Absorbent glass mat (AGM) batteries are a type of lead-acid batteries commonly used in vehicles. They incorporate highly absorbent glass mats (AGM) separator between the lead plates. The advantages of AGM batteries include high cranking power, long shelf life, vibration resistance, excellent cold weather starting performance, and leak proof and maintenance-free characteristics. These advantages make them preferable for use in automotive applications such as starting, lighting, and ignition in vehicles.
The global Absorbent Glass Mat Battery Market is estimated to be valued at US$ 16.96 Bn in 2023 and is expected to exhibit a CAGR of 9.5% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing demand for electric vehicles across the globe offers potential growth opportunities for the absorbent glass mat battery market. AGM batteries are often used in electric vehicles as they meet the high power demands of automotive applications. The increased demand for electric vehicles is driven by stringent emission norms by various governments and rising awareness about environmental protection. Additionally, growing investments by leading automakers in electric vehicles will further boost the replacement demand for advanced AGM batteries in the coming years. Given the advantages of AGM batteries and their suitability for automotive applications, the market is expected to witness significant demand from the electric vehicles sector over the forecast period.
Porter's Analysis
Threat of new entrants: Low economies of scale and cost disadvantages deter new companies from entering this market. Bargaining power of buyers: Large customers like automakers have significant bargaining power due to huge order volumes. Bargaining power of suppliers: Leading battery manufacturers have some bargaining power due to their technological expertise and economies of scale. Threat of new substitutes: Emerging lithium-ion batteries pose a threat though AGMs have advantages like safety and cycle life. Competitive rivalry: Intense competition among leading players like EnerSys, Storage Battery Systems and Exide Technologies keeps prices competitive.
SWOT Analysis
Strengths: AGMs offer advantages like no maintenance, long shelf life and deep discharge capabilities. Weaknesses: High upfront costs, bulky nature and shorter lifespan compared to newer technologies. Opportunities: Growing demand for stationary battery storage applications and industrial markets. Threats: Declining costs and improving technologies of substitute lithium-ion batteries.
Key Takeaways
The global Absorbent Glass Mat Battery Market Demand is expected to witness high growth over the forecast period of 2024 to 2031.
Regionally, the market in North America accounted for the largest revenue share in 2024 owing to high demand from industries and telecommunication sector in countries like the US and Canada. The Asia Pacific region is expected to grow at the fastest pace during the forecast period due to rapidly expanding automotive and industrial sectors in China and India.
Key players operating in the absorbent glass mat battery market are EnerSys, Storage Battery Systems, Exide Technologies, East Penn Manufacturing Company, LEAD ACID BATTERY, Trojan Battery Company, Fullriver Battery USA, Shield Batteries Limited, DVS, Microtex, Coslight, C&D Technologies, GS Yuasa Corporation,Saft Groupe SA.EnerSys and Exide Technologies are among the leading players focusing on expansion in emerging regions through new manufacturing plants and strategic partnerships.
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