Home Energy And Power Redox Flow Batteries Market Size, Share & Trends Report, 2031

Redox Flow Batteries Market

Redox Flow Batteries Market Size, Share & Trends Analysis Report By Type (Vanadium Redox Flow Battery, Hybrid Redox Flow Battery), By Application (Utility Services, Renewable Energy Integration, UPS, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SREP55536DR
Study Period 2019-2031 CAGR 24.53%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 371.6 Million
Forecast Year 2031 Forecast Year Market Size USD 1834 Million
Largest Market Asia Pacific Fastest Growing Market Europe
The sample report only takes 30 secs to download, no need to wait longer.

Market Overview

The global redox flow batteries market size was valued at USD 371.6 million in 2022. It is estimated to reach USD 1,834 million by 2031, growing at a CAGR of 24.53% during the forecast period (2023–2031). The high adoption of vanadium redox flow batteries in energy storage solutions and the ongoing projects, investments, and development of redox flow batteries promote market growth.

Batteries are composed of cells that work together to store energy and provide it when required. One variety of electrochemical cells is known as a redox flow battery. In this cell, two chemical components work together to produce chemical energy, which is then dissolved in a liquid-confined system and partitioned off by a membrane. The anode and cathode are the two electric components that make up this system, which is referred to as a stack. Each of these components has its tank on its own. The battery also includes a bipolar plate and a membrane as additional components. The desired amount of power production ultimately decides the battery's capacity, influencing the number of stacks and their overall size.

The phrase "redox flow battery" relates to the redox reaction, which denotes a change in the oxidation level of a chemical, also known as reduction and oxidation. The term "redox" is used to describe the redox reaction. During this process, electrons are moved from one element to another, and the entire configuration produces energy.

Market Dynamics

Global Redox Flow Batteries Market Drivers

High Adoption of Vanadium Redox Flow Batteries in Energy Storage Solutions

Rechargeable vanadium redox flow batteries store chemical energy using vanadium ions in multiple oxidation states. It works for large-scale energy storage in utility, commercial, industrial, and residential applications. Its low thermal runaway danger makes it an energy storage leader. Due to chemical spillage, thermal runaway fires batteries. In cross-contamination, severe heat, or pressure, this battery's electrolytes are more than 50% water, making them non-flammable. As safety becomes more critical, vanadium redox flow batteries are appropriate for major battery firms. As energy storage safety standards tighten, water-based vanadium redox flow batteries are chosen due to their non-flammability.

Energy generation has increased rapidly due to residential and industrial energy needs. Thus, safer energy storage devices are needed worldwide. Thus, vanadium redox flow batteries are favored in renewable energy storage for their extended lifespan and safety. Renewable energy companies use them to store clean, sustainable energy for convenient consumption. Global redox flow battery adoption is driven by renewable energy generation. Due to the focus on cleaner energy, renewable energy generation is growing at nearly 6% and could reach 8% in the next decade.

Ongoing Projects, Investments, and Development on Redox Flow Battery

Research and development are still being conducted on other forms of batteries, including hybrid redox batteries. The vanadium redox flow battery, which has already been built, is the sole technology that may be considered an exception to this rule. Due to this, manufacturers are investing money into researching and developing both kinds of batteries to reach their maximum potential. This is done for the batteries to compete effectively with one another. Recent years have witnessed many developments in redox flow batteries, reported on by various sources. Recent changes, such as investments, mergers, and project expansions, contribute to increased customer demand for the product. Commercializing redox flow batteries has been considerably aided by introducing new developments, leading to a change away from alternative battery technologies and toward a higher reliance on the former. This shift has resulted in a stronger reliance on redox flow batteries.

Global Redox Flow Batteries Market Restraint

Limitation of Vanadium Redox Flow Batteries

Given that vanadium redox flow batteries (VRF batteries) are the only variety of redox flow batteries produced. The global redox flow battery industry is expanding, but there are a few restrictions attached to it that are preventing it. For instance, their acceptance is hampered by their restricted use in small-scale applications and low efficiency compared to their substitute, particularly lithium-ion batteries, which restrains the market's expansion. VRF batteries also demand much space, making them unsuitable for mobile applications and useless in small-scale applications between 100kW and 10 MW. Vanadium, another costly metal used as a significant component in VRF batteries, adds to the overall cost of the finished battery product. These elements work together to restrict the use of VRG batteries, creating a chance for different battery technologies.

Global Redox Flow Batteries Market Opportunities

Possibility of Use in Electric Vehicles

The introduction of electric vehicles has been heralded as a watershed period in the history of the automotive sector. The two primary reasons contributing to the rise of electric vehicles as a viable transportation option are the need to minimize carbon footprints and the increase in government attempts to lessen dependence on fuel-based cars. The electric car industry is experiencing substantial growth due to the rise in customer adoption of these vehicles.

Since the deployment of redox flow batteries requires a significant amount of space, their usage in electric cars is currently restricted due to this requirement. Ongoing developments on this sort of battery, which are anticipated to improve the potential applications of redox flow batteries in electric vehicles, can alleviate this problem, though, and they are now underway.

Regional Analysis

Based on region, the global redox flow batteries market is bifurcated into North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific Dominates the Global Market

Asia-Pacific is the most significant Global Flow Batteries Market shareholder and is estimated to exhibit a CAGR of 15.70% over the forecast period. The Asia-Pacific region has widely adopted more economically viable battery technologies for energy storage. Both lead-acid and redox flow batteries have superior qualities in terms of their energy capacity. China is home to the world's largest redox battery project, which is currently operational. This is one of the key factors contributing to this region's greatest market. Rongke Power, a company based in China, and the government of China are working together to create the world's largest redox flow battery.

In addition, the Research and Development Forum of the Australian Federal Government has approved a project known as Gobinathan Vanadium. This project aims to create a high-purity vanadium pentoxide redox flow battery. These programs are helping to spread awareness about redox batteries throughout the region and contribute to adopting these batteries. The Asia-Pacific region is still in the process of growing economically and is one that is susceptible to price changes. Considering this, high-priced batteries such as lithium-ion have been reporting sluggish acceptance in this region. This further presents an opportunity for redox flow batteries to be utilized in energy storage applications.

Europe is anticipated to exhibit a CAGR of 15.40% over the forecast period. Europe's active engagement, the goal of requiring the use of renewable energy sources, has been accomplished; this was one of the components of the legislative plan accepted by the European Union. The member states of the European Union, which number a total of 28, are mandated by law to initiate the production of energy derived from non-conventional, environmentally friendly sources. This has increased demand for redox flow batteries as a more environmentally friendly form of energy storage, contributing to the region's expansion.

Furthermore, flow batteries can store energy in a form that is less susceptible to change when compared to traditional batteries. The major source of revenue for redox flow batteries in Europe comes from applications that store renewable energy. Eurostat's data indicates that there has been a considerable increase in the proportion of the region's overall energy consumption from renewable sources for the past several years. Therefore, the market expansion in the region is being pushed by the influence of all of these different reasons working together as a collective factor.

In North America, the United States and Canada have seen a significant rise in vanadium redox flow battery projects over the last three years. It has increased in the battery's popularity for energy storage purposes. In North America, multiple research activities are being conducted in Canada on vanadium and its use in energy and battery storage technologies. It is expected to offer lucrative opportunities for market expansion in the region.

LAMEA is a relatively smaller region relative to other regions in terms of development. It accounted for approximately 15% of the market, with Brazil, Saudi Arabia, the United Arab Emirates, and South Africa emerging as major contributors to regional growth. Although LAMEA accounted for the smallest proportion in 2018, the region is expected to exhibit high growth potential. Due to sluggish GDP growth, several countries in the LAMEA region are categorized as economically primitive. This region has a high potential for a competitively priced energy source. Redox flow batteries are less expensive than one of the most prevalent battery technologies in use today, namely lithium-ion batteries. Consequently, their redox flow batteries are anticipated to expand rapidly in LAMEA.

Report Scope

Report Metric Details
By Type
  1. Vanadium Redox Flow Battery
  2. Hybrid Redox Flow Battery
By Application
  1. Utility Services
  2. Renewable Energy Integration
  3. UPS
  4. Others
Company Profiles ESS Inc. Gildemeister energy solutions Redflow Limited. Primus Power redT Energy plc. Sumitomo Electric Industries ViZn Energy Systems. EnSync Energy Systems Schmid Elestor
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Segmental Analysis

The global redox flow batteries market is bifurcated into type and application.

Based on the type, the global redox flow batteries market is bifurcated into vanadium and hybrid redox flow batteries.

The vanadium redox flow battery segment dominates the global market and is projected to exhibit a CAGR of 15.30% over the forecast period. The vanadium redox flow battery sector was responsible for the highest revenue generation in this market. This is attractive because it is a more evolved version of redox flow batteries that may be employed in various applications. It is particularly well-suited for use in applications requiring extensive energy storage because of this battery type's higher capacities. As a result, some of the most popular applications for vanadium redox flow batteries include utility facilities, the integration of renewable energy sources, and UPS systems.

Increasing renewable energy production activities from wind and solar sources is helping generators meet the increasing demand or leveling out supply in transmission-limited locations. This is helping to enhance the need for vanadium batteries in the energy storage industry.

The global redox flow batteries market is segmented based on application into utility services, renewable energy integration, UPS, and others. 

The utility services segment dominates the global market and is predicted to exhibit a CAGR of 15.10% during the forecast period. The term "utility sector" refers to businesses that provide essential services such as water, sewerage, gas, and electricity. These companies are included in the utility industry. The utility sector is the most important application segment because redox flow batteries perform well in energy storage applications. This makes the utility sector the largest application section. Since the electric utility industry generates and distributes power, there is a continual demand for energy storage devices capable of storing electricity for extended periods.

There is no need for maintenance with redox flow batteries, which makes them an attractive option for anyone looking for a device to store energy. There has been a huge increase in the demand for the services provided by electric utility companies because of this. Electric utility companies operate in the government-regulated market most of the time; however, over the past few years, these companies have shifted their focus to the commercial sector as a direct result of privatization efforts in most countries.

Market Size By Type

Market Size By Type
  • Vanadium Redox Flow Battery
  • Hybrid Redox Flow Battery
  • Recent Developments

    • April 2022- Aqua Battery, established by Imperial College London graduate Jiajun Cen, was awarded 2.5 million Euros in grant funding from the European Innovation Council. The team will soon develop a low-cost, sustainable, durable energy storage solution for a global transition to net-zero renewable energy.
    • April 2022- Japanese technology, a part of the eponymous conglomerate Sumitomo Electric, will start its largest vanadium redox flow battery energy storage systems on the northern Japanese island of Hokkaido. The battery will be the largest worldwide of its type.

    Top Key Players

    Redox Flow Batteries Market Share of Key Players

    Redox Flow Batteries Market Share of Key Players
    ESS Inc. Gildemeister energy solutions Redflow Limited. Primus Power redT Energy plc. Sumitomo Electric Industries ViZn Energy Systems. EnSync Energy Systems Schmid Elestor Others

    Frequently Asked Questions (FAQs)

    What is the estimated size of the Redox Flow Batteries Market?
    The global redox flow batteries market size was valued at USD 371.6 million in 2022. It is estimated to reach USD 1,834 million by 2031, growing at a CAGR of 24.53% during the forecast period (2023–2031).
    Asia-Pacific region has the highest growth rate in the Redox Flow Batteries Market.
    High Adoption of Vanadium Redox Flow Batteries in Energy Storage Solutions and Ongoing Projects, Investments, and Development on Redox Flow Battery are some key drivers supporting the growth of the Redox Flow Batteries Market.
    Possibility of Use in Electric Vehicles are one of the key opportunities in Redox Flow Batteries Market.
    The global redox flow batteries market is bifurcated into type and application.

    We are featured on :