 Battery Market.webp)
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.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~17% |
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Base Year Market Size (2022) |
~ USD 12 Billion |
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Forecast Year Market Size (2035) |
~ USD 54 Billion |
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Regional Scope |
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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:
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By Power Capacity |
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By Type |
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By End Use |
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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.
 Battery Market Size.webp)
Author Credits: Payel Roy, Dhruv Bhatia
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