Absorbent Glass Mat (AGM) Battery Market By Battery Type (Sealed Lead Acid (SLA), Lithium-ion (Li-ion)), By Voltage (6V, 12V, 24V), By Application (Power Storage, Automotive), and By Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Absorbent Glass Mat (AGM) Battery Market was valued at USD 10.2 billion in 2023 and will surpass USD 15.5 billion by 2030; growing at a CAGR of 6.1% during 2024 - 2030.

The Absorbent Glass Mat (AGM) battery market has been witnessing substantial growth driven by the increasing demand for efficient, durable, and environmentally friendly energy storage solutions. AGM batteries are widely recognized for their ability to provide reliable power, long life, and high performance, making them a preferred choice in various sectors, including automotive and power storage. These batteries use a glass mat separator to absorb the electrolyte, ensuring better charge retention and quicker recharge times, which adds to their appeal in modern energy storage applications. With the growing demand for uninterrupted power supply and eco-friendly alternatives, AGM batteries are increasingly replacing traditional lead-acid batteries across several industries.

One of the major factors contributing to the growth of the AGM battery market is the ongoing shift towards renewable energy sources. As renewable energy systems, such as solar and wind, become more widespread, there is a significant need for efficient and reliable energy storage solutions. AGM batteries offer a practical solution for this by storing excess power generated during peak production times and providing it during low production periods. Additionally, with automotive manufacturers increasingly focusing on electric vehicles (EVs), AGM batteries are finding new applications in both traditional and electric-powered vehicles.

Sealed Lead Acid (SLA) Battery Type Is Largest Due to Cost Efficiency and Reliability

Sealed Lead Acid (SLA) batteries are the largest segment in the AGM battery market, primarily due to their cost efficiency, reliability, and widespread use in both automotive and power storage applications. SLA batteries are a popular choice for applications where low initial costs are a priority, such as in backup power systems and entry-level electric vehicles. These batteries are known for their durability and ability to perform well under various environmental conditions, making them ideal for energy storage solutions in both residential and industrial settings.

The SLA segment continues to dominate the AGM battery market due to its long-standing presence in the industry and the well-established manufacturing infrastructure that supports it. Additionally, the growing demand for backup power systems in both residential and commercial sectors, along with the adoption of renewable energy sources, is expected to continue driving the demand for SLA AGM batteries. The low maintenance requirements and reliable performance of SLA batteries further contribute to their large market share.

12V Voltage Is Fastest Growing Due to Widespread Use in Automotive and Power Storage

The 12V voltage segment is the fastest-growing in the AGM battery market, driven by the increasing demand for reliable power sources in automotive applications and power storage systems. 12V AGM batteries are commonly used in vehicles for starting, lighting, and ignition (SLI) purposes, as well as in power storage systems for residential solar energy solutions. These batteries are popular due to their compact size, high performance, and ability to provide consistent power over extended periods. In addition, the rise of electric vehicles (EVs) and hybrid vehicles is further boosting the demand for 12V AGM batteries, as they are used for auxiliary power needs, such as powering lights, fans, and entertainment systems.

The growing demand for energy-efficient and low-maintenance batteries in both consumer and commercial applications is driving the 12V AGM battery market. The versatility and widespread adoption of these batteries across various sectors, including automotive, power storage, and renewable energy systems, are key factors contributing to their rapid growth.

Automotive Application Is Largest Due to Rising Demand for Reliable Power Sources

The Automotive application is the largest segment in the AGM battery market, as these batteries are crucial for powering various electrical systems in vehicles. AGM batteries are widely used in both conventional and electric vehicles for their ability to provide a reliable power source with minimal maintenance. In traditional internal combustion engine (ICE) vehicles, AGM batteries are used for starting, lighting, and ignition (SLI), while in electric and hybrid vehicles, they power auxiliary systems such as lights, infotainment, and HVAC. The growing automotive industry, particularly the increase in electric and hybrid vehicle production, is expected to continue driving the demand for AGM batteries in this sector.

Additionally, the automotive sector is increasingly focused on improving fuel efficiency and reducing emissions, and AGM batteries contribute to this goal by providing efficient power management solutions. The rise of electric vehicles (EVs), which require reliable and long-lasting energy storage solutions, is expected to further increase the demand for AGM batteries in the automotive industry, thereby solidifying the dominance of this application.

North America Is Largest Region Due to Strong Automotive and Renewable Energy Markets

North America is the largest region in the AGM battery market, driven by the strong automotive sector and the increasing adoption of renewable energy sources. The United States, in particular, has a robust automotive industry, including both traditional and electric vehicle manufacturers, contributing significantly to the demand for AGM batteries. Moreover, the region’s growing focus on sustainable energy solutions, such as solar power, has boosted the need for efficient and reliable power storage systems. AGM batteries are widely used in solar energy systems for storing excess energy, making them a popular choice for residential and commercial applications.

In addition, North America's well-established infrastructure for battery manufacturing and distribution, along with the presence of leading battery producers, strengthens the region’s position in the AGM battery market. As the demand for electric vehicles and renewable energy storage solutions continues to grow, North America is expected to maintain its leadership in the global AGM battery market.

Leading Companies and Competitive Landscape

The AGM battery market is highly competitive, with several leading companies driving innovation and growth in the industry. Key players such as Exide Technologies, Johnson Controls, East Penn Manufacturing, and GS Yuasa are major contributors to the development and production of AGM batteries. These companies are focusing on enhancing battery performance, expanding their product offerings, and increasing production capacities to meet the growing demand across various applications, including automotive and power storage.

The market is characterized by ongoing technological advancements aimed at improving the efficiency, lifespan, and sustainability of AGM batteries. Companies are investing in research and development to enhance battery performance while also reducing environmental impact. Strategic partnerships and mergers and acquisitions are common in this market, as companies seek to expand their product portfolios and strengthen their positions in the global market. The competitive landscape is expected to become more dynamic as the demand for energy storage solutions in automotive, renewable energy, and other sectors continues to rise.

Recent Developments:

• In November 2024, Enersys launched a new range of AGM batteries designed specifically for industrial forklift applications, promising longer runtime and faster charging.
• In October 2024, Johnson Controls announced the expansion of its AGM battery manufacturing facility in North America to meet the growing demand for automotive start-stop systems.
• In September 2024, Exide Technologies completed the acquisition of a European AGM battery manufacturer to increase its market share in the renewable energy storage sector.
• In August 2024, Yuasa Corporation unveiled a new AGM battery series optimized for high-temperature environments in telecom and data center applications.
• In July 2024, Tesla, Inc. announced the integration of AGM batteries into their energy storage solutions, complementing their solar power systems for residential use.

List of Leading Companies:

• Johnson Controls (Power Solutions)
• East Penn Manufacturing
• Enersys
• Exide Technologies
• Yuasa Corporation
• GS Yuasa
• Stryten Energy
• C&D Technologies
• Leoch International Technology Ltd.
• Furukawa Electric Co., Ltd.
• Ctek AB
• Hoppecke Batteries
• Saft Group
• A123 Systems LLC
• Tesla, Inc.

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