Lithium iron phosphate batter: Key market research findings
- Focus on renewable energy generation drives market growth
- EVs and HEVs account for a majority share of the market’s revenue
- Key vendors – A123, BYD, Electrical Vehicle Power System Technology, Hi Power, and OptimumNano Energy
The industry experts at Technavio predict the global market for lithium iron phosphate batteries to grow at a CAGR of around 21% between 2016 and 2020. The strong focus on renewable power generation has boosted the adoption of lithium iron phosphate batteries across the globe. Wind and solar power are the two widely used energy sources for renewable power generation. Because of its intermittent nature, the generated power is stored in the battery for later use. During 2015, the APAC region accounted for around 58% of the overall market revenue to become the dominant shareholder in the global lithium iron phosphate battery market. The thriving EV, HEV, and consumer electronics sectors in the region is expected fuel further growth of the market in this region during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the lithium iron phosphate battery segments based on the application.
“Over the years, there have been several developments in technology, such as the usage of nanophosphate lithium ion batteries. This rechargeable battery technology has high power and energy density, combined with excellent safety performance and an extensive life cycle. In recent years, numerous vendors have started using lithium iron phosphate batteries in EVs and consumer electronics applications to avoid the problems related to batteries such as a shorter life span and capacity/size ratio issues,” says Thanikachalam Chandrasekaran, Lead Analyst, Energy, Technavio Research.
The EVs and HEVs segment accounted for approximately 62% of the overall market revenue to become the key revenue generating vertical of the global lithium iron phosphate battery market in 2015. Li-ion batteries, especially lithium iron phosphate batteries, are the preferred choice among the alternative energy storage systems available in the market, because of their high-energy density and long cycle time. Increase in demand for EVs in developing countries, such as China, is driving the growth of the Li-iron phosphate battery market.
The key vendors in the global lithium iron phosphate battery market include A123, BYD, Electrical Vehicle Power System Technology, Hi Power, and OptimumNano Energy. Competition in the market is based on many factors, such as brand recognition, product quality, reliability, durability, energy density, and price. It is expected that the market will continue to evolve and global and other diversified manufacturers will have a competitive advantage over smaller, newer vendors by offering better products at a competitive price.
A more detailed analysis is available in the Technavio report, Global Lithium Iron Phosphate Battery Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
