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The global iron flow battery market size was USD 2.14 million in 2020. The market is projected to grow from USD 2.53 million in 2021 to USD 15.24 million in 2028 at a CAGR of 29.3% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with iron flow batteries witnessing a negative/positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 4.8% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
A flow battery, also called a redox flow battery, is a kind of rechargeable battery generally used to increase storage capacity by increasing the number of electrolytes stored in tanks. The iron flow or iron redox flow battery, where the electrolyte is made up of iron salt, is an ionized form to store electrical energy in chemical energy. These flow batteries are considered an attractive solution for large-scale energy storage devices due to iron-based materials' low cost and eco-friendliness. However, iron flow batteries are regarded as nascent and provide promising opportunities due to their inexpensive and abundant availability.
Supply Chain Disruptions amid COVID-19 to Impact Iron Flow Battery Market Growth
The outbreak of COVID-19 has hampered the growth of the market. The growth of iron flow batteries has declined during the pandemic of COVID-19, which has restricted the supply of batteries and other critical components due to severe disruptions in business and the global economy. Owing to the pandemic of COVID-19, a decline has been witnessed in the installation of these flow batteries across various projects in 2020. In addition, the shutdown of manufacturing facilities worldwide is also responsible for affecting the market growth. However, the government's growing focus on modernizing the power sector is estimated to increase the adoption of these batteries worldwide.
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Inherent Advantage of Flow Batteries Will Propel the Market Demand
Flow batteries are used as energy storage to increase capacity. These batteries are commonly used in utility, commercial and industrial applications. The iron-flow batteries save energy in the form of liquid electrolytes in external tanks that are pumped into cells to create electrochemical reactions, while traditional batteries store energy in an electrode material. In addition, the simple exchange process of electrolytes in flow batteries is seen as a significant advantage over traditional batteries.
Increased Adoption of Iron Flow Batteries in Utility Sectors to Favor Growth
Flow batteries are widely adopted in utility sectors due to electrifications' growing need. The growing usage of renewable energy sources such as solar and wind is one of the leading factors propelling the demand for battery energy storage systems, which will support the growth of the market. The flow batteries provide an attractive feature that has become the most preferred energy storage technology for utilities-based storage as large-scale utilities require solutions that can store renewable energy for future grid use at any location in a cost-effective manner.
Growing Research & Development Activities in Iron Flow Battery Market Will Favor the Growth
Various research & development activities are going across the world to use iron flow batteries for energy storage devices. For instance, ESS Inc., a leading manufacturer of iron flow batteries, is working on these batteries, which can be utilized for various applications such as utility-scale, commercial & industrial projects, microgrid, virtual power plants, and distributed energy management systems.
Rising Demand for Power Supply Owing from Data Centers is Anticipated to Drive the Market
The growing demand for electricity in data centers is significant for power utilities. According to the U.S. Department of Energy statistics, data centers' average annual energy consumption in 2020 was recorded at approximately 200 and 1000 Twh. Energy consumption is expected to increase in the coming years. The increasing energy consumption in data centers has raised cost, environmental, and scalability concerns. Therefore, these data centers need to be maintained by deploying cost-effective and energy-efficient alternatives.
High Capital Cost of Flow Battery Manufacturing to Hamper Market Growth Slightly
Flow batteries have evolved over the years as a potential substitute for conventional batteries, including lithium-ion batteries, lead-acid batteries, and others. Nevertheless, the high cost of flow batteries will hinder the growth due to their high cost associated with capital, material, installation, and component costs. In addition, the flow batteries are also getting competition from conventional batteries such as lithium-ion, lead-acid, vanadium redox flow batteries, and zinc-bromine batteries.
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Rising Demand for These Batteries in Utility Applications is Expected to Grow Due to Growing Electricity Demand
By application, the market is segmented into utility, commercial & industrial, and off-grid & microgrid applications. The utility application is expected to dominate the market owing to the growing number of renewable energy projects. The utility includes energy storage produced from renewables. In contrast, industrial applications include energy storage for peak loads, off-grid, and microgrid applications for continuously fluctuating loads.
North America Iron Flow Battery Market Size, 2020 (USD Million)
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Geographically, this market is widespread across key regions, including Europe, North America, Asia Pacific, and the Rest of the World. As per our findings, North America dominates the iron flow battery market share during the forecast timeframe. The North American region has a well-established manufacturing sector. Chemical, oil & gas, and power generation industries are growing significantly. The growth of these industries in the North American region will drive the iron flow batteries sales soon. Additionally, the key players involved in the market are concentrated in the North American region, which is anticipated to add an economic advantage to the consumer in the region.
The Asia Pacific region has different developing countries such as China, India, Japan, and others. The region is considered a key market for manufacturing sectors mainly driven by economic labor and raw material cost. The other factor that drives the region's growth includes huge investments by countries in renewable energy projects to propel the iron flow battery market sales.
The European government is focusing on reducing greenhouse gas emissions in the environment, hence increasing the region's renewable energy projects. Several countries in the area, such as Germany, Argentina, France, and others, have set their target of being Zero emission of CO2 by 2050 has promoted renewable projects, which has developed the iron flow batteries in storage capacity.
The Rest of the World is likely to witness significant growth because many regions such as the Middle East & Africa, and Latin America are focusing on adding new renewable capacities to cater to the energy demand. The growing renewable energy installations in the Latin American region are expected to drive the sales of iron flow batteries.
The competitive landscape of this market depicts a market dominated by ESS Inc and other U.S. based companies. These players in of the market are currently developing better batteries which can give them competitive edge over their competitors.
An Infographic Representation of Iron Flow Battery Market
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The report offers qualitative and quantitative insights on the iron flow batteries and a detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are advancement in technology for iron flow batteries by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.
Value (USD Million)
By Application and By Region
As per the Fortune Business Insights study, the global market was USD 2.14 million in 2020.
The global market is projected to grow at a CAGR of 29.3% in the forecasted period.
The market size of North America was valued at USD 1.13 million in 2020.
The iron flow batteries are used in energy storage for utility, commercial & industrial, and off-grid & microgrid applications.
The global market is anticipated to reach USD 15.24 million by 2028.
Based on application, the Off-grid & microgrid segment holds the highest share in the market across the globe.
The top players in the industry are ESS Inc, Australian Vanadium Limited, and Bushveld Energy.
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