Dec 11, 2021   SOURCE: BusinessWire

Worldwide Lithium-iron Phosphate Batteries Industry to 2030 - Rapid Increase in Demand of Lithium-iron Phosphate Batteries from Data Centers Presents Opportunities - ResearchAndMarkets.com

The "Lithium-iron Phosphate Batteries Market by Type, Capacity, and Application: Global Opportunity Analysis and Industry Forecast, 2021-2030" report has been added to ResearchAndMarkets.com's offering.

The global lithium-iron phosphate batteries market was valued at $5.6 billion in 2020, and is projected to reach $9.9 billion by 2030, growing at a CAGR of 5.9% from 2021 to 2030.

Lithium-iron phosphate battery is a type of lithium-iron battery that uses lithium-iron phosphate (LiFePO4) as the cathode material, and a graphitic carbon electrode with a metallic backing at anode. The awareness among people toward the use of eco-friendly products has boosted the automotive giants to increase their financial budget towards R&D to deliver eco-friendly electric vehicle energy storage batteries.

For instance, Tesla Motors currently uses lithium-iron phosphate batteries in vehicles such as Chinese standard range models 3 and Y. The construction of "Giga factory" to increase the efficiency of electric vehicle production will surge the demand for safe energy storage batteries, especially lithium-iron phosphate batteries in the coming years. The inherent advantage of lithium-iron phosphate batteries compared to lead acid batteries is also one of the important factors for the growth of the lithium-iron phosphate batteries market. The increase in national policies to support electric vehicles and the targets of major governments in the world toward zero carbon emission are showing positive support, thereby providing substantial growth of the lithium-iron phosphate batteries market.

European countries have strict regulations toward the environment, which played a vital role in the development of lithium-iron phosphate batteries. The presence of major automotive, industrial tools, and renewable energy component producers has boosted the need for lithium-iron phosphate batteries for energy storage and also as energy backup in emergency purposes. The presence of huge coast line and oil & gas pipelines has increased the need for monitoring equipment and various sensors.

The government has also invested in renewable energy resources, which is also one of the driving factors for the growth of the lithium-iron phosphate batteries market. In addition, the presence of hostile forces near European countries led to heavy investment in the military sector where lithium-iron phosphate batteries are used as energy source in many camps in emergency times. These factors are expected to provide opportunities for the growth of the lithium-iron phosphate batteries market.

The high cost of lithium-iron phosphate batteries is the restraining factor for the growth of the lithium-iron phosphate batteries market. Additionally, high presence of alternatives is another key factor expected to hamper the growth of lithium-iron phosphate batteries market across the globe.

The global lithium-iron phosphate batteries market is segmented on the basis of type, capacity, application, and region.

Market Dynamics

Drivers

  • Increasing manufacturing capacities for lithium-iron phosphate batteries across the globe
  • Strict government norms implemented to control increasing pollution

Restraint

  • High price of lithium-iron phosphate batteries

Opportunity

  • Rapid increase in demand of lithium-iron phosphate batteries from data centers

Companies Mentioned

  • BYD
  • A123 Systems
  • Electrical Vehicle Power System Technology
  • OptimumNano Energy
  • K2Energy
  • Pihsiang Energy Technology
  • Victory Battery Technology
  • Power Sonic
  • Lithium Werks
  • Benergy Technology Company.

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