AGM Battery Market Size - By Application, By Sales Channel, Analysis, Share, & Forecast, 2025 - 2034

AGM Battery Market Size

The global AGM battery market was valued at USD 16 billion in 2024 and is estimated to grow at a CAGR of 2.8% from 2025 to 2034. The rapid increase in electric vehicle (EV) usage significantly drives AGM battery demand. According to the U.S. Department of Energy, EV sales reached 1.2 million in 2023, a 50% jump from 2022 across U.S., highlighting the growing need for dependable, high-performance AGM batteries to power these vehicles efficiently.
 

Governments implementing stricter emission regulations are driving AGM battery demand. The European Commission's 2023 CO2 regulations require lower emissions from vehicles, prompting automakers to use AGM batteries in start-stop technology. AGM batteries reduce fuel consumption and emissions efficiently, meeting regulatory objectives throughout the EU, and thus become a go-to option for compliance and sustainability in the automotive industry.
 

The global transition to renewable energy significantly drives the market of AGM batteries. According to the U.S. Energy Information Administration, solar powered 58% of new electricity generation capacity in 2024, highlighting the need for reliable energy storage. AGM batteries excel at storing excess energy from the sun and wind, grid stability, and meeting the rising energy demands of homes and enterprises in an environmentally friendly way.
 

AGM batteries are essential for the mass adoption of start-stop technology in vehicles. According to major battery makers, about 70% of new cars produced have AGM batteries powering this fuel-saving feature. By allowing engines to switch off when idling and restart without interruption, AGM batteries save fuel and lower emissions, fueling their market expansion.
 

Generous government incentives for clean technology are accelerating AGM battery adoption. In 2023, the U.S. Department of Energy allocated USD 3 billion to support battery production, which drives the market growth. This funding encourages manufacturers to scale up AGM battery output for applications in EVs, renewables, and beyond, fostering innovation and affordability while meeting the rising demand for eco-friendly energy solutions.
 

AGM Battery Market Trends

• The expanding telecom industry increasingly relies on AGM batteries for dependable backup power. Between 2019 and 2024, the communication infrastructure index across U.S. has grown by over 27%, emphasizing the critical role of AGM batteries in maintaining service during power outages. The ability to consistently provide reliable sustained energy makes them critical for the operation of communication networks and deeply increases market demand.
   
• The surge in industrial automation has increased the need for AGM batteries to power sophisticated equipment. Leading battery companies now report a 25% surge in AGM battery sales as a result of their integration in automated processes. These batteries supply the energy required for the operation of robotics and production systems, increasing both efficiency and availability of the factories, which improves their market presence.
   
• AGM batteries are increasingly popular in marine applications due to their durability and resistance to harsh conditions. The U.S. Coast Guard's 2023 annual report reported a 30% increase in AGM battery use on boats, and they attributed that to their vibrational and corrosive resistance capabilities. This supports their increasing uptake in the maritime industry.
   
• The rapid growth of data centers globally heightens demand for AGM batteries as backup power solutions. This is due to greater dependence on digital infrastructure. AGM batteries provide uninterrupted service in outages and hence are critical for technology companies handling important data and services globally.
   
• AGM batteries are gaining increased application in military use for powering advanced hardware. In 2024, the U.S. Department of Defense accounted for a 15% increase in battery contracts for field operations, according to its procurement updates. AGM battery's performance and durability ensure they are best suited to withstand severe environments, accelerating their adoption in the defense industry.
   
• The shift to off-grid living is leading AGM battery usage for clean energy storage. It is a reaction to growing demand for stand-alone living, with solar panels paired with AGM batteries. Their maintenance-free and efficient nature appeals to homes seeking independence from mainstream power grids, leading to market growth.
   

AGM Battery Market Analysis

• Based on sales channel, the AGM batteries are sold through OEMs and Aftermarket sales. The overall AGM battery industry in 2022, 2023 and 2024 was noted at USD 15.1 billion, USD 15.6 billion and USD 16 billion, respectively. The aftermarket sales channel is anticipated to register at a CAGR of over 2.5% till 2034.
   
• The OEM sales channel prospers as the automobile manufacturers put AGM batteries into more new cars for enhanced features. Exide Industries in 2023 reported a significant increase in OEM orders for AGM batteries with growing demand for start-stop and hybrid systems, contributing to sales directly through manufacturing collaborations.
   
• The aftermarket market is growing due to rising replacement demand for AGM batteries in older vehicles. With more cars with start-stop technology aging, owners are searching for long-lasting replacements. The trend, as of 2025, drives aftermarket sales to consumers who value performance and longevity without specific cases yet to be reported.
   
• As manufacturers concentrate on fuel efficiency, CO2 reduction, and sustainability, they are also increasingly specifying AGM batteries as standard or optional fitments in their cars. For instance, Crown Battery set near-zero waste goals for its production of lead-acid batteries in April 2023, focusing on strengthening lead recycling and reducing environmental footprint. This is especially evident among top automobile manufacturers who are moving toward greener power solutions.
   

• Based on applications, the AGM batteries are utilized across stationary, motive and SLI applications. SLI applications, over the years have witnessed a substantial rise in AGM battery adoption and holds a market share of 68% in 2024. This substantial share can be accounted to the rise in start stop engines across the automobiles, which require reliable power source, such as AGM batteries.
   
• The stationary application segment grows as AGM batteries support renewable energy storage needs. As per the Press Information Bureau (PIB), solar capacity additions witnessed a rise of over 33% in cumulative capacity between 2023 and 2024, which in turn drives the need for AGM batteries for energy storage, driven by their reliability in storing power for homes and grids.
   
• The motive segment increases with increased use of AGM batteries in electric forklifts for warehouses. Their longevity and maintenance-free nature drive adoption in logistics, a trend that's increasing in 2025 as businesses focus on efficient, environmentally friendly material handling solutions, although such cases are pending.
   
• The SLI (Starting, Lighting, Ignition) market thrives as AGM batteries power start-stop systems in vehicles. This application leverages their ability to withstand repeated cycling, allowing fuel efficiency in new cars, a key trend in 2025 automotive markets.
   

• The U.S. AGM battery market was valued at USD 1.90 billion, USD 1.94 billion and USD 1.99 billion in 2022, 2023 and 2024 respectively. This development is powered by driven by rising demand for start-stop and hybrid cars, as manufacturers favor fuel efficiency and reduced emissions. Furthermore, the aftermarket industry also holds strong given the requirement of replacement batteries on aged vehicles.
   
• In Europe, the AGM battery market is primarily driven by the increasing adoption of fuel-efficient and low-emission vehicles, especially in countries like Germany. Regulatory frameworks, including the European Union's emission quotas for CO2, compel automotive manufacturers to implement sophisticated energy technologies such as AGM batteries in their start-stop systems.
   
• As per the European Environment Agency (EEA), in 2022, the average emission from newer models of passenger cars reduced to 108.2 g/km across Europe, demonstrating the impact of these regulations. The growth of electric and hybrid cars also increases the demand for durable, long-lasting batteries. Germany is Europe's largest market because of its automotive sector dominance.
   
• The Asia Pacific region is experiencing a high growth rate in the AGM battery market due to the growing automotive sector, especially in China and Japan. AGM batteries are more in demand due to the increase in hybrid and electric vehicles, as well as policies that promote green technology, increasing the demand for AGM batteries.
   
• According to China's Ministry of Industry and Information Technology, the production of electric vehicles reached 9.4 million units in 2023, which showed a positive trend towards electric mobility in the country. Also, the move towards replacing energy-hungry, less environment-friendly battery technologies in automotive applications and industries is a key growth driver.
   
• In the Middle East and Africa, the market for AGM batteries is influenced by expanding demand for advanced battery solutions in automotive and industrial uses. The growing automotive sector in the region, coupled with growing awareness of energy efficiency, is propelling the market.
   
• According to the South African Department of Trade, Industry, and Competition (DTIC), South African vehicle production increased to 632,000 units in 2022, maintaining the need for advanced battery solutions. Besides, growth in renewable energy storage devices and backup power requirements for critical infrastructure continues to drive demand.
   

AGM Battery Market Share

Top 5 AGM battery players are Clarios, Enersys, East Penn Manufacturing, Amara Raja, and Exide, with a total market share of over 30% in 2024. Their supremacy stems from their well-developed distribution channels, revising supply chain processes, complex system design skills in battery technologies, and strong relationships with automotive and industrial clients which ensured continuous demand and stable market fluctuations.
 

Clarios and Enersys stand out as the two main producers among this group. Clarios, formerly Johnson Controls Power Solutions, maintains its relevance due to extensive international reach, rigorous R&D, and OEM partnerships with key automobile manufacturers. As industry leaders, Clarios spends on the development of recycling programs as well as on advanced battery technologies which sustain their market position. Along with these, the company strategically acquires new market players and constantly innovates which strengthens its dominance in the automotive and industrial battery markets.
 

Enersys, on the other hand, dominates the industrial and reserve power segment. The company’s broad product portfolio, covering telecom, defense, aerospace, and renewable energy applications, has driven its growth. Enersys stays at the forefront of developing smart energy storage systems and high-performance AGM batteries designed for critical infrastructure. It maintains an industry advantage from its global supply chain and service capabilities along with its investment in lithium-ion hybrid solutions, enabling continued dominance in stationary and motive power battery markets.
 

AGM Battery Market Companies

• Amara Raja has a commanding AGM battery industry share in India which is spearheaded by its innovation focus on localization. The partnership with Hyundai Motor India for the latter’s manufacture of AGM batteries in India, which was publicized in 2024, further boosts Amara Raja’s OEM presence. Also, in the fourth quarter of fiscal year 2024-2025, the firm launched SLI AGM batteries, making it the first Indian OEM to introduce these products.
   
• East Penn commands a significant AGM battery market share in North America, emphasizing quality and sustainability. Its Deka brand has a strong presence in automotive and industrial market segments. During 2024, the firm claimed a 25% growth in AGM battery sales for automation which strengthened their market position. The annual revenue for 2023 stood at roughly USD 3.5 billion which demonstrates its industry leadership.
   
• Exide holds a strong market share for AGM batteries globally, especially in Europe and North America, with its advanced automotive solutions. Its AGM batteries support start-stop systems and emission standards. The company's continuous innovation in battery technologies enables it to consistently remain competitive.
   
• GS Yuasa maintains a leading position in AGM battery distribution within Asia, as their products are useful for both automotive and stationary applications. Their known market durability further increases the company’s share. Noticing this, the firm began advertising their 2024 expansion into new AGM product lines for electric vehicles.
   

Major players operating in the AGM battery market are:

• Amara Raja Batteries
• C&D Technologies
• Clarios
• Crown Battery
• East Penn Manufacturing
• EnerSys
• Exide Technologies
• First National Battery
• GS Yuasa International
• Hoppecke Batterien
• Leoch International Technology
• Mutlu Battery
• Shandong Sacred Sun Power Sources
• The Furukawa Battery
   

AGM Battery Industry News

• In December 2024, Hyundai Motor India (HMIL) will adopt AMARON's Made-in-India AGM battery technology as an SLI battery within its domestic lineup under an existing agreement with Amara Raja Energy & Mobility Limited (ARE&M). In Q4 FY 2024-2025, HMIL becomes the first auto OEM in India to utilize localized AGM technology, which further enhances localization efforts. In durability testing, AGM batteries outperform CMF batteries by 150%. Furthermore, they possess greater temperature tolerances and longer lifespans, making them more suited for versatile India's conditions.
   
• In November 2024, Exide Technologies expanded its AGM battery lineup by introducing two new models, EK454 and EK457 (45Ah/380A, size B24), specifically designed for start-stop and hybrid vehicles. These batteries offer remarkable performance while assisting in reducing fuel consumption, delivering high cycling capability and rapid recharge times. This launch highlights Exide’s commitment to innovation and sustainable energy solutions and at the same time consolidate its leadership in Exide’s automotive battery business.
   
• In April 2024, Clarios partnered with a top automaker to offer its proprietary 12V AGM battery. This collaboration has improved the fuel economy and decreased CO2 emissions for vehicles equipped with start-stop systems. Clarios’ strong market position in the green automotive battery technology innovation sector is sustained by the introduction of the environmentally aligned, maintenance-free, and durable battery that supports sustainable goals.
   

This AGM battery market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million & ‘Million Units” from 2021 to 2034, for the following segments:

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Market, By Application

• Stationary
  • Telecommunications
  • UPS
  • Control & switchgear
  • Others
• Motive
• SLI

Market, By Sales Channel

• OEM
• Aftermarket

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Iran
  • Turkey
• Latin America
  • Brazil
  • Argentina
  • Mexico