Lithium Iron Phosphate Battery Market Size, Share & Trends Report

Lithium Iron Phosphate Battery Market Size, Share & Trends Analysis Report By End-use (Automotive, Power, Industrial), By Application (Portable, Stationary), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-1-68038-468-0
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 115

Report Overview

The global lithium iron phosphate battery market size was valued at USD 4.91 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 15.2% from 2020 to 2027. Rising demand for hybrid electric vehicles and electric vehicles with growing environmental apprehensions and high requirement for lithium iron phosphate (LiFePO4) batteries in battery energy storage systems are driving the market. Hence, increasing focus on energy storage technologies is a major factor boosting the market growth. The market is projected to witness significant growth in the years to come as a result of several factors, including the ever-increasing population owing to which there has been a substantial depletion in fossil fuel reserves. This has eventually led to a change in the focus of various countries towards renewable electricity generation.

U.S. lithium iron phosphate battery market size

Growing focus towards renewable sources of energy generation to address the stern concerns over climate change and improve energy conservation is likely to contribute to the growth of the market over the forecast period. The demand for lithium iron phosphate 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 is also projected to boost the demand over the next seven years across the country. The market is extremely competitive with the presence of a large number of market players, mostly present in the U.S. and China.

However, operations of the 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 is another initiative undertaken by the producers. Such batteries find applications in portable and stationary battery systems.

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 52.0% share in 2019. 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 2019. 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 favored 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.

Global lithium iron phosphate battery market share

The power end-use segment is projected to expand at a CAGR of 15.5% from 2020 to 2027, 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 32.8% share in 2019. 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 14.7% from 2020 to 2027. The European Union dominated the automotive segment in 2019. 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 Companies & Market Share Insights

The 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 the LiFePO4 battery manufacturers in order to stay afloat in this market. As per the trends, it has been observed that numerous manufacturers of lithium iron phosphate batteries are continuously engaged in R&D activities. As this business entails extensive investments and ROI is a time-consuming process, the manufacturers are reliant on government funding in order to enlarge their facilities. Some prominent players in the global lithium iron phosphate battery market include:

  • 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

Lithium Iron Phosphate Battery Market Report Scope

Report Attribute

Details

Market Revenue in 2020

USD 5.20 billion

Revenue forecast in 2027

USD 15.24 billion

Growth Rate

CAGR of 15.2% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

End-use, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; U.K.; Germany; Spain; Italy; France; Russia; China; India; Japan; South Korea; Australia; Brazil; Paraguay; Colombia; UAE; South Africa; Saudi Arabia; Egypt

Key companies profiled

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

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global lithium iron phosphate battery market report on the basis of end-use, application, and region:

  • End-use Outlook (Revenue, USD Billion, 2016 - 2027)

    • Automotive

    • Power

    • Industrial

    • Others

  • Application Outlook (Revenue, USD Billion, 2016 - 2027)

    • Portable

    • Stationary

  • Regional Outlook (Revenue, USD Billion, 2016 - 2027)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

      • Russia

      • Spain

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

      • South Korea

      • Australia

    • Central & South America

      • Brazil

      • Colombia

      • Paraguay

    • Middle East & Africa

      • Saudi Arabia

      • UAE

      • South Africa

      • Egypt

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