The global zinc-bromine battery market was valued at ~US$ 5 Mn in 2018, and is anticipated to expand at a CAGR of ~18% from 2019 to 2027, states to a new research report. Increase in the demand for zinc-bromine batteries in power distribution applications is one of the major factors driving the zinc-bromine battery market. In terms of consumption, Asia Pacific accounted for a significant share of the global zinc-bromine battery market in 2018.
Rise in Demand for Zinc-Bromine Batteries in Utility Applications
Increase in the demand for batteries in applications such as energy management, back-up power, load leveling, frequency regulation, voltage support, and grid stabilization is expected to boost the zinc-bromine battery market. An electric grid system with a strong and resilient electricity delivery system helps improve the operating capabilities of a power grid. Growth in the renewable energy sector is also fueling the demand for zinc-bromine batteries in power utility applications. According to the United Nation’s Sustainable Energy for All Initiative (SE4AI), an investment worth US$ 45 Mn has been made for providing universal access to modern electric power. Furthermore, the International Energy Agency (IEA) estimates that, developing countries would double their electrical power output in order to meet the rise in demand for energy from commercial and industrial sectors. Significant investments in rural electrification initiatives by various governments across the globe are likely to propel the demand for zinc-bromine batteries in the near future.
Increase in Demand for Zinc-Bromine Batteries in Commercial & Industrial Applications
Rise in the demand for energy storage systems in commercial and industrial applications is a key factor fueling the global zinc-bromine battery market. Common applications of zinc-bromine batteries include electronic and electrical devices operating in shopping malls, educational institutes, research organizations, theaters, etc. The rechargeable nature and high specific energy of zinc-bromine batteries make them suitable for usage in commercial and industrial applications, including generators and inverters. The ability of zinc-bromine batteries to store clean energy for longer duration than conventional batteries sees them being utilized for these applications. Among the various battery storage applications of zinc-bromine batteries, commercial and industrial applications are highly significant, owing to the high commercial value. Advancements in the deployment of renewable energy resources based on smart technologies are fueling the demand for zinc-bromine batteries with advanced features for commercial and industrial applications.
Opportunity in Electric Vehicle Applications
Increase in the production of electric vehicles is anticipated to offer attractive opportunities for the zinc-bromine battery market. The demand for electric vehicles such as hybrid electric vehicles (HEV), battery electric vehicles (BEV), extended-range electric vehicles (EREVs), and plug-in hybrids (PHEVs) has been rising. These vehicles require batteries with superior storage capacity. Significant increase in the production of electric vehicles from 2011 to 2017 indicates that, many countries across the globe are switching to electric vehicles, owing to energy and environmental concerns. Growth in investments in renewable energy applications is another factor driving the production of electric vehicles. This, in turn, is boosting the demand for zinc-bromine batteries.
Asia Pacific to Dominate Global Zinc-Bromine Battery Market
In terms of demand, Asia Pacific is estimated to account for a major share of the global zinc-bromine battery market during the forecast period. Australia dominates the market in Asia Pacific, based on the production of zinc-bromine batteries. Australia-based Redflow Limited, a key global player, exports its products to countries such as China, India, and Japan. Rise in the demand for power distribution networks in emerging economies of Asia Pacific such as China and India, owing to the significantly high population, is anticipated to augment the demand for zinc- bromine batteries. High rate of urbanization and increase in awareness about sustainable development in the region are also likely to create lucrative opportunities for the zinc-bromine battery market in Asia Pacific during the forecast period.
Moderate to High Degree of Competition among Established Players
The global zinc-bromine battery market is highly consolidated; intense competition exists among leading producers of zinc-bromine batteries. Major players operating in the zinc-bromine battery market have adopted strategies such as mergers, acquisitions, partnerships, and product launches in order to strengthen their market position. Currently, the market penetration of zinc-bromine batteries is considered poor. Various manufacturers are striving to produce zinc-bromine batteries at low manufacturing costs. Global manufacturers of zinc-bromine batteries are focusing on expanding their product portfolios through collaborations. For instance, in May 2019, Redflow Limited announced that it had entered into a collaboration agreement with ZbestPower Co., Ltd. According to the agreement, Redflow Limited will supply a large-scale (100 kilowatt hour) Redflow battery energy storage solution for a smart grid project in China. Key players profiled in the report on the global zinc-bromine battery market include RedFlow Limited, Primus Power, EnSync Energy Systems, MGX Renewables Inc, and Gelion Technologies Pty Ltd.