The global lithium iron phosphate (LiFePO4) battery market was valued at USD 6.2 billion in 2017 and is anticipated to grow at a CAGR of more than 21.1% during the forecast period.
Lithium Iron Phosphate (LiFePO4) is a Li-Iron rechargeable battery used for high power applications. Lithium iron phosphate batteries offer high efficiency and service life without the need to be fully charged. Some advantages offered by lithium iron phosphate batteries include wide operating temperature range, high cycling performance, low internal resistance, and high efficiency among others. Lithium iron phosphate batteries offer improved electrochemical performance with low resistance owing to nano-scale phosphate cathode material. These batteries offer advantages such high current rating and long cycle life, good thermal stability, enhanced safety and tolerance among others. Owing to their constant voltage and safe discharge, these batteries are used in cars, bicycles and solar devices.
The increasing application of Lithium Iron Phosphate batteries in electric vehicles primarily drives the growth of Lithium Iron Phosphate Battery market. The rising environmental concerns coupled with growing adoption of electric vehicles increase the demand of Lithium Iron Phosphate batteries. The increasing population, growing disposable incomes, and improving living standards have increased the demand for consumer electronics, thereby supporting Lithium Iron Phosphate Battery market growth. Additionally, the increasing need for consumer electronics such as smartphones and laptops to offer longer lasting batteries along with high efficiency increases the demand for Lithium Iron Phosphate batteries to boost the Lithium Iron Phosphate Battery market. The rising adoption of smart devices, stringent government mandates, and increasing applications further boost the adoption of lithium iron phosphate batteries. Other factors driving the growth of Lithium Iron Phosphate Battery market include technological advancement, and growth in renewable energy sources.
The global Lithium Iron Phosphate Battery market is segmented on the basis of power capacity, component, end-user, and geography. Based on the power capacity, the market is segmented into Less Than 3,000 mAh, 3,000 mAh to 10,000 mAh, 10,000 mAh to 60,000 mA, and More Than 60,000 mAh. The less than 3,000 mAh dominated the global market in 2017 owing to increasing demand for consumer electronics such digital cameras, smartphones, wearable devices, and power tools among others. The rising disposable income and improving living standards drive the growth of this market. The component segment is categorized into Cathode, Anode, Electrolytes, Separators, and others.
The end-users in the global lithium iron phosphate battery market include Consumer Electronics, Automotive, Industrial, Healthcare, and others. The automotive dominated the global market in 2017 owing to rising disposable income, improving living standards, and growing demand from emerging economies. The rising environmental concerns, and stringent government regulations boost the adoption of electric vehicles.
Regionally, the lithium iron phosphate battery market across North America, Europe, Asia-Pacific, Latin America, and MEA. North America is further segmented into U.S., Canada, and Mexico. Europe is divided into Germany, UK, Italy, France, and Rest of Europe. Asia-Pacific is bifurcated into China, India, Japan, and Rest of Asia-Pacific. Asia-Pacific dominated the global market in 2017 owing to the established automotive sector, and growing demand for consumer electronics.
The vendors in the market are launching new products to meet the growing customer needs. In addition, the leaders in the market are acquiring and collaborating with top companies in the market to enhance their offerings in the market and expand their customer base. The market is highly competitive with the presence of a large number of small and large vendors. The leading players in the lithium iron phosphate battery market include Panasonic Corporation, Toshiba Corporation, Samsung SDI Co., Ltd, Toshiba Corporation, BYD Company Ltd., GS Yuasa Corporation, Valence Technology, Inc., A123 Systems, LLC., Formosa Energy & Material Technology, and Bharat Power Solutions.