all report title image

ABSORBENT GLASS MAT BATTERY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

Absorbent Glass Mat Battery Market, By Type (Stationary, Motive, Others), By Application (Telecom, UPS, Utility, Emergency Lighting, Security Systems, Cable Television/Broadcasting, Others), By Plate Design (Flat Plate, Tubular Plate, Others), By Sales Channel (OEM, Aftermarket), By Battery Size (L (Less than 100Ah), M (100 to 124Ah), H (More than 125Ah)), By End User Industry (Telecom, Railways, Infrastructure, Power, Datacenters, Others), By geography (North America, Latin America, Europe, Asia Pacific, Middle East & Africa)

  • Published In : Jan 2024
  • Code : CMI6337
  • Pages :140
  • Formats :
      Excel and PDF
  • Industry : Energy

The absorbent glass mat battery market size size was valued at US$ 26.90 Billion in 2023 and is expected to reach US$ 14.72 Billion in 2030, at a CAGR of 9% during the forecast period.

Absorbent glass mat batteries, commonly known as AGM batteries, are lead-acid batteries that use absorptive glass mats between the electrodes instead of liquid electrolyte. This construction makes AGM batteries more efficient and durable than conventional flooded lead-acid batteries. AGM batteries find wide applications across various end-use sectors such as telecom, UPS, emergency lighting, and security systems due to their high cycling capacity, reduced maintenance, and ability to remain unused for long periods without losing capacity.

The absorbent glass mat battery market is segmented by type, application, plate design, sales channel, battery size, end user industry, and region. By type, the market is segmented into stationary, motive, and others. The stationary segment held the largest share in 2023 due to the surging demand for backup power from telecom towers, oil and gas rigs, emergency lighting systems, and data centers.

Absorbent Glass Mat Battery Market Regional Insights

  • North America is expected to be the second-largest market for absorbent glass mat battery during the forecast period, accounting for over 22.4% of the market share in 2023. The growth of the market in North America is attributed to the high adoption of AGM batteries in UPS systems, telecom infrastructure, emergency lighting, and renewable energy storage.
  • The Asia Pacific market is expected to be the largest market for absorbent glass mat battery, accounting for over 44.5% of the market share in 2023. The growth of the market in is attributed to rapid industrialization and urbanization in emerging economies like China, India, and Southeast Asia.
  • The Europe market is expected to be the fastest-growing market for absorbent glass mat battery, with a CAGR of over 16.5% during the forecast period. The growth of the market in Europe is attributed to government initiatives to expand renewable energy capacity and electric vehicle adoption in the region.

Figure 1. Global Absorbent Glass Mat Battery Market Share (%), By Region, 2023

ABSORBENT GLASS MAT BATTERY MARKET

To learn more about this report, request sample copy

Absorbent Glass Mat Battery Market Drivers

  • Surging telecom infrastructure development: The rapidly growing telecom sector is one of the major factors driving the demand for absorbent glass mat (AGM) batteries. With increasing mobile and internet penetration, telecom operators are expanding their networks by setting up new cell towers and base stations, especially in remote and rural areas. This has significantly increased the need for backup power solutions to ensure uninterrupted network connectivity. AGM batteries are widely used as a reliable backup power source for telecom towers due to their high cycling capacity, low maintenance requirements, and ability to withstand frequent discharges. Moreover, the development of 5G networks worldwide is further expected to escalate AGM battery adoption in the telecom industry over the coming years. For example, India aims to establish 800,000 telecom towers by 2024 under its national broadband mission to connect rural areas, which will require massive deployment of backup batteries. Similarly, China has set a target of building over 8,00,000 5G base stations by 2023 as part of its digital transformation plans.
  • Growth across UPS and inverter markets: The rising utilization of AGM batteries in UPS and power inverter systems across residential, commercial, and industrial sectors is fueling market growth. UPS and inverters are used to provide backup power to critical loads during grid power outages. AGM batteries are preferred in these systems due to their high cyclic efficiency, low self-discharge, and tolerance to deep discharge cycles. With expanding industrialization and digitalization, the demand for reliable backup power systems has increased considerably. This has driven the uptake of VRLA batteries, like AGM batteries, in the UPS and inverter markets worldwide. For instances, as per data by the International Renewable Energy Agency (IRENA), total installed solar PV capacity worldwide increased from 402 GW in 2015 to over 760 GW in 2020. IRENA also reported that over 85% of off-grid solar home system installations comprised lead-acid batteries, with most utilizing the AGM battery variant.
  • High adoption in renewable energy storage: The expanding renewable energy sector is one of the major drivers for the AGM battery market. Solar and wind power plants extensively utilize AGM batteries for energy storage purposes. The ability of AGM batteries to handle frequent charge-discharge cycles and operate efficiently in harsh environmental conditions makes them ideal for energy storage applications. The capacity of renewable energy sources worldwide is anticipated to increase significantly over the next several years due to falling costs and government policies that promote them. This will consequently boost the demand for AGM batteries deployed across various renewable energy projects and microgrid systems.
  • Rapid uptake in data centers: The proliferating data center industry is fueling the demand for reliable and efficient AGM batteries. Data centers have massive power requirements and are highly sensitive to power fluctuations. AGM batteries provide emergency backup and UPS capabilities to maintain continuous power supply to data center equipment. The growing colocation and hyperscale data center markets, along with increasing edge computing adoption, are expected to escalate the installation of AGM batteries in data center infrastructure during the forecast period.

Absorbent Glass Mat Battery Market Opportunities

  • Traction in electric vehicle applications: The rapid adoption of electric vehicles globally provides significant growth opportunities for advanced battery technologies, including AGM batteries. The high power density, wide operating temperature range, and long cycle life make AGM batteries suitable for electric vehicle auxiliary applications. With declining lithium-ion battery prices and supportive government policies, the electric vehicle market is expected to grow exponentially in the coming decade. This will drive the utilization of AGM batteries in electric two-wheelers and passenger vehicles for auxiliary power supplies. For instance, the U.S. government announced plans in 2021 to install 500,000 new public EV charging stations over the next few years under the new infrastructure law. Such initiatives are expected to boost electric vehicle sales manifold in the coming years.
  • Potential in advanced recycling processes: The development of effective recycling processes for AGM batteries presents notable growth opportunities by resolving disposal issues. Companies are investing in innovative recycling technologies to extract and reuse the battery components in an eco-friendly manner. Automated recycling processes help reduce costs and enable efficient material recovery from spent AGM batteries. Implementing battery recycling regulations and spreading awareness regarding the benefits can potentially increase recycling rates in the long run. This will address environmental concerns while creating a circular system to minimize battery waste. For instance, according to a 2021 report by the United Nations Environmental Programme (UNEP), the global stock of lithium-ion batteries stemming from electric vehicles and consumer electronics will grow to over 30 million metric tons by 2030.
  • Applications in the marine industry: The marine industry is expected to emerge as a lucrative end-use sector for AGM batteries. The ability to withstand vibration, along with spill-proof and leak-proof construction makes AGM batteries suitable for marine applications. The growing recreational boating market, along with innovations in boat electrification, can accelerate the adoption of AGM batteries for trolling motors, navigation lights, fish finders, and other onboard systems. Their high temperature cranking amps also enable engine cranking for boats and yachts.
  • Rising deployment of microgrids: The increasing development of microgrids across remote and rural areas in developing economies provides growth avenues for AGM batteries. Off-grid renewable energy microgrid systems extensively use AGM batteries for power storage purposes. Moreover, AGM batteries can be integrated with diesel generators in hybrid microgrids to optimize energy costs. Supportive microgrid policies and investments in rural electrification projects will positively influence the installation of AGM batteries in upcoming microgrid networks, especially across emerging economies.

Absorbent Glass Mat Battery Market Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2023: US$ 14.72 Bn
Historical Data for: 2018 to 2021 Forecast Period: 2023 - 2030
Forecast Period 2023 to 2030 CAGR: 9% 2030 Value Projection: US$ 26.90 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East & Africa: GCC Countries, Israel, South Africa, North Africa, and Central Africa and Rest of Middle East
Segments covered:
  • By Type: Stationary, Motive, Others 
  • By Application: Telecom, UPS, Utility, Emergency Lighting, Security Systems, Cable Television/Broadcasting, Others 
  • By Plate Design: Flat Plate, Tubular Plate, Others 
  • By Sales Channel: OEM, Aftermarket 
  • By Battery Size: L (Less than 100Ah), M (100 to 124Ah), H (More than 125Ah) 
  • By End User Industry: Telecom, Railways, Infrastructure, Power, Datacenters, Others
Companies covered:

EnerSys, Exide Technologies, GS Yuasa, Hoppecke, Crown Battery, Hitachi Chemical, Amara Raja, HBL Power Systems, C&D Technologies, Luminous, Okaya Power, Rolls Battery, Amara Raja Batteries, Hankook AtlasBX Co, Leoch Battery, Power-Sonic, Southern Batteries, Panasonic Corporation, Samsung SDI, LG Chem

Growth Drivers:
  • Surging telecom infrastructure development
  • Growth across UPS and inverter markets
  • High adoption in renewable energy storage
  • Rapid uptake in data centers
Restraints & Challenges:
  • High initial costs
  • Performance limitations in extreme temperatures
  • Availability of advanced battery technologies

Uncover macros and micros vetted on 75+ parameters: Get instant access to report

Absorbent Glass Mat Battery Market Trends

  • Product development for partial state of charge applications: Leading manufacturers are focusing on developing AGM battery solutions capable of operating in partial state of charge conditions for long durations. This addresses the key challenges of battery undercharging in renewable energy systems and lightweight vehicles. Enhanced grid alloys and electrode coating are being leveraged to improve charge acceptance during partial state of charge while reducing capacity loss. Improved partial state of charge tolerance will expand the applicability of AGM batteries across solar, marine, and automotive applications. For instance, data from the International Renewable Energy Agency shows electric bus fleets in countries like Chile and India are deploying AGM batteries for depot chargers that maintain buses at 70% state of charge when not in use to optimize battery life.
  • Introduction of advanced battery monitoring systems: Remote battery monitoring systems are being integrated with AGM batteries to enable real-time tracking of key parameters such as cell voltage, temperature, electrolyte levels, etc. IoT-enabled battery monitoring solutions leverage cloud computing and data analytics to identify potential failures, send alerts, and recommend preventive measures. This minimizes unplanned downtime and enhances reliability across AGM battery installations, thereby driving their adoption across data centers, telecom infrastructure, and utilities. For instance, according to the International Renewable Energy Agency's 2021 report, battery energy storage witnessed an annual growth rate of over 35% between 2015 and 2020, largely driven by deployments behind-the-meter to facilitate higher renewable energy integration into grids. Advanced monitoring systems have accelerated this trend by enhancing the reliability and efficiency of stored energy.
  • Growing popularity of lithium-ion based AGM batteries: Manufacturers are introducing lithium-ion based AGM batteries that offer the safety, performance, and cycling capacity of conventional AGM batteries, along with the high energy density of lithium-ion batteries. These advanced AGM batteries utilize lithium iron phosphate cell chemistry and carbon additives for improved power, longer runtimes, and extended longevity. The growing availability of Li-ion AGM batteries provides a high-performance alternative to traditional lead-acid technology.
  • Shift towards maintenance-free battery solutions: End users across multiple sectors are shifting preference towards maintenance-free AGM batteries that do not require periodic topping-up of water. The evolving demand for AGM batteries with reduced maintenance requirements has led companies to offer completely sealed AGM batteries with immobilized electrolyte. This prevents the need to check electrolyte levels while reducing corrosion and leakage issues caused by topping-up water. The minimal maintenance of these batteries reduces operating costs for users. For instance, according to data from the International Renewable Energy Agency's 2022 report, over 70 million households globally adopted some form of solar home system in 2020 and 2021 to ensure secured access to electricity. A majority of these systems used AGM batteries instead of regular flooded lead-acid batteries to provide backup due to their easy installation and lack of watering requirements.

Absorbent Glass Mat Battery Market Restraints

  • High initial costs: Despite the long-term benefits, the high upfront cost of AGM batteries compared to conventional flooded lead-acid batteries is a major restraint to faster market penetration. The additional components, such as absorptive glass mats, alloyed tin electrodes, and valves, increase the manufacturing costs. Moreover, the complex production process also contributes to the price premium commanded by AGM batteries, limiting adoption from price-sensitive consumers and developing economies. For example, according to data from the US Environmental Protection Agency, over 95% of the lead-acid battery manufacturing capacity in North America is controlled by just five major players as of 2021 due to their access to vast capital resources. The limited number of major producers has kept industry expansion at a gradual pace.
  • Performance limitations in extreme temperatures: The performance and charging capabilities of AGM batteries get affected by extremely high or low temperatures. Hot conditions accelerate water loss, leading to the drying out of batteries, while cold temperatures reduce the electrolyte conductivity, hampering charging. This can cause premature failure when AGM batteries are used in high temperature environments or regions with extreme weather conditions without proper temperature regulation systems. For example, commercial trucks and buses transporting goods across arctic regions face temperatures as low as -50°C during long winter months according to weather data from the Canadian government. At such ultra-low temperatures, AGM batteries simply do not provide reliable starting power and have very limited usable capacity.
  • Availability of advanced battery technologies: The growing adoption of lithium-ion and other advanced battery technologies is posing a challenge to traditional lead-acid batteries, including AGM variants. The higher energy density, lighter weight, improved durability, and falling prices of lithium-ion batteries make them a preferred choice across many applications. Moreover, ongoing research towards developing better lead crystal, lithium sulfur, and solid-state batteries also threatens to substitute AGM batteries in the long term.

Analyst View

The absorbent glass mat battery market is poised to grow, driven by increasing demand for stationary batteries from the telecom and utilities industries. The demand for reliable and continuous power availability is escalating the need for stationary batteries, especially in developing regions of Asia Pacific and Latin America. The advantages of longer service life and better deep discharge recovery of AGM batteries over lead-acid batteries are prompting their higher adoption in off-grid renewable energy projects. Additionally, strict regulations around lead emissions are compelling several industries to shift towards more environment friendly AGM battery technology. However, the high initial costs of AGM batteries compared to lead acid batteries could hinder broader market expansion. Fluctuating raw material prices especially for glass mat and lead, also create pricing challenges for manufacturers. Nonetheless, growing investments in rural electrification coupled with capacity additions in the telecom industry are likely to spur opportunities. Product innovation through advanced separators and other materials to improve cycle life and reduce costs would aid market access. Among regions, Asia Pacific presently dominates the market and is expected to continue its leadership. Rising off-grid electrification projects in countries like India, Bangladesh, and Indonesia to meet burgeoning energy needs are major demand drivers. Meanwhile, North America and Europe are anticipated to grow at a steady pace on the back of deployments in UPS, emergency lighting, and renewable integration.

Recent Developments

New product launches

  • In January 2022, Exide Technologies launched a new range of high-performance AGM batteries for inverter backup applications in the telecom and UPS sectors. The new models offer 20% higher life cycles. Exide was originally a brand name for batteries produced by The Electric Storage Battery Company and later became Exide Corporation, doing business as Exide Technologies, an American multinational lead-acid battery manufacturing company. It manufactures automotive batteries and industrial batteries.
  • In June 2021, Amara Raja Batteries introduced a new range of AGM batteries under the brand PoweR Safe+ specifically designed for inverter and UPS applications. The batteries feature tubular plate construction for efficient power delivery. Amara Raja Group is an Indian multinational conglomerate company, headquartered in Tirupati, India. The group has a presence in the automotive battery business, packaged foods and beverages, electronics product manufacturing, infrastructure sector, power system production, and fabrication of sheet metal products and fasteners.
  • In September 2020, EnerSys expanded its Thin Plate Pure Lead (TPPL) absorbent glass mat battery range with the addition of new models of Cyclon batteries for use in telecom, UPS, and solar applications. The batteries offer longer life cycles and floating capabilities. EnerSys is a storage energy systems and technology provider for industrial applications. The company manufactures and distributes reserve power and motive power batteries, battery chargers, power equipment, battery accessories, and outdoor equipment enclosure systems to customers worldwide.

Acquisition and partnerships

  • In October 2022, Amara Raja Batteries partnered with Noratel, a global transformer manufacturer, to develop a new range of lithium-ion-based solutions for UPS and inverter applications. The strategic partnership will combine Amara Raja's energy storage expertise with Noratel's power conversion systems.
  • In January 2021, EnerSys completed the acquisition of NorthStar, a leading battery solutions provider for the motive power market. The US $325 million acquisition expanded EnerSys' Thin Plate Pure Lead (TPPL) product line for electric forklifts and other material handling applications.
  • In May 2020, Exide Technologies acquired the industrial battery business of EnerSys, which included the battery manufacturing facility in transcending Indiana. The US$180 million deal expanded Exide's industrial flooded battery portfolio.

Figure 2. Global Absorbent Glass Mat Battery Market Share (%), By Application, 2023

ABSORBENT GLASS MAT BATTERY MARKET

To learn more about this report, request sample copy

Top companies in Absorbent Glass Mat Battery Market

  • EnerSys
  • Exide Technologies
  • GS Yuasa
  • Hoppecke
  • Crown Battery
  • Hitachi Chemical
  • Amara Raja
  • HBL Power Systems
  • C&D Technologies
  • Luminous
  • Okaya Power
  • Rolls Battery
  • Amara Raja Batteries
  • Hankook AtlasBX Co
  • Leoch Battery
  • Power-Sonic
  • Southern Batteries
  • Panasonic Corporation
  • Samsung SDI
  • LG Chem

Definition: The Absorbent Glass Mat (AGM) Battery Market refers to the global market for lead-acid batteries that utilize absorptive glass mats between the electrodes to hold the electrolyte solution. AGM batteries are increasingly being adopted across various applications such as back up power, material handling equipment, emergency lighting, renewable energy storage etc. due to their high cycling capacity, reduced maintenance requirements, and ability to withstand deep discharge in frequent cyclic operations. With its growing usage across telecom, data centers, utilities, UPS sector, the AGM battery market is witnessing strong growth worldwide.

Few Other Promising Reports In Energy Industry

Solid State Battery Market

Battery Market

Residential Battery Market

Electric Vehicle Battery Swapping Market

Share

About Author

Sakshi Suryawanshi

Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.

Missing comfort of reading report in your local language? Find your preferred language :

Frequently Asked Questions

The global Absorbent Glass Mat Battery Market size was valued at USD 14.72 billion in 2023 and is expected to reach USD 26.90 billion in 2030.

Higher upfront costs compared to flooded lead-acid batteries, availability of lithium-ion battery alternatives, low awareness in developing countries, disposal issues of spent batteries are some key factors hampering the growth of the absorbent glass mat battery market.

Surging telecom infrastructure development, growth of UPS and inverter markets, rapid adoption in emerging applications like renewable energy storage, electric vehicles, demand for maintenance free batteries are the major factors driving the absorbent glass mat battery market.

The UPS batteries segment held the largest share in the absorbent glass mat battery market in 2022 owing to high demand from telecom towers, emergency lighting systems, data centers etc.

EnerSys, Exide Technologies, GS Yuasa, Amara Raja, Panasonic Corporation, Leoch International, Hoppecke Batteries, and Samsung SDI are the leading players in the absorbent glass mat battery market.

Asia Pacific is expected to continue its dominance in the absorbent glass mat battery market owing to rapid industrial development and infrastructure expansion in China, India and Southeast Asia.

The absorbent glass mat battery market is projected to grow at a CAGR of 9% during the forecast period 2023-2030.
Logo

Credibility and Certifications

ESOMAR
DUNS Registered

860519526

Clutch
Credibility and Certification
Credibility and Certification

9001:2015

Credibility and Certification

27001:2022

Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Customize Now

Select a License Type





Logo

Credibility and Certifications

ESOMAR
DUNS Registered

860519526

Clutch
Credibility and Certification
Credibility and Certification

9001:2015

Credibility and Certification

27001:2022

EXISTING CLIENTELE

Joining thousands of companies around the world committed to making the Excellent Business Solutions.

View All Our Clients
trusted clients logo
© 2024 Coherent Market Insights Pvt Ltd. All Rights Reserved.