Flow Battery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028F Segmented By Type (Redox Flow Battery and Hybrid Flow Battery), By Material (Vanadium, Zinc–Bromine and Others), By Storage (Compact and Large Scale), By Application (Utilities, Commercial & Industrial, Military, EV Charging Station and Others), By Region, Competition

Global Flow Battery Market is predicted to proliferate during the forecast period. The growth of the market can be attributed to rising urbanization requiring more energy demand, growing demand for power supply which results in rising the number of data centers, high demand for flow batteries in utilities among others across the globe. A flow battery, or redox flow battery, is a type of electrochemical element in which chemical energy is produced by two chemical components dissolved in liquids, which are pumped through the membrane to different sides of the system. Ion transfer occurs across the membrane as both fluids circulate in their space. The cell voltage is determined chemically by the Nernst equation, and in practical applications, it ranges from 1.0 to 2.43 volts. The energy capacity depends on the volume of the electrolyte and the capacity is a function of the surface area of the electrodes.

The need for a reliable supply has increased, necessitating a growing need for energy backup in all major countries. Flow batteries provide as a backup power source during power interruptions or periods of heavy demand. Lithium-ion batteries and fuel cells are thought to be replaced by the flow batteries. Flow batteries have the unique ability to be scaled up and recharged by adding the required amount of electrolyte, which distinguishes them from other options. The extended operating life and low maintenance needs of flow batteries are other advantages.

Several developed and emerging countries have established green energy objectives; therefore this trend is anticipated to continue on a global level. Flow batteries are generally used for energy storage by utility corporations. This serves as a market driver for the global flow battery market, coupled with the additional benefits of longer operation time and longer life. Global installations of flow batteries have increased as a result of the rising usage of solar and wind energy.

Use of Flow Batteries in Residential Applications is Expanding

Increasing Number of Renewable Energy Projects Across the Globe

Natural resources are used in the renewable technologies to generate electricity. New technologies are needed for green energy. The development of renewable energy sources has driven the need for energy storage systems to store the generated electricity. Therefore, the demand for energy storage systems such as redox flow batteries is high. Ongoing renewable energy generation projects across the globe, are expected to positively impact the market of flow batteries across the globe during the forecast period. In September 2022, the U.S. Department of Energy (DOE) allocated USD17.9 million for four research and development initiatives to expand American production of flow batteries and long-duration storage systems. This financing assists in providing the resources required to build out the system with new, clean energy sources, supply cheap power to underserved populations, and contribute to the Biden Administration’s objective of net-zero carbon emissions by 2050. Furthermore, as of January 31, 2023, the Essar Group, headquartered in Mumbai, established the Essar Energy Transition (EET), and invested a total of USD 3.6 billion in the development of a variety of low-carbon energy transition projects over the course of the upcoming years. Thus, increasing renewable projects has led to a rise in the demand for flow batteries for the forecast period.

Impact of COVID-19 on the Global Flow Battery Market

One of the major impacts of COVID-19 on the global flow battery market has been the disruption of supply chains. The pandemic has caused significant disruptions in the global supply chain, leading to shortages of raw materials, components, and finished goods. This has resulted in delayed delivery of materials, increased lead times, and higher prices due to increased transportation and logistics costs. The COVID-19 pandemic has disrupted the supply chain of the flow battery market across the globe, causing delays in production and transportation, oversupply of inventory, and price volatility. As the world continues to grapple with the pandemic, it is essential for manufacturers and suppliers to adapt to the new normal and find innovative solutions to overcome the challenges caused by the pandemic.

Recent Developments

• On 13^th February 2023, Sumitomo Electric Industries, Ltd. planned to grow its redox flow battery business in the United States and the announcement was made at the DISTRIBUTECH International 2023 Technical Conference. The company has studied the viability of setting up a redox flow battery production line in North America. The company invested approximately USD7.6 million in North America in order to set up a local infrastructure for the manufacturing and installation of redox flow batteries.
• In Feb 2023, a Singapore-based company named VFlowTech announced that it successfully completed a Series A investment round and raised the equivalent of USD10 million. The company intends to use this funding to expand its production of modular, vanadium-based long-term energy storage systems and set up a manufacturing line with a 2 MWh capacity.
• On 1^st August 2022, Cummins Inc, an American MNC involved in designing, manufacturing, & distributing engines, filtration, and power generation products, invested around USD24 million in Germany-based VoltStorage, which was the developer of stationary flow batteries. The funds invested by Cummins were used to create more substantial redox flow storage systems for commercial, agricultural, and residential areas.
• In 2022, Jiajun Cen, a graduate of Imperial College London, launched AquaBattery with USD 2.69 million grant money from the European Innovation Council. In order to achieve a global transition to net-zero renewable energy, the team build a low-cost, long-lasting, sustainable energy storage system. The deep-tech company’s invention employs seawater as the energy storage medium and has various benefits. The flow battery, which utilizes AquaBattery and stores energy in electrolyte liquids, can independently increase power and energy capacity.

Market Segmentation

Company Profiles

VRB Energy, ESS Tech Inc,