Lithium Iron Phosphate Battery Market Size, Trends, Share, Growth | Report 2022-2030
The global lithium iron phosphate battery market was valued at USD 5.4 billion in 2021 and it is predicted to surpass around USD 15.77 billion by 2030 with a CAGR of 12.65% from 2022 to 2030
Report Highlights
Rising demand for EVs and HEVs and high requirement of renewable energy battery storage systems are driving the industry.
The automotive end-use segment accounted for the second-largest share in the market in 2019. The automotive sector includes battery-driven automobiles, including EVs, which are further segregated into HEVs, e-bikes, plug-in electric vehicles, and automated guided vehicles, which are the main consumers of lithium iron phosphate (LiFePO4) batteries.
Improved usage of LiFePO4 batteries in portable consumer electronic systems, grid storage, and EVs owing to their high energy density, along with high safety levels, is projected to drive the product demand. These batteries offer supreme energy density/weight and can be regularly used in computers, smartphones, and HEVs. Furthermore, various technical advancements will lessen the weight of these batteries and surge their power output and efficiency, which is likely to boost the market growth.
LiFePO4 offers 20 times extended cycle life than that of a lead-acid battery. Thus, it minimizes the replacement cost and ultimately decreases the total ownership cost. Additionally, these batteries are superior to lithium cobalt oxide batteries when used in EVs and are recommended to be used further in the upcoming models in the automotive sector.
Asia Pacific accounted for 32.8% share of the total revenue in 2019. China is expected to account for the maximum share in the Asia Pacific region in the coming years. The presence of several companies and abundant raw material accessibility makes Asia Pacific the major manufacturer of LiFePO4 batteries.
Scope of The Report
| Report Coverage | Details |
| Market Size in 2021 | USD 5.4 billion |
| Revenue Forecast by 2030 | USD 15.77 billion |
| Growth rate from 2022 to 2030 | CAGR of 12.65% |
| Base Year | 2021 |
| Forecast Period | 2022 to 2030 |
| Segmentation | End-use, application, region |
| Companies Covered | BYD Company Ltd.; A123 Systems LLC; K2 Energy; Electric Vehicle Power System Technology Co., Ltd; Bharat Power Solutions; OptimumNano Energy Co., Ltd.; LiFeBATT, Inc.; LITHIUMWERKS; CENS Energy Tech Co. Ltd.; RELiON Batteries |
Application Insights
Based on the application, the market is segregated as portable and stationary. The portable application segment dominated the global market and accounted for 52.43% share in 2021. This is attributed to the augmented demand for LiFePO4 batteries from the automotive segment, which is the key demand generating segment. However, in the coming years, the stationary application segment will compete with the portable application segment as the demand will increase for renewable energy storage projects.
The stationary application segment is expected to witness substantial growth in the years to come on account of the need to shift to renewable sources of energy, including wind and solar energy, for sustainable and clean energy. The shift to renewable energy sources is expected to infuse significant investments from both the private and public sectors, which is expected to boost the demand for such batteries.
End-use Insights
Based on end-use, the market is segregated as automotive, power, industrial, and others. The others end-use segment dominated the market and accounted for a 33.7% share in 2021. The segment is projected to witness the highest growth over the forecast period.
The automotive segment is expected to witness significant growth in the years to come owing to an increase in the demand from the Asia Pacific market. Unconventional energy storage battery systems that have the ability to augment the vehicle efficiency and performance are a significant area of focus for the automotive manufacturers. On account of high energy density and long cycle time, lithium iron phosphate batteries are projected to be the most favoured choice as an alternative energy storage battery system. Therefore, growth in the demand for automobiles across countries, such as China, is projected to fuel the demand for lithium iron phosphate batteries.
The power end-use segment is projected to expand at a CAGR of 15.88% from 2022 to 2030, as the use of lithium iron phosphate as a raw material has helped to resolve issues of consequent explosions and overheating of such batteries. The demand for these batteries is increasing across the power segment owing to their widespread usage in power generation plants and automobiles.
Regional Insights
Asia Pacific led the market and accounted for 33.03% share in 2021. The region is expected to witness significant growth over the forecast period owing to the established automotive sector and rising demand for consumer electronics across the region. The growing demand for consumer electronics from countries, such as Japan, India, and China, along with stringent government regulations, will also propel the market growth across the region.
Europe is expected to register a CAGR of 14.94% from 2022 to 2030. The European Union dominated the automotive segment in 2021. The growing adoption of electric vehicles is one of the major factors creating growth prospects, where each country has a supportive policy for the EVs. Hence, it further drives the demand for lithium iron phosphate batteries and creates growth prospects for all key battery manufacturers across the region. In North America, the U.S. is one of the largest markets with a large number of renewable energy battery storage projects, which are commissioned every year.
Key Players
Market Segmentation
Chapter 1. Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
Chapter 2. Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
Chapter 3. Executive Summary
3.1. Market Snapshot
Chapter 4. Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
Chapter 5. COVID 19 Impact on Lithium Iron Phosphate Battery Market
5.1. COVID-19 Landscape: Lithium Iron Phosphate Battery Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
Chapter 6. Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
Chapter 7. Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
Chapter 8. Global Lithium Iron Phosphate Battery Market, By End-use
8.1. Lithium Iron Phosphate Battery Market, by End-use, 2022-2030
8.1.1. Automotive
8.1.1.1. Market Revenue and Forecast (2017-2030)
8.1.2. Power
8.1.2.1. Market Revenue and Forecast (2017-2030)
8.1.3. Industrial
8.1.3.1. Market Revenue and Forecast (2017-2030)
8.1.4. Others
8.1.4.1. Market Revenue and Forecast (2017-2030)
Chapter 9. Global Lithium Iron Phosphate Battery Market, By Application
9.1. Lithium Iron Phosphate Battery Market, by Application, 2022-2030
9.1.1. Portable
9.1.1.1. Market Revenue and Forecast (2017-2030)
9.1.2. Stationary
9.1.2.1. Market Revenue and Forecast (2017-2030)
Chapter 10. Global Lithium Iron Phosphate Battery Market, Regional Estimates and Trend Forecast
10.1. North America
10.1.1. Market Revenue and Forecast, by End-use (2017-2030)
10.1.2. Market Revenue and Forecast, by Application (2017-2030)
10.1.3. U.S.
10.1.3.1. Market Revenue and Forecast, by End-use (2017-2030)
10.1.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.1.4. Rest of North America
10.1.4.1. Market Revenue and Forecast, by End-use (2017-2030)
10.1.4.2. Market Revenue and Forecast, by Application (2017-2030)
10.2. Europe
10.2.1. Market Revenue and Forecast, by End-use (2017-2030)
10.2.2. Market Revenue and Forecast, by Application (2017-2030)
10.2.3. UK
10.2.3.1. Market Revenue and Forecast, by End-use (2017-2030)
10.2.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.2.4. Germany
10.2.4.1. Market Revenue and Forecast, by End-use (2017-2030)
10.2.4.2. Market Revenue and Forecast, by Application (2017-2030)
10.2.5. France
10.2.5.1. Market Revenue and Forecast, by End-use (2017-2030)
10.2.5.2. Market Revenue and Forecast, by Application (2017-2030)
10.2.6. Rest of Europe
10.2.6.1. Market Revenue and Forecast, by End-use (2017-2030)
10.2.6.2. Market Revenue and Forecast, by Application (2017-2030)
10.3. APAC
10.3.1. Market Revenue and Forecast, by End-use (2017-2030)
10.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.3.3. India
10.3.3.1. Market Revenue and Forecast, by End-use (2017-2030)
10.3.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.3.4. China
10.3.4.1. Market Revenue and Forecast, by End-use (2017-2030)
10.3.4.2. Market Revenue and Forecast, by Application (2017-2030)
10.3.5. Japan
10.3.5.1. Market Revenue and Forecast, by End-use (2017-2030)
10.3.5.2. Market Revenue and Forecast, by Application (2017-2030)
10.3.6. Rest of APAC
10.3.6.1. Market Revenue and Forecast, by End-use (2017-2030)
10.3.6.2. Market Revenue and Forecast, by Application (2017-2030)
10.4. MEA
10.4.1. Market Revenue and Forecast, by End-use (2017-2030)
10.4.2. Market Revenue and Forecast, by Application (2017-2030)
10.4.3. GCC
10.4.3.1. Market Revenue and Forecast, by End-use (2017-2030)
10.4.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.4.4. North Africa
10.4.4.1. Market Revenue and Forecast, by End-use (2017-2030)
10.4.4.2. Market Revenue and Forecast, by Application (2017-2030)
10.4.5. South Africa
10.4.5.1. Market Revenue and Forecast, by End-use (2017-2030)
10.4.5.2. Market Revenue and Forecast, by Application (2017-2030)
10.4.6. Rest of MEA
10.4.6.1. Market Revenue and Forecast, by End-use (2017-2030)
10.4.6.2. Market Revenue and Forecast, by Application (2017-2030)
10.5. Latin America
10.5.1. Market Revenue and Forecast, by End-use (2017-2030)
10.5.2. Market Revenue and Forecast, by Application (2017-2030)
10.5.3. Brazil
10.5.3.1. Market Revenue and Forecast, by End-use (2017-2030)
10.5.3.2. Market Revenue and Forecast, by Application (2017-2030)
10.5.4. Rest of LATAM
10.5.4.1. Market Revenue and Forecast, by End-use (2017-2030)
10.5.4.2. Market Revenue and Forecast, by Application (2017-2030)
Chapter 11. Company Profiles
11.1. BYD Company Ltd.
11.1.1. Company Overview
11.1.2. Product Offerings
11.1.3. Financial Performance
11.1.4. Recent Initiatives
11.2. A123 Systems LLC,
11.2.1. Company Overview
11.2.2. Product Offerings
11.2.3. Financial Performance
11.2.4. Recent Initiatives
11.3. K2 Energy
11.3.1. Company Overview
11.3.2. Product Offerings
11.3.3. Financial Performance
11.3.4. Recent Initiatives
11.4. Electric Vehicle Power System Technology Co., Ltd.
11.4.1. Company Overview
11.4.2. Product Offerings
11.4.3. Financial Performance
11.4.4. LTE Scientific
11.5. Bharat Power Solutions
11.5.1. Company Overview
11.5.2. Product Offerings
11.5.3. Financial Performance
11.5.4. Recent Initiatives
11.6. OptimumNano Energy Co., Ltd.
11.6.1. Company Overview
11.6.2. Product Offerings
11.6.3. Financial Performance
11.6.4. Recent Initiatives
11.7. LiFeBATT, Inc.
11.7.1. Company Overview
11.7.2. Product Offerings
11.7.3. Financial Performance
11.7.4. Recent Initiatives
11.8. LITHIUMWERKS,
11.8.1. Company Overview
11.8.2. Product Offerings
11.8.3. Financial Performance
11.8.4. Recent Initiatives
11.9. CENS Energy Tech Co., Ltd.
11.9.1. Company Overview
11.9.2. Product Offerings
11.9.3. Financial Performance
11.9.4. Recent Initiatives
11.10. RELiON Batteries
11.10.1. Company Overview
11.10.2. Product Offerings
11.10.3. Financial Performance
11.10.4. Recent Initiatives
Chapter 12. Research Methodology
12.1. Primary Research
12.2. Secondary Research
12.3. Assumptions
Chapter 13. Appendix
13.1. About Us
13.2. Glossary of Terms
Cross-segment Market Size and Analysis for
Mentioned Segments
Additional Company Profiles (Upto 5 With No Cost)
Additional Countries (Apart From Mentioned Countries)
Country/Region-specific Report
Go To Market Strategy
Region Specific Market DynamicsRegion Level Market Share Import Export AnalysisProduction AnalysisOthers