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

The Absorbent Glass Mat Battery Market size is expected to reach US$ 26.90 billion by 2030, from US$ 14.72 billion in 2023, 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, 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 largest market for Absorbent Glass Mat Battery Market 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 second-largest market for Absorbent Glass Mat Battery Market, 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 Market, 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 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.
• 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.
• 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. With declining costs of renewables and supportive government policies, the global renewable energy capacity is expected to grow substantially in the coming years. 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 is 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 makes AGM batteries suitable for electric vehicle auxiliary applications. With declining lithium-ion battery prices and supportive government policies, the electric vehicle markets are 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 supply.
• 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.
• 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 cold cranking amps also enables 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 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.
• 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.
• 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 over 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.

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 increases 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.
• Performance limitations in extreme temperatures: The performance and charging capabilities of AGM batteries get affected in extremely high or low temperatures. Hot conditions accelerate water loss leading to 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.
• Availability of advanced battery technologies: The growing adoption of lithium-ion and other advanced battery technologies is posing 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 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.

Recent Developments

New product launches

• In January 2022, Exide Technologies launched a new range of high-performance AGM batteries for inverter backup application in telecom and UPS sector. The new models offer 20% higher life cycles.
• 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.
• 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 float capabilities.

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 $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 $180 million deal expanded Exide's industrial flooded battery portfolio.

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

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.

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