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 absorbed glass mat (AGM) separator batteries market.
Absorbed Glass Mat (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 vehicle, 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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