The report, now available on ASDReports, recognizes the following companies as the key players in the global lithium iron phosphate battery market: A123 Systems, BYD, Electrical Vehicle Power System Technology, Hi Power, and OptimumNano Energy.
Other Prominent Vendors in the market are: GAIA, K2Energy, LiFeBATT, Phostech, Pihsiang Energy Technology, Pulead Technology Industry, and Victory Battery Technology.
Commenting on the report, an analyst said: “A large portion of lithium iron phosphate battery consumption is attributed to China. The reason for this high demand is the significant increase in the usage of battery-operated vehicles in China. The growth in the usage of lithium iron phosphate batteries is due to the expected long-term developments in the EV and HEV sectors to reduce carbon emissions and support alternative fuel sources. Also, China accounts for nearly 40 percent of the global lithium iron phosphate battery market. The country has nearly 95 percent of the rare earth lithium metals that could increase the lithium iron phosphate production in the coming years. The increased demand from China is expected to be the major prevailing trend in the global lithium iron phosphate battery market during the forecast period.”
According to the report, strong focus on renewable power generation will be a key driver for market growth. The growing population and the depletion of fossil fuel reserves have raised concerns about and focus on renewable power generation. Also, the integration of renewable energy resources with power grid networks has increased worldwide. In micro grids and hybrid power systems, LFP batteries are used as a backup. For instance, San Nicolas Island wind-diesel micro grid in the US uses a 1,000-kWh LFP battery for backup. The increased importance of renewable energy in addressing climate change and improving energy conservation has increased industry growth in recent years. The intermittent nature of renewable energy resources has also been a major cause for concern in the market. Wind and solar power are the two widely used energy sources for renewable power generation.
Further, the report states that the lack of awareness about the advantages of lithium iron phosphate batteries is one the key challenges that hinders the growth of the global lithium iron phosphate battery market. The increased adoption of EVs and HEVs has increased consumers’ concern about longer operational battery life. The usage of lithium iron phosphate batteries can reduce the short discharging and charging concerns of the manufacturers and consumers because these batteries are highly efficient (about 98 percent), provide high charge and discharge rates for better performance in the day-to-day applications, and provide excellent safety and a longer shelf life. Hence, manufacturers do not choose these batteries because of the lack of awareness about their advantages. Because the HEV and EV segments are still in the emerging phase, lack of awareness about lithium iron phosphate batteries could hinder the development of the global lithium iron phosphate battery market.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors.
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Source: ASDReports - Market Research
Date: Sep 5, 2016