VRLA SLI Battery Market Size By Technology (AGM, GEL), By Sales Channel (OEM, Aftermarket), COVID-19 Impact Analysis & Forecast Report, 2023 - 2032

VRLA SLI Battery Market Size By Technology (AGM, GEL), By Sales Channel (OEM, Aftermarket), COVID-19 Impact Analysis & Forecast Report, 2023 - 2032

VRLA SLI Battery Market is anticipated to record substantial growth from 2023 to 2032, attributed to the rising demand for VRLA batteries due to the increasing adoption of renewable energy sources necessitating energy storage solutions.

As solar and wind power installations continue witnessing an upward trend, the need for effective energy storage solutions becomes paramount to store excess energy to be used during cloudy or windless periods. VRLA SLI batteries are increasingly used in off-grid and grid-tied systems to store and deliver clean energy efficiently. Their reliability, low maintenance, and cost-effectiveness make them an attractive choice. This surge in demand for energy storage to stabilize renewable energy sources contributes significantly to the expansion of the VRLA SLI battery market, fostering innovation and technological advancements.

Government incentives and subsidies for electric and hybrid vehicles and energy storage solutions encourage consumer adoption and could boost market growth over the coming years. For instance, in August 2023, to promote the adoption of EVs, the Biden administration allocated $12 billion in grants and loans to assist automakers and suppliers in adapting their manufacturing facilities to produce electric and advanced vehicles.

Moreover, Established battery manufacturers are investing heavily in R&D to enhance battery performance, durability, and environmental sustainability and are also expanding their production capacities to meet the increasing demand. For instance, in July 2023, Exide Industries, an Indian battery manufacturer, announced its plans to invest significantly in advanced product development, including the commercial introduction of new AGM VRLA batteries for the automotive industry.

The VRLA SLI Battery Market is segmented based on technology, sales channel, and region.

The VRLA SLI battery market from the gel technology segment is set to record significant traction through 2032. The extensive application of gel VRLA batteries in renewable energy storage systems, telecommunications, and backup power solutions is contributing to their rising demand. Moreover, in the automotive industry, Gel VRLA SLI batteries are gaining popularity due to their durability, deep cycling capabilities, and vibration resistance, making them well-suited for start-stop systems in vehicles, which is likely to support segment growth.

Regarding sales channels, the VRLA SLI battery market from the OEM segment generated substantial revenue in 2022 and is poised to expand at a notable growth rate from 2023-2032. Automakers are increasingly incorporating VRLA batteries into their vehicles to meet stringent emissions regulations and enhance fuel efficiency. As OEMs continue adopting VRLA batteries in various automotive applications, such as start-stop systems and hybrid vehicles, this sales channel has become a crucial driver of market expansion. The demand for high-performance, environmentally friendly batteries from OEMs will further fuel the segment revenue.

Europe held a sizable share of the global VRLA SLI battery market in 2022 and is poised to record considerable growth through 2032. The automobile sector in the region is experiencing notable development, with a growing emphasis on lowering emissions and boosting fuel economy. According to the European Parliament, by 2030, at least 30 million zero-emission EVs are estimated to be on EU roads. VRLA batteries, particularly those used in start-stop systems and electric cars, are critical to accomplishing these goals, thereby augmenting the market development. Furthermore, as batteries emerge as a strategic market, the European Parliament is enacting new legislation to address linked environmental, ethical, and social challenges, which are expected to support industry growth.