VRLA Battery Market Size, Share & Trends Analysis Report By Technology (AGM, GEL), By Application (Stationary, Motive), By Region, And Segment Forecasts, 2024 - 2030

VRLA Battery Market Size & Trends

The global VRLA battery market size was estimated at USD 20.42 billion in 2023 and is expected to grow at a CAGR of 3.4% from 2024 to 2030. The surging demand for reliable backup power solutions, particularly in data centers and telecom infrastructure, is a major driver as Valve Regulated Lead Acid (VRLA) batteries offer maintenance-free operation and prevent over-pressurization. The growing adoption of renewable energy sources and the need for energy storage systems to support grid integration are also fueling market growth.

Increasing automotive production, especially of electric and hybrid vehicles, is another significant factor as VRLA batteries are widely used in SLI (starting, lighting,  ignition) applications. Government initiatives promoting clean energy technologies and stringent regulations on emissions are further catalyzing the VRLA battery market.

Drivers, Opportunities & Restraints

Advancements in VRLA technology, including improved energy density, cycle life, and safety features, are enhancing battery performance and expanding their applications. Government initiatives promoting clean energy technologies and stringent regulations on carbon emissions are further stimulating market growth, encouraging the deployment of VRLA batteries in various sectors. The rapid expansion of telecommunication networks and the increasing connectivity demands, particularly with the rollout of 5G technology, are also driving the need for reliable power solutions.

The surging demand for reliable backup power solutions in data centers and telecom infrastructure is a significant opportunity as VRLA batteries offer maintenance-free operation and prevent over-pressurization. The growing adoption of renewable energy sources and the need for energy storage systems to support grid integration are fueling market growth. Increasing automotive production, especially of electric and hybrid vehicles, is another opportunity as VRLA batteries are widely used in SLI applications. Government initiatives promoting clean energy technologies and stringent regulations on emissions are further catalyzing the VRLA battery market.

The market faces several restraints that could hinder its growth. A primary challenge is the rapid penetration of lithium-ion (Li-ion) batteries, which are increasingly favored in the automotive sector due to their compact size, longer lifecycle, and faster recharge times. Li-ion batteries can be fully charged in approximately two hours, while VRLA batteries may take up to 24 hours, making them less appealing for applications requiring quick turnaround. Additionally, the higher initial costs associated with VRLA batteries compared to alternative technologies can deter potential customers, further limiting market expansion.

Technology Insights

The AGM segment held the largest revenue share of 64.84% in 2023. The surging demand for reliable backup power solutions, particularly in data centers and telecom infrastructure, is a major driver. Moreover,  AGM VRLA batteries offer maintenance-free operation, prevent over-pressurization, and provide uninterrupted power supply during outages thereby contributing to the segment’s growth. The growing adoption of renewable energy sources and the need for energy storage systems to support grid integration are also fueling market growth.

The GEL gel VRLA battery segment is driven by several key factors. The increasing demand for maintenance-free and reliable power solutions in various applications, including telecommunications and renewable energy storage, significantly boosts market growth. GEL batteries offer advantages such as higher resistance to extreme temperatures, reduced electrolyte evaporation, and lower risk of spillage, making them suitable for diverse environments. In addition, the growing number of data centers worldwide and the rising need for uninterrupted power supply systems further propel the market. The oil and gas sector's shift towards GEL VRLA batteries due to their robust deep-cycle performance and non-hazardous nature also contributes to market expansion.

Application Insights

The stationary segment held the largest revenue share of 45.19% in 2023. This segment is driven by several compelling factors that enhance its adoption across various sectors. A primary driver is the increasing demand for reliable backup power solutions, particularly in data centers and telecommunications, where uninterrupted power supply is critical. As industries expand their infrastructure, the need for maintenance-free and efficient energy storage systems becomes paramount. The growing adoption of renewable energy sources also plays a significant role, as stationary VRLA batteries are essential for storing excess energy generated from solar and wind systems, facilitating grid integration.

Furthermore, government initiatives promoting clean energy technologies and stringent regulations on carbon emissions are encouraging the deployment of stationary VRLA batteries. Advancements in battery technology, including improvements in energy density, cycle life, and safety, further bolster market growth.

Regional Insights

The VRLA battery market in North America is driven by several key factors that enhance its growth potential. A significant driver is the increasing demand for reliable backup power solutions in data centers and telecommunications, where uninterrupted power supply is essential for maintaining operations. The rising expenditure on power backups due to stringent data security regulations further boosts the market. Additionally, the growing adoption of renewable energy sources necessitates effective energy storage systems, where VRLA batteries are crucial for storing excess energy generated from solar and wind sources.

U.S. VRLA Battery Market Trends

The automotive sector also contributes to market growth, particularly with the rising production of electric and hybrid vehicles that utilize VRLA batteries for starting, lighting, and ignition (SLI) applications. Furthermore, government initiatives promoting clean energy technologies and reducing carbon emissions are encouraging the deployment of VRLA batteries across various sectors. Overall, these factors position the U.S. VRLA battery market for sustained growth in the coming years.

Europe VRLA Battery Market Trends

The Europe VRLA battery market is driven by several key factors that enhance its growth potential. A primary driver is the increasing demand for reliable and efficient power solutions in critical applications such as telecommunications and data centers, where uninterrupted power supply is essential. Additionally, the growing adoption of renewable energy sources necessitates effective energy storage systems, with VRLA batteries playing a crucial role in storing excess energy from solar and wind installations.

The VRLA battery market in Germany is driven by the growing demand for reliable backup power solutions in data centers and telecommunications, as well as the increasing adoption of renewable energy sources requiring effective energy storage systems. The automotive sector's shift towards electric vehicles further propels the demand for VRLA batteries, particularly in starting, lighting, and ignition (SLI) applications.

The UK VRLA battery market is experiencing robust growth, driven by increasing demand for reliable power solutions across various sectors. Key factors include the rising need for backup power in data centers and telecommunications, where uninterrupted supply is crucial. The growing adoption of renewable energy sources also necessitates effective energy storage systems, with VRLA batteries playing a vital role. Additionally, the automotive sector's shift towards electric vehicles further boosts demand, particularly for starting, lighting, and ignition (SLI) applications.

Asia Pacific VRLA Battery Market Trends

The VRLA Battery Market growth in Asia Pacific is driven by the region's expanding renewable energy sector also necessitates effective energy storage systems, with VRLA batteries playing a vital role in storing excess energy from solar and wind sources. Additionally, the automotive industry's shift towards electric vehicles contributes to the demand for VRLA batteries, especially in starting, lighting, and ignition (SLI) applications. Government initiatives aimed at enhancing energy efficiency and sustainability further bolster the market.

Asia Pacific VRLA battery market dominated the global market and accounted for largest revenue share of over 50.28% in 2023.  The Asia Pacific market is driven by several key factors that enhance its growth potential. The increasing demand for reliable backup power solutions in data centers and telecommunications is a significant driver, as these sectors require uninterrupted power supply to maintain operations. In addition, the rapid expansion of renewable energy sources necessitates effective energy storage systems, where VRLA batteries play a crucial role in storing excess energy from solar and wind installations.

China VRLA battery market is significantly growing due to the growing consumer preference in China for energy-efficient storage solutions, coupled with rising disposable incomes, is also contributing to the demand for VRLA batteries. Moreover, the integration of VRLA batteries in renewable energy systems, particularly solar power, positions the market favorably as China invests heavily in green technologies. The market is projected to reach over USD 6 billion by 2032, reflecting a robust growth trajectory. Key players, including Chaowei Power Holdings and Fengfan Co. Ltd., are actively participating in this expanding market, enhancing competition and innovation within the sector.

The VRLA battery market in Japan is witnessing robust growth, driven by the increasing demand for reliable and efficient power solutions across various sectors. Key factors include the rising need for uninterrupted power supply in telecommunications and data centers, where VRLA batteries provide essential backup during outages. The automotive industry, particularly the shift towards electric and hybrid vehicles, is also propelling market growth, as these batteries are crucial for starting, lighting, and ignition (SLI) applications.

Central & South America VRLA Battery Market Trends

The Central and South America VRLA battery market is poised for growth, driven by increasing demand for reliable power solutions across various sectors. Key drivers include the need for efficient energy storage systems in solar and wind applications, as well as the growing reliance on backup power solutions for data centers and telecommunications. Countries like Brazil and Argentina are leading the charge, with significant investments in commercial infrastructure and data center development. However, challenges such as a demand-supply mismatch of raw materials may hinder market expansion.

Middle East & Africa VRLA Battery Market Trends

Countries like the UAE, Saudi Arabia, and South Africa are leading the charge, with significant investments in commercial infrastructure and data center development. However, challenges such as the rapid penetration of lithium-ion batteries may hinder market expansion. Overall, the combination of these factors positions the VRLA battery market in the Middle East and Africa for sustained growth, reflecting the region's commitment to advancing energy solutions and enhancing power reliability across industries.

Key VRLA Battery Company Insights

The market is characterized by a competitive landscape featuring key players such as GS Yuasa International, Leoch International Technology, EXIDE INDUSTRIES, and EnerSys among others.  These companies are focusing on research and development to enhance product offerings and meet the growing demand for efficient power transmission solutions. Regional dynamics show significant market shares in North America and Europe, with Asia-Pacific expected to exhibit the fastest growth due to rapid urbanization and renewable energy integration. Companies are also pursuing strategic partnerships and innovations to strengthen their market positions and address customer needs effectively.

Recent Developments

• In July 2024, DAEWOO India launched its Super Power AGM VRLA Silver+ battery featuring 'Korean Technology' specifically designed for two-wheelers. This new battery line includes four models: DW2.5LC, DWZ4, DW-Z5, and DW5LB

• In June 2023, Schaeffler India's Automotive Aftermarket division introduced the cutting-edge Schaeffler TruPower 2-Wheeler Batteries, a significant advancement in battery technology for two-wheelers. Utilizing superior VRLA (Valve Regulated Lead Acid) technology, these state-of-the-art batteries are designed to provide trouble-free operation and a reliable power solution for two-wheeler riders.

VRLA Battery Market Report Scope

Global VRLA Battery Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global VRLA battery market report based on the technology, application, and region:

• Technology Outlook (Revenue, USD Million, 2018 - 2030)

  • AGM

  • Gel

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Stationary

  • Motive

  • SLI

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Italy

    • Spain

    • France

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • UAE