SLI Battery Market Analysis

SLI Battery Market Analysis

Lead-acid batteries have been the standard choice for the past 150 years, however, in recent years, lithium-ion technology has replaced lead-acid batteries in virtually all devices and vehicles that use rechargeable batteries since lithium batteries outperform lead-acid batteries in terms of energy density, usability, and lifespan. These beneficial qualities of lithium-ion batteries have hampered the use of SLI batteries. Furthermore, mounting government emphasis on expediting electrification across the automotive space is likely to foster the SLI battery market outlook.

In terms of technology, the SLI battery market from EFB segment is expected to register nearly 4% growth rate through 2030. EFB batteries are an advanced form of flooded batteries. The increasing penetration of automated start-stop systems and the high preference for EFB batteries across these units are set to propel segment growth. Other important benefits of the technology include improved deep & partial discharge performance, decreased maintenance requirements, and lower emissions, which are foreseen to supplement its adoption in the industry.
 

Based on the sales channel, the OEM segment in SLI battery market is predicted to observe above 2% gains between 2022 and 2030. The expanding global automotive sector has surged the deployment of SLI batteries in new vehicles. According to the International Organization of Motor Vehicle Manufacturers (OICA), the world's automobile fleet grew by 5% in 2021 compared to 2020. Moreover, non-OEM goods are less expensive, but they do not function well and do not offer warranties, which has increased consumer preference for OEM batteries, further supplementing industry expansion.
 

North America SLI battery market size accounted for USD 8 billion in 2021 owing to the thriving regional automotive sector. Supportive government initiatives and R&D efforts to produce sophisticated energy-efficient starter batteries are creating favorable opportunities for the implementation of new technologies, such as EFB, AGM, and GEL batteries. Notably, governments are increasingly mandating that a portion of a vehicle be entirely or partially battery-powered (cars with both a battery-powered motor and internal combustion engine), which is likely to be lucrative for product adoption in the region.