AGM Battery Market - By Application (Stationary {Telecommunications, UPS, Control & Switchgear}, Motive, SLI), By Sales Channel (OEM, Aftermarket), By Region & Global Forecast 2024 - 2032

Absorbent Glass Mat (AGM) Battery Market Size

AGM Battery Market size was valued at USD 15.6 billion in 2023 and is slated to grow at over 2.8% CAGR between 2024 and 2032. Increasing demand for automotive start-stop systems across the globe will act as a major growth driver for the product deployment. These batteries are capable of handling the frequent deep cycling required by start-stop systems, which has led to their increased adoption in the automotive industry. The rise in renewable energy generation, such as solar and wind power, has created a need for efficient energy storage solutions.
 

AGM batteries are well-suited for storing energy from renewable sources, offering reliable and cost-effective storage solutions for off-grid and hybrid renewable energy systems, which in turn will escalate their adoption across all regions. In addition, the telecommunications industry continues to expand, driving the demand for reliable backup power solutions. AGM batteries are widely used in uninterruptible power supply (UPS) systems for telecom infrastructure to ensure uninterrupted operation during power outages. The increasing deployment of telecommunication networks worldwide contributes to the business growth.

COVID-19 Impact

The COVID-19 pandemic has had a significant impact on the AGM battery market affecting the overall growth of the industry adversely. The pandemic led to disruptions in global supply chains, including the battery industry. Manufacturing facilities faced temporary closures, reduced production capacity, and logistical challenges due to restrictions and lockdown measures. This resulted in supply chain disruptions and delayed deliveries of AGM batteries. The automotive industry, a significant market for AGM batteries, experienced a slowdown during the pandemic, further affecting the market growth. Lockdowns, economic uncertainties, and reduced consumer spending impacted the sales of automobiles, including vehicles equipped with AGM batteries for start-stop systems.
 

The shift towards remote work, online shopping, and increased digital connectivity during the pandemic led to a surge in demand for e-commerce platforms and data centers. AGM batteries are used in UPS systems for backup power in data centers and telecommunications infrastructure, which experienced increased demand due to the reliance on remote work and online services.
 

The pandemic highlighted the importance of reliable and resilient power solutions, especially in critical sectors such as healthcare, telecommunications, and emergency services. AGM batteries, known for their ability to provide backup power, gained attention as essential components for maintaining uninterrupted power supply in critical applications. In addition, investments in renewable energy projects continued, propelled by the need for sustainable and clean energy sources. AGM batteries are utilized in renewable energy systems for energy storage, providing stability and balancing supply-demand fluctuations. The ongoing growth in renewable energy installations contributed positively to the business growth.
 

Absorbent Glass Mat (AGM) Battery Market Trends

The AGM battery market is experiencing growth due to the increasing demand for deep cycle applications across the globe. AGM batteries are well-suited for deep cycle applications that require frequent and deep discharging and recharging cycles. There is a growing demand for AGM batteries in renewable energy systems, electric vehicles, marine applications, RVs, and off-grid power systems where deep cycling capability is crucial.
 

Ongoing research and development efforts are focused on improving the performance of AGM batteries. Manufacturers are working on enhancing energy density, increasing cycle life, and reducing self-discharge rates. These advancements aim to provide AGM batteries with improved efficiency, reliability, and longer service life. AGM batteries are being integrated into hybrid energy storage systems that combine multiple energy storage technologies such as lithium-ion batteries and AGM batteries, thus boosting the industry growth. The global shift towards electric mobility presents significant opportunities for AGM battery market growth.
 

In addition, the growth of the telecommunications industry, led by rising data consumption and the expansion of network infrastructure, leads to increased demand for reliable backup power solutions. AGM batteries are widely used in UPS systems for telecom towers, base stations, and data centers to ensure uninterrupted operation during power outages.
 

Absorbent Glass Mat (AGM) Battery Market Analysis

The AGM batteries are utilized across various applications including stationary, motive and SLI applications. The SLI battery applications held approximately 68% of the AGM battery market share in 2022 and is anticipated to grow at a CAGR of around 2.6% through 2032. Increasing adoption of start stop systems across automotive industry to improve fuel efficiency will fuel the product penetration. AGM batteries are well-suited for start-stop systems due to their ability to handle frequent deep cycling and quick recharging. The growing adoption of start-stop systems in vehicles, impelled by fuel efficiency regulations and environmental concerns, propel the demand for AGM batteries in SLI applications.
 

AGM batteries offer superior performance compared to traditional flooded lead-acid batteries. They provide higher starting power, better cold-cranking performance in cold weather conditions, and improved resistance to vibration and shock. As vehicle owners seek batteries that deliver reliable and consistent performance, the demand for AGM batteries in SLI applications increases. Moreover, Stringent emission and fuel efficiency standards set by regulatory authorities push automotive manufacturers to incorporate technologies that improve vehicle efficiency. AGM batteries, with their ability to support start-stop systems and reduce fuel consumption, help automakers meet these standards. The need for AGM batteries to comply with emission and fuel efficiency regulations drives their adoption in SLI applications.
 

The AGM Battery are available to Original Equipment Manufacturers (OEM) to install across their systems or are available through distributors and other aftermarket sales channels. Aftermarket channel accounted for over USD 12 billion in 2022 and is poised to reach USD 15.5 billion by 2032. The AGM battery market experiences a significant contribution from the aftermarket segment compared to Original Equipment Manufacturers (OEMs). The dynamics and trends in the industry differ between OEMs and the aftermarket across various application areas such as automobiles, motorcycles, and UPS. The aftermarket plays a prominent role in AGM battery sales, particularly in the automotive sector.
 

There is a growing demand for replacement batteries in the aftermarket as automotive batteries have a typical lifespan of 5 to 7 years. Battery manufacturers supply automotive batteries to OEMs for new vehicles and also to distributors, retailers, and service centers for replacing worn-out lead-acid batteries. The aftermarket distribution network for AGM batteries is extensive, involving garages, car dealers, spare part shops, and building centers. These entities cater to the demand for replacement batteries in the market. The aftermarket sales of AGM batteries in the automotive sector are fueled by the need for reliable and cost-effective power supply.
 

Asia Pacific AGM battery market is expected to witness CAGR of over 3% up to 2032, owing to the growing automotive industry along with ongoing urbanization and industrialization. The Asia Pacific region is home to some of the world's largest automotive markets, including China, India, Japan, and South Korea. The growth of the automotive industry in these countries drives the demand for AGM batteries in SLI applications. Increasing vehicle production, rising consumer disposable income, and government initiatives promoting electric vehicles contribute to the regional growth.
 

Asia Pacific AGM battery market has experienced significant growth in the telecommunications sector, on account of the increasing internet penetration, smartphone usage, and the adoption of digital technologies. AGM batteries are widely used in UPS systems for telecom towers, base stations, and data centers, ensuring uninterrupted power supply in this rapidly expanding industry. The installation of solar and wind power plants is increasing, driving the demand for energy storage solutions, including AGM batteries. AGM batteries are utilized to store excess energy generated by renewable sources and provide a stable power supply, which will boost the regional statistics.
 

Absorbent Glass Mat (AGM) Battery Market Share

Key players operating across the AGM battery market include

• Clarios
• GS Yuasa International Ltd.
• East Penn Manufacturing Company
• C&D Technologies Inc.
• leoch International Technology Limited Inc
• HOPPECKE Batterien GmbH & Co. KG
• THE FURUKAWA BATTERY CO. LTD.
• FIRST NATIONAL BATTERY
• Shandong Sacred Sun Power Sources Co.ltd.
• ENERSYS
• Exide Technologies
• Mutlu Battery
• Amara Raja Batteries Ltd
• CROWN BATTERY
   

AGM Battery Industry News:

• In March 2022, Clarios has completed the acquisition of Metalúrgica de Medina, a battery recycling organization based in Spain. The primary objective of this acquisition is to mitigate supplier risk and achieve cost savings for Clarios. Additionally, it aims to bolster Clarios's presence in Europe and enhance its battery recycling operations. Through the recycling process, the scrap material generated will be reused within Clarios's manufacturing plants in the Europe, Middle East, and Africa (EMEA) region.
   
• In April 2022, EnerSys announced a strategic partnership with Orogenic ApS, a Denmark-based battery provider. The partnership focuses on distribution and sales of motive power products in Denmark, Iceland, Greenland, and Faroe Islands. In addition, this partnership will enable EnerSys to strengthen its market share along with its footprints in the Nordic region.
   

This AGM battery market research report includes an in-depth coverage of the industry with estimates & forecast in terms of Million Units and USD Million from 2019 to 2032, for the following segments:

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By Application

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

By 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