SLI Battery Market size is estimated to reach ~USD 46 Billion by the end of 2035 by growing at a CAGR of ~3% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of SLI battery was ~USD 34 Billion. The growth of the market can be attributed to the rising constructional activities, which in turn increases the demand for cranes and other industrial machinery. Demand for mobile cranes in the 20-60 tonne range, as well as all-terrain ones in the 80-100 tonne range, is likely to rise in India. For the year 2021, demand was expected to be around 50-60 units for the 20-60 tonnes category and nearly 30-35 units for the 80-100 tons category.
In addition to these, factors that are believed to fuel the growth of SLI battery market include the rise in demand for these batteries in the automotive sector and other industrial and commercial applications. Smart technologies, such as start-stop systems in the vehicle are increasing the demand for more advanced batteries. Moreover, developing countries continue to grow and modernize, and the demand for vehicles and other equipment that require SLI batteries are increasing. On the other hand, the market growth is attributed to the replacement demand for these batteries, since these batteries have a relatively short lifespan and need to be replaced every few years.
Base Year |
2022 |
Forecast Year |
2023-2035 |
CAGR |
~3% |
Base Year Market Size (2022) |
~ USD 34 Billion |
Forecast Year Market Size (2035) |
~ USD 46 Billion |
Regional Scope |
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Growth Drivers
Challenges
The global SLI battery market is segmented and analyzed for demand and supply by end user into automotive, oil & gas, utilities, construction, marine, and others. Out of the six end users of SLI battery, the automotive segment is estimated to gain the largest market share of about ~38% in the year 2035. The growth of the segment can be attributed to the rising demand for automobiles. In 2021, the world manufactured 79.1 million motor vehicles. When compared to the previous year, this figure represents a 3 percent gain. In 2020, China, Japan, and Germany were the top three makers of automobiles and commercial vehicles. In addition to this, global commercial vehicle manufacturing increased to roughly 23 million units in 2021, slightly recovering from the three-million-unit dip seen in 2020. SLI battery is an important part of a vehicle’s electrical system, as it provides the necessary power to start the engines and operate the electrical systems. However, SLI batteries are not used in electric vehicles, as these batteries are relatively heavy and would add unwanted weight to an EV, thus impacting its performance and range.
The global SLI battery market is also segmented and analyzed for demand and supply by application into portable, and stationary. Amongst these two segments, the portable segment is expected to garner a significant share of around ~46% in the year 2035. The growth of the segment is attributed to rising use of mobile phones and other small electrical devices. Portable SLI battery are used to kick-start the electrical devices. Such as radios, portable light, and cell phones in remote locations where there is no access to mains electricity. Moreover, they are also used as a source of power backup during emergencies. In India, there are nearly 25 million houses in the rural region that are living with the power. The highest number of non-electrified villages are around 1044, which lie in the Uttar Pradesh part of India.
Our in-depth analysis of the global SLI battery market includes the following segments:
By Type |
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By Sales Channel |
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By Application |
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By End User |
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The share of SLI battery market in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The growth of the market can be attributed majorly to the increasing use of solar panels at both residential and commercial levels. According to the Department of Energy, solar energy is America's fastest-growing and most affordable source of new electricity. Congress established a tax credit for residential solar generation in 2005. According to the National Renewable Energy Laboratory, the number of US households with installed solar panels has climbed by an average of 32% per year since then. There were around 2.7 million household solar systems in the United States by the end of 2020. Moreover, residential solar provided enough power to power an average of approximately 633,000 houses in 2014 and almost 1.9 million homes in 2019.
The Asia Pacific SLI battery market is estimated to be the second largest, registering a share of about ~28% by the end of 2035. The growth of the market can be attributed majorly to the rising capacity of grid power systems. In 2021, China's off-grid renewable energy capacity increased by almost 5% to 906.23 gigawatts. Moreover, the government of India allotted USD 50 million in 2014-15 for the installation of 0.1 million solar pumps for irrigation and drinking water across the country. The solar pump scheme has installed around USD 2900 solar pumps to date. The Scheme provides CFA of up to 30% of the benchmark cost of solar pumps. Aside from that, the region's market growth is being linked to an increase in the number of lead acid battery importers. Under Rule 5 of the Batteries (Management & Handling) Regulations, 2001, the Ministry of Environment, Forest & Climate Change (MoEFCC) / Central Pollution Control Board has registered 82 importers of lead-acid batteries in India.
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the rising production of automobiles. Europe has a large automotive industry, with several major manufacturers based in the region. SLI batteries are a critical component of traditional gasoline-powered vehicles, which continue to dominate the European market. As the automotive industry grows, so does the demand for SLI batteries.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Increasing demand for automobiles, higher use of aircraft, and growing construction are the major factors driving the market growth.
Ans: The market size of SLI battery is anticipated to attain a CAGR of ~3% over the forecast period, i.e., 2023 – 2035.
Ans: High cost of the raw material, and the rising popularity if electric vehicles are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Leoch International Technology Ltd., Yokohama Group of Companies, Enersys, Camel Energy Inc., GS Yuasa Corporation, Hoppecke Batterien GmbH & Co. KG., Crown Battery, C&D Technologies, Inc., Gridtential Energy, Inc., and Stryten Energy LLC
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by type, sales channel, application, and by region.
Ans: The automotive segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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