In the changing landscape of energy storage technology, all-vanadium redox flow batteries have become an increasingly important aspect of the market.
Drivers of the All-Vanadium Redox Flow Batteries Market
1. Increasing demand for renewable energy sources: The growing global demand for renewable energy sources has increased the requirement of long-term, reliable and cost-effective energy storage solutions, which is driving the growth of this market.
2. Government initiatives and subsidies: Governments across the world are providing incentives and subsidies to encourage the adoption of All-Vanadium Redox Flow Batteries (VRFBs), which is contributing to the growth of this market.
3. Low maintenance cost: VRFBs require low maintenance costs as compared to other battery technologies such as lithium-ion batteries, thereby making it a preferred choice among consumers in many applications. This is further driving the growth of this market.
4. Rising investments in research & development activities: Companies are investing heavily in R&D activities to develop technologically advanced VRFBs, which is expected to boost the growth of this market during the forecast period.
Advantages of the All-Vanadium Redox Flow Batteries Market
• Longer lifespans: The All-Vanadium Redox Flow Batteries can last up to 20 years and have an average lifespan of 12 years. This makes them a great investment for those looking for a long-term energy storage solution.
• Low maintenance costs: Since the All-Vanadium Redox Flow Batteries are designed to be low maintenance, they require little to no upkeep throughout their lifetime, leading to lower ownership costs.
• High efficiency: The All-Vanadium Redox Flow Batteries are highly efficient and can store energy at a higher rate than traditional batteries, which leads to less wastage of energy.
• Environmentally friendly: The use of Vanadium in the batteries is environmentally friendly and helps reduce the amount of toxic waste released into the environment. Additionally, since the batteries are rechargeable, they can be reused multiple times which further reduces their impact on the environment.
Market value and CAGR of the All-Vanadium Redox Flow Batteries Market (2021-2031)
The market value and CAGR is expected to reach US$1.17 billion by 2031 from US$101.97 million in 2021, growing at a CAGR of 32.1% from 2021 to 2031
Challenges of the All-Vanadium Redox Flow Batteries Market
1. High Cost: The high cost of the all-vanadium redox flow batteries is a major challenge in the market. This type of battery technology is expensive compared to other types of batteries and this limits its use in various applications.
2. Low Efficiency: Another challenge faced by the all-vanadium redox flow batteries market is its low efficiency. This makes it difficult for them to be used in large scale applications, as they require large amounts of energy for operation.
3. Lack of Technical Expertise: The lack of technical expertise related to these batteries also poses a challenge for the all-vanadium redox flow battery market. This makes it difficult for companies to develop and maintain these batteries efficiently.
4. Limited Availability: These types of batteries are not widely available and this limits their use in some applications that require large amounts of energy storage capacity.
Some of the key players in the All-Vanadium Redox Flow Batteries Market are Protean, Ener Vault Corporation, Sumitomo Electric Industries, Ltd., Primus Power Corporation, Immerge Power Systems Inc., Vioxx Energy Corporation, Undenary Technologies LLC., Credential Energy Inc., and Fluidic Energy.
The most demanded product of the All-Vanadium Redox Flow Batteries Market is expected to be the All-Vanadium Redox Flow batteries. These batteries are used for energy storage applications in the residential and commercial sectors.
By type, the All-Vanadium Redox Flow Batteries Market is segmented into
Vanadium Pentoxide (V2O5), Vanadyl Sulphate (VOSO4), and others. Vanadium Pentoxide (V2O5) is expected to lead the market due to its high capacity and long cycle life.
By application, the All-Vanadium Redox Flow Batteries Market is segmented into
Grid Storage, Uninterruptible Power Supply (UPS), Renewable Energy Integration, Peak Shaving/Demand Management, Frequency Regulation, Telecommunication/Data Centres, and Others. Grid Storage is expected to hold the largest share of this market due to increasing demand for renewable energy integration systems.
By end user, the All-Vanadium Redox Flow Batteries Market is segmented into
Utilities, Industrial & Commercial facilities, Residential Consumers, Data Centres & Telecommunication units, and Others. Utilities are expected to be the leading end user owing to increasing adoption of renewable energy sources and grid storage applications across utilities.
By region, North America be the most revenue generating region due to its significant dominance in the Industrial sector.
Impact of Covid-19
The lockdown imposed due to the pandemic has led to a decrease in demand for these batteries from the automotive and electronics industries. This, in turn, has resulted in a decline in revenue for manufacturers of all-vanadium redox flow batteries.
The decrease in demand for all-vanadium redox flow batteries is also attributable to the fact that many countries are now focusing on investing in renewable energy sources such as solar and wind power. This is because renewable energy sources are more cost-effective and have a smaller environmental impact than all-vanadium redox flow batteries.
Despite the challenges posed by Covid-19, the all-vanadium redox flow batteries market is expected to grow at a CAGR of 9.1% from 2020 to 2032. This growth is driven by the increasing demand for these batteries from the utilities and other industrial sectors for large-scale energy storage applications.
Key developments in the All-Vanadium Redox Flow Batteries Market
In January, 2021, Vioxx Energy launched a new generation of its Vanadium Redox Flow Battery (VRFB) product line. The new VRFB technology is designed for large-scale energy storage applications for utility, commercial and industrial customers.
In April, 2021, United States-based ESS Inc., launched its Grid Synergy™ solution that integrates Li-ion battery systems with vanadium redox flow batteries to provide an efficient, flexible and cost-effective energy storage system.
In May 2021, Sumitomo Electric Industries Ltd. announced the launch of their “Giga Flow” all-vanadium redox flow battery (VRFB), which is a high-power and high-capacity energy storage system. Giga Flow is capable of providing over 1 megawatt hour (MWh) of capacity in a single installation
All-Vanadium Redox Flow Batteries Market Scope
|Revenue forecast in 2031
|CAGR of 32.1 % during 2021-2031
|Type, Application, Regions
|North America, Europe, Asia Pacific, South America, Middle East and Africa
|Key Players Profiled
|Protean, Ener Vault Corporation, Sumitomo Electric Industries, Ltd., Primus Power Corporation, Immerge Power Systems Inc., Vioxx Energy Corporation, Undenary Technologies LLC., Credential Energy Inc., and Fluidic Energy.
Key Segments of the All-Vanadium Redox Flow Batteries Market
Type Overview, 2021-2031 (USD Billion)
• Carbon Paper Electrode
• Graphite Felt Electrode
Application Overview, 2021-2031 (USD Billion)
• Large-Scale Energy Storage
• Uninterruptible Power Supply
Regional Overview, 2021-2031 (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
• Middle East and South Africa