The Lithium Iron Phosphate Batteries market size is forecast to reach US$ 12.3billion by 2027, growing at a CAGR of 5.6% from 2022 to 2027. The lithium iron phosphate (LFP) battery is a type of lithium-ion battery using lithium iron phosphate(LiFePO4) as the cathode material, LiFePO is a natural mineral of the olivine family (triphylite) and a graphitic carbon electrode with a metallic backing as the anode. These batteries have lower cost, high safety, low toxicity and long cycle life. lithium iron phosphate batteries find a number of roles in automotive, backup power and other utility applications such as smartphones, laptops, flashlights, radio-controlled models, carbon nanotubes, carbon electrodes, olivine, industrial sensor systems and others. Factors such as growing research in carbon nanotube-modified LFP batteries, the rise in demand for green solutions such as electric vehicles and renewable energy, and the growing need for long-life batteries and high-temperature sustaining batteries lead to the growth of this market. However, technical limitations such as low voltage and low energy density restrain the lithium iron phosphate batteries market growth. In 2020, according to the China Association of Automobile Manufacturers (CAAM), China produced 9.56-gigawatt hours (GWh) of LFP battery power in the first two months of 2021, accounting for 44.3% of the total battery output. Hence, the largest market share in the lithium iron phosphate batteries market is acquired by China.
Lithium Iron Phosphate Batteries Market Report Coverage
The report: “Lithium Iron Phosphate Batteries Industry Outlook — Forecast (2022–2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Lithium Iron Phosphate Batteries industry.
By Type: Portable, Stationary.
By Package: Battery system, Battery Module, Cells.
By Power: 0–12V, 13–24V, 25–48V, 49–96V, Greater than 96V.
By End-user: Automotive (Electric cars, Hybrid cars, Commercial vehicles, Others), Industrial equipment, Power & Energy (Electric cars, Hybrid cars, Commercial vehicles, Others), Electronics (Consumer electronics, Wearable electronics), Aerospace, Military & Defense, Others.
By Geography: North America (U.S., Canada, Mexico), Europe(U.K, Germany, France, Italy, Spain, Others), APAC (China, Japan, South Korea, India, Australia, Others), South America (Brazil, Argentina, Others), RoW (Middle East, Africa).
Key Takeaways
- The battery module segment held the largest Lithium Iron Phosphate Batteries market size in the Lithium Iron Phosphate Batteries market segmented by packaging, in 2021This is owing to large scale demand in electric vehicles as well as rising demand of customizable and integrated battery modules.
- The automotive segment held the largest Lithium Iron Phosphate Batteries market size in Lithium Iron Phosphate Batteries market by end-user, in 2021. This is attributed to the growing use of electric or hybrid vehicles, the need for environment-friendly technologies in the automobile sector and the long cycle life of the batteries.
- APAC (Asia-Pacific) market held the largest market share of 42%, in 2021. This is due to ample availability of raw materials for batteries, government projects to boost environment-friendly solutions and an increase in the production of renewable energy and its storage.
- The factors such as government initiatives for eco-friendly technologies rise in demand for electric vehicles and wearable electronics applications, the growing need of long-life batteries and high temperature-sustaining batteries result in the growth of the lithium iron phosphate batteries market.
Lithium Iron Phosphate Batteries Market Segment Analysis — by Packaging
The Lithium Iron Phosphate Batteries market by type of system has been segmented into battery system, battery module, and cells. The battery module segment held the largest share of 45%, in 2021. This is owing to ease of replacement and customization of cell packs, integration with smart monitoring systems, radio-controlled models, carbon nanotubes, carbon electrodes, olivine and high battery cell energy density. A battery assembly put into a frame by combining a fixed number of cells to protect them from external shocks, heat or vibration is a ‘battery module’. For example, the energy supply for campers, trucks, motor homes and boats where weight is important is given by lithium iron phosphate batteries modules of 12.5V usually integrated with a battery management system (BMS). Another example of High Capacity Lithium Iron Phosphate batteries are designed for a broad range used in cabinet, container or building applications and can be customized as required. Thus, the growing demand for customized battery modules and integrated battery modules for monitoring the system is driving the growth of the battery modules segment. In March 2021, Blue Planet Energy announced the launch of its Blue Ion HI, a safe, hassle-free energy storage solution for homes, businesses and community resilience projects. It is engineered for streamlined installation and its proprietary racking system allows installers to easily place and stack the lithium ferrous phosphate (LFP) battery modules and to quickly expand capacity in units of 8, 12 or 16 kWh as required. Thus, the growing demand for battery modules is driving the growth of Lithium Iron Phosphate batteries.
Lithium Iron Phosphate Batteries Market Segment Analysis — by End-user
The Lithium Iron Phosphate Batteries market by end-user has been segmented into automotive (electric cars, hybrid cars, commercial vehicles, others), industrial equipment, power & energy (electric cars, hybrid cars, commercial vehicles, others), electronics (consumer electronics, wearable electronics), aerospace, military & defense, others. The automotive segment held the largest share of 35%, in 2021. This is attributed to the growing awareness of clean energy solutions in automobiles, the need for efficient and long-life batteries in electric or hybrid vehicles and a wide range of stable working temperatures. Lithium Iron Phosphate Batteries are rechargeable, thermally and chemically stable hence less prone to explosions or fires, free from cobalt emissions and have long battery life. As a result, they are widely used in the automotive sector for electric and hybrid vehicles which boosts the lithium iron phosphate batteries market. In 2021, the American electric car maker Tesla announced that it will adopt lithium iron phosphate batteries in its standard-range vehicles. In its third-quarter earnings report, the company clearly stated that we are shifting to Lithium Iron Phosphate (LFP) battery chemistry globally. Many other automobile companies such as Hyundai, BMW and Porshe have also initiated a process to switch to these batteries. This rapid surge in demand for lithium iron phosphate batteries is driving the growth of this market.
Lithium Iron Phosphate Batteries Market Segment Analysis — by Geography
The Lithium Iron Phosphate Batteries market by geography is segmented into North America, Europe, Asia-Pacific (APAC), South America and the rest of the world (RoW). APAC (Asia-Pacific) held the largest Lithium Iron Phosphate Batteries market share with 42%of total market size, in 2021. This is majorly due to the availability of raw materials at effective costs, supportive government initiatives to promote environment-friendly solutions and th