Lithium Iron Phosphate Battery Market To Reach $17.48 Billion By 2030

Lithium Iron Phosphate Battery Market Growth & Trends

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 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 make Asia Pacific the major manufacturer of LiFePO4 batteries.

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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.

Lithium Iron Phosphate Battery Market Segmentation

Grand View Research has segmented the global lithium iron phosphate battery market based on end-use, application, and region:

Lithium Iron Phosphate Battery End-use Outlook (Revenue, USD Billion, 2018 - 2030)

• Automotive

• Power

• Industrial

• Others

Lithium Iron Phosphate Battery Application Outlook (Revenue, USD Billion, 2018 - 2030)

• Portable

• Stationary

Lithium Iron Phosphate Battery Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

  • Russia

  • Spain

  • Italy

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Central and South America

  • Brazil

  • Colombia

  • Paraguay

• Middle East and Africa

  • Saudi Arabia

  • UAE

  • South Africa

  • Egypt

List of Key Players in Lithium Iron Phosphate Battery Market

• 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