The vanadium redox battery market is expected to grow at a CAGR of around 9.5% during the forecast period. Factors such as the lower environmental impact of battery disposal and high energy capacity by having larger electrolyte storage tanks are likely to drive the market in the coming years. With a life span of more than 20 years and no presence of fire hazard and highly reactive or toxic substance, vanadium redox battery is more environmentally friendly than lithium-ion and lead-acid batteries. However, low energy density and high capital costs are likely to hinder the market growth during the forecast period.
- The utility sector is expected to witness significant growth owing to the increasing deployment of renewable energy generators (solar panels and wind turbines) and the continuous growth for energy storage technology, which is expected to drive the market.
- With the rapid growth of renewable energy applications, different organizations have made continuous efforts to have better energy density and efficient energy storage facilities. Numerous research and developments are taking place on the development of the membrane that separates the positive and negative terminals and prevents cross mixing of vanadium ions while providing required ionic conductivity. Development of Cation Exchange Membrane (CEM), Anion Exchange Membrane (AEM), and Amphoteric Ion Exchange Membrane (AIEM) membranes are likely to increase the ionic exchange in between the terminals. Moreover, it is expected to improve the battery's cyclability performance of the battery. Thus, it is expected to render an opportunity for the growth of the market in the near future.
- Asia-Pacific is expected to dominate the market with majority of the demand coming from the countries such as the China and India.
Key Market Trends
Utility Sector to Witness Significant Growth
- With the growing carbon emissions around the world, the deployment of both solar panels and wind turbines are increasing over the years. Both the technology requires energy storage facility to use it during peak hours. Vanadium redox battery is one of the ideal solutions to store the surplus energy generated by both the technologies.
- During 2019, solar and wind energy have an installed capacity of around 586.4 gigawatts (GW) and 622.7GW, respectively. With government initiatives, these capacities are likely to increase during the forecast period.
- On account of its technical advantages over lithium and lead-acid batteries, increasing the installation of solar panels and wind turbines are likely to increase the possibility of vanadium redox battery installation.
- Vanadium redox battery is suitable for grid and off-grid connections. Unlike a lithium-ion battery, it can be discharged completely, the electrolyte can be re-used and doesn't need to be disposed of. Moreover, the electrolyte used in aqueous and inherently safe and non-flammable.
- According to the International Energy Agency (IEA), solar photovoltaic and wind energy sectors are likely to increase its capacity to more than 970GW and 830GW by 2025, which is expected to expand the vanadium redox battery market during the forecast period.
Asia-Pacific Likely to Dominate the Market
- Asia-Pacific is expected to dominate the vanadium redox battery market as the region has several operational flow battery installations with large power ratings.
- Countries such as China, India, Japan, and Australia are striving to boost their large-scale energy storage capacity through battery technologies that could, in turn, enhance electric stability.
- As of 2019, China holds the highest capacity of flow batteries installed compared to other countries in the Asia-Pacific region.
- In January 2019, VRB Energy, a manufacturer of vanadium redox battery, commissioned the first phase of a 10MW / 40MWh flow battery project in China. The first phase represents the commencing of 3MW / 12MWh of the project.
- This project represents a key step in utilizing China's rich vanadium resources to renewable energy development that will transform the energy industry and help alleviate environmental problems.
- In May 2019, the vanadium flow batteries set for grid-scale projects in Australia i.e., the Canadian company CellCube Energy Storage Systems and Pangea Energy, are planning to install a 50MW/200 MWh energy storage system in Port Augusta, South Australia. The project is likely to become operational in 2020.
- Moreover, with existing and upcoming solar and wind projects in the region, many companies are keen on deploying and expanding its business in Asia-Pacific, which is expected to grow the market in the near future.
The vanadium redox battery market is consolidated. The key players in the market include VRB Energy, VanadiumCorp Resource Inc., Invinity Energy Solutions, Solibra Energy Storage Technologies GmbH, UniEnergy Technologies, H2 Inc, and Big pawer Electrical Technology Xiangyang Inc. Co. Ltd. among others.
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