Global Absorbed Glass Mat (AGM) Battery Market Size By Type (Automobile Battery, Inverter Battery), By Application (OEM, Aftersales), By Region, And Segment Forecasts, 2023 to 2032

The Global Absorbed Glass Mat (AGM) Battery Market was valued at USD 12.1 billion in 2023 and is projected to reach USD 20.5 billion by 2031, growing at a CAGR of 6.7% during the forecast period. AGM batteries, known for their maintenance-free design, are widely used in automotive, renewable energy, and backup power systems. The market growth is driven by the increasing demand for reliable and efficient energy storage solutions, the adoption of electric vehicles (EVs), and rising investments in renewable energy infrastructure.

Drivers:

Demand for Reliable Energy Storage: The growth in renewable energy generation has increased the demand for efficient and durable energy storage solutions, where AGM batteries play a crucial role.

Growth in Electric Vehicles (EVs): The global shift towards electric vehicles is bolstering the demand for AGM batteries, which offer stable power output and high safety levels.

Technological Advancements: Innovations in AGM battery technology, such as enhanced cycle life and performance, are expanding applications in new sectors like telecommunications and marine.

Restraints:

High Cost of AGM Batteries: Compared to traditional batteries, AGM batteries are relatively costly, which can limit adoption, especially in cost-sensitive markets.

Competition from Lithium-ion Batteries: The rising popularity of lithium-ion batteries, known for higher energy density, poses a competitive challenge for AGM batteries.

Opportunity:

Expansion in Renewable Energy Storage: The rapid growth in solar and wind power installations presents a significant opportunity for AGM batteries as a reliable backup and storage option.

Growing Adoption in Marine and Military Applications: With enhanced durability and safety, AGM batteries are increasingly used in marine, aerospace, and defense sectors, opening new growth avenues.

Market by System Type Insights:

The Deep Cycle AGM Battery segment led the market in 2023, catering primarily to renewable energy and backup power applications due to its longevity and depth of discharge capabilities. The Starting or Dual-Purpose AGM Battery segment is also gaining traction, driven by its robust use in the automotive and RV sectors, where reliability is paramount.

Market by End-Use Insights:

The Automotive segment accounted for the largest share in 2023, supported by the global increase in electric and hybrid vehicles. The Renewable Energy Sector is expected to witness the fastest growth rate, driven by rising demand for clean energy solutions and storage capabilities in solar and wind installations.

Market by Regional Insights:

North America held the largest market share in 2023, fueled by high demand for automotive and renewable energy applications. However, Asia-Pacific is anticipated to grow at the highest rate due to rapid industrialization, increased investments in energy infrastructure, and the growing adoption of electric vehicles in emerging economies such as China and India.

Competitive Scenario:

Key players in the Global AGM Battery Market include Clarios, Exide Technologies, East Penn Manufacturing, EnerSys, and GS Yuasa Corporation. These companies focus on expanding production capacity, technological advancements, and strategic partnerships to enhance their market presence. Recent developments include Exide Technologies' launch of an advanced AGM battery series for EV applications in 2024 and EnerSys' investment in a new manufacturing facility to meet the increasing demand in the Asia-Pacific region.

Scope of Work – Global Absorbed Glass Mat (AGM) Battery Market

Key Market Developments:

2024: Exide Technologies launched an advanced AGM battery series targeting electric and hybrid vehicles, designed for high energy density and enhanced cycle life.

2023: EnerSys announced a strategic investment in a new Asia-Pacific production facility to meet regional demand growth.

2023: GS Yuasa introduced a lightweight AGM battery for marine and defense sectors, emphasizing durability and high-performance standards.

FAQs:

What is the current market size of the Global Absorbed Glass Mat (AGM) Battery Market?

The market was valued at USD 12.1 billion in 2023.

What is the major growth driver of the Global Absorbed Glass Mat (AGM) Battery Market?

The primary driver is the rising demand for reliable energy storage solutions in EVs and renewable energy applications.

Which is the largest region during the forecast period in the Global Absorbed Glass Mat (AGM) Battery Market?

North America held the largest share in 2023, while Asia-Pacific is expected to grow the fastest during the forecast period.

Which segment accounted for the largest market share in the Global Absorbed Glass Mat (AGM) Battery Market?

The Automotive segment accounted for the largest market share due to the widespread use of AGM batteries in electric and hybrid vehicles.

Who are the key market players in the Global Absorbed Glass Mat (AGM) Battery Market?

Key players include Clarios, Exide Technologies, East Penn Manufacturing, EnerSys, and GS Yuasa Corporation.