Top Emerging Trends Of Lithium Iron Phosphate Battery Market Progress Forecast 2030 |Grand View Research, Inc.

San Francisco, 13 February 2024: The Report Lithium Iron Phosphate (LiFePO4) Battery Market Size, Share & Trends Analysis Report By End-use (Automotive, Power, Industrial), By Application (Portable, Stationary), By Region (Europe, Asia Pacific), And Segment Forecasts, 2024 – 2030

The global lithium iron phosphate battery market size is projected to reach USD 17.48 billion by 2030, expanding at a CAGR of 10.5% from 2024 to 2030, according to a new report by Grand View Research, Inc. 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 2024. 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 2024. 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 make Asia Pacific the major manufacturer of LiFePO4 batteries.

An increasing demand for hybrid electric vehicles (HEVs) and electric vehicles (EVs) on account of rising environmental concerns, coupled with extensive requirements for LiFePO4 batteries in battery energy storage systems, are factors driving market expansion. Hence, increasing focus on energy storage technologies is a major factor boosting industry growth. The market is expected to showcase substantial growth in the coming years due to several factors, including the ever-growing population that has resulted in a significant depletion of fossil fuel reserves.

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This has eventually led to a change in focus of various countries toward renewable electricity generation. A growing focus on renewable sources of energy generation to address stern concerns over climate change and improve energy conservation is likely to contribute to industry growth. Demand for LiFePO4 batteries in the U.S. was driven by increasing concerns regarding ecological degradation owing to pollution from fossil fuels. The presence of key producers and dealers with varied distribution networks will also boost product demand across the country.

Lithium Iron Phosphate Battery Market Report Highlights

• Portable application segment dominated the global market and accounted for more than 50.0% share of the overall revenue in 2023.
• Asia Pacific accounted for more than 31.0% share of the overall revenue in 2023. Growth in demand for automobiles across countries, such as China, is projected to fuel demand for LiFePO4 batteries.
• Automotive segment is expected to witness significant growth in years to come owing to an increase in demand from the Asia Pacific regional market. The power end-use segment is projected to expand at a CAGR of 10.8% from 2024 to 2030.
• In North America, the U.S. is one of the largest markets with a high number of renewable energy battery storage projects, which are commissioned every year.

The industry is extremely competitive with the presence of a large number of key players, mostly present in the U.S. and China. However, operations of companies are at numerous places with manufacturing plants and distribution carried out across several locations, along with third-party distribution agencies. Extensive research and development activities to develop high-quality and effective products are another initiation undertaken by producers. Such batteries find applications in portable and stationary battery systems.

The rising number of portable consumer electronics items that deploy batteries has resulted in an increased consumption of rechargeable batteries. Portable devices such as digital cameras, smartphones, MP3 players, and laptops need rechargeable batteries to provide efficient and effective power and performance. Battery technology is evolving continuously to meet the high performance and power density requirements of devices. Advancements in technologies are providing ample products for consumers that include wearables devices, virtual and augmented reality (VR & AR), 4k televisions, 3D printers, drones, and communication robots, which are likely to find a foothold among tech-savvy consumers. Since the development of new technologies reduces product lifecycle, consumer interests alter, and thus companies must be agile in their responses to stay competitive.

Lithium Iron Phosphate (LiFePO4) Battery Market Report Scope

This industry has been characterized by high competition. High product quality, pricing, brand recognition, reliability, durability, and energy density are some of the key factors for LiFePO4 battery manufacturers to stay afloat in this market. As per trends, it has been observed that many manufacturers are continuously engaged in R&D activities. As this business entails extensive investments, and ROI is a time-consuming process, manufacturers are reliant on government funding to increase their facilities.

Key Lithium Iron Phosphate (LiFePO4) Battery Companies:

• BYD Company Ltd.
• A123 Systems LLC
• K2 Energy
• Electric Vehicle Power System Technology Co., Ltd.
• Bharat Power Solutions
• OptimumNano Energy Co., Ltd.
• k2battery
• LiFeBATT, Inc.
• LITHIUMWERKS
• CENS Energy Tech Co., Ltd
• RELiON Batteries