Published: December 2023 | Report Code: 12802 | Available Format: PDF
The iron flow batteries market will generate revenue of USD 26.9 million by the end of 2023, which is expected to witness a CAGR of 29.5% during 2024–2030 and reach USD 163.5 million by 2030. This will be due to the rising demand for power, integration of renewable energy sources, such as solar and wind; government support for rural electrification, the long-life cycle and safety benefits of these energy storage devices, and growing research and development activities.
Iron flow batteries have a vast role in utilities, industrial, broadcast communications, and military applications. They are also seeing penetration in applications such as roof PV systems and electric vehicle charging stations due to their technical advantages over primitive batteries, such as safety, longer lives, low self-discharge rates, high scalability, and high temperature tolerance. Iron flow batteries store energy in outer tanks in liquid electrolytes containing iron ions. To create electrochemical responses, they are siphoned into cells, unlike common batteries, which store energy in an electrode material.
One of the main reasons behind the market growth is the capacity of these systems to bear thousands of charge and discharge cycles with negligible degradation. This provides a cost-effective energy storage solution for both short-term as well as long-term applications. It also eliminates the need for maintenance and frequent replacements, which is an essential step in reducing the cost of possession.
Further, the advancements in technology focused on enhancing the energy density, cost-effectiveness, and performance of these batteries are helping the market expand. These evolutions are attracting a wide range of customers, due to which the competitiveness in the overall energy storage market is increasing. Moreover, in the renewable energy sector, these batteries contribute during times of high energy production by storing an ample amount and releasing it when power generation drops or the demand increases. This helps in maximizing the utilization of electricity, thus helping prevent outages and grid overloading
Safety is the foremost concern in energy storage installations, and iron flow batteries excel in this regard as they have minimal fire risks. This feature makes them appropriate for residential use, as well as large-scale grid installations, particularly in indoor and urban settings.
The rising need for environment-friendliness is another key factor that is helping in the adoption of iron flow batteries. This is because their iron-based electrolytes are non-toxic, have the potential for easy recyclability, and possess fire safety and a longer lifespan with minimal degradation. Moreover, several governments and regulatory bodies offer incentives and subsidies to encourage the adoption of energy storage systems, to support sustainability goals and grid reliability.
Data centers are responsible for storing, processing, and managing large amounts of data generated by individuals and businesses. There are numerous data-intensive applications currently in wide usage, such as big data analytics, artificial intelligence, and cloud computing, which is why data centers have become a vital part of the global infrastructure.
This continues to push up the need for data center capacity, for which a reliable and continuous power supply is required, as it is essential for ensuring smooth functioning. As per experts, the largest data centers can consume over 100 MW of electricity, which could, alternatively, power 80,000 homes. In the coming years, their electricity consumption is expected to increase as the digital world expands and the dependence on technologies and data-driven services increases.
Data centers operate 24/7, providing continuous access to data and services. In the case of an operational interruption, major financial losses and data breaches can occur. To avoid these risks, a stable and robust power supply is required. Moreover, these places house energy-intensive equipment, including storage arrays, servers, and networking infrastructure, which need an excellent power supply and consistency to function optimally.
Further, there are a large number of distributed data centers, also known as edge data centers, across the world, located closer to devices and end users. As the number of these establishments is increasing, the need for a localized power supply is also rising. A dedicated and robust power infrastructure is required by these smaller data centers to ensure constant services. Further, as new digital services and applications are developed, the demand for secure power supply solutions and data center capacity will continue to rise.
When diesel generators stop functioning, to address power outages, data centers employ energy storage systems as a backup solution. The requirement for an uninterrupted power supply is increasing in such facilities as their aim is to have a robust computing infrastructure, while reducing operational expenses and capital. Flow batteries have several well-matched attributes for data center applications, especially their high energy storage capacities and rapid discharging ability.
Market Size in 2023
USD 26.9 Million
Market Size in 2024
USD 34.6 Million
Revenue Forecast in 2030
USD 163.5 Million
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
By Type; By Application; By Material; By Region
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Geographically, North America is going to dominate the market and display a growth rate of 50% in the coming years. This is majorly ascribed to the growing oil & gas, chemical, and power generation sectors. Furthermore, the key players are concentrated in the North American region, and they are launching new products and expanding their customer bases.
Another factor that is helping the market expand in the region is the growing need for renewable energy storage systems and the increasing emphasis on the stability of the grid. Here, iron flow batteries are finding increasing usage in a wide variety of applications, including microgrid, grid-scale, and stationary storage. Further, as a result of the rising investments in the research and development of these systems and the surging demand for long-duration energy storage solutions, the market is expected to grow rapidly in the region.
The market in APAC is expected to grow at the highest CAGR, of 30.4%, from 2024 to 2030. As a result of the inexpensive labor and raw materials, the region has been recognized as an important hub for manufacturing industries. Moreover, a lot of investments are being made by regional countries in renewable energy projects, which are helping the industry prosper.
Moreover, these batteries are expected to be used widely in microgrid applications, electric vehicles, and renewable energy installations. In regard to renewable electricity, the rising environmental awareness and strict protocols on the emissions of carbon dioxide and other GHGs in the region are propelling the market.
In major economies, such as Japan and Australia, the demand for these energy storage systems is growing in commercial, industrial, and utilities facilities. Likewise, large-scale industrial development is taking place in India and China. Thus, it is projected that the Chinese market will progress at a significant CAGR, of 30.6%.
This region has many operative flow battery installations with huge power ratings. For example, Yushan Energy has collaborated with Formosa Plastics Group to establish a storage project in Taiwan. The project uses a high-capacity flow battery system to store the excess solar energy generated during the day and discharge it when demand is high, thus improving grid reliability and stability.
To manage the demand for energy and reduce the peak load needs, these installations play a crucial role. Therefore, many utility companies have deployed flow battery projects for grid-scale applications to maintain the stability of the grid and manage intermittent renewable energy sources.
Moreover, in commercial spaces, such as offices, commercial buildings, and retail stores, these systems can help in managing energy consumption and provide backup power in case of a grid failure. Many companies have initiated the project of flow battery installations in the residential sector, these installations provide energy storage solutions for households, especially those with solar panels. Here, these ESSs store the excess energy and release it during periods of high demand.
In this region, Australia is executing several such products for industrial, utilities, commercial, and residential applications. An example is the Buronga Energy Hub in New South Wales, Australia, developed by Renew Estate. This project’s goal is to combine solar and wind energy generation with large-scale storage systems, specifically flow batteries, to contribute to the stability of the grid and allow for the integration of renewable energy.
Similarly, in February 2019, Carnegie Clean Energy commissioned a microgrid project operating a combination of wind turbines, PV arrays, and flow batteries in Western Australia. The main focus of the project is on providing reliable and sustainable power to remote communities and islands and indicating the viability of flow battery technology in off-grid settings.
Additionally, a Thai renewable energy company, Energy Absolute, is involved in grid-scale energy projects. As a part of Thailand’s energy transition efforts, it has created a large flow battery installation to integrate renewable energy sources and achieve grid stability.
This report offers deep insights into the iron flow batteries market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.
Based on Type
Based on Application
Based on Material
The estimated value of the market for iron flow batteries in 2023 is USD 26.9 million.
By 2030, the iron flow batteries industry size will reach USD 163.5 million.
The market for iron flow batteries is propelled by the rapid urbanization, industrialization, and population growth.
Utilities are the largest application in the iron flow batteries industry.
The integration of renewable energy into the grid is trending in the market for iron flow batteries.
North America generates the highest iron flow batteries industry revenue.
The highest CAGR in the market for iron flow batteries will be seen in APAC.
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