The global lithium iron phosphate (LiFePO4) battery market is estimated to garner a substantial amount of revenue and grow at a CAGR of ~15% over the forecast period, i.e., 2022 – 2030. The growth of the market can be attributed to the increasing demand for electric and hybrid vehicles, and growing focus on energy storage applications around the world. According to the International Energy Agency, the global electric car stock hit the mark of 10 million in 2020, which is a 43 percent increase over 2019. Battery electric vehicles accounted for two thirds of the car stock that same year.
Along with these, high requirement of lithium iron phosphate batteries in battery energy storage systems, and rising concerns associated with the environment are also expected to boost the market growth in the upcoming years. Furthermore, rapidly increasing population, coupled with an upsurge in depletion in fossil fuel reserves are projected to offer abundant opportunities for market progress in the near future.
The market is segmented by power capacity into 0–16,250 mAh, 16,251–50,000 mAh, 50,001–100,000 mAh, 100,001–540,000 mAh, out of which, the 100,001-540,00 mAh segment is anticipated to hold the largest share in the global lithium iron phosphate (LiFePO4) battery market. This can be accounted to the high usage of batteries with this capacity in different types of electric vehicles such as hybrid and plug-in hybrid electric vehicles. Additionally, on the basis of end use, the automotive segment is assessed to acquire the largest share during the forecast period, which can be credited to the growing demand for automobiles from emerging countries, namely China and India. Apart from this, rise in technological advancements to develop effective battery energy storage systems that are able to augment vehicle efficiency is also predicted to propel the segment’s growth in the imminent time. CLICK TO DOWNLOAD SAMPLE REPORT
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
On the basis of geographical analysis, the global lithium iron phosphate (LiFePO4) battery market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in Europe is estimated to witness noteworthy growth over the forecast period on the back of the rising adoption of electric vehicles, and deployment of government policies favoring the development of advanced battery technologies in the region, such as renewable battery storage. Moreover, the market in Asia Pacific is predicted to occupy the most significant share over the forecast period ascribing to the growing demand for consumer electronics from China, India and Japan, and presence of well-established automotive sector in the region. For instance, the number of users of consumer electronics are calculated to grow up to more than 840 million by 2025. The user penetration is expected to reach about 57 percent by the end of the same year. In addition, escalating adoption of stringent emission laws is also projected to bolster the region’s market growth in the coming years.
The global lithium iron phosphate (LiFePO4) battery market is further classified on the basis of region as follows:
Our in-depth analysis of the global lithium iron phosphate (LiFePO4) battery market includes the following segments:
FREQUENTLY ASKED QUESTIONS
The major factors driving market growth are increasing demand for electric and hybrid vehicles and growing focus on energy storage applications worldwide.
The market is anticipated to attain a CAGR of ~15% over the forecast period, i.e., 2022 – 2030.
Less awareness about the battery in lower economic regions is estimated to hamper the market growth.
Asia Pacific will provide more business opportunities for market growth owing to the rising adoption of electric vehicles, and deployment of government policies favoring the development of advanced battery technologies in the region.
The major players in the market are LiFeBATT, Inc., BYD Company Ltd., A123 Systems LLC, Electric Vehicle Power System Technology Co., Ltd., Bharat Power Solutions, and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by power capacity, application, end use, and by region.
The automotive segment is anticipated to hold largest market size and is estimated to grow at a significant CAGR over the forecast period and display significant growth opportunities.
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