Flow Battery Market Size, Share and Growth Analysis

Updated on : October 22, 2024

Flow Battery Market Size & Growth

The global Flow Battery Market Size is expected to grow from USD 289 Million in 2023 to USD 805 Million by 2028, growing at a CAGR of 22.8% during the forecast period 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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Flow Battery Market Trends and 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).

Flow Battery Market Segmentation

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 flow battery 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 Statistics by Region

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Flow Battery Industry Regional Analysis

The flow battery market in Asia Pacific is projected to grow with the highest CAGR from 2023 to 2028.

The flow battery industry 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 flow battery market growth 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. 

Top Flow Battery Companies - 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),
• ESS Inc. (US) are among a few top players in flow battery companies.

Flow Battery Market Report Scope:

Flow Battery Market Highlights

This research report categorizes the flow battery market by material, battery type, storage, ownership, application and region.

Recent Developments in Flow Battery Industry

• 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.

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