The size of the global vanadium redox battery (VRB) market was worth USD 340 million in 2023. The global market is anticipated to grow at a CAGR of 26.29% from 2024 to 2029 and be worth USD 1380 million by 2029 from USD 429 million in 2024.
Industries around the world are using and testing RFBs for various pilot projects. Support from energy departments in different countries also encouraged investment in the development of different integrated solutions, namely energy storage batteries, to improve grid efficiency. Vanadium redox battery uses liquid electrolytes in the place of electrolyte plates to save energy. These batteries are employed in energy storage systems as a replacement for standard batteries such as lead-acid and lithium-ion (Li-ion) batteries. These batteries provide a minimum of 25 years of zero maintenance service, giving the vanadium redox batteries market advantage over other battery technologies. The vanadium redox battery market is a rechargeable battery that stores electrochemical energy to conduct electricity and is a heat-insulating steel blue metal. The vanadium redox battery offers high energy capacity; furthermore, the capacity can be escalated by installing larger electrolyte storage tanks. The vanadium redox battery offers up to 90% efficiency depending on the storage capacity. In addition, it can be employed up to a depth of discharge (DOD) of almost 90%. Therefore, the vanadium redox battery market is employed for high-capacity energy storage applications.
A market trend is to increase investment in renewable energy. The cost of producing electricity using renewable energy remains relatively high compared to the production of conventional electricity. However, renewable technologies are maturing, so the gap between conventional and renewable fuels has narrowed significantly, making them competitive against newly built fossil fuel power plants. The competitive cost of power generation and the low-carbon nature of renewable technologies have led to continued investments in renewable energy worldwide. To encourage the use of renewable energy, the governments of various countries support the production of renewable energy by offering subsidies, incentives, feed rates, etc. Since renewable energy sources such as solar, wind, and hydro are intermittent in nature, they have less potential as self-contained electrical systems.
One factor in the marketplace is the environmental impact of disposing of batteries. The call for lead-acid batteries has escalated with the expansion of the automotive and other industries. In addition, there are more and more applications for energy storage in batteries for hybrid electric vehicles and renewable energy production. However, the escalating production of lead-acid batteries has raised environmental concerns about lead contamination. Battery production involves the use of toxic materials due to the lack of safer substitutes. Battery production requires a large amount of lead, some of which is often mixed with discharged fumes.
However, the larger and heavier characteristics of vanadium redox battery systems have limited the applicability of vanadium redox batteries in various industrial sectors such as electric vehicle batteries, small standby units, etc. Additionally, the low cost of lithium-ion batteries and other technologies has hampered the adoption of vanadium redox batteries worldwide, posing a threat to the global vanadium redox battery market.
In recent years, worldwide energy consumption has exploded due to population expansion in countries like China, India, etc., and economic expansion. This has escalated the call for energy storage systems in power plants for power backup purposes, which has influenced the adoption of new energy storage technologies. This trend has driven the worldwide market for vanadium redox batteries market. Additionally, technological advancements in electrochemical energy storage technologies are also a key driver in the worldwide vanadium redox battery market.
One of the challenges of the market is the fall in the prices of lithium-ion batteries. Lithium-ion batteries have higher energy densities than lead-acid batteries or nickel metal hydride (NiMH) batteries. Having a high energy density means that the battery can store more electricity in a cell of the same size with a reduced carbon footprint. This is what makes lithium-ion batteries ideal for use in industrial and other applications, such as energy storage in renewable energy projects and electric vehicles. The prices of lithium-ion batteries have been on a downward trend since 2007. The cost of batteries decreased by approximately 53% between 2007 and 2015.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023–2029 |
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Base Year |
2023 |
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Forecast Period |
2024-2029 |
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CAGR |
26.29% |
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Segments Covered |
By Type, Electrode Type, Electrode Type, Application, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Sumitomo Electric Industries, UniEnergy Technologies, RedT Energy, Gildemeister Energy Solutions, Vionx Energy, VanadiumCorp Resource, Bushveld Energy, Cellennium, Prudent Energy, Redflow, Sparton Resources, Australian Vanadium, and Others. |
The redox segment had a significant share of the worldwide vanadium redox battery market, representing a market share of nearly 85% in 2021, and is predicted to maintain a similar dominant share through 2026.
Based on the type of electrode, the graphite felt electrode had a share of almost 75% in 2021 and records a CAGR of around 45% during the foreseen period.
The utility segment dominated the global vanadium redox battery market and maintained a nearly 80% share in 2021 due to escalated adoption of vanadium redox batteries in the power sector with the rising call for equipment in an emergency.
The global vanadium redox battery market was dominated by Asia-Pacific in 2020. The region had a significant share of almost 85% in that year. The Asia-Pacific region dominated the market due to the introduction of new batteries for vanadium redox in China. Government initiatives in the field of renewable energy are predicted to create new avenues for the worldwide market for vanadium redox batteries in the coming years. Additionally, North America had a share of approximately 14% in 2019. The United States' strategic investment to expand its energy storage capacity has boosted the North American vanadium redox battery market.
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