According to the new market research report "Absorbent Glass Mat (AGM) Battery Market by Voltage (2-4 Volts, 6-8 Volts, 12 Volts & Above), Type (Stationary, Motive), End User (OEM, Aftermarket), Application (Automotive, UPS, Energy storage, Industrial), and Geography - Global Forecast to 2025", the global AGM battery market size is estimated to grow from USD 10.2 billion in 2019 to reach USD 13.9 billion by 2025; it is expected to grow at a CAGR of 5.3%. The AGM battery market is likely to exhibit lucrative growth potential during the forecast period. The growth of this market is expected to be driven by the inherent benefits tendered by AGM batteries, easy recyclability of AGM batteries compared with lithium-ion batteries, increasing demand for high powered batteries for UPS & energy storage, and growing investments for renewable energy systems. The market also has several opportunities that can be explored by existing and entry-level companies to expand businesses.
Stationary battery type segment held largest share of AGM battery market in 2018
Based on battery type, the AGM battery market for stationary batteries held the largest size in 2018. Stationary batteries act as a source of backup power or emergency power, depending on the nature of the critical loads. These batteries are meant for stand-by power supply applications with excellent long deep discharges. However, AGM batteries have a significant market for stationary applications such as energy storage, marine, industrial, UPS, telecommunications, utilities, and medical devices.
Market for energy storage application is expected to grow significantly during forecast period
The increasing penetration of renewable energy across grids has, in turn, increased the need for efficient, and flexible energy storage solutions with a long operating life. Deep-cycle batteries are a popular choice for renewable energy applications due to their ability to withstand the demands of solar energy use such as unstable grid energy, heavy cycling (charging and discharging), and irregular full recharging. AGM battery, with all its attractive features, has become the most preferred energy storage technology for energy storage as large-sale solar and wind plants require technologies that can cost-effectively store renewable energy for future use at any location. These batteries are the most viable for storage, as they are maintenance free. Since solar applications can be in hard-to-reach areas, the ability to plug in the batteries and let them function without maintenance is a huge benefit. Besides, AGM batteries are also reliable, cost-effective solutions, which make battery storage affordable for the utility sector. Moreover, with growing investments and the increasing number of renewable energy projects worldwide, the adoption of AGM batteries is expected to grow significantly during the forecast period
APAC to exhibit largest market size during forecast period
The AGM battery market in APAC is expected to grow at the highest CAGR during the forecast period. The huge population in this region leads to an increased energy demand, which eventually increases the need for fossil fuel based energy generation, and leads to renewable energy integration creating the need for batteries. In addition to this, APAC is home to some of the prominent players such as Vision Group (China), HBL Power Systems Ltd. (India), Leoch (China), and B.B. Battery (China) providing AGM batteries for different applications. These factors contribute to the high growth of the AGM battery market in APAC.
Exide Technologies (US), Clarios (US), Power Sonic Corporation (US), EnerSys (US), Fullriver Battery (US) East Penn Manufacturing Company (US), Universal Power Group (US), Fullriver Battery (US), and C&D Technologies (US), among others, are the major players operating in the AGM battery market.
Source: ASDReports - Market Research
Date: Jan 16, 2020