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
The SLI battery market is anticipated to record substantial revenue growth through 2030 owing to the widespread adoption of electric cars globally.
Recently, changes in regulatory policies to reduce vehicular pollution and rising fuel prices, as well as advancements in car electrification technology, are boosting consumer interest in cleaner battery power over internal combustion engines, which has been favorable for market growth. Moreover, manufacturers are creating new battery technologies, particularly for EVs, in order to capitalize on emerging industry trends, enhancing the overall business scenario.
In January 2022, battery maker Clarios announced its plans to introduce an absorbent glass mat (AGM) 12V EV-specific lead battery with smart monitoring technology. Citing another instance, in October 2022, Enersys, a leading global manufacturer of batteries, added the Odyssey Pro Batteries to its Odyssey battery line. The novel series offers a 10% higher reserve capacity due to its advanced carbon additive.
Notably, in order to broaden their share, major manufacturers are collaborating with automakers and suppliers of raw materials. In September 2022, Hankook, a South Korean battery manufacturer, displayed its Hankook Atlas BX brand battery product range designed for start-stop vehicles and passenger & commercial vehicles at Automechanika Frankfurt.
The SLI battery market has been bifurcated in terms of technology, sales channel, and region. Based on technology, the industry has been segmented into flooded, VRLA (GEL and AGM), and EFB.
The VRLA segment is expected to observe robust growth over the next 8 years. The AGM type of VRLA batteries is widely employed in modern-day automobiles to lessen the probability of acid spillover. Additionally, the global recovery from the coronavirus pandemic is driving the sales of luxury automakers, which, in turn, is foreseen to impel the demand for VRLA batteries.
With respect to sales channel, the SLI battery market has been categorized into OEM and aftermarket. The sales of SLI batteries through aftermarket channels are likely to grow significantly through the analysis timeline owing to supportive government policies that are encouraging sustainability, which mandates the replacement and recycling of dead batteries. To cite an instance, the European Union has enacted several regulatory instruments for batteries and established robust waste management standards with the goal of safeguarding the environment and human health.
In the regional landscape, the LATAM SLI battery market is anticipated to expand at a notable pace over the forecast period due to the presence of major automotive companies in nations like Brazil and surging government focus on electrifying public transportation networks to cut carbon emissions. Furthermore, increasing electrification of the public transportation fleet is boosting product adoption across the Latin America region. For instance, 700 electric buses have been incorporated into the system in Santiago, Chile.
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