Absorbent glass mat (AGM) batteries offer superior performance over conventional lead-acid batteries owing to the utilization of absorbent glass mat technology which allows absorption and immobilization of electrolyte between the lead plates. AGM batteries provide deep discharge protection, minimal self-discharge, ease of maintenance, high cycle life, and less watering requirements when compared to conventional flooded lead-acid batteries. Additionally, these batteries are spill-proof and can be installed or mounted in any direction without compromising performance. AGM batteries find widespread adoption in applications requiring backup power such as Uninterruptible Power Supply systems, grid energy storage, motorcycles, marine vessels, recreational vehicles, and telecommunication equipment among others.
The global absorbent glass mat battery market is estimated to be valued at US$ 14.72 Bn in 2023 and is expected to exhibit a CAGR of 5.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends gaining traction in the absorbent glass mat battery market is the growing deployment of these batteries in renewable energy storage applications. Renewable energy sources such as solar and wind are intermittent in nature which requires backing energy storage to ensure uninterrupted power supply. AGM batteries are increasingly being utilized for energy storage from renewable sources owing to their high cycle efficiency, long service life, low maintenance costs, and deep discharge capabilities. Additionally, innovations focused on improving energy density while reducing costs are expected to support the market growth over the forecast period. Major players in the market are engaging in new product development and capacity expansion activities to cater to the growing demand from both replacement and new installation markets.
Porter’s Analysis
Threat of new entrants: Low capital requirements and proven technical standards lower barriers to entry. However, the market is consolidated with large players and customer loyalty gives incumbents an advantage.
Bargaining power of buyers: There are few suppliers controlling a bulk of the market share, so buyers have some bargaining power to negotiate on price and demand better services.
Bargaining power of suppliers: Key raw materials like glass, lead, and sulfuric acid are commodity chemicals available from multiple global suppliers at competitive prices, reducing supplier power.
Threat of new substitutes: New battery chemistries like lithium-ion are emerging but AGMs offer advantages of maintenance-free operation and suitability for stationary applications.
Competitive rivalry: The market is dominated by a few global players and regional players. Intense competition keeps prices low and encourages innovation.
Key Takeaways
The Global Absorbent Glass Mat Battery Market Size is expected to witness high growth over the forecast period.
Regional analysis: North America and Europe currently dominate the global market owing to established industries and demand from developed economies. Asia Pacific is expected to witness fastest growth with increasing manufacturing activities and industrialization in countries like China and India.
Key players operating in the absorbent glass mat battery market are Nippon Steel Corporation, Thyssenkrupp AG, ArcelorMittal, Tata Steel, Outokumpu Oyj, Aperam, VDM Metals GmbH, Jindal Stainless Limited, Allegheny Technologies Incorporated, Ulbrich Stainless Steels & Special Metals, Inc., Carpenter Technology Corporation, Nucor Corporation, Daido Steel Co., Ltd., Sandvik AB, Elgiloy Specialty Metals. Key players are focusing on capacity expansion plans to leverage growth opportunities.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it