The global Absorbent Glass Mat (AGM) battery market was worth USD 11 Billion in 2021 and is anticipated to increase 5.3% year on year to USD 11.2 Billion in 2022. Because of the escalating contributions from various governmental organizations, the market is estimated to reach USD 18 Billion by 2032. During the forthcoming years, the trade is anticipated to grow at a CAGR of 4.8%.
According to Future Market Insights, sales of absorbent glass mat (AGM) batteries are attributed to the below-mentioned reasons:
The COVID-19 pandemic had a significant effect on growth. Supply chain problems resulted in a dearth of raw materials and other constituents used in the production process. Although these batteries are utilized for a wide range of applications, the automotive industry has witnessed the most rapid growth. Nonetheless, international sales of electric automobiles have fallen by 44% as a result of the COVID-19 pandemic, which has decelerated the expansion and production of AGM batteries globally.
| Attributes | Details |
|---|---|
| Global Absorbent Glass Mat(AGM) Battery Market CAGR (2022 to 2032) | 4.8% |
| Global Absorbent Glass Mat(AGM) Battery Market (2032) | USD 18 Billion |
| Global Absorbent Glass Mat(AGM) Battery Market Attraction | Growth in investments and an increase in the number of renewable energy projects across the globe are expected to drive the market in the forecast period. |
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During the forecast years, APAC is likely to be the fastest-growing region. China is predicted to make the most major influence on market development. China is estimated to be valued at USD 1 Billion, with a 4.1% CAGR during the forecast period.
The existence of developing countries like India, China, Japan, and others has aided the industry's growth. Widening modernization in China is expected to drive the growth of advanced technology products, and regional penetration of major players is projected to boost absorbent glass mat (AGM) batteries. Asia Pacific's status as a leading electronics hub will reinforce the region's prospects. Due to various elevated energy storage technologies for industrial, automotive, and other implementations, the Asia Pacific market is booming.
Furthermore, Japan has emerged as a significant player in the region. According to the analysis, the region is expected to earn approximately 1 billion during the forecast timeframe, with a CAGR of 3.1%. The fast development in the relevant field can be attributed to the regional market's progress. South Korea is anticipated to reach USD 652 Million by 2022 to 2032, at a CAGR of 2.4%.
The UPS application segment is projected to dominate the market over the coming years. During the forecast period, the segment is predicted to grow at a CAGR of 3.8%. During the period 2015 to 2021, the segment is anticipated to expand at a CAGR of 4.2%.
UPS is one of the most typical applications for absorbent glass mat batteries, which are utilized for backup applications in both households and businesses. Because AGM batteries offer high currents for brief periods, they are suitable for use in UPS systems. Absorbent glass mats (AGM) are a popular option for UPS systems due to their features such as low resistance value, greater specific power and efficiency, reduced purchasing costs, and low self-discharge speed.
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Increasing use of Renewable Battery Powering Sources to boost Uptake
Owing to the increase in penetration of renewable energy across grids has boosted the need for efficient and flexible energy storage solutions with long operating life to boost the growth of the market in coming years.
Government initiatives for implementing strict regulations related to carbon emissions are expected to boost the growth of the absorbent glass mat (AGM) battery market. For instance, In Feb 2022- The USA Department of Energy (DOE) issued two notices of intent to provide USD 2.91 Billion to boost the production of the advanced batteries that are critical to rapidly growing clean energy industries of the future, including electric vehicles and energy storage.
Also, the rising number of research and development by the leading manufacturer and the production of maintenance-free and non-spillage batteries with loner life is the primary factor driving the growth of the absorbent glass mat (AGM) battery market.
Furthermore, their maintenance-free properties, combined with no hassle of topping up with distilled water at frequent intervals are major factors which will augment growth of the absorbent glass mat (AGM) battery market.
Demand to be Highest in the Automotive Sector
Owing to the low self-discharge rate absorbent glass mat (AGM) batteries are more preferred for start-stop technology vehicles. As absorbent glass mat (AGM) batteries are extremely resistant to vibration, are totally sealed, non-spillable, and maintenance-free, and offer better cycling performance, minimal gassing, and acid leakage, when compared with conventional lead-acid batteries, thus are in huge demand in the automotive sector.
AGM batteries are a great premium choice for high-end and advanced fuel-efficient vehicles with large power demands and electronic features such as DVD players, GPS, heated seats, and audio systems. Increasing adoption of high-performance engine starter batteries in vehicles and an increase in renewable energy generation targets along with large storage requirements will lead to the growth of the absorbent glass mat (AGM) battery market.
High costs related to absorbent glass mat (AGM) technology compared to the lead-acid battery and due to the availability of other low-cost alternatives may impede the growth of the market in the coming years.
Moreover, lack of technical expertise is another factor hindering the industry’s expansion in the coming years. In addition, the growing preferences for other effective alternatives in energy storage space may impede the market expansion in the assessment period.
Increasing issues related to security along with inclination toward other effective alternatives in the energy storage space will likely act as market restraints factors for the growth of the automotive absorbent glass mat (AGM) battery market. Also, the growth of electric vehicles along with lower specific energy than other batteries will become the biggest and foremost challenge for the growth of the market.
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Absorbent Glass Mat(AGM) batteries are more efficient than the traditional ones due to their design and construction, better lifespan, resistance to vibrations, no spillage or leakage, and higher capacity. Increasing demand for renewable energy components/systems such as solar power is completely dependent on energy storage batteries expected to drive the demand for absorbent glass mat(AGM) batteries market in coming years.
As per the analysis, the automotive sector is anticipated to hold remunerative opportunities for the global Absorbent Glass Mat(AGM) battery market. Various developing countries are making significant developments in their budgets, thereby, offering lucrative opportunities to players in the market.
Also, various governments are providing tax credits to promote the use of electric vehicles, which is expected to increase the demand for the AGM battery market.
Based on application, the UPS segment is expected to dominate the market in the forecast period. The segment is projected to exhibit a CAGR of 3.8% during the forecast period. The segment is expected to have experienced a CAGR of 4.2% during the timeframe of 2015 to 2021.
UPS is among the major application of absorbent glass mat batteries used for backup applications in industries as well as in households. As AGM battery provides high current for short durations for the UPS system. Due to their properties such as low internal resistance, higher specific power & efficiency, low purchasing costs, and low self-discharge rate absorbent glass mats (AGM) are a preferred choice for UPS systems.
As per the analysis, by voltage, the 2-4 volts segment is expected to lead the market during the forecast period. The segment is anticipated to have witnessed a 4.0% CAGR from 2015 to 2021. Whereas, during the forecast period, the segment is estimated at a 3.2% CAGR.
The 2-4 volts’ absorbent glass mat( AGM) batteries are the most demanded and most used batteries, as they are equipped with high capacity and unmatched capabilities. 2-4 volts’ batteries found significant application in automotive, marine, energy storage, telecom, and off-grid & backup industries.
North America is anticipated to lead the global absorbent glass mat battery market during the forecast period. The market is likely to garner USD 6 Billion while exhibiting a CAGR of 4.5% from 2022 to 2032.
The rapid development of the region can be attributed to the increasing presence of battery manufacturers in the region. The demand for AGM batteries in Middle East & Africa and Latin America is expected to rise at a moderate pace during the forecast period due to significant investment in the automotive sector.
APAC is anticipated to be the fastest-growing region during the forecast period. China is likely to make the most significant contribution to developing the market. China is estimated at USD 1 Billion, expanding at a 4.1% CAGR during the forecast period.
The growth of the market can be attributed to the presence of evolving countries such as; India, China, Japan, and others. Growing industrialization in China, increasing demand for advanced technology products, and penetration of global players in the region are expected to fuel demand for the absorbent glass mat (AGM) battery market.
In addition, Japan has been recognized as another potent player in the region. According to the analysis, the country is anticipated at USD 1 Billion while recording a CAGR of 3.1% in the forecast period. The development of the regional market can be credited to the rapid development in the concerned field. South Korea is to reach USD 652 Million, at a CAGR of 2.4% from 2022-2032.
| Countries | Estimated CAGR |
|---|---|
| USA | 4.5% |
| UK | 3.5% |
| China | 4.1% |
| Japan | 3.1% |
| South Korea | 2.4% |
Eminent players of the global absorbent glass mat (AGM) battery market include Clarios, Power Sonic Corporation, Exide Technologies, C&D Technologies, East Penn Manufacturing Company among others.
Recent key developments among players include:
The global absorbent glass mat (AGM) battery market is likely to value USD 11 Billion in 2021.
The global absorbent glass mat (AGM) battery market is estimated to grow at a CAGR of 4.8% from 2022 to 2032.
The global absorbent glass mat (AGM) battery market is predicted to procure USD 18 Billion from 2022 to 2032.
The Voltage segment is projected to expand at a 3.2% CAGR during the forecast period.
The application segment is likely to exhibit a 3.8% CAGR from 2022 to 2032.
The USA market is expected to garner USD 6 Billion while expanding at a 4.5% CAGR from 2022 to 2032
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Absorbent Glass Mat (AGM) Battery Market
