Vanadium Redox Flow Battery Market To Generate Revenue worth $759.4 Million by 2030
- Published: January 2024
The vanadium redox flow battery market is set to grow at a CAGR of 9.7% during 2024–2030 and reach USD 759.4 million by 2030. This is due to the rapid shift toward renewable energy sources and the rising installations of microgrids. These systems need VRF batteries for clean storage systems and to effectively integrate the power generated by renewable sources.
These batteries contain one electroactive ingredient as opposed to two; therefore, their scalability, low maintenance needs, long lifecycle, and resistance to 0% charge set them apart from competitors. The batteries' ability to react more quickly than others under extreme and fluctuating loads is the other main driver for the market. The demand for sustainable and affordable energy storage technology is more than ever due to the growing awareness of the energy crisis and environmental issues.
India has connected millions of people to electricity in recent years, encouraged most houses to switch to energy-efficient LED lighting, and stimulated a significant increase in renewable energy generation. Additionally, India is home to highly polluted cities, which are characterized by health hazards and rising cases of diseases in infants; thus, the country is working continuously.
For these reasons, India and other countries that are in their developing stages are focusing on renewable energy to fulfill the demands of the population and achieve their emission reduction goals. This is also because India now ranks third in the world for energy consumption, as a result of the growing incomes and rising living standards.
Growing Solar Power Industry Is Strong Market Driver
As power consumption is increasing globally, especially in APAC, due to the increasing population, rapid industrialization, growing size of cities, and infrastructure development, countries are increasing the power generation capacity. Further, the focus of almost all economies on cleaner sources of electricity, such as solar and wind, propels the market.
In 2022, as per Statista, global solar PV capacity was 1,177 GW, and it is being continuously augmented to replace fossil-fuel-based power production. With the boom in this industry, flow battery demand is also increasing as they are required to store the intermittent energy generated by these installations. To integrate the power through such sources into the grid, robust storage systems that can quickly supply electricity when needed are required.
Europe Is a Significant Market
Geographically, Europe is a significant market owing to the rising clean energy production in Italy, Germany, Spain, and the U.K. Additionally, wind and solar energy will contribute to Britain’s additional electricity generation capacity by a high percentage due to its goal of reaching net-zero by 2050. But, being intermittent, meeting the demand for power from these sources will necessitate the integration of some storage technology with them. This is because even if the generation capacity is high, these sources cannot provide electricity at consistent voltage (V) and current (I) ratings.
Electrical power can be stored using various techniques, such as batteries and air compressing. Here, VRF batteries are suitable as they provide long-duration storage, low maintenance cost, and simple designs.
The major players in the vanadium redox flow batteries market are Invinity Energy Systems, Enerox GmbH, VionX Energy, Sumitomo Electric Industries Ltd., Dalian Ronge Power Co. Ltd., Solibra Energy Storage Technologies GmbH, and VanadiumCorp Resource Inc.