Global lithium iron phosphate battery market was valued USD 6.14 Bn in 2018. Lithium-iron phosphate batteries come with extreme superior properties in compared with other li-ion batteries. Rising demand for electric vehicles as well as increasing consumption of consumer electronics that require lithium iron phosphate batteries is expected to drive the global lithium iron phosphate market.
In lithium iron phosphate batteries, the cathode is made by using more cost-effective raw materials such as iron and phosphates. Less cost of raw materials makes it a most cost effective battery and the ideal choice of automotive and end-use industries. Though the cells produced using lithium iron phosphate have low energy density and capacity due to its inborn low voltage, which makes it more expensive compared to others while measuring it on a cost/kWh basis. However, other features such as high power, long life cycle and extreme temperature resistance makes it extremely beneficial in energy storage devices, power tools and electric bicycles.
Lithium iron phosphate battery market is expected to accelerate with a volume CAGR of 23.0% from 2019 to 2025 and is continuously rising owing to its growth in numerous applications. The constant rise in consumption of consumer electronics is also a growth facilitator. In Asia-Pacific, China is the largest manufacturer and supplier of electric batteries for electric vehicles as well as the largest in mobile phones as it delivers smartphones that are very affordable as compared to other brands. As these smartphones consumption is growing they require, large battery storage (LifePO4) batteries. In electric vehicles after China, North America will be the second most promising market. For Instance, Tesla has upgraded its battery technology with 21,700 battery cells, which it has been manufactured in 2017 at its Gig factory in Nevada.
Lithium Iron Phosphate Battery Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2025||USD 6.14 billion|
|Growth Rate||CAGR of 23.0% during 2021-2028|
|Segment Covered||Manufacturing Process, Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Latin America, Middle East & Africa|
|Key Players Profiled||Valence Technology, AESC, Aleees, Tianjin B&M,Tianjin STL Energy, BTR, RELiON Battery.|
Key segments of the Global Lithium Iron Phosphate Battery Market
Manufacturing Process Overview, 2014-2025 (MWh, USD Million)
- High Temperature Solid Phase Synthesis
- Sol-Gel Method
- Co-precipitation Method
Application Overview, 2014-2025 (MWh, USD Million)
- Consumer Electronics
Regional Overview, 2014-2025 (MWh, USD Million)
- North America
- Rest of Europe
- Asia Pacific
- Rest of APAC
- Latin America
- Rest of Latin America
- Middle East and Africa
- Saudi Arabia
- Rest of MEA
Reasons for the study
- This report study provides an extensive outlook of the lithium iron phosphate battery industry
- While conducting thorough feasibility and study of the global lithium-ion phosphate battery market, we observed that these batteries are used on a wide commercial scale, especially for automotive and consumer electronics industries
- APAC is the leading and most potential region in the near future on account of rapid growth of automotive and consumer electronics in this region
- Lithium iron phosphate battery market is projected to witness immense growth opportunity in developing regions such as in Middle East and Latin American economies, on account of growing base of renewables in this sector
What does the report include?
- The study on the global lithium iron phosphate battery market covers the key dynamic factors such as challenges, opportunities, drivers and restraints
- Also, the global market size has been exhaustively analyzed using the regulatory analysis, value chain analysis, type and application integration as well as Porter’s five forces model
- The study covers market estimates segmented on the basis of manufacturing process, application and geography. Moreover, the study provides covers key geographies and countries which heavily use lithium acid batteries
Who should buy this report?
This study is beneficial for industry experts and leaders in the global lithium iron phosphate market, who want a thorough analysis and insight about the movement of the battery industry. The report will benefit:-
- Executives of automotive, and electronic industries which are engaged in the component manufacturing and designing and vehicle structuring
- Managers/executives/decision makers in financial institutions who are willing to publish current, old and anticipated and forecasted data pertaining to battery use in various end-use industries
- Stakeholders, investing firms and venture capitalists who are looking for additional information on the present and future scenario of the lithium iron phosphate market
- Regulatory and governmental bodies, policymakers and financial organizations looking for innovations in automotive component designs
Porter’s Five Forces is a framework that determines the competitive intensity and the attractiveness of the global lithium iron phosphate battery market. This model supports the decision making of the client, regarding entering and exiting the industries. This section analyses the global market from five different perspectives, namely, bargaining power of suppliers, threat of new entrants, the threat of substitute products, competitive rivalry and bargaining power of buyers.
High Bargaining Power of Suppliers-
Bargaining power of suppliers is one the forces that shapes the competitive structure of an industry. Lithium-ion battery market is fragmented by the presence of number of suppliers. Low level of backward integration has resulted in increased dependency on precursor or raw material procurement.
The market is characterised by the presence of a large number of lithium iron phosphate battery raw materials suppliers. The raw materials required for manufacturing lithium-ion phosphate battery are lithium and carbon. Buyers are able to switch to other supplier owing to the presence of suppliers. Thus, the bargaining power of suppliers is high in the industry.
High Bargaining Power of Buyers
As there are high number of battery manufacturers in the lithium iron phosphate battery market, buyers are likely to incur low switching cost which is expected to increase bargaining buyer of buyers. Due to the presence of effective substitutes in the market, the buyers govern high bargaining power.
The threat of substitutes is low to moderate .The substitutes are available in the market but they are in their initial stage. As compared to the substitutes available in the market, lithium iron phosphate battery has a major hold in the battery market owing to its wide range of applications.
Threat of Entrants:-
The investment cost for setting up a manufacturing facility is high. Stringent regulatory impositions by governmental bodies on the use of chemical raw materials has led to high entry barriers for new entrants. Customer loyalty plays a crucial role in lithium iron phosphate battery market. Therefore, it can be concluded that the threat of new entrant is low in the lithium iron phosphate battery market.
There is high competitive rivalry in the market as there are large number of players in the market. Product launch, expansion and acquisitions are some the strategies adopted by prominent market players. A strategy employed by one player leads to the adoption of the strategy by other player.
The global lithium iron phosphate battery market trends are heavily influenced by the rise of electric vehicles, demand for consumer electronics, and rise of industrial automation are the factors that drive the lithium iron phosphate market. Automotive batteries that consists of lithium iron phosphate battery market is witnessing fastest growth and is expected to surpass a CAGR of 23.0% from 2019 to 2025. In addition, the growing need for energy storage, e-bikes and electrification of tools, automobile battery related applications is increasing the interest in these commodities.
The underlying driver for lithium iron phosphate demand is the electric vehicle evolution which has driven the automobile batteries market. A variety of lithium iron phosphate batteries are used in consumer electronics sector and is widely adopted owing to its rechargeable property that provide better ratios of energy capacity to weight than any other battery chemistry in mass production. The wireless headsets use a conventional lithium iron phosphate battery assembly in which cell is enclosed in an aluminum foil to form a pouch. The main use of lithium iron phosphate battery is to avoid premature failure when subject to shock and vibration. The medical applications consist of powered medical carts and beds, medical delivery pumps and devices, automatic external defibrillators and others.
The preparation process for lithium-iron phosphate is divided into high temperature solid photo synthesis, Sol- gel method, Co-precipitation and others. Sol-Gel method as compared to all other methods is the easiest method and is and is rising with a significant CAGR from 2019 to 2015. It is expected to have a high growth rate as it and provides the powders in produced in precise stoichiometry control, high purity, uniform structure and very small size and is this process is very cheap compared to others. Additionally, this method does not requires high temperature and uniform distribution of ions in solution acts out a much uniform product that in nanometer size.
The rigorous development in technologies coming up in consumer electronics like the Bluetooth wireless speakers especially coming from China which is one of the largest manufacturer and exporter of consumer electronics in Asia. This factor has poised to impact positively the growth of consumer electronics market in china, India, Japan and others in Asia Pacific.
Asia-Pacific lithium iron phosphate battery market reached USD 2.63 Bn in 2018 and expected to witness significant growth in coming years. Also, rise of electric vehicles demanding lithium iron phosphate batteries in Asia- Pacific is expected to drive the demand and in turn the global lithium iron phosphate battery market size. Especially in China, BYD is the largest producer of electric vehicles and the supplier of electric vehicles. Except these the growing demand for healthcare instruments such as powered medical carts and beds, medical delivery pumps and devices, automatic external defibrillators and others will drive the market growth in this region. These all instruments require batteries that provides a battery that has longer energy storage with short recharge intervals, A battery technology that is safe, provides, and is significantly lighter and more mobile. All that is packed in lithium ion phosphate batteries.
Secondly, North America is the second largest manufacturer of lithium iron phosphate batteries as it has Ultra life Corporation which has the largest market share as of 2018 and provides batteries to various applications. Europe is the third largest market for Lithium iron phosphate batteries as it is heavily investing in manufacturing plants for batteries and there is a rising demand for electric vehicles as well which will drive the market growth in this region. Europe is coming up with plans for e – bikes as well. For instance, Gogoro is the electric bike manufacturer in Europe. And it has also completed its first lithium iron phosphate 3000 grid free installations in Prague in 2015. Hence, Europe is expected to have a stable growth rate.