VRLA SLI Battery Market Analysis

VRLA SLI Battery Market Analysis

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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