The lithium iron phosphate batteries market is projected to reach USD 10.6 billion by 2024 from an estimated USD 8.3 billion in 2019, at a CAGR of 5.0% during the forecast period. This growth is attributed to the increasing focus on electric and hybrid electric vehicles and high demand for energy storage applications.
The automotive segment is expected to be the largest contributor to the lithium iron phosphate batteries market, by industry, during the forecast period.
The lithium iron phosphate batteries market is segmented, by industry, into power, automotive, industrial, and others. The automotive segment accounted for the largest market share in 2018, driven by the demand from the Asia Pacific market.
The portable segment is expected to be the fastest-growing market, by application, during the forecast period.
The lithium iron phosphate batteries market, by application, is segmented on the basis of the end-users it caters. The portable segment was the largest market in 2018 owing to its increased demand from the automotive sector, which is the major demand-generating industry for lithium iron phosphate batteries. However, in the future, the stationary segment would compete with the portable segment as the demand for renewable energy storage projects increases.
The 16,251–50,000 mAh segment is expected to be the fastest-growing lithium iron phosphate batteries market, by power capacity, during the forecast period.
The lithium iron phosphate batteries market is segmented, by power capacity, into 0–16,250 mAh, 16,251–50,000 mAh, 50,001–100,000 mAh, and 100,001–540,000 mAh. The 100,001–540,000 mAh capacity segment holds the largest share because it covers end-users such as electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles, which mainly use lithium iron phosphate batteries. Thus, the 100,001–540,000 mAh market constitutes the largest segment of the lithium iron phosphate batteries market, by power capacity.
Asia Pacific is expected to be the largest market during the forecast period.
The lithium iron phosphate batteries market is segmented, by region, into North America, Europe, Asia Pacific, the Middle East & Africa, and South America. Asia Pacific led the lithium iron phosphate batteries market with the largest share in 2018 and this trend is expected to continue until 2024. The North American market is also likely to play an important role in driving the demand for lithium iron phosphate batteries.
Key Market Players
The major players in the lithium iron phosphate batteries market are BYD (China), A123 Systems (US), K2 Energy (US), Electric Vehicle Power System Technology (China), OptimumNano Energy (China), and Contemporary Amperex Technology (China).
BYD (China) is a key player of the 16,251–50,000 mAh segment market. The company actively focuses on both organic and inorganic strategies to increase its global market share. For instance, in July 2019, the company signed an agreement with Toyota Motor for the joint development of battery electric vehicles. Under the agreement, the 2 companies developed electric vehicles as well as batteries by using advanced battery chemistries like lithium iron phosphate.
Another major player in the market is Contemporary Amperex Technology (China). The company opts for contracts & agreements as its inorganic business strategy for increasing its clientele base globally. For instance, in May 2019, the company was awarded a contract by Eugene Enerfarm for its energy storage system project. Under the contract, the company supplied lithium iron phosphate batteries that support energy storage systems and provide better safety and longevity.
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Scope of the Report
This research report categorizes the lithium iron phosphate batteries market by power capacity, industry, application, and region.
By Power Capacity
- 0–16,250 mAh
- 16,251–50,000 mAh
- 50,001–100,000 mAh
- 100,001–540,000 mAh
- North America
- Asia Pacific
- Middle East & Africa
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