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SLI Battery Market worth over $45 Bn by 2030

  • Published Date: October 12, 2022

SLI Battery Market size is anticipated to surpass USD 45 billion by 2030, according to a new research report by Global Market Insights Inc.

The market growth is attributed to the extensive ongoing R&D initiatives in the automobile sector, which has allowed the industry to embrace novel technologies to power cars. Major OEMs are also investing in infrastructure development to cater to the increasing demand for automobiles worldwide. Moreover, the prevalent usage of start-stop technologies and the mounting demand for batteries with high cranking power are set to strengthen the adoption of advanced lead-acid batteries in SLI applications.

Rising safety concerns may hamper the industry growth

High-energy chemical batteries, which include lithium-based batteries, require robust safety systems and added care in handling and use. Additionally, conventional battery compositions viz., lead acid pose fire and explosion hazards. The combination of high-energy volatile chemicals packed into a small container needs special safeguards to reduce potential hazards. The rate of expansion of the SLI battery industry is speculated to be hampered by rising concerns about lead recycling as well as strict norms and requirements relating to LAB chemistry. However, burgeoning automotive sales and increased efforts of manufacturers to safeguard SLI batteries are likely to positively influence product outlook.

Growing preference for flooded batteries to expand revenue share

The flooded technology segment valued at over USD 24 billion in 2021. Flooded batteries are the commonly deployed technology in automobiles for SLI applications. These batteries account for a large market share due to their comparably cheaper costs and widespread accessibility. Moreover, prominent R&D initiatives for alternative battery technologies, such as EFB, AGM, and others, would limit the adoption of flooded battery technology, which is foreseen to restrain segment growth.

Browse key industry insights spread across 480 pages with 988 market data tables & 41 figures & charts from the report, “SLI Battery Market Size by Technology {Flooded, EFB, VRLA (AGM, GEL)}, By Sales Channel (OEM, Aftermarket), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2022 – 2030”, in detail along with the table of contents:

Frequent battery replacement to increase sales from aftermarket sales channel

In terms of sales channel, the aftermarket segment accounted for USD 27 billion in 2021. OEM batteries only last for three to six years and need to be replaced for maintaining efficient performance, which is a major factor boosting aftermarket sales of SLI batteries. In addition, the inactivity of vehicles during the COVID-19 pandemic lockdowns led to numerous dead batteries, which, in turn, stimulated the need to change the battery and fueled industry demand from the aftermarket sales channel.

Government initiatives to promote the use of EVs to bolster European market expansion

SLI battery market in Europe is projected to record more than 2% growth rate through 2030 owing to the flourishing domestic automotive industry and the presence of leading automakers in the region. One of the world’s largest vehicle production centers is in Germany, which is expected to improve the growth potential for batteries in SLI applications. Furthermore, the increasing acceptance of sustainable transportation and government initiatives to increase the use of electric cars are also slated to fuel the demand for SLI batteries in region.

Increased investments and strategic collaborations to foster industry progression

In order to increase their market share, major SLI battery manufacturers are collaborating with automakers and suppliers of raw materials and are diversifying their product portfolio to accommodate emerging consumer needs.

Major participant operating in the industry are Clarios, Enersys, Leoch International Technology Limited, Crown Battery, First National Battery, Banner Batteries, Erdil Battery, YigitAKU, and Mutlu Battery, among other manufacturers. In September 2021, Enersys announced the addition of the NorthStar product line for the transportation industry to its Odyssey battery range. This allowed the firm to provide better client experiences throughout the transportation sector, thereby extending its customer base.

Authors: Ankit Gupta , Vishal Saini