by The global Absorbent Glass Mat Battery Market is estimated to be valued at US$14.72 billion in 2023 and is expected to exhibit a CAGR of 9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Absorbent Glass Mat (AGM) batteries are a type of sealed lead-acid battery that utilizes fiberglass mats to hold the electrolyte solution. These batteries offer several advantages, such as maintenance-free operation, high energy density, and reduced risk of acid leakage. The need for efficient energy storage solutions to support the growth of renewables and ensure reliable power supply is driving the demand for AGM batteries in various applications, including automotive, industrial, and telecommunications sectors.
Market Key Trends:
One key trend in the Absorbent Glass Mat Battery Market is the increasing adoption of AGM batteries in the automotive sector. AGM batteries are being increasingly used in modern vehicles as they provide better performance, higher reliability, and longer service life compared to traditional flooded lead-acid batteries. The growing demand for electric vehicles (EVs) and hybrid vehicles further supports the market growth. AGM batteries offer advantages such as faster charging, higher energy storage capacity, and improved safety, making them an ideal choice for automotive applications.
Overall, the global Absorbent Glass Mat Battery Market is expected to witness significant growth in the coming years, driven by the increasing need for efficient energy storage solutions in various industries.
Porter’s Analysis
Threat of New Entrants: The Absorbent Glass Mat Battery Market is expected to witness a moderate threat of new entrants. Although the market has significant growth potential, the barriers to entry are relatively high. This is due to the need for substantial investment in research and development, manufacturing facilities, and distribution networks. Additionally, established players already enjoy economies of scale and strong brand recognition, making it difficult for new entrants to compete effectively.
Bargaining Power of Buyers: The bargaining power of buyers in the Absorbent Glass Mat Battery Market is moderate. While buyers have options to choose from a variety of battery suppliers, the market is dominated by a few key players. This limits the buyer’s ability to negotiate prices and terms. However, buyers with large purchasing volumes may be able to negotiate better deals with suppliers.
Bargaining Power of Suppliers: The bargaining power of suppliers in the Absorbent Glass Mat Battery Market is high. The market relies heavily on the supply of raw materials such as lead and electrolytes. Suppliers have control over the availability of these materials and can dictate prices. Moreover, the industry’s concentration of suppliers further strengthens their bargaining power.
Threat of New Substitutes: The threat of new substitutes in the Absorbent Glass Mat Battery Market is low. AGM batteries have unique characteristics that make them suitable for various applications, such as automotive and renewable energy storage. While there may be other types of batteries available, AGM batteries offer distinct advantages, including higher energy density, longer cycle life, and maintenance-free operation.
Competitive Rivalry: The competitive rivalry in the Absorbent Glass Mat Battery Market is intense. The market is highly consolidated, with a few key players holding a significant market share. These players compete based on factors such as product quality, price, brand reputation, and technological advancements. The industry also experiences continuous product innovation and new product launches, intensifying the competition further.
Key Takeaways
The global Absorbent Glass Mat Battery Market is expected to witness high growth, exhibiting a CAGR of 9% over the forecast period. This growth can be attributed to the increasing demand for AGM batteries in various sectors, including automotive, renewable energy, and telecommunications. AGM batteries are known for their superior performance, durability, and safety features, which make them an ideal choice for these applications.
From a regional perspective, Asia-Pacific is expected to be the fastest-growing and dominating region in the Absorbent Glass Mat Battery Market. The region’s growing population, increasing disposable income, and rapid industrialization are driving the demand for AGM batteries. Moreover, governments in countries like China, India, and Japan are implementing favorable policies and incentives to encourage the adoption of renewable energy storage systems, further boosting the market growth.
Key players operating in the Absorbent Glass Mat Battery Market include EnerSys, Exide Technologies, GS Yuasa, Hoppecke, Crown Battery, Hitachi Chemical, Amara Raja, HBL Power Systems, C&D Technologies, Luminous, Okaya Power, Rolls Battery, Amara Raja Batteries, Hankook AtlasBX Co, Leoch Battery, Power-Sonic, Southern Batteries, Panasonic Corporation, Samsung SDI, and LG Chem. These companies are focusing on product development, strategic partnerships, and mergers and acquisitions to strengthen their market position and cater to the growing demand for AGM batteries.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
