VRLA SLI Battery Market Size By Technology (AGM, GEL), By Sales Channel (OEM, Aftermarket), COVID-19 Impact Analysis & Forecast Report, 2024 – 2032

VRLA SLI battery Market Size

VRLA SLI Battery Market size surpassed USD 9.1 billion in 2023 and is anticipated to expand at 3.9% CAGR from 2024 to 2032, driven by the growing advancements across SLI battery technologies.
 

The progressing industry is substantially supported by the significant growth of the automotive sector owing to the augmenting demand for commercial and passenger vehicles resulting from the enhancing global population along with the rising disposable incomes. In addition, major automobile manufacturers are developing new and innovative models with higher battery output requirement in order to attract a larger consumer base, thereby boosting the VRLA SLI battery market through OEM channels.
 

Over the past 150 years, lead acid batteries has been the prominent technology driving the overall SLI battery industry. However, over the recent years, growing use of lithium-ion batteries owing to its numerous advantages over lead acid batteries, have compelled the battery developers to engage in R&D activities to develop lithium ion SLI batteries, which may pose as a threat for the VRLA battery industries. However, the lithium-ion batteries are not commercially adopted for SLI technology as of now, making VRLA technologies including AGM and GEL batteries as one of the most preferred technologies in the recent years.
 

Valve Regulated Lead Acid (VRLA) are amongst the most preferred battery technology utilized for SLI applications in commercial and passenger vehicles. These batteries offer a wide range of advantages over flooded batteries, which in turn is favouring its adoption in the automotive industry. These batteries do not require periodic filling of water thus making them maintenance free and economical. Moreover, long battery life, higher capacity range, higher number of discharge cycles and spill-free operations are amongst the key features offered by VRLA batteries which in turn is enhancing its VRLA SLI battery market share in the SLI battery industry.
 

COVID-19 Impact

The global economy has been sternly impacted by the outbreak of COVID-19 pandemic since late 2019. First originated in China, the coronavirus spread globally, causing a major disturbance in the supply chain of numerous industries. One of the severely impacted industries include automotive industry, as the pandemic caused a substantial decline in the demand for new vehicles worldwide. Moreover, raw materials including lead also witnessed a significant drop in prices owing to overstocking and minimal demand. However, VRLA SLI batteries witnessed a rise in demand from the transportation industry owing to enhanced logistics needs in utilities and hospitals.
 

Furthermore, the VRLA SLI battery market observed constant growth since early 2021 with lockdown protocols being lifted around the world. Introduction of vaccines from a various pharmaceutical companies have further augmented the business landscape. Additionally, the battery industry is anticipated to witness noteworthy growth over the coming years as the demand for automobiles observes a significant rise by 2032.
 

VRLA SLI Battery Market Analysis

AGM held a majority VRLA SLI battery market value of over USD 6.2 billion in 2022. Absorbed Glass Mat (AGM) batteries are the latest advancements in VRLA technology, which is driven by ever-changing market requirements. Consequently, VRLA batteries are continually increasing their industry share compared to traditional flooded batteries with consistent technological progression. Thus, the constant competitive pressure among manufacturers to reduce battery costs while enhancing operational performance will continue to shift the industry dynamics and deployment trends of different batteries, most prominently toward AGM batteries.
 

The aftermarket industry held a key share in 2022 and is anticipated to witness 4% growth till 2032. Automotive batteries are commercialized by battery manufacturers for either car manufacturers (OEMs) for deployments in new automobiles or distributors/retailers for use in replacing used lead-based batteries. An automotive SLI lead-acid battery has a typical lifespan of five to seven years, and it eventually needs to be replaced. These batteries are distributed and sold by thousands of garages, car dealers, car spare part shops, building centers, and other distributors.
 

The demand for SLI batteries from the aftermarket is anticipated to be greater in emerging economies compared to developed countries. For instance, increasing investments in automobile manufacturing in Brazil and changing consumer preferences toward personal mobility & e-hailing across India and China will positively impact the VRLA SLI battery market growth by 2032. Moreover, COVID-19 pandemic has further played an important role in boosting the aftermarket channel industry value. The SLI battery market will further witness a gradual shift from flooded batteries to VRLA batteries, as the battery manufacturers introduce highly efficient and economical battery units in the near future.
 

The Asia Pacific VRLA SLI battery market amassed 2022 and is set to observe significant growth on account of the increasing demand for automobiles coupled with rapidly rising vehicle manufacturing base. Automobile sales across Asia Pacific (excluding China and Japan) witnessed a year-on-year growth of 13.8% in 2021, which is further anticipated to increase in the coming years. Low-interest rates and a steady economy have fueled the demand for small vehicles in Japan owing to the launch of new vehicle models from key manufacturers. The region supports a robust aftermarket ecosystem, which will boost the demand for lead-acid batteries.
 

Additionally, the augmentation in the national vehicle fleet age along with shifting consumer preferences toward the repair & maintenance of automobiles will positively cater to the North America SLI battery market. For example, the increasing demand for electronics, communication equipment, and entertainment & infotainment system installations in vehicles will garner the espousal of high-capacity SLI batteries across the region.
 

VRLA SLI Battery Market Share

The VRLA SLI battery industry has witnessed an immense potential for growth on account of the development of cost-effective, compact, and efficient units. Major participants are engaged in backward and forward integration with component manufacturers and raw material suppliers in order to gain a competitive advantage in the industry.
 

The prominent companies operating in the VRLA SLI battery market include:

• Clarios
• East Penn Manufacturing Company
• Enersys
• Crown Battery
• Banner Batteries
• Accumulators Moura SA
• GS Yuasa International Ltd
• Interstate Batteries
• Continental Battery Systems
• ACDelco
• Amara Raja Group
• Hankook & Company Co., Ltd
• MOLL Batterien GmbH
• FIAMM Energy Technology S.p.A
• leoch International Technology Limited Inc
• Exide Technologies.
   

VRLA SLI Battery Industry News:

• In January 2022, Clarios announced that they will expand their AGM battery product line with the launch of a 12V AGM battery in next three years. The battery is designed for EV applications with smart monitoring technology including real-time performance monitoring, and maintenance or replacement indication systems. The company is planning to capture major share in the growing SLI battery market.
   
• In September 2021, Enersys announced the expansion of its Odyssey battery portfolio through inclusion of Northstar product line for transportation sector. The addition of Northstar batteries in the product portfolio will allow the company to offer an enhanced customer experience across the transportation sector which in turn will boost the customer base growth in the coming years.
   

This market research report on VRLA SLI battery includes an in-depth coverage of the industry with estimates & forecast in terms of Million Units & USD Million from 2019 to 2032, for the following segments:

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Market, By Technology

• AGM
• GEL

Market, By Sales Channel

• OEM
• Aftermarket

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Russia
  • France
  • Germany
  • Italy
  • UK
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Iran
  • Turkey
• Latin America
  • Argentina
  • Brazil