Global Flow Batteries Market to Reach $961.9 Million by 2026

A flow battery is an electrochemical cell where two chemical components provide chemical energy through dissolution in liquids pumped by a system on different membranous sides. Advantages such as instant recharging capability, a longer lifecycle, as also more discharge hours are propelling growth in the global market. Such batteries are suited best for addressing the intermittent nature of renewable energy sources and also for addressing the needs of micro-grid applications. The growing investments into renewable energy projects thus represents a key factor fueling growth in the market. With flow batteries becoming cheaper than other assorted storage alternatives, their deployment rate will increase further for catering to the newer solar panels and wind turbines for maintaining grid reliability. The market is also witnessing growth led by the growing use of flow batteries in electric vehicle applications. The growing installations of telecommunications towers that have a flow battery as an alternative source of energy are also fueling market growth.

Amid the COVID-19 crisis, the global market for Flow Batteries estimated at US$290.5 Million in the year 2020, is projected to reach a revised size of US$961.9 Million by 2026, growing at a CAGR of 22.7% over the analysis period. Vanadium, one of the segments analyzed in the report, is projected to grow at a 22.4% CAGR to reach US$819.7 Million by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the ZINC-BROMINE segment is readjusted to a revised 24.1% CAGR for the next 7-year period. This segment currently accounts for a 23.1% share of the global Flow Batteries market. Vanadium-based flow batteries segment is expected to grow significantly due to the distinct advantages offered by the battery, particularly for large stationary applications. Vanadium redox flow batteries are the frontrunners in energy storage and their demand is high in the markets for off-grid, utility, and mini-grids. Zinc-bromine is expected to record strong growth as most manufacturers opt for zinc-bromine over vanadium owing to the latter`s high cost and limited availability. Additionally, zinc-bromine flow batteries have been used more in the past in applications like grid, residential, industrial, commercial, and microgrid.

The U.S. Market is Estimated at $63.4 Million in 2021, While China is Forecast to Reach $162.5 Million by 2026

The Flow Batteries market in the U.S. is estimated at US$63.4 Million in the year 2021. The country currently accounts for a 20.6% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$162.5 Million in the year 2026 trailing a CAGR of 27.5% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 19.6% and 21.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 21.4% CAGR while Rest of European market (as defined in the study) will reach US$213.8 Million by the end of the analysis period. The Asia-Pacific region has numerous flow battery-based installations having larger power ratings. Australia operates the largest number of flow battery-based projects for its residential, utilities, commercial, and industrial applications, whereas, China has the largest capacity of flow batteries installations until date. The need to store renewable energy is a major driving factors for flow batteries market in the region.

By Application, Utilities Segment to Reach $383.7 Million by 2026

Due to their large and heavy features, flow batteries are considered to be suitable for utilities as well as commercial and industrial customers seeking long-term and long hours of energy storage. The presence of vanadium electrolyte in most flow batteries is capable of ensuring reliable charging and discharging for several cycles without degradation. This is made possible due to vanadium`s electrochemical attributes that make it easy for removal of electrons from the element and subsequently placing them back. In the global Utilities (Application) segment, USA, Canada, Japan, China and Europe will drive the 23.4% CAGR estimated for this segment. These regional markets accounted for a combined market size of US$90.8 Million in the year 2020. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$40 Million by the year 2026.