China SLI Battery Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 5.62 Billion |
| Market Size (2029) | USD 6.99 Billion |
| CAGR (2024 - 2029) | 4.46 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China SLI Battery Market Analysis
The China SLI Battery Market size is estimated at USD 5.62 billion in 2024, and is expected to reach USD 6.99 billion by 2029, growing at a CAGR of 4.46% during the forecast period (2024-2029).
- Over the medium term, factors such as the growing automotive industry in the region and supportive government policies and regulations regarding battery manufacturing in the country are expected to be significant drivers for the Chinese SLI battery market during the forecast period.
- On the other hand, there is increasing competition from alternate battery chemistries that may pose a threat to the market studied during the forecast period.
- Nevertheless, continued efforts to conduct research and development regarding SLI batteries are expected to create several opportunities for the SLI battery market in the future.
China SLI Battery Market Trends
VRLA Battery to Witness Significant Growth
- The valve-regulated lead-acid (VRLA) battery segment has emerged as a significant player in the Chinese SLI battery market, driven by the country's rapidly growing automotive industry and increasing demand for maintenance-free battery solutions. VRLA batteries, also known as sealed lead-acid batteries, have gained popularity in the SLI market due to their numerous advantages over traditional flooded lead-acid batteries.
- These benefits include improved safety, reduced maintenance requirements, and enhanced performance in extreme temperatures. As China continues to solidify its position as the world's largest automotive industry, the demand for VRLA batteries in the SLI market has experienced substantial growth, with both domestic and international manufacturers vying for market share in this highly competitive landscape.
- According to the International Organization of Motor Vehicle Manufacturers, automobile production in China has been on a significant rise over the years due to burgeoning automobile demands from both domestic and international markets. For instance, between 2022 and 2023, production increased by more than 11.6%, with an annual average growth rate of approximately 3.5%, signifying the rapid growth in the country’s automobile industry.
- The Chinese VRLA battery industry for SLI applications has witnessed remarkable technological advancements in recent years, with manufacturers focusing on improving battery life, charge acceptance, and overall efficiency. One of the key trends in this segment is the development of enhanced grid alloys and active material formulations, which have led to increased cycle life and improved cold-cranking performance.
- For instance, in December 2023, TAILG unveiled its cutting-edge sodium-ion battery technology, heralding a new chapter in the realm of SLI batteries. This innovative technology, which surpasses traditional VRLA batteries, boasts impressive long-range capabilities, extended warranties, heightened low-temperature resilience, and bolstered safety features. TAILG's premium e-bikes are expected to lead the charge, becoming the pioneering models to showcase these advanced sodium-ion batteries, with an initial launch set exclusively in China.
- Additionally, advancements in separator technology have resulted in better electrolyte retention and reduced internal resistance, further enhancing the overall performance of VRLA batteries in SLI applications. These technological improvements not only boosted the competitiveness of VRLA batteries against traditional flooded lead-acid batteries but also positioned them as viable alternatives to emerging battery technologies in specific automotive applications.
- Therefore, as per the points mentioned above, the VRLA battery types are expected to witness significant growth during the forecast period.
Expanding Automotive Industry to Drive the Market's Growth
- The rapid growth of China's automotive industry is poised to be a primary driver for the country's SLI battery market in the coming years. As the world's largest automotive market, China's vehicle production and sales volumes continue to expand at a remarkable pace, creating an ever-increasing demand for SLI batteries. This growth is not only driven by domestic consumption but also by China's rising prominence as a global automotive manufacturing hub.
- China's push toward vehicle electrification, while primarily focused on fully electric and plug-in hybrid vehicles, has implications for the SLI battery market. The development of mild hybrid and micro-hybrid vehicles, which still rely on internal combustion engines but incorporate varying degrees of electrification, creates new opportunities for SLI battery manufacturers. These hybrid systems often require more sophisticated battery solutions that can handle both traditional starting functions and support regenerative braking and other electrical loads.
- For instance, according to the International Energy Agency, hybrid vehicles have gained massive traction in China. Between 2022 and 2023, the sales of hybrid vehicles in the country increased by 80%, while between 2019 and 2023, the annual average growth rate was over 214.78%. This signifies the popularity of hybrid vehicles in the country, which, in turn, drives the demand for SLI batteries.
- As Chinese automakers increasingly adopt these hybrid technologies as a stepping stone toward full electrification, the demand for advanced SLI batteries capable of meeting these dual requirements is expected to rise. This trend underscores the need for continuous innovation in the SLI battery industry to keep pace with China's evolving automotive landscape.
- For instance, in January 2024, China set a more ambitious target, aiming for new energy vehicles to constitute 45% of all new auto sales by 2027, responding to the rapid adoption of electric models. This shift is expected to significantly impact the market for SLI batteries, as the demand for traditional automotive batteries is expected to decline in favor of advanced battery technologies.
- The sheer scale of vehicle production in the country necessitates a robust supply chain for automotive components, including SLI batteries, which are essential for the starting, lighting, and ignition systems of conventional internal combustion engine vehicles. As more vehicles roll off production lines and onto Chinese roads, the demand for both original equipment (OE) and replacement SLI batteries is expected to surge, providing substantial growth opportunities for battery manufacturers operating in the Chinese market.
- Therefore, as mentioned above, the country's expanding automotive industry is expected to drive the market during the forecast period.
China SLI Battery Industry Overview
The Chinese SLI battery market is semi-fragmented. Some of the key players in this market (in no particular order) are GS Yuasa International Ltd, Tianneng Battery Group Co., Leoch International Technology Limited Inc., Contemporary Amperex Technology Co. Limited, and Gotion Inc.
China SLI Battery Market Leaders
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GS Yuasa International Ltd.
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Tianneng Battery Group Co
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Leoch International Technology Limited Inc.
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Contemporary Amperex Technology Co., Limited
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Gotion, Inc.
*Disclaimer: Major Players sorted in no particular order
China SLI Battery Market News
- March 2024: Narada Power secured a USD 45 million contract from China Tower for VRLA batteries. This deal focuses on providing backup power systems to the state-owned telecoms giant. Narada emphasized that this contract highlights the strategic importance of its collaborative lead battery chemistry development, which is tailored for a diverse set of industrial applications, including SLI.
- January 2024: Chinese automotive giant BYD initiated the construction of a new battery facility in Xuzhou, China. With an impressive investment of USD 1.4 billion, this facility is set to boast an annual capacity of 30 gigawatt-hours (GWh). The batteries manufactured here are earmarked for automotive use, specifically targeting micro vehicles and scooters. BYD's subsidiary, Findreams Battery, and tricycle manufacturer Huaihai Group inked the agreement for this venture.
China SLI Battery Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2029
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Growing Automotive Industry
4.5.1.2 Supportive Government Policies
4.5.2 Restraints
4.5.2.1 Competition From Alternative Battery Chemistries
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
4.8 Investment Analysis
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Flooded Battery
5.1.2 VRLA Battery
5.1.3 EBF Battery
5.2 End User
5.2.1 Automotive
5.2.2 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted & SWOT Analysis for Leading Players
6.3 Company Profiles
6.3.1 GS Yuasa International Ltd
6.3.2 Tianneng Battery Group Co.
6.3.3 Leoch International Technology Limited Inc.
6.3.4 Contemporary Amperex Technology Co. Limited
6.3.5 Gotion Inc.
6.3.6 Farasis Energy (GanZhou) Co. Ltd
6.3.7 Clarios International Inc.
6.3.8 Guangzhou NPP Power Co. Ltd
6.3.9 Qingyuan Yiyuan Power Supply Co. Ltd
6.3.10 EVE Energy Co. Ltd
- *List Not Exhaustive
6.4 List of Other Prominent Companies
6.5 Market Ranking/Share (%) Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Investment in Research and Development Activities
China SLI Battery Industry Segmentation
SLI (starting, lighting, and ignition) batteries are lead-acid batteries used in vehicles to start the engine and power the lighting and ignition systems. They provide a high burst of current needed to start the engine, after which the alternator takes over. SLI batteries are known for delivering quick, strong bursts of energy but are not meant for deep discharge or prolonged power delivery.
The Chinese SLI battery market is segmented by type and end user. By type, the market is segmented into flooded battery, VRLA battery, and EBF battery. By end user, the market is segmented into automotive and other end users. The report offers market sizes and forecasts in terms of revenue (USD) for all the above segments.
| Type | |
| Flooded Battery | |
| VRLA Battery | |
| EBF Battery |
| End User | |
| Automotive | |
| Other End Users |
China SLI Battery Market Research FAQs
How big is the China SLI Battery Market?
The China SLI Battery Market size is expected to reach USD 5.62 billion in 2024 and grow at a CAGR of 4.46% to reach USD 6.99 billion by 2029.
What is the current China SLI Battery Market size?
In 2024, the China SLI Battery Market size is expected to reach USD 5.62 billion.
Who are the key players in China SLI Battery Market?
GS Yuasa International Ltd., Tianneng Battery Group Co, Leoch International Technology Limited Inc., Contemporary Amperex Technology Co., Limited and Gotion, Inc. are the major companies operating in the China SLI Battery Market.
What years does this China SLI Battery Market cover, and what was the market size in 2023?
In 2023, the China SLI Battery Market size was estimated at USD 5.37 billion. The report covers the China SLI Battery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the China SLI Battery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China SLI Battery Industry Report
Statistics for the 2024 China SLI Battery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China SLI Battery analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
