Absorbed Glass Mat (AGM) Separator Batteries Market: Rising Fuel-Efficiency Requirements in Automobiles to Offer Lucrative Opportunities

Consumer demand for electronic components in automobiles continues to grow. This has resulted in complex challenges of meeting power consumption needs. Growing electrical requirements creating the need for conventional flooded automotive batteries has resulted in the increasing adoption of a more ideal lead acid battery technology. Valve regulated lead acid (VRLA) batteries featuring absorbed glass mat separators are validated to be an effective solution to meet the needs such as advanced battery performance, which includes improved safety features. Their effectiveness in automotive applications has created significant opportunities for absorbed glass mat separator batteries market players.

Transparency Market Research (TMR) recently published a report on the absorbed glass mat (AGM) separator batteries market. Many manufacturers focus on the production of AGM separator batteries for automotive and UPS applications. Global temperature rise has led to an increase in the need for reducing the use of fossil fuel vehicles and their emission. As a result, developing countries have committed to decrease their GHG emission intensity. This is one of the factors that has intrigued TMR’s analysts to identify new opportunities in the global AGM separator batteries market.

absorbed glass mat separator batteries market infographic

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AGM Separator Batteries Market: Mapping the Progress Path

The origin of the absorbed glass mat separator batteries industry dates back to the 20th century. While the first lead acid gel battery was developed in 1934, VRLA or modern gel batteries were first designed in 1957. Following this, in 1972, the first-ever AGM cell was patented by Gates Rubber Corporation. Ever since, a number of battery manufacturers held onto the technology in an attempt to incorporate it in cells as well as conventional flat plates. The mid-1980s witnessed the introduction of AGM batteries having a decade-long lifespan, with a capacity up to 400 Ah, stirred by a British Telecom specification for batteries, supporting new digital exchanges.

Technological developments occurring with time resulted in increasing the capacity of these batteries, further creating incremental opportunities for providers. The absorbed glass mat separator batteries market was valued at ~ US$ 18.9 Bn in 2018, and is expected to reach a market value of ~ US$ 19.7 Bn in 2019. Holding a small amount of acid that is completely absorbed by the glass mat, makes AGM separator batteries maintenance-free and non-spillable. Owing to such factors, the global absorbed glass mat separator batteries market is anticipated to grow at a considerable CAGR of ~ 5% during the forecast period.

AGM Separator Batteries Market: Impact of Undercurrents

Penetration of Electric Vehicles to Create Future Demand

The wave of vehicle electrification continues to sweep the globe on account of stringent government regulations pertaining to fuel consumption and carbon emission. Owing to this, vehicle owners are moving towards utilizing electric vehicles. As AGM separator batteries are extensively used in electric vehicles, the demand is likely to drive the absorbed glass mat separator batteries market in the near future.

Increasing Emphasis on Reducing Energy Consumption

Reducing energy consumption is a vital factor for companies operating in a number of application sectors. This is further supported by government initiatives and regulations pertaining to achieving optimum energy consumption. This trend is expected to boost the utilization of batteries that are designed to operate for a longer duration and enable optimum utilization of energy, such as AGM batteries.  

Although competitors in the absorbed glass mat separator batteries market witness major opportunities, the high cost incurred in the production and distribution process is expected to impede overall market growth. Another aspect creating challenges for AGM separator batteries market competitors is the presence of substitutes such as lithium-ion batteries, nickel-cadmium-based batteries, flooded batteries, and gel batteries, which are more cost-efficient and are developed from raw materials that are easily available.

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AGM Separator Batteries Market: Key Success Strategies

Expand Battery Manufacturing Capabilities

Growing emphasis on increasing the fuel efficiency of vehicles, coupled with the increase of ordinances on conventional vehicles have led to an increased demand for battery-powered vehicles, owing to their low carbon emission profile. This acts as an opportunity for the manufacturers of absorbed glass mat separator batteries to increase their production base for manufacturing larger volumes of batteries. A number of players are considering this as a vital strategy for business growth.

Invest in Deep Cycle AGM Separator Battery Production

Deep cycle-based AGM separator batteries provide characteristics such as reduced water loss, low maintenance, and higher abuse tolerance in traction and golf cart batteries. These factors are making it ideal for use across the automotive sector. With significant demand for deep cycle based absorbed glass mat separator batteries, market competitors are directing their investments towards the development of this type.

Strengthen Business across Asia Pacific Economies

The demand for lead-acid batteries has been substantially high across Asia Pacific countries on account of their relatively low price. However, sealed lead-acid batteries such as AGM separator batteries are gaining major applicability owing to their maintenance-free profile. Moreover, competitors have traced the expansion of end-user industries of absorbed glass mat separator batteries in the region, translating in business growth.

Scrutinizing the Competitive Landscape

In 2018, Fiamm Energy Technology received the Innovation Award - Parts&Components Category - at Automechanika, in Frankfurt. This prize was awarded pertaining to the range of batteries - powerCUBE AGM. As energy conservation has become a pressing aspect, it has created the need for improving the functionalities in batteries, particularly those controlling the start functions of vehicles. This scenario has pushed the company to expand its battery portfolio.

In 2018, East Penn Manufacturing Co. announced the opening of its Oelwein Fill, Form, and Finish and Distribution facility

Top players in the absorbed glass mat separator batteries market, cumulatively accounted for ~ 14% share in 2018. Owing to this, the AGM separator batteries market is highly fragmented, attributed to the presence of numerous medium-sized and a few large-sized companies across the globe. However, the AGM batteries market is controlled by major industry giants. Companies are developing new and optimized product types of AGM separator batteries to meet the demand from the automotive industry and emerging applications such as solar power. Production capacity expansion continues to remain a leading factor supporting market growth.

absorbed glass mat separator batteries market segmentation

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Analysts’ Viewpoint  

The global absorbed glass mat separator batteries market is expected to witness moderate growth during the forecast period. Owing to this, TMR’s analysts have a positive perspective of the market. With ~ 50% of the market value share in Asia Pacific held by China, growth opportunities continue to prevail across this region. New entrants could channelize their business strategies such as capacity expansion towards lucrative countries in Asia Pacific. Rising research activities in the field AGM separator batteries, owing to their high performance and superior characteristics, are expected to provide lucrative opportunities for manufacturers operating in the global absorbed glass mat separator batteries market. Increasing focus on electric vehicles, owing to fossil fuel depletion, is expected to drive the adoption of AGM separator batteries. New entrants could direct their portfolio towards this segment in the automotive space.

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Absorbed Glass Mat (AGM) Separator Batteries Market Description

  • An absorbed glass mat (AGM) separator is a major component of valve regulated lead acid (VRLA) batteries.
  • The electrolyte in an AGM battery is completely absorbed in separators consisting of matted glass fibers. Glass mats in AGM batteries are wrapped around a positive plate, which helps prevent damage from vibration and extend cycling. The battery’s groups are packed tightly in case partitions. This helps protect its power producing components.
  • AGM battery designs can have more than twice the lifecycle of a conventional flooded products in the right application. Therefore, AGM batteries are known to be non-spillable and maintenance-free. Absorbed glass mat (AGM) separator batteries are employed in a wide range of applications such as emergency lights, alarm systems, medical equipment, and UPS systems.

Key Growth Drivers of the Absorbed Glass Mat (AGM) Separator Batteries Market

  • An AGM battery separator is a versatile separator with various beneficial properties. The challenge of meeting power consumption is becoming more complex, due to the constant rise in consumer demand for electronic components in automobiles. This is especially true in electronic accessories that offer increased convenience, safety, and energy savings, such as power seats and windows, DVD players, remote or voice-activated start, anti-theft devices, global positioning systems (GPS), brakes, and valve controls. Thus, increase in the integration of electric or electronic systems in vehicles is driving the demand for batteries with higher capacities such as absorbed glass mat batteries. This, in turn, is boosting the demand for AGM separator batteries.

Key Challenges for the Absorbed Glass Mat (AGM) Separator Batteries Market

  • The absorbed glass mat separator batteries market faces various challenges. Many substitutes are available for AGM separator batteries, including lithium-ion batteries, nickel-cadmium-based batteries, flooded batteries, and gel batteries. These batteries offer characteristics such as low cost of production, higher tolerance to extreme weather, and higher shelf life. This is likely to hamper the absorbed glass mat separator batteries market in the near future.
  • AGM batteries are susceptible to overcharging, which decreases their lifecycle. This issue can also destroy these batteries instantly. These factors are anticipated to hamper the absorbed glass mat separator batteries market in the near future.

Lucrative Opportunities for the Global Absorbed Glass Mat (AGM) Separator Batteries Market

  • Energy storage plays a major role in integrating a renewable energy network in the energy system. Energy storage can help provide centralized, distributed electricity generation, while also contributing toward energy security.
  • The increasing middle-class population, changes in the lifestyles of people, and rising inclination toward smart electronic devices are expected to boost the consumer electronics market. Increase in disposable income of people and rise in the need for the Internet are also anticipated to propel the demand for electronic devices. These factors have led to an increase in the construction of telecommunication towers; and rise in production of electronic storage devices such as portable power banks, computers, data centers, telecommunication equipment, and other electrical equipment where uninterrupted power supply is required. This, in turn, is likely to drive the market for batteries in the near future, thereby boosting the AGM separator batteries market.

Asia Pacific a Prominent Absorbed Glass Mat (AGM) Separator Batteries Market

  • China is a leading country in terms of consumption of absorbed glass mat separator batteries in Asia Pacific. Growth in the automotive industry due to the rise in population, urbanization, and industrialization is estimated to boost the demand for AGM batteries. This, in turn, is projected to drive the AGM separator batteries market during the forecast period.
  • The U.S. is expected to dominate the absorbed glass mat separator batteries market in North America, due to the expansion of the telecommunication sector across the country

 Deep Cycle Batteries to Offer Lucrative Opportunities

  • AGM separator batteries are commonly employed in high-end vehicles to run features such as heated seats, steering wheels, mirrors, and windshields. NASCAR and other auto racing leagues prefer AGM products as they are vibration-resistant. Deep cycle batteries are used in a wide range of applications in these areas.
  • A separator of glass fiber is used in absorbed glass mat separator batteries. It is highly porous and absorbed, and is commonly used in electric vehicles, marine & RV house power, commercial deep cycle applications, and renewable energy products such as solar and wind.
  • Thus, deep cycle AGM batteries are largely used as compared to standby batteries.

Leading Players in the Absorbed Glass Mat (AGM) Separator Batteries Market

  • Key players operating in the global AGM separator batteries market include Nippon Sheet Glass Co., Ltd, NINGBO BAIHENG SCIENCE&TECHNOLOGY CO., LTD, East Penn Manufacturing Co., Inc., FIAMM Energy Technology S.p.A., Fengxin Industrial Co. Ltd, ShanDong Renfeng Special Materials Co. Ltd., B&F Technology Limited, Hollingsworth & Vose, and Hokuetsu Corporation
  • Capacity expansion and mergers & acquisitions (M&A) are the key strategies adopted by major players in the absorbed glass mat separator batteries market to strengthen their market position.

TMR’s recent study on the absorbed glass mat (AGM) separator batteries market provides readers an overall market outlook with the help of a comprehensive assessment of the global market scenario. The TMR report on the absorbed glass mat separator batteries market assesses the industry with respect to the historical and current market situation, and offers a forecast for the period of 2019-2027. Report readers are able to make key decisions pertaining to their business with the help of the key findings and exclusive AGM separator batteries market insights included in the study. TMR’s report also includes an assessment of the key absorbed glass mat separator batteries market dynamics that are expected to impact the market in the coming future. The AGM separator batteries market study also provides a thorough understanding of the key industry trends and developments made by the players in the absorbed glass mat separator batteries market. The TMR study is bifurcated into distinct sections, which allows readers to gain an individual understanding of the AGM separator batteries market.

Key Questions Answered in the Report

  1. What revenue will the absorbed glass mat separator batteries market hold in 2027?
  2. Which factors and market dynamics are likely to influence the AGM separator batteries market over the forecast period?
  3. What are key restraints that absorbed glass mat separator batteries market competitors are likely to face during the forecast period?
  4. Which countries are contributing a greater share in the overall absorbed glass mat separator batteries market revenue?
  5. What are key strategies adopted by leading AGM separator batteries market competitors?

The first section in the TMR report on the absorbed glass mat separator batteries market begins with a preface that includes the report scope, research highlights, and market segmentation. Following this is the executive summary that showcases the absorbed glass mat separator batteries market aspects covered in the study. This section provides a concise understanding of the market elements, and enables readers to understand the elements enclosed in the report. The next chapter in the absorbed glass mat separator batteries market study is the market overview, including product overview, market indicators, and market developments. Following this, the report includes the market dynamics that provide an understanding of the market drivers, restraints, and opportunities. This chapter further includes details of the market value forecast, along with Porter’s Five Forces Analysis, value chain analysis, SWOT scenario, and list of potential customers. Following this, the report includes a price trend analysis and import-export analysis of the absorbed glass mat separator batteries industry.

The next section includes a detailed segmentation analysis of the AGM separator batteries market. Evaluation involves the division of the absorbed glass mat separator batteries market on the basis of type, application, and region. Analysis of key segments in the AGM separator batteries market, year-on-year growth projections, and basis point share analysis included in the report further helps readers identify lucrative areas.

The TMR report on the absorbed glass mat separator batteries market offers an assessment of the geographical landscape of the market. Regional examination helps market players make strategic decisions pertaining to their business. Country-wise and segment-wise individualized assessment of individual regions helps readers of the AGM separator batteries market report evaluate the potential of the market in individual geographies. Supported by year-on-year growth projections, and global value and volume share, this chapter is an essential part of the report on the absorbed glass mat separator batteries market.

The report on the absorbed glass mat separator batteries market provides a holistic competitive evaluation with the details of leading market players. This section highlights the nature of the AGM separator batteries market with the help of the market share held by leading players along with other emerging companies. A unique dashboard view of the competitors in the absorbed glass mat separator batteries market allows readers to understand the strategies implemented by key players and their performance in the AGM separator batteries market, featuring the focus areas of absorbed glass mat separator batteries market players. The competitive structure of key players in the AGM separator batteries is also included in the report.

Research Methodology

The TMR report on the absorbed glass mat separator batteries market is based on detailed evaluation of the market, with the inclusion of comprehensive primary and secondary research. Detailed assessment of the AGM separator batteries market in terms of competitive scenario is supported by individual-level analysis of various aspects related to the market. An assessment of the historical and current global market for absorbed glass mat separator batteries, focusing on key market segments, major regions, growth drivers, and other qualitative inputs help TMR’s analysts derive crucial predictions and a forecast analysis for the AGM separator batteries market. Readers can access the absorbed glass mat separator batteries market report to gain a forecasted market analysis for the period of 2019–2027.

Absorbed Glass Mat (AGM) Separator Batteries Market: Taxonomy

Type

Deep Cycle

Standby

Application

Automotive

UPS

Telecommunications

Others

Region

North America

Europe

Asia Pacific

Latin America

Middle East & Africa