Lithium Iron Phosphate Battery Market Trends
Growth Drivers
- Growing Environment Degradation– On account of the increasing urbanization across the globe, the market is expected to expand more in the upcoming years. Further, LiFePO4 batteries have far less environmental impact than other batteries, since they can be recharged. By 2050, more than 60% of the world's population, is anticipated to reside in cities.
- Rising Demand for Electrical Appliances –The rise in personal disposable income across the globe, is estimated to drive market growth. By 2026, the demand for household appliances is anticipated to reach USD 28 billion worldwide.
- Surging Energy Sector – According to the most recent expenditure data, in 2021, the global demand for primary energy grew by more than 5%.
- Increasing Demand for Clean Energy – It is expected that growing demand for renewable energy is anticipated to drive the market growth. Further, LFP batteries are an efficient, dependable, secure, and environmentally friendly way to store renewable energy. In 2020, global demand for renewable energy increased by over 2% while demand for all other fuels decreased.
Challenges
- Exorbitant Cost of (LiFePO4) Battery - The high cost of the LFP battery is one of the major factors predicted to slow down the market growth. For instance, as compared to other batteries the price of lithium iron phosphate batteries is high, which results in a low adoption rate and fewer sales of these batteries for a variety of applications.
- Technical Disadvantages of LFP Battery
- Lack of Awareness about the Batteries in Lower Economic Regions
Lithium Iron Phosphate (LiFePO4) Battery Market: Key Insights
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
15.2% |
|
Base Year Market Size (2024) |
USD 18.69 billion |
|
Forecast Year Market Size (2037) |
USD 117.62 billion |
|
Regional Scope |
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