With November comes the return of the Automotive Aftermarket Products Expo (AAPEX) in Las Vegas, and we’re loading up the Stryten Energy Jeep Gladiators to make the journey out west. We’re excited to demonstrate our latest innovations, and with the aftermarket for batteries in a state of transition, we know it’s also going to be an event full of conversations about what the future looks like.
Here are a few key trends we’re tracking ahead of AAPEX:
More advanced cars are aging into the aftermarket
The last few years of rising interest rates and inflation will leave a lasting impact on the automotive industry. More consumers are choosing to hang onto their cars for longer, faced with low levels of new inventory and wary of taking on an expensive loan. Come 2028, industry analysts expect at least three-fourths of cars on the road to be more than six years old. Cars aged 6-14 years are generally the “sweet spot” for the automotive aftermarket, so retailers and distributors are likely to see an influx of new customers aiming to keep their cars in working condition.
However, longstanding technology such as conventional flooded batteries may not be a good fit for these cars. Modern cars have, on average, 1,000-3,000 semiconductor chips running advanced features such as blind-spot monitoring, lane departure assistance and surround view cameras, placing a much higher demand on the car’s battery. In addition, conventional flooded batteries aren’t equipped to power start/stop capabilities – a feature that came in 57% of all new cars sold in 2020, cars that will soon become aftermarket customers.
“As vehicles continue to age and the car parc grows, automotive aftermarket retailers and distributors are going to be in greater demand, but the batteries they’ve relied on for years won’t be powerful enough to keep up with the electronic performance demands of modern vehicles,” said Dan Autey, Executive Vice President at Stryten Energy. “The winners of this market shift will be the ones who can stay ahead of demand.”
Category Management Services will be in higher demand
As more advanced cars age, the aftermarket’s inventory strategy will need to evolve with them. The aftermarket has long operated on a standard hierarchy to categorize batteries: economy, good, better and best, all based on price, warranty and performance. However, the introduction of cycling batteries such as absorbed glass mat (AGM) and enhanced flooded batteries (EFBs) – more powerful alternatives to conventional flood batteries – will lead to a change in how aftermarket dealers make inventory decisions. Many conventional batteries will no longer be viable options for high-tech vehicles, as more cars will come directly from the original equipment manufacturer equipped with EFBs and AGMs. Today, fewer than a quarter of SKUs available to the aftermarket are cycling batteries, but that will need to change.
To ensure they’ve got the right product mix for this shifting market, aftermarket retailers and distributors are looking for greater visibility into demand trends. More are now using Category Management Services, a solution where battery manufacturers offer helpful data to the aftermarket. Manufacturers track patterns based on retail price, group size and grade level, passing along these insights to help retailers and distributors balance their inventory of conventional flooded batteries with newer EFB and AGM cycling batteries.
“Aftermarket dealers only have so much space to store inventory. As demand shifts toward cycling batteries, they’ll need to be more strategic about which SKUs they keep on hand,” Autey said. “The data available through Category Management Services will be helping these retailers and distributors ensure they’re spending money on, and reserving space for, the right inventory.”
Lithium stepping up to power more applications
Consumers are looking for longer-lasting batteries for their boats, golf carts and powersport vehicles. Lithium iron phosphate (LiFePO4) is an advanced technology that provides better performance and faster recharge capabilities with no battery maintenance.
LiFePO4 batteries last 10 times longer and provide two to three times more power in the same physical space than a traditional lead battery. An internal battery management system manages cell temperature, current and voltage to protect the cells from damage and ensure safety. Optional internal heating technology allows the battery to operate in cold temperatures for the upcoming winter season.
“More people are exploring the outdoors, and they want a battery that will allow them to stay out there longer,” Autey said. “Stocking these high-performance lithium batteries gives these consumers the premium choice they want for their off-grid adventures. It’s a trend that retailers and distributors will need to follow.”
Consumers are tapping the brakes on electric vehicle purchases
While electric vehicles have seen increased adoption, many buyers have reservations about the technology. Their concerns were reflected in Q1 2024 EV sales, which were up 2.6% year over year but down 7.3% vs. Q4 2023. EVs from the last three model years experienced 79% more problems than non-EVs, and the national charging infrastructure boosted by the Bipartisan Infrastructure Law is still in development. Buyers just aren’t ready to take the risk.
However, car shoppers still want fuel-efficient vehicles. Sales of hybrid vehicles grew five times faster than EVs in February 2024, giving consumers the best of both worlds: better fuel economy on shorter drives, as well as greater dependability on longer treks. In addition, start/stop capabilities help reduce fuel consumption and carbon emissions when the vehicle comes to a stop. As more consumers choose to balance their sustainability choices with reliability, the advanced batteries critical to these more fuel-efficient cars – EFBs and AGMs – will continue to rise in demand.
“Lithium traction batteries have dominated the conversation around cleaner driving technology. But with EV sales starting to slow, we should remember lead batteries also drive many advancements in environmentally friendly vehicle manufacturing,” Autey said. “EFBs and AGMs help power hybrid vehicles, and they make start/stop possible. We may be moving away from conventional flooded batteries but advanced lead batteries will continue to have an important place in our automobiles.”
Chat with us at AAPEX
If you’re attending AAPEX November 5-7, make sure to stop by Stryten Energy’s booth – A2818. We’re on-site to talk more about these trends, as well as feature our EFB and Battle Born lithium transportation batteries. Schedule a meeting contacting Stryten Corporate Communications at stryten.corporatecommunications@stryten.com.
