The Lithium Iron Phosphate Batteries (LIPB), market is projected to reach US$35.5 billion in 2028 from US$17.7 billion in 2023, according to a new report by market research platform MarketsandMarkets, with Asia Pacific expected to be the dominant region in the industry.
These batteries are used in industries where high power capacity is required. Major applications for LIPB include electric vehicles (EVs), plug-in hybrid electric vehicles (HEVs), uninterrupted power supply, wind energy storage, solar energy storage, telecoms, marine, defence, and mobile industries.
The ongoing transition from conventional power generation to renewable generation presents robust opportunities for the LIPB market, however, the risks associated with the disposal of spent lithium-based batteries have also hindered the growth of the market in recent years and this is expected to restrain the market’s growth during the forecast period.
The Asia Pacific region, comprising major economies such as China, India, Japan, South Korea, and Southeast Asia, has huge potential for several application areas within the LIPB market and is expected to be the largest market during the forecast period.
In recent years, this region has emerged as a hub for electric vehicle (EV), production, and recent infrastructure developments and industrialisation activities in emerging Asian nations have also opened new avenues and opportunities for original equipment manufacturers to use LIPB.
In addition, the increasing purchasing power of the population in APAC has stimulated the demand for EVs, which would be a driving force for the growth of the LIPB market.
The Asia-Pacific region also has a significant presence in the lithium-ion battery industry, both in terms of battery production as well as demand.
Countries, particularly China, South Korea, and Japan are major manufacturers of lithium-ion batteries, and Southeast Asia’s largest country Indonesia is making fast progress on joining the battery manufacturing group.
These countries now have a well-established battery industry, with large-scale production facilities operated by companies such as BYD, CATL, CALB, and LG Chem which produce batteries for a wide range of applications, including electric vehicles, consumer electronics, and energy storage systems.