope

Global Flow Battery Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global flow battery market report on the basis of type, material, storage, application, and region:

• Type Outlook (Volume, KWh; Revenue, USD Million, 2018 - 2030)

  • Redox

  • Hybrid

• Material Outlook (Volume, KWh; Revenue, USD Million, 2018 - 2030)

  • Vanadium

  • Zinc Bromine

  • Iron

  • Others

• Storage Outlook (Volume, KWh; Revenue, USD Million, 2018 - 2030)

  • Large Scale

  • Small Scale

• Application Outlook (Volume, KWh; Revenue, USD Million, 2018 - 2030)

  • Grid/Utility

  • Commercial & Industrial

  • EV Charging Stations

  • Residential

• Regional Outlook (Volume, KWh; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Norway

    • The Netherlands

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • Thailand

    • South Korea

    • Indonesia

    • Malaysia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE