Lithium Iron Phosphate (LiFePO4) Battery Market Size & Share, by Power Capacity (0-16,250 mAh, 16,251-50,000 mAh, 50,001-100,000 mAh, 100,001-540,000 mAh); Type (Stationary, Portable); End-user (Automotive, Power, Industrial) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3676
  • Published Date: Apr 21, 2023
  • Report Format: PDF, PPT

Lithium Iron Phosphate (LiFePO4) Battery Market Segmentation 2023-2035

Lithium Iron Phosphate (LiFePO4) Battery Market size is estimated to reach USD 54 Billion by the end of 2035, growing at a CAGR of 17% during the forecast period, i.e., 2023-2035. The growth of the market can be attributed to the growing demand for electric and hybrid vehicles. Further, the fluctuating prices of petrol and diesel across the globe are also expected to add to the market growth. The demand for lithium iron phosphate batteries is expected to rise, as it is preferred over other batteries as the primary battery in electric vehicles, owing to its superior operational and technological capabilities. According to estimates, the market share of electric vehicle sales in the US increased by over 4% in 2021.

In addition to these, factors that are believed to fuel the market growth of lithium iron phosphate (LiFePO4) batteries include the growing focus on energy storage applications. LiFePO4 can be used in energy storage applications owing to its long service life and the capability of deep cycling. For instance, the use of LFP battery energy storage equipment may enable businesses to spend less on power. Extra renewable energy is stored in the battery systems for later use by the business.


Lithium Iron Phosphate (LiFePO4) Battery Market
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Lithium Iron Phosphate Battery Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Environment Degradation– On account of the increasing urbanization across the globe, the market is expected to expand more in the upcoming years. Further, LiFePO4 batteries have far less environmental impact than other batteries, since they can be recharged. By 2050, more than 60% of the world's population, is anticipated to reside in cities.
  • Rising Demand for Electrical Appliances –The rise in personal disposable income across the globe, is estimated to drive market growth. By 2026, the demand for household appliances is anticipated to reach USD 28 billion worldwide.
  • Surging Energy Sector – According to the most recent expenditure data, in 2021, the global demand for primary energy grew by more than 5%.
  • Increasing Demand for Clean Energy – It is expected that growing demand for renewable energy is anticipated to drive the market growth. Further, LFP batteries are an efficient, dependable, secure, and environmentally friendly way to store renewable energy. In 2020, global demand for renewable energy increased by over 2% while demand for all other fuels decreased.

Challenges

  • Exorbitant Cost of (LiFePO4) Battery - The high cost of the LFP battery is one of the major factors predicted to slow down the market growth. For instance, as compared to other batteries the price of lithium iron phosphate batteries is high, which results in a low adoption rate and fewer sales of these batteries for a variety of applications.
  • Technical Disadvantages of LFP Battery
  • Lack of Awareness about the Batteries in Lower Economic Regions

Lithium Iron Phosphate (LiFePO4) Battery Market: Key Insights

 

Base Year

2022

Forecast Year

2023-2035

CAGR

~17%

Base Year Market Size (2022)

~ USD 12 Billion

Forecast Year Market Size (2035)

~ USD 54 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

 

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​​​​​​​Lithium Iron Phosphate Battery Segmentation

End-user (Automotive, Power, Industrial)

The LiFePO4 battery market is segmented and analyzed for demand and supply by end-use in automotive, power, industrial, and others. Out of the four, the automotive segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing demand for low-emission electric vehicles across the globe. For instance, compared to gasoline or diesel vehicles, electric vehicles have significantly fewer emissions, which has led to an increase in demand for lithium iron phosphate (LiFePO4) batteries. Further, LFP batteries offer high safety and extended cycle life, which may satisfy safety criteria, these are benefits of lithium iron phosphate batteries, which fulfill the demands of individual customers in commercial vehicles with greater operating frequency and stricter specifications for space and weight. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years. More than 10% of automobiles sold in Europe in 2021 were electric vehicles.

Type (Stationary, Portable)

The market is also segmented and analyzed for demand and supply by type into stationary, and portable. Amongst these two segments, the portable segment is expected to garner a significant share. The growth can be attributed to the increasing popularity of portable batteries in the automotive industry. These batteries are used in the production of electric and hybrid vehicles owing to their good operational efficiency. Further, a portable lithium iron phosphate battery is also light and easy to carry. As a result, it is projected that this would generate a lot of prospects for the segment's growth in the years to come.

Our in-depth analysis of the global market includes the following segments:

     By Power Capacity

  • 0–16,250 mAh
  • 16,251–50,000 mAh
  • 50,001–100,000 mAh
  • 100,001–540,000 mAh

     By Type

  • Stationary
  • Portable

     By End Use

  • Automotive
  • Power
  • Industrial
  • Others

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Lithium Iron Phosphate (LiFePO4) Battery Industry - Regional Synopsis

Europe Market Forecast

The European lithium iron phosphate (LiFePO4) battery market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the increasing popularity of electric vehicles. For instance, the growing demand for electric cars in the region is expected to increase the demand for lithium-iron-phosphate batteries. These batteries are used in electric cars owing to their distinctive qualities, which include improved energy efficiency, a long life cycle, high power, and energy density. In addition, the region's growing technological advancements associated with electric vehicles are also anticipated to boost market growth during the forecast period. As of 2021, there were over 5 million plug-in electric automobiles and light trucks operating in Europe.

APAC Market Statistics

The Asian Pacific lithium iron phosphate (LiFePO4) battery market, amongst the market in all the other regions, is projected to hold the second largest share of about ~33% during the forecast period. The growth of the market can be attributed majorly to the growing demand for consumer electronics. Higher disposable incomes and changing lifestyles are all factors that have contributed to the rising demand for electronics in the region. Owing to their high energy-to-weight ratios, absence of memory effect, and gradual self-discharge, lithium-ion batteries are frequently used in portable consumer electronics. Further, the demand for lithium iron phosphate batteries is also driven in the area on the account of the growing requirement for consumer gadgets such as smartphones and laptops to provide longer-lasting batteries in addition to high efficiency. In addition, the region's strict government rules & regulations, are also anticipated to boost the market growth during the forecast period.

North American Market Forecast

Further, the market in North America, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the growing sales of electric vehicles. For instance, supportive government policies, subsidies, and tax rebates encourage EV adoption in the region. The benefits that electric cars have over conventional vehicles, such as better fuel efficiency, and lightweight, will help the market for lithium iron phosphate (LiFePO4) expand throughout the projected period. Further, the availability of leading manufacturers is also anticipated to contribute to the market growth in the region.

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Lithium Iron Phosphate (LiFePO4) Battery Market Size
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Companies Dominating the Lithium Iron Phosphate (LiFePO4) Battery Landscape

top-features-companies
    • LiFeBATT, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • BYD Company Ltd.
    • A123 Systems LLC
    • Electric Vehicle Power System Technology Co., Ltd.
    • Bharat Power Solutions
    • OptimumNano Energy Co., Ltd.
    • CENS Energy Tech Co., Ltd.
    • Panasonic Corporation
    • Toshiba Corporation
    • Samsung SDI Co., Ltd

In-the-news

In The News

  • Toshiba Corporation introduced 20Ah-HP rechargeable lithium-ion battery cell that is the same size as Toshiba's existing 20Ah product. Moreover, the cell is perfect for heavy-load applications, and industrial equipment, where high power input and output are necessary. Further, it is also ideal for situations where battery cells must suppress heat and operate continuously.
  • December 2022: Panasonic Corporation a global leader in lithium-ion batteries, teamed up with Lucid Group to increase the production of lithium-ion EV batteries outside of Japan and into the United States. Further, this collaboration will speed up the transition to a future with net-zero emissions and help the lithium-ion battery market thrive.

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 3676
  • Published Date: Apr 21, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing demand for electric and hybrid vehicles and the growing focus on energy storage applications are the major factors driving the market growth.

The market is anticipated to attain a CAGR of 17% over the forecast period, i.e., 2023-2035.

Exorbitant cost of (LiFePO4) battery, and the technical disadvantages of LFP battery are estimated to be the growth hindering factors for the market expansion.

The market in the European region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

The major players in the market are BYD Company Ltd., A123 Systems LLC, Electric Vehicle Power System Technology Co., Ltd., Bharat Power Solutions, OptimumNano Energy Co., Ltd., CENS Energy Tech Co., Ltd., Panasonic Corporation, Toshiba Corporation, Samsung SDI Co., Ltd., and others.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by type, power capacity, end-use, and by region.

The automotive segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
Lithium Iron Phosphate Battery Market Report Scope
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