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The global absorbent glass mat battery market size was USD 8.85 billion in 2020. The market is projected to grow from USD 9.06 billion in 2021 to USD 13.40 billion by 2028, exhibiting a CAGR of 5.7% during the forecast period from 2021-2028. The global impact of COVID-19 has been unprecedented and staggering, with the worldwide market witnessing a negative demand across all the regions. Based on our analysis, the market exhibited a lower growth of about -3.9% in 2020 than average year-on-year growth during 2017-2019. The sudden spike in CAGR is attributable to this market’s growth returning to pre-pandemic levels once the pandemic is over.
Absorbent glass mat battery, also called AGM battery, is an advanced form of lead-acid battery which provides resistance to vibrations and provide superior power to support the higher electrical demands of vehicles and start-stop applications. These batteries are spill-proof, easily transportable, vibrant resistant, shock resistant, and are maintenance-free, some of the characteristics that make them suitable for UPS, automotive, military aircraft, heavy-duty vehicles, and others. The growth of these batteries is attributed to the rising demand for energy storage solutions for high-current applications such as UPS, easily recyclable when compared with other batteries, and growing investment in renewable energy are some of the key factors driving the market.
Diminished Supply Chains and Lower Demand Affected Market Growth
The COVID-19 pandemic affected the growth of the market significantly. Supply chain disruptions led to shortages in the supply of raw materials and other components required in the product manufacturing. Although these batteries are used in many applications, their most extensive growth is in the automotive sector. Still, the international sales of electric vehicles fall by 43% due to the pandemic of COVID-19, which has declined the growth and production of AGM batteries worldwide.
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Automotive Sector to Boost AGM Battery Demand owing to Low Self-Discharge Rate
AGM batteries are preferred for start-stop vehicle technology due to their low self-discharge rate. Start-stop vehicle technology is used to shut off the engine automatically. Furthermore, they are widely used in plug-in hybrid vehicles. These batteries are great for high-end and advanced fuel-efficient vehicles with more significant power demands. The rising demand for low emission and government support for long-range, zero-emission vehicles through subsidiary & taxes have propelled the demand for electric vehicles, further supporting the growth of batteries.
Advancements in AGM Battery Technology to Accelerate Usage in Various Applications
AGM batteries contain a special glass mat separator that wicks the electrolyte solution between the battery plates. These batteries have a longer shelf life when compared to standard flooded batteries, have high electrical loads, and are ideal for start-stop applications. Furthermore, these batteries are resistant to vibration, non-spill-able, and maintenance-free, and have greater mounting flexibility, hence used in a wide variety of applications such as automotive, UPS, marine, large audio systems, and others.
Increased Number of Data Centers Worldwide Will Boost Market Progress
The growing virtualization and cloud computing trends have led to a succeeding increase in data centers. Furthermore, the advantage of technologies such as 5G, artificial intelligence, machine learning, data center construction, and deployment and upgrading efforts in the existing data center is booming. Additionally, the technological advancement in UPS battery systems, such as new AGM batteries with high operating temperatures, is expected to create immense opportunities in traditional data centers. Therefore, the growing demand for data centers will propel the Uninterrupted Portable (UPS) System, thus will drive the market.
Upsurge of Renewable Resources for Power Generation to Propel Demand
AGM batteries have been traditionally used as car batteries, but they can be used as energy-backup systems or solar systems. The growing initiatives towards reducing greenhouse gas (GHG) emission has set a tone for the installation of renewable sources for power generation, which will lead to the enlargement of battery storage system which will support the growth. Furthermore, the absorbent glass mat batteries are helpful for small, off-grid solar systems as they require no maintenance compared with other batteries.
High Cost of AGM Battery Technology to Affect Product Demand Slightly
The battery demand is heavily affected due to their high manufacturing cost. The AGM batteries have low specific energy, and manufacturing cost is also increased compared to lithium-ion batteries, hindering the market. Furthermore, the lower tolerance to overcharging and high voltage than flooded batteries also hamper the market's growth.
Stationary Batteries to Lead Market Share Owing to Longer Shelf Life
The absorbent glass mat battery market share is bifurcated into stationary and motive batteries based on type. The stationary batteries have dominated the market due to their adoption in the UPS and telecommunication sectors. Stationary batteries have heavier grid structures and other feature that gives them longer shelf life. Therefore, they are used for power emergency lights, UPS for hospitals, factories, and energy storage devices. The motive batteries segment also grows substantially due to the growing demand for AGM batteries in fuel cell electric vehicles.
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AGM Battery to Experience Substantial Demand in UPS Applications
The market share is divided into UPS, automotive, energy storage, industrial, and others in terms of application. The UPS (Uninterruptible Power Supply) applications dominated the batteries market. UPS is among the initial application of AGM batteries. UPS is used for emergency backup applications for many commercial and industrial purposes. These batteries provide a high current for a short duration for the UPS system. These batteries are preferred choices for UPS systems owing to their properties such as low internal resistance, higher specific power & efficiency, low purchasing cost, and low self-discharge rate.
Asia Pacific Absorbent Glass Mat Battery Market Size, 2020 (USD Billion)
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The absorbent glass mat battery market share is geographically categorized into North America, Latin America, Asia Pacific, Europe, and the Middle East and Africa. The Asia Pacific region is slated to hold the dominant market share over 2021-2028. The Asia Pacific market proliferates due to increased energy storage solutions for industrial, automotive, and other applications. Furthermore, the renewable energy integration in countries such as China and India are considered an additional factor propelling the growth. In addition, China and Japan are among the world’s leading EV producers, which provides a promising opportunity. Asia Pacific being a major electronics hub will further strengthen the regional outlook.
Tightening laws around greenhouse gas (GHG) emissions in Europe have supported the regional market expansion. Various European countries, including France, Germany, Argentina, and others, are striving to become zero-emission economies by 2050. This has promoted the usage of low-emission electric vehicles, where a key application area of AGM batteries owing to their excellent reliability and longer life.
North America is projected to observe stable growth, led by the U.S. The massive presence of key market players in the U.S. and the growing installation of absorbent glass mat batteries for renewable energy applications are key factors driving the market. The other critical application for batteries is the marine industry. AGM batteries are used in personal watercraft yachts and powerboats, and heavy machinery equipment typically uses AGM batteries.
The Middle East and Africa region will witness steady growth due to growing construction activities and expansion of urban areas. The installation of renewable energy infrastructure will promote the regional absorbent glass mat battery market growth.
Manufacturers Are Constantly Focusing On New Technological Advancements
Market players such as Clarios, Power Sonic Corporation, C&D Technologies, East Penn Manufacturing Company, Fullriver Battery, and Enersys are focusing on new technological advancements to capture larger market share.
List of Key Companies Profiled:
An Infographic Representation of Absorbent Glass Mat Battery Market
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The research report offers qualitative and quantitative insights on the absorbent glass mat batteries and a detailed analysis of market size & growth rate for all possible segments in the market. Along with this, the report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are advancement in technology for AGM batteries by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key market trends.
Value (USD Billion)
By Type, By Application, and By Region
As per an analysis by Fortune Business Insights, the global market was USD 8.85 billion in 2020.
The global market is projected to grow at a CAGR of 5.7% in the forecast period.
The market size of the Asia Pacific was valued at USD 3.40 billion in 2020.
Automotive, UPS, Industrial, energy storage devices, and military are major end-users of AGM batteries.
The global market is anticipated to reach USD 13.40 billion by 2028.
Based on type, the stationary segment holds the highest share in the market across the globe.
The top players in the industry are Clarios, Power Sonic Corporation, East Penn Manufacturing Company, Fullriver battery.
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