Absorbed Glass Mat (AGM) & Pasting Paper Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

Absorbed Glass Mat (AGM) batteries are a type of lead-acid battery constructed with a highly absorbent glass mat separator between the battery plates. This design allows the electrolyte (acid) to be absorbed into the glass mat, rather than being free-flowing like in traditional flooded lead-acid batteries. AGM batteries are valve-regulated and maintenance-free, making them suitable for a wide range of applications, including automotive, marine, solar energy storage, and backup power systems.

They offer advantages such as high reliability, low self-discharge rates, fast recharge capabilities, and resistance to vibration and shock. Pasting paper is a crucial component in the manufacturing process of lead-acid batteries, including AGM batteries. It is used as a separator between the positive and negative plates within the battery cells. Pasting paper serves several important functions, including preventing short circuits between the plates, facilitating the absorption of electrolyte, and providing mechanical support to the plates. The quality and characteristics of pasting paper improves performance and lifespan of lead-acid batteries.

MARKET OVERVIEW

The global market valuation of Absorbed Glass Mat (AGM) & Pasting Paper Market was valued at approximately USD 6 Billion in 2022 and is projected to reach USD 9 Billion in 2030 exhibiting a CAGR of 4.4% during the forecast period of 2023-2030. Absorbed Glass Mat (AGM) & Pasting Paper reliable, maintenance-free power storage with high durability and versatility and pasting paper ensures efficient electrolyte absorption and prevents short circuit. The market is aligned with automotive sector, telecommunication sector and others, which makes it a sustainable and growing market.

GROWTH DRIVERS

The increase in adoption of start-stop systems and advanced vehicle electronics, the demand for AGM batteries in the automotive sector is surging. In start-stop systems, AGM batteries provide the necessary power to restart the engine quickly and efficiently each time the vehicle comes to a stop, contributing to fuel efficiency and reduced emissions.  According to Power Sonic, AGM batteries have a lower self-discharge rate than flooded batteries. They can retain their charge for longer periods when not in use, which can be advantageous for applications with infrequent or seasonal use.

Additionally, the glass mat separator makes them highly resistant to vibrations and shocks. AGM batteries play a crucial role in renewable energy systems, such as solar and wind power installations, where they store energy generated during peak production periods for later use. The International Renewable Energy Agency (IRENA) released the Renewable Capacity Statistics 2024 in March 2024, which reported that global renewable energy capacity reached a record 3,870 gigawatts (GW) in 2023. This was an 86% increase in capacity additions. The rapid growth of e-commerce and online retailing drives the demand for warehouse automation and material handling equipment, which rely on AGM batteries for power.

The more the online shopping is in demand, the need for AGM batteries to support efficient logistics operations and order fulfillment processes contributes the market towards growth. Moreover, the need for reliable backup power solutions in critical applications such as data centers, healthcare facilities, and telecommunications networks drives the demand for AGM batteries.

According to spaceflight power, telecommunication networks require a backup power solution to prevent service disruptions during power outages or system failures, as stated by spaceflight power. AGM batteries are an excellent choice for maintaining the continued operation of telecommunication infrastructure, from cellular towers to data centers. These batteries are compact, reliable, and maintenance-free, providing an ideal backup power solution.

MARKET SEGMENTATION:

·         By Product Type – deep cycle AGM batteries, Standby/starting AGM batteries

·         By Material Type – cellulose pasting papers, fiberglass pasting papers and others

·         By Battery Application – Flooded lead-acid batteries, valve-regulated lead-acid (VRLA) batteries and others

·         By Distribution Channel – OEMs (original equipment manufacturers) and aftermarket

·         By Application- Automotive, telecommunication, UPS and others

·         By Region- North America, Europe, Asia Pacific, The Middle East and Africa, South America

Absorbed Glass Mat (AGM) Batteries Market By Type Segment Review:

Deep cycle AGM batteries are designed for applications that require repeated cycles of charging and discharging, such as renewable energy systems, marine vessels, golf carts, and electric vehicles. These batteries are designed to provide a steady and reliable power supply over an extended period, making them suitable for off-grid or backup power applications where consistent performance is essential. These AGM batteries offer high energy density, allowing them to store a significant amount of energy within a compact footprint.

This makes them ideal for installations where space is limited, such as in RVs, boats, and renewable energy systems. Standby or starting AGM batteries are primarily used in automotive applications, including cars, trucks, motorcycles, and other vehicles requiring a reliable starting power source. These batteries are designed to deliver a high burst of power for starting the engine quickly and efficiently, ensuring reliable performance in cold weather conditions and demanding driving situations. Standby AGM batteries are also commonly used in standby power applications, such as uninterruptible power supply (UPS) systems, emergency lighting, and backup power systems for critical infrastructure and telecommunications equipment.

Pasting Paper Market By Material Type Segment Review:

Cellulose pasting papers are made from cellulose fibers derived from wood pulp or other plant sources. These papers are commonly used in the construction of the battery's positive and negative plates. Cellulose pasting papers are valued for their excellent absorbency and wet strength properties, which allow them to absorb and retain the active material (lead oxide) during the pasting process. These papers play a crucial role in the formation of the battery's electrodes, providing a porous structure that facilitates the diffusion of electrolyte ions and promotes efficient electrochemical reactions.

Fiberglass pasting papers are reinforced with fiberglass fibers, offering enhanced strength and durability compared to cellulose papers. These papers are commonly used in demanding applications where high mechanical strength and resistance to tearing or puncturing are essential, such as in industrial lead-acid batteries for motive power, standby power, and renewable energy storage. The use of fiberglass reinforcement also enhances the puncture resistance and tear strength of the pasting papers, reducing the risk of damage or deformation during battery assembly and operation.

Pasting Paper Market By Battery Application Type Segment Review:

Flooded lead-acid batteries, also known as vented or wet-cell batteries, are traditional lead-acid batteries that use a liquid electrolyte solution usually sulfuric acid to facilitate electrochemical reactions. Pasting papers are essential components in the construction of flooded lead-acid batteries, in the fabrication of the positive and negative plates (or electrodes). They serve multiple functions, including providing a porous matrix for holding and distributing the active material (lead oxide), ensuring optimal contact between the active material and the lead grid substrate, and facilitating the movement of electrolyte ions during charging and discharging cycles.

Pasting papers for flooded batteries are designed to withstand prolonged exposure to the acidic electrolyte environment without degradation Valve-regulated lead-acid (VRLA) batteries, including absorbent glass mat (AGM) and gel batteries, are sealed or maintenance-free batteries that use absorbed electrolyte or gel electrolyte to immobilize the electrolyte and prevent spillage. Pasting papers play a critical role in the construction of VRLA batteries where they are used as separators between the positive and negative plates to prevent short circuits and improve battery performance. They provide mechanical support to the active material, maintain uniform electrode spacing, and enhance electrolyte absorption and retention, ensuring efficient charge/discharge cycling and minimizing the risk of electrolyte leakage or stratification.

Absorbed Glass Mat (AGM) & Pasting Paper Market By Distribution Channel Segment Review:

OEMs refer to companies that manufacture products or components that are used as original equipment in the production of finished goods. OEMs are the primary suppliers of these products to manufacturers of various end-use applications, such as automotive vehicles, industrial machinery, consumer electronics, and power storage systems. AGM batteries and pasting paper are integral components in the production of a wide range of OEM products, including automobiles, motorcycles, uninterruptible power supplies (UPS), renewable energy systems, and telecommunications equipment.

OEMs typically procure AGM batteries and pasting paper directly from manufacturers or specialized suppliers to incorporate them into their product designs, ensuring compatibility, quality, and performance specifications. The aftermarket segment refers to the distribution channel for AGM batteries and pasting paper products that are sold as replacement parts or components for existing equipment or systems.  In the aftermarket, AGM batteries and pasting paper may be sourced from a variety of suppliers, including authorized distributors, retailers, e-commerce platforms, and specialty stores that cater to the needs of consumers, businesses, and maintenance professionals.

Absorbed Glass Mat (AGM) & Pasting Paper Market By Application Segment Review:

AGM batteries are widely used in the automotive industry, particularly in vehicles equipped with start-stop systems, hybrid powertrains, and advanced electrical systems. These batteries provide reliable starting power, enhanced cycling performance, and increased durability compared to traditional flooded lead-acid batteries. Pasting paper is used in the manufacturing process of lead-acid batteries, including AGM batteries, to facilitate the adhesion of active materials to the lead plates. It is an essential component in the construction of automotive batteries, ensuring optimal performance and longevity.

Telecommunication infrastructure relies on backup power systems, such as uninterruptible power supplies (UPS) and backup batteries, to maintain continuous operation during power outages or grid failures. AGM batteries are commonly employed in these applications due to their high energy density, fast recharge capability, and maintenance-free operation. Pasting paper is utilized in the production of AGM batteries used in telecommunication systems to ensure consistent performance and reliability under demanding operating conditions. UPS systems are critical for providing emergency power backup to essential equipment and facilities, such as data centers, hospitals, and industrial plants, in the event of mains power failure. AGM batteries serve as the energy storage component in UPS systems, delivering reliable power during outages to prevent data loss, equipment damage, and downtime.

Absorbed Glass Mat (AGM) & Pasting Paper Market Regional Analysis:

North America is a significant market driven by the factors like environmental regulations and emissions standards incentives like Clean Fuel Production Credit for improve fuel efficiency and reduce carbon emissions, contributing to market expansion. Europe is another significant market due to the presence of robust automotive sector leading to the widespread adoption of AGM batteries in hybrid and electric vehicles (EVs). The European Commission's European Green Deal aims to reduce transport-related greenhouse gas emissions by 90% by 2050.

Asia Pacific is a rapidly growing market due to the   rapid urbanization and industrialization, driving the demand for AGM batteries in automotive, telecommunications, and industrial applications. The Middle East and Africa is a growing market driven by the factors including infrastructure development and region's focus on renewable energy projects, such as solar and wind power, stimulates the demand for AGM batteries for energy storage applications, supporting market growth. South America is another growing market due to transition towards renewable energy sources, such as solar and wind power, drives the demand for AGM batteries in energy storage projects and grid stabilization efforts, supporting market growth.

Key Challenges:

The manufacturing cost of AGM batteries is higher than conventional lead-acid batteries due to the use of advanced materials and production processes. This cost factor may pose challenges, especially in markets where price sensitivity is high.  The compliance with stringent environmental regulations related to battery manufacturing, disposal, and recycling is one of a significant challenge for the market.  Pasting paper used in lead-acid batteries contains lead compounds, making recycling processes complex and costly. AGM batteries may face competition from alternative energy storage technologies like lithium-ion batteries and fuel cells which may hinder the adoption of the product.

Competitive Landscape:

In the highly competitive Absorbed Glass Mat (AGM) & Pasting Paper market, companies are investing heavily in research and development to innovate and improve the product and services. They are also collaborating, forming strategic partnerships, or acquiring other companies to gain access to new market segments, enhance distribution networks, and increase market share. Recent developments includes Clarios and Altris have announced a collaboration to develop sodium-ion (Na-ion) batteries with up to 60 volts for automotive use. TROJAN introduced new AES BATTERY with upto 3X the cycle life.

Global Key Players:

·         CLARIOS

·         ENTEK

·         Hollingsworth

·         Hokuetsu Corporation

·         Kukil Paper Mfg. Co., Ltd.

·         B&F Technology Limited

·         Shandong Renfeng Special Materials Co., Ltd.

·         GS Yuasa Corporation

·         Daramic, LLC

·         Terranova Papers

·         Joohang Tech Inc.

·         Glatfelter

·         Converted Products, Inc.

·         Ahlstrom Oyj

·         Twin Rivers paper company