Redox Flow Battery Market Analysis

Material Segment Analysis

The vanadium electrolyte segment is predicted to gain the largest redox flow battery market share of 50.3% during the projected period by 2035, due to excellent stability (no cross-contamination) and near-infinite recyclability.  Recent decreases in the cost of vanadium electrolytes as a result of improved mining operations and the reuse of electrolytes also allow it to be more competitive in price. Vanadium maintains efficiency over time and therefore has no cost associated with replacement like zinc-bromine. Other factors that guarantee that vanadium stays the top electrolyte across all applications are that China ranks one in all vanadium produced globally. Lastly, its high energy density and ability to maintain stability regardless of temperature make it the clear leader for large-scale storage and use as an electrolyte versus any alternative.

Type Segment Analysis

The traditional (fluid-fluid) segment is anticipated to constitute the most significant growth by 2035, around 40% redox flow battery market share, mainly due to its long cycle life, scalability potential (modularity allows capacity to be easily expanded), and overall efficiency. The U.S. Department of Energy highlighted the potential for Vanadium-based battery types in grid storage, given their longevity and deep discharge potential. Though lithium-ion batteries degrade so much more quickly, VRFBs can provide excellent long-duration storage with the capability of deep discharge, as well as being non-flammable and recyclable to encourage their emerging adoption in applications like microgrids and renewable energy integration.

Application Segment Analysis

The utility-scale energy storage segment is anticipated to constitute the most significant growth by 2035, with 38.2% redox flow battery market share, mainly due to the increased demand for energy generated from renewable energy sources, requiring grid stabilization. IRENA projects more demand for grid storage capacity in the forthcoming years due to the intermittency of solar/wind as mainstream energy generation performance is debated. VRFBs—specifically redox flow batteries-will continue their advancements in long-duration (6-12+ hours), peak shaving, and load balancing storage capabilities. Governments, such as the U.S., have created incentives for specific deployments, such as the Bipartisan Infrastructure Law funding of flow battery projects. The low lifecycle cost and their more than 20-year life make long-duration VRFBs an economically reliable option for states and utility organizations.

Our in-depth analysis of the global redox flow battery market includes the following segments: