Flow Batteries Market: Introduction
A flow battery is a rechargeable battery, which is emerging as a substitute for fuel cells and a battery. Different types of flow batteries are available in the market, including redox, hybrid and membrane less. One of the major benefits of using flow batteries is their ability to get instantly recharged by changing the electrolyte liquid. The used electrolytes can be simultaneously returned to the storage tanks, which makes flow batteries more flexible than solid state batteries. As a result, they perform better during deeper discharge cycles, making them a viable option for long duration applications as compared to conventional batteries.
In the recent past, flow batteries have been gaining traction and are finding adoption in utility companies with large systems being deployed and planned for the coming years. Flow batteries are scalable as their capacity can be increased by using a higher amount of electrolyte in the tanks, which is making them perfectly suitable for utility-scale grid applications. Flow batteries offer a longer operational duration and expected life with low total cost of ownership as compared to conventional systems. As flow batteries are becoming less expensive than other storage alternatives, the deployment rate will further increase to cater new wind turbines and solar panels to maintain grid reliability.
Flow Batteries Market: Drivers and Restraints
New electricity generating capacity of local renewable energy producers, such as solar and wind, which experience fluctuating power output will generate the need for flow batteries’ storage systems as they provide frequency regulation and voltage support for utilities. Vanadium flow batteries hold a major share of the market. As a result, the market price of vanadium will be the determining factor for the success of flow batteries among other energy storage technologies. The flow batteries energy storage system requires a high grade electrolyte, which remains short in supply as current production methods are costly for manufacturers. However, recent technical innovations are expected to reduce cost and address other industry needs and, in turn, are anticipated to drive the flow batteries market – making these batteries comparable with already established storage systems, such as lithium-ion batteries. The demand will increase substantially as electrolyte accounts for about one-third of the battery cost. Also, regional partnerships among key players will also play an important role in bringing production scalability and international reach in the flow batteries industry. Over the past few years, various flow battery makers have witnessed an increase in their sales revenue. The market players are entering into new supply chain agreements in an effort to create a vertically integrated supply chain model related to the sale, distribution and manufacturing of flow batteries.
Flow Batteries Market: Segmentation
On the basis of type, the flow batteries market can be segmented into:
On the basis of application, the flow batteries market can be segmented into:
Flow Batteries Market: Region-Wise Outlook
The global flow batteries market is segmented into seven key regions: North America, Latin America, Western Europe and Eastern Europe, Asia Pacific Excluding Japan (APEJ), Japan and Middle East and Africa (MEA). In the coming years, Western Europe, Japan and North America are expected to register significant growth, due to growing environmental concerns and significant demand for industrial applications. APEJ is expected to register significant growth due to the growing demand for flow batteries from end user applications in developing countries, such as China and India. The APEJ market is expected to witness significant growth in the coming years, owing to frequent power outages in the countries and ongoing investment in large scale energy storage systems. Adding to this, the MEA, Latin America and Eastern Europe are also expected to register healthy CAGRs over the forecast period.
Flow Batteries Market: Market Participants
Examples of some of the market participants identified across the value chain of the global flow batteries market include:
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