AGM Battery Market Analysis

AGM Battery Market Analysis

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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.