April 13, 2024
Absorbent Glass Mat Battery Market

Absorbent Glass Mat Battery Market Is Witnessing Rapid Adoption In Electric Vehicles

Absorbent glass mat (AGM) batteries are widely used in starting, lighting and ignition applications for cars, boats and other vehicles. AGM batteries incorporate fiberglass mats between the plates that help in holding the electrolyte and keeping it in place even when the vehicle is placed in different orientations. These batteries provide deep cycle capability, high cranking power and enhanced vibration resistance as compared to conventional flooded lead-acid batteries. Growing demand for electric vehicles has led to an increased usage of AGM batteries in electric vehicles due to their maintenance-free operations, long shelf life and fast recharging capabilities.

The global absorbent glass mat battery market Demand is estimated to be valued at US$ 16.96 billion in 2024 and is expected to exhibit a CAGR of 9.5% over the forecast period 2024 to 2031.

Increasing sales of electric vehicles around the world supported by government incentives and subsidies is a major factor driving the demand for AGM batteries. Other advantages of AGM batteries such as high electrical storage capacity, excellent cycle life and improved vibration resistance over flooded lead-acid batteries have also fueled their adoption in the automotive industry.

Key Takeaways

Key players operating in the Absorbent Glass Mat Battery Market Demand are Procter & Gamble Co., Henkel AG & Co. KGaA, Unilever PLC, Reckitt Benckiser Group PLC, Church & Dwight Co., Inc., Colgate-Palmolive Company, Kao Corporation, Lion Corporation, The Clorox Company, McBride plc, S. C. Johnson & Son, Inc., Seventh Generation, Inc. (Unilever), Nice Group, Nirma Limited, Liby Enterprise Group Co., Ltd. Rising environmental concerns have prompted consumers to switch to electric vehicles, driving the demand for AGM batteries used in these vehicles. North America and Europe currently dominate the absorbent glass mat battery market and major automotive companies in these regions are focusing on manufacturing electric vehicles at affordable costs to facilitate mass adoption.

Market key Trends

One of the key trends in the absorbent glass mat battery market is the development of more efficient and sustainable batteries for electric vehicles. Battery manufacturers are investing heavily in R&D to improve battery life, charging capabilities and reduce production costs of AGM batteries. Technologies such as lithium-iron phosphate chemistry and advanced glass mat separators are enabling higher power density and longer battery life. Startups as well as established automotive companies are collaborating with battery makers to develop next-generation AGM batteries with 500-1000 charging cycles for electric vehicles.

Porter’s Analysis

Threat of new entrants: Low barriers to entry due to established distribution channels. However, the market is dominated by a few major players with strong brand equity and economies of scale.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes. However, brand loyalty provides some pricing power to suppliers.

Bargaining power of suppliers: Suppliers of absorbent glass mats have low bargaining power due to availability of substitute materials.

Threat of new substitutes: Threat of substitutes is moderate as absorbent glass mat batteries have certain performance advantages over other battery types.

Competitive rivalry: Intense competition due to presence of global players and private labels from retailers.

Geographical Regions

North America accounts for the largest share of the Absorbent Glass Mat Battery Market due to high automobile production and installation of stationary batteries for grid stabilization. Europe follows North America in terms of market value due to stringent emission norms boosting demand for start-stop technology in vehicles.

The Asia Pacific region is expected to witness the fastest growth during the forecast period supported by increasing automotive manufacturing in China and India along with renewable integration requiring energy storage solutions. Government incentives and policy push for electric mobility is also driving the absorbent glass mat battery demand in the region.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.