Absorbent Glass Mat Battery Market Research, 2031
The global absorbent glass mat battery market size was valued at $11.6 billion in 2021, and absorbent glass mat battery industry is projected to reach $19.5 billion by 2031, growing at a CAGR of 5.4% from 2022 to 2031.
The absorbent glass mat (AGM) battery uses saturated absorbent glass mats between the plates in place of gelled or liquid electrolytes. AGM batteries have a very low internal resistance and are able to deliver high currents on demand. Increase in investments in renewable energy are propelling the demand for these batteries during the forecast period.
The absorbent glass mat battery market is anticipated to witness decent growth in the forecast period owing to the advantages such as good electrical reliability and the ability to deep cycle. Also, the easy recyclability of these batteries is another factor fueling the market growth. Large storage requirements in data centers offer lucrative growth prospects for key players of the absorbent glass mat battery market in the future. The rising preferences for other effective alternatives in energy storage space may hamper the absorbent glass mat battery market growth during the forecast period.
The India Energy Storage Alliance (IESA) has estimated over 70 GW and 200 GWh of energy storage opportunity in India by 2022, which is one of the highest in the world. Out of 70 GW, over 35 GW of demand is expected from newer applications like solar integration or electric vehicles, hence there is a sizable opportunity for advanced storage technologies in the new applications. On March 31, 2019, India has installed its first grid-scale battery storage system. Improving energy storage economics, increasing renewable energy sector, and policies related to support and development of energy storage technology are some factors that are expected to drive the market.
With the growing renewable sector, the demand for the energy storage system, to address the challenges related to intermittency in renewable power generation, is expected to witness growth. In addition, increase in utilization of uninterrupted power supply systems in residential, commercial and industrial areas is expected to increase the demand for the absorbent glass mat batteries. The presence of investment toward power distribution sector will lead to increase in the demand for absorbent glass mat batteries, as these batteries are used to regulate and store excess energy from the power generation plants.
The global absorbent glass mat battery market forecast is segmented on the basis of type, voltage range, end-use, application and region. On the basis of type, it is segmented into stationary and motive. On the basis of voltage range, the market is segmented into 2-4 volts, 6-8 volts, and 12 volts and above. On the basis of end-use, the market is segmented into OEM and aftermarket. In addition, on the basis of application, the global absorbent glass mat battery market is segmented into automotive, UPS, industrial, energy storage, and others. Furthermore, automotive segment is further classified into motor vehicle, motorcycle, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest absorbent glass mat battery market share, followed by Asia-pacific and Europe.
The stationary segment dominates the global absorbent glass mat battery market. A stationary battery is made for standby or stationary applications. AGM batteries are used as a backup battery for when there is a power outage. It is widely used in telecommunications, energy, hospitals, public facilities and on the railway. The rising demand for power backup solutions coupled with the security of power supply concerns has led to increase in the demand for energy storage systems. Lack of power grid infrastructure and frequent power outages across emerging countries of Africa and Asia-Pacific region, will stimulate the demand for stationary battery storage systems. Growth in penetration of smart devices due to rapid digitalization will fuel the development across telecommunication industry. The rapid development in the manufacturing facilities of above-mentioned products will provide ample opportunities for the development of the market.
The 2-4 volts segment dominates the global absorbent glass mat battery market. 2-4 volt AGM batteries are utilized for deep cycling power for boat, RV, for energy storage in residential solar and wind power generator system. It also provides consistent ride for electric vehicles, golf cars and pallet trucks. It also provides a pack of long-lasting batteries in floor cleaning machines, and aerial work platforms in residential, commercial and industrial sectors. Rise in leisure activities among people and increase in demand for the electric vehicles across the globe has led to the demand for electric vehicle and golf cars. In addition, increase in utilization of residential scale renewable power generation systems has high demand for energy storage systems, which is expected to drive the demand for AGM batteries. The above mentioned factors will provide ample opportunities for the development of the market during the forecast period.
The OEM segment dominates the global absorbent glass mat battery market. Original Equipment Manufacturer (OEM) are those who produce systems or components that are used in another company’s end product. UPS manufacturer, energy storage system manufacturers, and automotive industries order absorbent glass mat battery in huge units that are used in the products, which are sold to the consumers. Rise in demand for UPS, energy storage devices and increase in the sales of transportation vehicles in automotive sector will drive the demand for the absorbent glass mat battery market. Furthermore, increase in the solar power generation plant construction across the globe in the developing countries has led to increase in demand for energy storage devices; hence, leading to the major solar power system manufacturers to order absorbent glass mat battery from OEM’s. The above mentioned factors will provide ample opportunities for the development of the market during the forecast period.
The UPS segment dominates the global Absorbent glass mat battery market. The market demand is attributed to growth in adoption of cloud computing solutions. This leads to rise in the construction of hyper-scale data centers in the market, which require advanced UPS. Various technology market leaders including Apple Inc., Amazon.com, Google LLC, and Microsoft Corporation are investing heavily in the construction of new data centers. When companies move out mission-critical workloads to the cloud, they demand steady power distribution. This is driving the market growth for a reliable and efficient power supply that is crucial for an infrastructure's seamless functioning.
North America dominated the absorbent glass mat battery market. The U.S. government has been proactive in the growth of the U.S. electric vehicle industry. North America, especially the U.S., hosts numerous colocation facilities and data center service providers. The U.S. is expected to be the largest market for energy storage in North America with an increasing demand for uninterrupted energy demand within the country due to rapid investment in construction of datacenter facilities. U.S. and Canada have started to invest in the construction of solar based renewable power generation plants. However, the country’s power generation is dominated by coal and gas-fired power plants, and it is witnessing a shift from coal-based power generation to cleaner sources of energy.
In 2020, nearly 59% of the new utility-scale power generation capacity was from renewables, especially wind and solar. The abovementioned factors have increased demand for uninterrupted power supply and energy storage devices which are used in datacenters and in renewable energy power plants to store energy are expected to drive the North America energy storage industry. The presence of surge in the energy storage industry will augment the growth of absorbent glass mat battery market. The above mentioned policies and investments are major factor driving the growth of the market in this region during the forecast period.
Impact of Covid-19 on Global Absorbent Glass Mat Battery Market
The outbreak of COVID-19 has adversely impacted the market in the first half of 2020 credited to the closure of manufacturing plants during the lockdown period. Due to social distancing and WFH norms across the world, the residential sector observed high installation demand for uninterrupted power source (UPS) systems. Many power plants and substations were working with a limited workforce, resulting in frequent power outages. Owing to this, the market registered an upsurge in demand for UPS systems from the industrial sector. The presence of upsurge for UPS systems and energy storage devices in various sectors has boosted the development of the market.
Post pandemic crisis, the government of various countries across the globe has invested in the renewable power generation such as solar power plant, which has increased the demand for absorbent glass mat battery through energy storage devices. Furthermore, the breakthrough in various technologies which are used in the optimization of absorbent glass mat battery for solar systems, UPS systems, and energy storage devices is also another factor which led to surge in absorbent glass mat battery industry.
The major companies profiled in this report include Clarios, Exide Technologies, Universal Power Group, EnerSys, East Penn Manufacturing Company, Yusa Group, Flamm Energy Technology, Robert Bosch GmbH, Duracell, Johnson Controls, MK Battery, and Power Sonic Corporation. Additional growth strategies such as expansion of storage capacities, acquisition, partnership and research & innovation in the customized battery technologies for solar system have led to attain key developments in the global absorbent glass mat battery market trends.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the absorbent glass mat battery market analysis from 2021 to 2031 to identify the prevailing absorbent glass mat battery market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the absorbent glass mat battery market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global absorbent glass mat battery market trends, key players, market segments, application areas, and market growth strategies.
Absorbent Glass Mat Battery Market Report Highlights
Market Size By 2031
USD 19.5 billion
CAGR of 5.4%
2021 - 2031
By Voltage Range
By End Use
Key Market Players
EnerSys, duracell battery company, Robert Bosch GmbH, Flamm Energy Technology, MK Battery, Yusa Group, Universal Power Group, Power Sonic Corporation, East Penn Manufacturing Company, Exide Technologies, Clarios, Johnson Controls International plc
According to CXO Perspective, the global absorbent glass mat battery market is expected to witness increased demand during the forecast period, due to surge in demand for energy storage and UPS systems in various end-use industries.
AGM battery has a special glass mat separator that wicks the electrolyte solution between the battery plates. These batteries have a longer shelf life when compared to conventional batteries, have high electrical loads, and ideal for start-stop applications in automotive products. AGM batteries are resistant to vibration, non-spill-able, and maintenance-free and have mounting flexibility. Hence, they are used in wide variety of applications such as automotive, UPS, marine, and other end-use industries.
The growing virtualization and utilization of IoT technology in various industries across the globe have driven the demand for data centers. The presence of demand for datacenters and on-going construction of datacenters have led to increase in the demand for energy storage devices such as AGM batteries. Traditionally AGM batteries are used as car batteries, but they can be used as energy-backup system or storage system for renewable energy resources such as solar systems. The growing initiatives toward reducing greenhouse gas emissions have led to increase in investment of the government toward renewable energy to generate power, which will lead to the demand for AGM batteries.