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, 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 Growth & Trends

The global flow battery market size is anticipated to reach USD 1.66 billion by 2030, according to a new report by Grand View Research, Inc. It is projected to grow at a CAGR of 22.6% over the forecast period. Advantages of flow batteries, such as scalability, over conventional batteries are expected to drive the market growth during the forecast period. Flow batteries are highly scalable, making them suitable for a variety of applications, from residential and industrial energy storage to utility-scale projects. This scalability allows them to be customized to match the specific energy storage needs of different users and applications. Increasing investments in renewable energy are one of the primary factors driving the market growth.

Renewable energy storage constitutes a major application of flow batteries. Many countries, including the U.S., China, India, Australia, and Japan, are actively revising their energy policies to adopt a substantial share of energy generation from renewable resources, such as wind and solar. As per the International Energy Agency (IEA), there is a projected global investment of approximately USD 2.8 trillion in the energy sector for the year 2023. Out of this total, over USD 1.7 trillion is anticipated to be directed toward clean technologies, such as renewables, electric vehicles (EVs), nuclear power, grid infrastructure, energy storage, low-emission fuels, enhancements in energy efficiency, and heat pump systems.

Flow Battery Market Report Highlights

• The market was estimated at USD 328.1 million in 2022 and is expected to reach USD 1.66 billion in 2030 at an estimated CAGR of 22.6% from 2023 to 2030 owing to the increasing demand for energy storage systems and the rising investments in renewable energy
• Based on type, the redox segment dominated the market in 2022. This is due to the widespread commercial availability and the broad range of applications of redox flow batteries in the utility, industrial, and commercial sectors
• The vanadium material segment is expected to grow at the fastest CAGR of 23.0% over the forecast period due to various advantages of vanadium flow batteries, including long cycle life, high scalability, operational flexibility, grid integration, and affordable cost, among others
• The small-scale storage segment is expected to grow at the fastest CAGR of 23.0% during the forecast period. Small-scale flow batteries are smaller and more portable. These batteries can be easily deployed in EV charging stations, residential buildings, and the telecommunications sector
• The grid/utility application segment dominated the market and accounted for a share of 58.8% in 2022 due to various factors, such as its pivotal role in grid integration, supporting grid resilience, reducing energy transmission expenses, realizing environmental advantages, and offering remarkable scalability
• The market is highly fragmented with the presence of several major players, such as Sumitomo Electric Industries, Ltd., Cell Cube (Enerox GmbH), and Redflow Ltd. as well as a number of small- and medium-sized global and regional players
• Mergers, acquisitions, and the introduction of new products are the major strategies undertaken by key players to strengthen their market presence
• For instance, 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

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