AGM battery is an extended version of a Lead-Acid battery in which a fiberglass mat is placed between the positive and negative lead plates of the battery and it imbibes and stores the battery acid within making the battery spill-proof. The properties of AGM batteries include less internal resistance, the capacity to supply massive power to aid higher electrical demand, and comparatively long service life. These batteries could stay in storage for a long since it is less prone to sulfate compared to a traditional lead-acid battery. All these made AGM an excellent choice for areas in need of energy storage solutions for high power usage. It is widely been used in start-stop vehicles, large audio systems, heated seats, and various other electronic devices. The factors attributed to the growth of AGM batteries include UPS applications, recycling at ease concerning other battery types, and contributing to the renewable energy sector.
AGM battery’s growth majorly contributed to the automotive sector since they are in demand of efficient storage and high electrical power supply. COVID-19 had an impact on the economies and industries located in various countries because of the restriction on traveling, lockdowns, and closing down the business. This has a consequence on product supply chains, manufacturing, timely supply, and selling of products in the global market. It displayed reduced growth of -3.9% in 2020 in comparison with the growth mean from the year 2017-2019.
Regardless of COVID 19 impact, it starts growing after normalcy. The global absorbent glass mat battery market reached a value of USD 9.06 billion in 2021. The market is subjected to rise from USD 9.59 billion in 2022 to USD 15.18 billion in 2030, with a CAGR of 5.90% during the forecast period.
Asia Pacific has exhibited a high prevalence of Absorbent Glass Mat Battery Market during 2021 based on the report. It is characterized by increasing demand for energy storage solutions for industrial, automotive, and other industries in the segment. Upgrading the technologies to enable the current usage of renewable energy sources is progressing in the countries like India and China which led to enhancing the market growth in Asia Pacific regions. China and Japan are the leading producers of Electrical Vehicles in the world creating challenges in developing efficient batteries and opening the AGM market opportunity. It will further improve the regional values of the Asia-Pacific region.
Stringent laws were implemented in Europe regions on greenhouse gas emissions and have aided in the expansion of the AGM market in regional wise. The European countries comprise France, Germany, Argentina, and other regions that are working forward to reach a position of zero-emission economy by 2050. This encourages the regions to look for batteries that have the properties of improved reliability and extended life. It owing to the utilization of AGM batteries in the automotive sectors in producing low-emission electric vehicles.
North American region observed sustained growth and points to the leading region under the U.S. market of AGM batteries. The major driving factor for this growth is switching to a renewable energy source to reduce emissions. The other crucial market application of these batteries includes the marine industry, watercraft yachts, power boats, and heavy machinery equipment. The Middle East and Africa region is exhibited to grow constantly. Upgrading the facilities for renewable energy will lead to an increase in the utilization of absorbent glass mat batteries.
The AGM batteries market is divided based on type, voltage, end-user, and applications. Among this segmentation, the market of AGM batteries in the voltage range of 2-4 Volts is found to be growing at the highest rate concerning other segments. It is used in the start-stop applications of vehicle systems.
The Absorbed Glass Market has reached a new high in the automotive industry majorly utilized in car batteries and would be used as energy backup systems or solar systems. There are a lot of programs implemented by the government to decrease greenhouse gas emissions which make the manufacturer collaborate with the technology service provider companies to focus on the upgradation of their facilities to utilize renewable energy resources for power generation. In addition to that, they are used in small, off-grid solar systems.
Furthermore, the UPS and telecommunication sector has adopted the usage of AGM batteries due to the properties primarily working in high operating temperatures which are well-suited for the increasing demand for data centers.
Due to its high life span, specialized design and construction, resistance to vibration, spillage or leakage-free, and recycling. These significant characteristics have made ADM batteries sustain their growth in the current market globally.