Redox flow batteries are rechargeable batteries with long service life & almost no degradation of electrodes & electrolytes. It also provides high safety due to no combustible materials presence. The growing concern for energy storage facilities and the inclination of countries towards generating maximum power from renewable energy resources have positively influenced the market growth of redox flow batteries.
The Global Redox Flow Battery market is projected to grow at a CAGR of around 13.27% during the forecast period, i.e., 2022-27. It has experienced significant growth during the historical period, owing to the large-scale deployment of wind & solar energy-based projects worldwide. The intermittent nature of renewable energy resources, such as solar & wind, has caused grid instability, which has further created the concern for the need of implementing energy storage facilities. Further, the incorporation of energy storage devices, such as redox flow batteries to store energy during peak hours of generation from solar & wind energy, such as high solar irradiance during daytime & highly variable wind speeds in windy regions, have been vastly executed in the solar & wind energy-based power plants.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: The US, Canada, Mexico|
|Europe: Germany, The UK, France, Russia, Rest of Europe|
|Asia-Pacific: China, Japan, India, Australia, Rest of Asia Pacific|
|South America: Brazil, Argentina, Rest of South America|
|Middle East & Africa: Israel, GCC, South Africa, Rest of The Middle East & Africa|
|Key Companies Profiled||
Sumitomo Electric, ViZn Energy, Primus Power, VRB Energy, Invinity Energy Systems, Lockheed Martin, Storion Energy, Cellcube – Enerox GmbH, EverFlow Energy, ESS Inc., Redflow Technologies
|Unit Denominations||USD Million/Billion|
Moreover, the numerous advantages of redox flow batteries like long-duration energy storage facilities & cost-effectiveness over other battery storage systems have been some of the prominent factors that facilitated the demand for redox flow batteries globally. Additionally, due to the several advantages of redox flow batteries, investments have also been made by the leading players in renewable energy resources, which has accelerated the business of redox flow batteries. For instance, in 2021, Thailand-based renewable energy-based company BCPG announced the investment of around USD24 million into VRB Energy, a manufacturer of vanadium redox flow batteries, to support the expansion of VRB Energy’s manufacturing capabilities.
Further, BPCG has been actively involved in projects based on solar, wind, geothermal, and hydroelectric technologies with projects in Thailand, Japan, Laos, the Philippines, and Indonesia. Thus, such investments by the leading renewable energy companies in the coming years would positively impact the growth of the Global Redox Flow Battery market in the forecast years, owing to its major benefits, such as cost-effectiveness.
Key Trend in the Market
The growing & continuous exhaustion of available energy resources leads to a serious global energy crisis. The rising research & development activities across countries focused on developing new & renewable energy resources to cater to the ongoing fuel demand to reduce greenhouse gas emissions. In addition, with the increasing inclination of the population towards electric vehicles, the demand for storage batteries is rising significantly. Hence, countries are stimulating new research for the development of hybrid redox batteries that can be used both electrically & mechanically in electric vehicles.
Impact of Covid-19 on the Global Market
The outbreak of COVID-19 negatively affected the global economies & disrupted the global supply chains. One of the most noticeable consequences of COVID-19 was the delay in the supply chain in the energy sector. Moreover, the shutdown of manufacturing facilities has negatively impacted the demand for redox flow batteries. However, the demand for the consumption of energy decreased considerably during the emergence of the COVID-19 pandemic, which led to the reduction of carbon emissions from the environment. According to International Energy Agency (IEA), around 7% of the decline in global carbon emissions generated from fossil fuels was recorded in 2020.
Thus, COVID-19 plays a significant role in reducing carbon emissions from the environment as well as increasing the dependency of manufacturing units for electricity supply on renewable sources. Hence, to minimize carbon emissions post-COVID-19, the demand for renewable energy sources has surged significantly, positively impacting the redox flow batteries market.
Based on Battery Type:
Of them all, vanadium redox flow batteries have captured a significant share in the Global Redox Flow Battery market since 2017 due to their several advantages, including higher energy efficiency, long life cycles, and flexible compatibility with solar & wind power systems. Furthermore, vanadium redox flow batteries have been deployed widely in energy storage locations powered by solar power due to their benefits. Thus, the benefits of vanadium redox flow batteries are expected to prevail in the Global Redox Flow Battery market in the forthcoming years.
Based on the End User:
Among them, the Renewable Power Plants end-user seized a significant share in the Redox Flow Battery market. The deployment of commercially large scale renewable power plants such as solar & wind has led to the noticeable demand for redox flow batteries over the last few years to control the high penetration caused to the power sector due to the intermittent nature of renewable energy resources. Therefore, to overcome the challenge of high penetration by renewable energy resources, redox flow batteries have been incorporated with the system to store surplus power generated by the renewable energy resources due to its benefits such as longevity in the operation cycle, compatibility with heavy-duty work, etc.
Hence, to overcome or mitigate the challenge of storing a large amount of power generated by solar & wind power plants during favorable weather conditions, the demand for redox flow batteries would exponentially grow in the forecast years.
Geographically, the Global Voice Biometrics Market expands across:
Of all the regions across the globe, Asia-Pacific holds the largest share of the Redox Flow battery market. The major factor accelerating the market of redox flow batteries in the Asia-Pacific is the large-scale redox flow battery installations with high power ratings. Furthermore, the expansion of solar plants & wind power plants, as a result of surging carbon dioxide emissions, has also propelled the demand for redox flow batteries in the Asia-Pacific region during the historical years.
In addition, during 2017-21 the redox flow battery market witnessed a steady growth in the North American region due to its growing adoption for storage purposes in renewable power plants & its 100% recycling nature. The redox flow battery has been able to store & supply the electricity to the power grid in the case of excess & deficit production depending on the climatic changes. Besides, the redox flow batteries have also been used for load shifting, frequency regulation, and voltage regulation in these power plants.
Moreover, the ongoing R&D for technological advancement in countries such as China, Japan, Australia, the US, Canada, etc., has been a prime factor in the growth of the Redox Flow Battery market across the globe. Further, the research & development in the field of redox flow batteries has been growing drastically in order to make cost-effective & a perfect alternative to lithium-ion batteries. For instance:
Recent Developments by the Leading Companies
Key Driver: High Demand for Eco-friendly Energy Storage Systems in Solar & Wind Power Plant
The increasing demand for environmental-friendly energy storage systems in solar & wind power plants boosted the market for redox flow batteries during the historical period, owing to its benefits like low carbon emissions in comparison with other energy storage systems. Furthermore, the eco-friendly solution to generate electricity from renewable sources such as wind & solar is desirable. Thus, storing the surplus electricity generated from renewable resources requires a proper energy storage system. Further, to cater to the growing requirement of the storage system, the redox flow battery serves the purpose of an enhanced capacity solution.
Thus, companies across the globe started developing redox flow batteries with enhanced energy storage capabilities for integration with solar & wind power plants, which led to a surge in the market for redox flow batteries for solar & wind power plants, which is expected to continue throughout the forecast period. For instance:
Possible Restraint: High Initial Investment Required for Manufacturing of Redox Flow Batteries
Redox flow batteries are evolving as one of the possible alternatives for conventional batteries. However, the initial cost required for the manufacturing of Redox flow batteries acts as one of the restraining factors in its market growth. In addition, the components & chemicals required for the production of redox batteries constitute relatively high prices. Thus, posing a challenge for small & medium-scale enterprises to add extensive investment to the manufacturing of redox flow batteries.
Growth Opportunity: Adoption of Hybrid Redox Flow Batteries in Electric Vehicles
The rising demand for renewable energy sources to reduce carbon emissions has impelled the demand for redox flow batteries. In addition, with the growing demand for electric vehicles in the regions like North America, Asia-Pacific, the Middle East & Africa, etc., the need for renewable energy solutions has paved the way for the adoption of hybrid redox flow batteries. Additionally, in order to accommodate the increasing amount of renewable energy, scientists are investigating energy storage solutions that could pave the way for future applications in electric vehicles. For instance:
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Redox Flow Battery Market is expecting around 13.27% CAGR during 2022-27.
A. The battery type segment is anticipated to emerge as an opportunity area for the leading players in the market during the forecast period.
A. The growth opportunity driving the Global Redox Flow Battery Market includes the rising adoption of redox flow batteries in electric vehicles to reduce the carbon emissions from the environment.