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.
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The global lithium iron phosphate (LiFePO4) battery market is further classified on the basis of region as follows:
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.
Our in-depth analysis of the global lithium iron phosphate (LiFePO4) battery market includes the following segments:
By Power Capacity
By End Use
· July 2020- Panasonic’s electric vehicle battery business in the United States announced that it will increase the energy density of the 2170 battery supplied to Tesla by 20 percent within 5 years.
· February 2019- BYD introduced a next generation lithium iron phosphate battery technology for its warehouse equipment and forklifts, which is maintenance free and highly cost-effective.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The major factors driving market growth are increasing demand for electric and hybrid vehicles and growing focus on energy storage applications worldwide.
Ans: The market is anticipated to attain a CAGR of ~15% over the forecast period, i.e., 2022 – 2030.
Ans: Less awareness about the battery in lower economic regions is estimated to hamper the market growth.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: The market is segmented by power capacity, application, end use, and by region.
Ans: 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.