Iron Flow Batteries Market To Generate Revenue worth $163.5 Million by 2030
- Published: December 2023
The iron flow batteries market will generate an estimated revenue of USD 26.9 million in 2023, which is expected to witness a CAGR of 29.5% during 2024–2030, reaching USD 163.5 million by 2030. The market is driven by the increasing demand for a continuous power supply at critical facilities, safety features, a long life, and compatibility with renewable energy, and rising research and development activities.
Utilities Application Category Is Largest
The utilities application category is dominating the market. The adoption of flow batteries is rising in the utilities sector, especially in regions that have a growing need for expanded access to electricity. Moreover, the growing utilization of renewable energy sources within utility networks has augmented the demand for energy storage solutions that are adaptable and efficient and boast a long operational life.
There are several challenges in energy systems, such as the intermittency of renewable power installations, difficulties in rapidly scaling up energy storage, and instability of the grid. Iron flow batteries have the ability to integrate renewable energy, balance supply and demand, and maintain the stability of the grid. As the energy storage capacity is being continuously increased by the utilities, this category will continue to be the largest over this decade.
APAC Is Set To Be Fastest-Growing Region in Market
Geographically, APAC is expected to witness the highest CAGR, of 30.4%, from 2024 to 2030. The low raw material cost and inexpensive labor are the primary reasons for its huge manufacturing output. Hence, the rampant industrial development is driving the market growth in India and China, of which the latter is the fastest-growing market in the region.
Additionally, many countries are making investments in renewable energy projects, which is boosting the sale of iron flow batteries, among which Japan and Australia are significant. Flow batteries have an essential role in storing the excess energy generated from wind and solar sources and discharging it to the grid during periods of high demand. Australia is ahead in terms of implementing flow battery projects in many sectors, such as residential, industrial, utilities, and commercial. Several companies have commissioned such projects in residential settings to provide reliable energy storage solutions for on-site PV installations.
Moreover, these installations provide energy storage solutions for manufacturing facilities and warehouses, manage the demand for energy, and reduce the load on the grid. Additionally, in the commercial sector, they help manage energy consumption and in the case of a grid disturbance, provide backup power.
Other factors that are driving the demand for them are the strong government support for clean energy, including incentives, due to the growing focus on environmental sustainability. Further, their use in remote areas for resilience during bad weather, reliable power supply, and longer life cycles, current technological advancements, and the success of demonstration projects propel the market.
Some of the key players in the iron flow batteries market are Sumitomo Electric Group, ViZn Energy Systems, Primus Power Solutions Private Limited, ESS Inc., CellCube Inc., VRB Energy, Invinity Energy Systems, Lockheed Martin Corporation, Largo Inc., and Redflow Limited.