According to Stratistics MRC, the Global Iron Flow Battery Market is accounted for $333.87 million in 2023 and is expected to reach $1779.11 million by 2030 growing at a CAGR of 27% during the forecast period. An iron flow battery, also known as a redox flow battery, is an electrochemical device that stores energy in tanks of liquid electrolytes. It is widely used because it doesn't burn, explode, or release toxic gases. Iron flow batteries are employed in a number of industries, including the commercial, military, and broadcast sectors, but they are most frequently used in homes and electric vehicles. The low cost and environmental friendliness of materials based on iron make flow batteries like these an appealing option for large-scale energy storage devices.

According to Benchmark Mineral Intelligence Worldwide, cobalt demand from the battery sector has tripled in the past five years and is projected to at least double again by 2020.

Market Dynamics:

Driver:

Increased use of iron flow batteries in utility sectors

Flow batteries are widely used in the utility sector due to the increased demand for electrification. One of the main drivers of demand for battery energy storage systems, which will support market growth, is the rising use of renewable energy sources like solar and wind. Given that large-scale utilities need solutions that can cost-effectively store renewable energy for future grid use at any location, flow batteries offer an alluring feature that has made them the most preferred energy storage technology for utility-based storage.

Restraint:

High Investments for Manufacturing

The development of iron flow batteries as a potential replacement for common batteries such as lithium-ion, lead-corrosive, and sodium-based batteries has occurred over time; however, the high cost of flow batteries may act as a significant market growth restraint. The iron flow battery's overall cost includes capital expenditure, component expenditure, material expenditure, establishment expenditure, and fix and maintenance expenditure. This is a major undertaking for small and medium-sized enterprises.

Opportunity:

Growing demand for power supply due to data centers

For power utilities, the rising demand for electricity in data centers is significant. The average annual energy consumption of data centers was between 200 and 1000 TWh in 2020, according to statistics from the U.S. Department of Energy. In the upcoming years, it is anticipated that energy consumption will rise. Cost, environmental, and scalability concerns have been brought up by the rising energy consumption in data centers. Therefore, it is necessary to maintain these data centers by implementing affordable and energy-efficient alternatives.

Threat:

Lack of standardization

Because there is no one type of iron flow battery that is accepted by everyone, there is a challenge with the lack of standardization. Because of the lack of standards, it is challenging for producers to create iron flow batteries that work with the current system. Such aspects restrict the market's growth.

Covid-19 Impact

The COVID-19 pandemic had a mixed effect on the iron flow battery market. The installation of these flow batteries across numerous projects in 2020 has decreased as a result of the COVID-19 pandemic. Additionally, the global closure of manufacturing plants has an impact on market expansion. However, it is predicted that the adoption of these batteries will rise globally as a result of the government's increased focus on modernizing the power sector.

The utility facilities segment is expected to be the largest during the forecast period

During the forecast period, the utility facilities segment dominates the iron flow battery market because iron flow batteries are widely used in utilities to support renewable energy. Due to the escalating demand for electrification, flow battery adoption is rising in the utility sector. Additionally, as networks increasingly use green energy, the demand for effective, adaptable, and long-lasting energy capacity arrangements has increased.

The 150 kW segment is expected to have the highest CAGR during the forecast period

The 150 kW segment is estimated to witness the highest CAGR during the forecast period. The 150 kW Iron Flow Battery uses iron and an electrolyte to store and release energy. The battery has a 150 kW energy storage capacity, which can be used to power buildings, commercial buildings, and other applications. With a lifespan of up to 20 years, the iron flow battery is a durable, long-term energy storage option. A higher power output can be achieved, and it is also significantly more efficient than conventional lead-acid batteries.

Region with largest share:

Due to the growing need for energy storage systems to store renewable energy and the increased emphasis on grid stability, the North American iron flow battery market is anticipated to be the largest. Iron flow batteries are becoming more widely used in a variety of applications, including grid-scale storage, micro-grid storage, and stationary storage. Additionally, the market is anticipated to grow as a result of rising investments in the development of iron flow batteries and rising demand for long-duration energy storage solutions.

Region with highest CAGR:

Long-duration energy storage solutions and the rising demand for renewable energy are driving the growth of iron flow batteries in the Asia Pacific region. The market is also being driven by the rising demand for effective energy management and storage solutions. Iron flow batteries are expected to be used more frequently in electric vehicle, renewable energy, and microgrid applications. Furthermore, rising environmental consciousness and strict regulations on carbon dioxide emissions in these regions are expanding the market.

Key players in the market

Some of the key players profiled in the Iron Flow Battery Market include Australian Vanadium Limited, Avalon Battery, Bushveld Energy, CellCube Energy Storage Systems Inc, Electric Fuel Limited, ESS, Inc, Grupo Saesa, Invinity Energy Systems, Largo Clean Energy, Lockheed, Martin Corporation, Primus Power, Redflow-Sustainable Energy Storage, Sumitomo Electric Industries Ltd., UniEnergy Technologies, ViZn Energy Systems and VRB Energy.

Key Developments:

In June 2023, ESS Tech, a manufacturer of long-duration energy storage systems, and Germany-based energy provider LEAG have partnered to construct a 50 MW/500 MWh iron flow battery system at the Boxberg power plant site in Germany. Estimated to cost an initial €200 million (~$218 million), the project aims to accelerate the clean energy transition by combining renewable generation with long-duration energy storage (LDES) using ESS’s innovative iron flow battery technology.

In June 2023, Invinity Opens 200 MWh Capacity Vancouver Manufacturing Facility. The Company’s Vancouver facility is now able to produce up to 200 MWh of vanadium flow batteries per year. This strategic investment in Invinity’s Canadian manufacturing base will enable the Company to further scale up production to meet the record sales achieved of nearly 31 MWh secured by the Company at the end of 2022.

In June 2023, Coal miner and power generator LEAG plans to build a 200 million euros ($216.12 million) renewable energy storage system in eastern Germany. Apart from the need to phase out carbon-intensive fossil fuel, Germany and other European countries are expected to need more storage to manage the intermittent nature of forms of energy such as solar and wind.

Battery Types Covered:
• Hybrid Flow Battery
• Redox Flow Battery

Types Covered:
• 50 kW
• 100 kW
• 150 kW
• 200 kW
• 250 kW

Materials Covered:
• Vanadium
• Zinc-Bromine
• Other Materials

Electrolytes Covered:
• Aqueous
• Non-Aqueous

Deployments Covered:
• On-Grid
• Off-Grid

Applications Covered:
• Commercial & Industrial
• EV Charging Stations
• Microgrids
• Renewable Energy Storage
• Residential
• Utility Facilities
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2021, 2022, 2023, 2026 and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances