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