Vanadium Redox Flow Battery (VRB) Market Size, Share, Competitive Landscape and Trend Analysis Report, by Application, by End-Use : Global Opportunity Analysis and Industry Forecast, 2024-2030

Market Dynamics    

“Renewable Energy- The prominent application boosting the sales of vanadium redox flow batteries”

The increase in demand for grid-scale energy storage solutions has become a prominent driver propelling the growth of the vanadium redox battery (VRB) market. As energy grids transition towards greater reliance on renewable energy sources such as solar and wind, the need for efficient energy storage mechanisms has intensified. Grid-scale energy storage solutions, such as vanadium redox batteries (VRBs) , play a pivotal role in stabilizing the grid, managing fluctuations in renewable energy generation, and ensuring reliable power supply. Solar and wind energy production is dependent on weather conditions and time of day, leading to fluctuations in power output. Grid-scale energy storage systems, including vanadium redox battery, offer a viable solution by storing excess energy during periods of high generation and releasing it during times of low generation or peak demand. This capability helps to balance supply and demand on the grid, mitigate grid instability, and enhance overall reliability making it a prominent battery type to be used in off-grid and grid scale energy storage applications.

Rapid increase in energy needs from residential and industrial manufacturing sectors has boosted the energy generation activities extensively. As a result, the need for safer energy storage devices has increased across the globe. Thus, vanadium redox flow battery is largely preferred in the renewable energy storage sector which has a prolonged service life and is relatively safe over its counterparts. It is increasingly adopted in the renewable energy sector to store clean and sustainable energy, which is aimed to be used as per convenience. Increasing renewable energy generation is the key factor driving the adoption of redox flow batteries across the globe. Currently, as per the research conducted by Allied Market Research, renewable energy generation is expected to increase at growth rate of 6% in 2023, which is likely to reach 8% in the coming decade due to increasing focus towards clean energy generation.

However, the growth of the vanadium redox battery (VRB) market faces significant constraints due to limited recycling infrastructure and environmental concerns. While vanadium redox battery systems offer promising energy storage solutions, their long-term sustainability depends on effective recycling practices and mitigation of environmental impacts. The vanadium redox battery systems require specialized recycling processes to recover vanadium electrolytes and other valuable materials efficiently. The absence of dedicated facilities for vanadium redox battery recycling poses challenges in managing end-of-life batteries and extracting valuable components for reuse. Moreover, environmental concerns associated with vanadium mining and processing add to the market constraints. All these factors hinder the growth of the vanadium redox battery (VRB) market.

Technological advancements in vanadium redox battery (VRB) technology present significant opportunities for market growth. As researchers and engineers continue to innovate in this field, vanadium redox battery systems are becoming more efficient, reliable, and cost-effective, driving their adoption across various sectors. The advancements in the electrode and membrane materials lead to batteries that can store more energy, have longer lifespans, and operate more efficiently, thereby expanding their applicability in grid-scale energy storage, renewable energy integration, and microgrid applications.

Vanadium Redox Flow Battery- Patent Analysis

In the year 2023 patent filings for vanadium redox battery, Shanghai Electric (ANHUI) Energy Storage Tech Co. Ltd. and Shanghai Electric Lingchu Tech Co. Ltd. significantly increased its dominance with 15 filings individually. Notably, DALIAN RONGKE POWER CO LTD also saw 11 filings for vanadium redox battery in 2023.

Segment Overview

The vanadium redox battery (VRB) market is segmented into application, end-use and region. By application, the market is divided into renewable energy (solar, wind energy and others) , telecommunication and data centres, EV charging and others. As per end-use, the market is categorized into residential, commercial and industrial and utilities. Region-wise the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

“Huge presence of manufacturers and increased deployment of Vanadium Redox Battery across Asia-Pacific region”

As per the research conducted by Allied Market Research, Asia-Pacific region is expected to dominate the vanadium redox battery market throughout the forecast period. The prominent factor being rapid developments from leading manuacturers observed in this region along with many of the world’s largest vanadium redox battery project are operational in this region majorly China and Japan, makes this region the largest market in 2023. For instance, the Australian Federal Government’s Research and Development forum has approved a project named Gabanintha Vanadium, which is aimed to develop high-purity vanadium pentoxide redox flow battery. Such projects are fueling the awareness of vanadium redox battery and supporting their adoption across the region.

Competitive Analysis

Key market players in the vanadium redox battery (VRB) market includes VRB ENERGY, Sumitomo Electric Industries, Ltd., VFlowTech Pte Ltd., Invinity Energy Systems, StorEn Technologies, Delectrik Systems Pvt Ltd, Australian Vanadium Limited, Shanghai Electric, Enerox GmbH, Largo Inc., H2, Inc., LE SYSTEM CO., Ltd., Hunan Yinfeng New Energy Co., Ltd., and others.

Recent Key Developments in Vanadium Redox Battery Market

• UK-based energy storage firm, redT Energy Plc and Avalon Batteries have confirmed their merger in November2019 to create the largest company in vanadium redox flow battery with an investment of around $30 million.
• Rongke Power and UniEnergy Technologies (UET) have teamed up to deploy the world's largest battery project that secures 800-megawatt hours of energy storage. In addition, China National Development and Reform Commission invested significantly in this energy storage project. Rongke has been using UET’s vanadium flow battery technology for this project. It is still considered as the largest energy project using vanadium flow battery technology.
• Tdafoq Energy of Riyadh, Saudi Arabia has entered a distribution and manufacturing license with India-based Delectrik Systems. Tdafoq Energy will exclusively sell Delectrik’s Vanadium Redox Flow battery products manufactured in India in the Gulf countries. The new production plant in Saudi Arabia will be scaled to a GWh capacity by 2025. Tdafoq held that the partnership aims to become a global technology leader in the fast-growing stationary energy storage segment, supporting the Saudi Arabia’s Vision 2030 economic diversification objectives.
• Shanghai Electric Secures RMB 400 million towards Energy Storage Business: Shanghai Electric Energy Storage Technology, the energy storage subsidiary of Shanghai Electric has announced that it has received RMB400 million in Series A financing that will be used to inject added vitality into the development of its energy storage business. Shanghai Electric will focus on promoting the research and development of new systems, promoting its industrial supply chain structure, construction of 100Mbps stacks that can be used in megawatt container-type vanadium redox flow battery (VRFB) energy storage systems. This is expected to deepen industrial cooperation, accelerate industrial upgrades, and stabilize firm’s access to capital.

Industry Trends

Some of the Largest Operational Vanadium Redox Battery Projects Across the Globe

The rapid expansion of the electric vehicle (EV) market is serving as a significant driver propelling the growth of the vanadium redox battery (VRB) battery market. As the automotive industry undergoes a paradigm shift towards electrification, there has been a surge in demand for batteries to power electric vehicles. According to the World Economic Forum, global sales of electric vehicles (EVs) increased by 55% reaching a total of 10.5 million in 2022 from 2021. Additionally, the International Energy Agency (IEA) predicts global sales to increase by 36% in 2023 as compared to 2022 to approximately reach more than 14 million electric vehicles in 2023.

Comparative View of Parent Market

This surge is fueled by several factors, including environmental concerns, government regulations promoting cleaner transportation, and technological advancements driving improvements in EV performance and affordability. Concerns over air pollution, greenhouse gas emissions, and the depletion of fossil fuel reserves have prompted a shift towards electric mobility as a more sustainable alternative to traditional internal combustion engine vehicles. Governments around the globe are implementing policies to stimulate EV adoption, such as subsidies, tax incentives, and stricter emissions standards, further driving market growth. For instance, the government of India has launched a few programs such as FAME India Scheme, PLI Scheme, Battery Swapping Policy for achieving the target of a 100% EV adoption by 2030. All these factors drive the growth of the vanadium redox battery (VRB) battery market.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the vanadium redox flow battery (VRB) market analysis to identify the prevailing market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the vanadium redox flow battery (VRB) market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the Global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as vanadium redox flow battery (VRB) market trends, key players, market segments, application areas, and market growth strategies.