Lithium-iron Phosphate Batteries Market Outlook - 2030
The global lithium-iron phosphate batteries market size was valued at $5.6 billion in 2020, and lithium-iron phosphate batteries market forecast to reach $9.9 billion by 2030 at a CAGR of 5.9% from 2021 to 2030. Lithium-iron phosphate battery is a type of lithium-iron battery that uses lithium-iron phosphate (LiFePO4) as the cathode material, and a graphitic carbon electrode with a metallic backing at anode. When compared with other types of battery materials, lithium-iron phosphate batteries possess several advantages such as lighter weight technology, fast charging, longer cycle life, and low energy wastage, thereby driving the growth of the lithium-iron phosphate batteries industry across the globe. The increasing demand for lithium-iron phosphate batteries from the automotive industry, majorly electric vehicles and innovative developments in lightweight materials, is the primary factor driving the demand for lithium-iron phosphate batteries during the forecast period.
Furthermore, growth in sales of electric vehicles and energy storage across the globe is expected to create high opportunities for the lithium-iron phosphate batteries market growth during the forecast period. Manufacturers are strongly focusing on improved solutions for specific requirement along with technological advancements to reduce operation cost and enhance productivity of lithium-iron phosphate batteries. These requirements have increased the lithium-iron phosphate batteries market opportunities in several end use applications such as automotive, industrial, and power generation.
Additionally, as per the research conducted by Department of Public Enterprises in 2018 and 2017, automotive industry contributed up to 7.1% to India’s GDP and 5.9% of GVA (Gross Value Added) in 2017. From 2018 to 2019, India showcased approximately 6.3% of growth in all segments of automotive manufacturing. The Indian government has aimed to increase EV sales by up to 30% by 2030 under policy measures such as National Electric Mobility Mission Plan 2020 (NEMMP) and the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) subsidy scheme, which is expected to drive the growth of the lithium-iron phosphate batteries market trends in India. The increase in usage of portable electronic gadgets and electric energy source-based products has created a positive impact on the demand for lithium-iron phosphate batteries. The increase in awareness among people regarding global warming has also boosted the demand for eco-friendly batteries. lithium-iron phosphate battery has high energy density compared to other batteries; hence, it can be made into battery packs of any size. It has been used in weather monitoring devices, ocean buoys, paddle boards, truck systems, robots, and other consumer equipment. The increase in usage of above products across the globe will provide remunerative opportunities for the growth of the lithium-iron phosphate batteries market during the forecast period.
By Type
Portable is projected to create abundant $ opportunity till 2030
The cost of lithium-iron batteries is high as compared with other battery types such as lead acid battery. From the past five years, the prices of lithium-ion phosphate batteries have declined to about 15% per year due to increase in production volume. However, the prices are still high compared to other conventional batteries, thereby limiting the sale of lithium-ion phosphate batteries. As a result, the adoption rate of these batteries is deliberate across different applications. Thus, high price of lithium-ion phosphate batteries is restraining the growth of the market in current times.
By Capacity
100,001–540,000 mAh is projected as the most lucrative segment.
On the basis of type, the global lithium-iron phosphate batteries market is bifurcated into portable and stationary. The capacity segment covered in the study includes 0–16,250 mAh, 16,251–50,000 mAh, 50,001–100,000 mAh, and 100,001–540,000 mAh. The applications covered in the study include automotive, power generation, industrial, and others.
By Application
Automotive is projected as the most lucrative segment.
Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by Europe and North America.
By Region
Asia Pacific holds a dominant position in 2020
The major companies profiled in this report include BYD, A123 Systems, Electrical Vehicle Power System Technology, OptimumNano Energy, K2Energy, Pihsiang Energy Technology, Victory Battery Technology, Power Sonic, Lithium Werks, and Benergy Technology Company.
Key findings of the study
- By region, the Asia-Pacific lithium-iron phosphate batteries market is projected to grow at the highest CAGR in terms of revenue, during the forecast period.
- By type, the portable segment accounted for the largest lithium-iron phosphate batteries market share in 2020.
- As per lithium-iron phosphate batteries market analysis, on the basis of capacity, the 100,001–540,000 mAh segment accounted for the largest market share in 2020.
- On the basis of application, the automotive segment accounted for the largest market share in 2020.
Impact Of Covid-19 On The Global Lithium-iron Phosphate Batteries Market
- Emergence of COVID-19 had a negative impact on the global market growth for a short period.
- The COVID-19 pandemic has unfavorably affected the global economy and subsequent weakening of the GDP in global economies, thereby fluctuating consumer spending patterns across the globe.
- A few of the challenges were original equipment manufacturing shutdown, unavailability of labor, raw material shortage, which, in turn, directly impacted the global lithium-iron phosphate battery manufacturers.
- Thus, the abovementioned factors are expected to limit the global market growth in current times.
Key Market Segments
By Type
- Portable
- Stationary
By Capacity
- 0–16,250 mAh
- 16,251–50,000 mAh
- 50,001–100,000 mAh
- 100,001–540,000 mAh
By Application
- Automotive
- Power Generation
- Industrial
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- Italy
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Lithium-iron Phosphate Batteries Market Report Highlights
| Aspects | Details |
 By TYPE |
|
 By CAPACITY |
|
 By APPLICATION |
|
 By Region |
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 Key Market Players | Benergy Tech Co. Ltd, Pihsiang Energy Technology, OptimumNano Energy, BYD, Lithium Werks, A123 Systems, Power Sonic, K2 Energy Solutions, Victory Battery Technology, Electric Vehicle Power System Technology |
Analyst Review
The global lithium-iron phosphate batteries market is expected to witness increased demand during the forecast period due to rapidly growing electric vehicle sales and glorifying automotive industry during the forecast period. High cost of lithium-iron phosphate batteries and several disadvantages, such as low reserve capacity and battery damage concerns, are anticipated to hinder the growth of the lithium-iron phosphate batteries market during the forecast period. However, increasing demand for lithium-iron phosphate batteries due to rapidly increasing electric vehicle sales across the globe and rising demand for lithium-iron phosphate batteries in several end-use applications, such as grid storage, data centers, power generation, and others, are some of the key factors expected to provide high demand for lithium-iron phosphate batteries during the forecast period. In addition, rapidly glorifying infrastructure and high urbanization growth especially in developing countries are expected to drive the global lithium-iron phosphate batteries market during the forecast period.
The COVID-19 pandemic has negatively impacted the global lithium-iron phosphate batteries market for a short span due to shutdown of original equipment manufacturing facilities, unavailability of labor, and raw material shortage leading to the decline in demand for lithium-iron phosphate batteries, thereby hindering the global lithium-iron phosphate batteries market for a short span of time.
Moreover, companies are inheriting expansion strategies coupled with mass production strategy to lower the cost of lithium-iron phosphate battery production, which is expected to boost the growth of the lithium-iron phosphate batteries market during the forecast period.
Portable segment holds the maximum share of the Lithium-Iron Phosphate Batteries market
Asia Pacific will provide more business opportunities for Lithium-Iron Phosphate Batteries in future
To get latest version of Lithium-Iron Phosphate Batteries market report can be obtained on demand from the website.
Mass production to reduce production cost of lithium-iron phosphate batteries is the key growth strategy of Lithium-Iron Phosphate Batteries market players
Increasing manufacturing capacities for lithium-iron phosphate batteries across the globe, strict government norms implemented to control increasing pollution, rapid increase in demand of lithium-iron phosphate batteries from data centers are key driving factors and opportunities in the Lithium-Iron Phosphate Batteries market
The top ten market players are selected based on two key attributes - competitive strength and market positioning
BYD, A123 Systems, Electrical Vehicle Power System Technology, OptimumNano Energy, K2Energy, Pihsiang Energy Technology, Victory Battery Technology, Power Sonic, Lithium Werks, Benergy Technology Company are some of the major players in Lithium-Iron Phosphate Batteries market
Automotive manufacturers, data centres, electric vehicle service providers are some of the potential customers of Lithium-Iron Phosphate Batteries industry
Lithium-iron phosphate batteries market is expected to reach $9.9 billion by 2030
The report provides you with detailed lithium-iron phosphate batteries market analysis from 2020-2030 in terms of value (US$ Mn) and Volume (KWH) on the basis of type, capacity and application, detailed qualitative analysis based on prominent factors expected to drive or affect growth of lithium-iron phosphate batteries market, lithium-iron phosphate batteries market competition landscape and company profiling of top 10 manufacturers, associated industry assessment, Porter’s five force analysis,
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