Absorbed glass mat (AGM) battery is a modern and advanced technology battery used to power various automotive accessories/components. There have been several incidents of lithium ion batteries in devices or vehicles catching fire. This has led to product innovation and technology development by leading manufacturers and suppliers of batteries/battery material. In turn, this has boosted the demand for AGM batteries. In an AGM battery, the positive and negative plates are separated by an absorbent glass mat (AGM) that absorbs and holds the battery’s acid and prevents it from flowing freely inside the battery. The amount of electrolyte is minimal in such batteries. It contains only enough electrolyte to keep the mat wet. AGM batteries are more efficient than traditional lead acid batteries. Global demand for batteries has been rising. Currently, AGM batteries are gaining momentum owing to their low/null maintenance costs coupled and hassle-free operations. Increase in demand for AGM battery is a favorable growth indicator of the global market. The AGM battery market is projected to expand at a moderate CAGR during the forecast period.
Drivers to the AGM battery market include longer battery life, vibration resistance, start-stop applications, high electrical loads, and quick recharges and long lifecycle. AGM batteries are also non-spillable and maintenance-free, and designed for harsh climates and tough conditions. However, higher initial investments costs than traditional batteries is the key restraint to the AGM battery market.
Implementation of strict regulations related to carbon emission and start-stop functions in cars manufactured in the automobile industry in Europe by 2020 is one of the key driver of the AGM battery market in the region. In the automotive industry, trucks are beginning to install AGM battery, since it requires minimal maintenance. Rise in demand for renewable energy components/systems such as solar power; is completely dependent on energy storage batteries. Thus, these factors are expected to drive the demand for AGM batteries in the next few years.
The AGM battery market can be segmented based on type, output capacity, distribution channel, and region. Based on type, the market can be segregated into automotive battery, inverter battery, solar energy battery, and alternate energy. AGM batteries are the preferred choice for high-end and advanced fuel-efficient vehicles with large power demand. They are also preferred by people who seek high reliability and longer life in auto batteries. In terms of output capacity, the market can be divided into 6V, 8V, and 12V. In terms of distribution channel, the AGM battery market can be bifurcated into OEM and aftersales.
Based on region, Europe accounts for significant share of the global AGM battery market. Growth of the market in the region can be primarily ascribed to its status as a hub for automotive industries. High degree of environmental awareness and imposition of strict government norms by the European Union to boost battery consumption are factors driving the demand for AGM batteries in Europe. Asia Pacific is the fastest growing region of the AGM battery market. Rapid industrialization and growing demand for advanced technology products are factors boosting the AGM battery market in Asia Pacific. China is the leading manufacturer and consumer of AGM battery in Asia Pacific Market. China holds major share of the AGM battery market in Asia Pacific, owing to the expansion of manufacturing facilities of batteries in the region. North America also accounts for key share of the AGM battery market due to the strong presence of battery manufacturers in the region. Several developing regions in Middle East & Africa and Latin America are investing significantly in the automotive sector. Thus, demand for AGM battery in Middle East & Africa and Latin America is expected to rise at a moderate pace during the forecast period.
Key players operating in the AGM battery market include Robert Bosch GmbH, Johnson Controls, Exide, Duracell, MK Battery, and ODYSSEY batteries.