Automotive AGM Battery Market
When you open the hood of a car and don’t find a battery there, chances are high that the vehicle has AGM (Absorbent Glass Mat) battery. It differs from a typical flooded battery in a sense that the electrolyte is held in glass mats. The self-discharge rate of AGM batteries is very low and the recharging times is typically 2.5X-3X that of flooded lead acid battery. Thus, they are predominantly used in micro, mild and plug-in hybrid vehicles, where engine start-stop is a standard feature.
Vehicle electrification, both in terms of powertrain as well as comfort and convenience features are the biggest drivers of automotive AGM battery market. The growing list of comfort features in a car include the likes of powered, heated and ventilated seats, ambient lighting, multi-zone climate control, touch-screen infotainment system, electric HVAC compressor etc.
Most of the battery companies generate a significant chunk of their revenue from replacement market. In case of AGM batteries, the global installed base is much lower than that of conventional, flooded Lead acid batteries. The OEs have already developed next generation start-stop vehicles paired with 12-volt lithium ion as well as micro hybrid paired with 48-volt lithium ion systems. The AGM batteries required for these applications will be more powerful than the present ones.
As of Oct, `19, Europe has the biggest the installed base, therefore it will account for the biggest chunk of replacement demand. Going, forward we expect China to become the biggest market for automotive AGM batteries, both for OE as well as replacement market segment. Johnson controls has even launched a Start-stop battery training workshop in Aug`18 to improve the improve the competitiveness of workshops.
The IOT penetration in battery technologies is finally happening. Earlier it was only limited to BEVs where BMS(battery management systems) constantly monitor the health of battery. In coming years, we expect aftermarket batteries with embedded sensors passing on battery health information to the infotainment system or even the vehicle app. The growing IOT penetration will be a major driver for automotive AGM battery market.
MARKET SIZE AND FORECAST
As governments around the world look to mitigate urban congestion and pollution, BEV (Battery Electric vehicles) seem like the ultimate solution. But, is it practical enough right now? certainly not. Very few EVs have a range comparable to gas powered vehicles and the recharging times are impractical. That leaves us with the bridge gap or “hybrid” solution.
It costs an OEM about $1,100-$1,400 to convert a gas-powered vehicle to a 48V mild-hybrid vehicle. A major chunk of the increased cost is due to batteries and associated power electronics. Among all variety of hybrids, 48V Mild-hybrid is the fastest growing segment in the automotive industry today and also the biggest driver of automotive AGM battery market.
Europe is the global leader in start-stop systems. The erstwhile certifying NEDC cycle rewarded 5% fuel economy just from addition of start-stop system. Moreover, once crude oil prices started trading higher on account of looming Euro crisis in 2012, it resulted in an unprecedent rise in start-stop installation post 2010 in EU.
Other major markets like US and China, showed comparatively lower interest in this technology but things have changed very quickly in past 2-3 years or so. US, although lagged in start-stop system installation earlier, has caught up fast now.
In 2018, Start-stop penetration in China, world`s biggest car market was ~34%. It is expected to go up to 58% by 2022.Therefore, we foresee tremendous volume and value growth in this market, all the way till 2025.
Johnson controls was among the market leaders in automotive AGM batteries and has produced more than 35 Million AGM batteries till 2018.But, now it has sold its battery business. Seeing a global rise in demand for AGM batteries, the company had committed ~$780M in 2016 for expansion of manufacturing facilities in North America. India based Exide technologies is the second biggest player in Europe. EnerSys recently signed a 4-year agreement to supply Navistar with its AGM batteries.
The battery companies are also looking up to India as a very important market. India has already surpassed Germany to become world`s fourth biggest automotive market. Maruti Suzuki-the market leader in India , with 51% market share is already looking at bringing more mild-hybrids to market. The market leader in Amara Raja and Johnson Controls have recently signed a deal to bring AGM technology to India.
- GS Yuasa
- Johnson Controls
- Exide Industries
- Enersys Inc.
- Panasonic Corporation
- East Penn Manufacturing
- A123 Systems
|4||Market Size ,Dynamics and Forecast By Battery Size||18-29|
|5||Market Size ,Dynamics and Forecast By Geography||30-45|
|6||Market Size ,Dynamics and Forecast By End use segment||46-55|
|9||Unmet needs and Market Opportunity for suppliers||74-75|