Rising Demand for Adsorbent Glass Mat Battery Market Growth to Reach USD 22.85 Billion by 2035, With a CAGR of 5.7% | Future Market Insights Inc.
AGM batteries are preferred for start-stop vehicle technology due to their low self-discharge rate. Start-stop vehicle technology is used to shut off the engine automatically. Furthermore, they are widely used in plug-in hybrid vehicles. These batteries are great for high-end and advanced fuel-efficient vehicles with more significant power demands. The rising demand for low emission and government support for long-range, zero-emission vehicles through subsidiary & taxes have propelled the demand for electric vehicles, further supporting the growth of batteries.
NEWARK, Del, Feb. 25, 2025 (GLOBE NEWSWIRE) -- The global Adsorbent Glass Mat (AGM) battery market is poised for significant growth, driven by rising demand for energy storage solutions, increasing reliance on renewable energy sources, and the need for stable power backup systems. With a projected market size of USD 13,107.8 million in 2025, the market is expected to reach USD 22,857.7 million by 2035, expanding at a CAGR of 5.7% over the forecast period.
AGM batteries are widely recognized for their high performance, durability, and efficiency. These batteries utilize advanced lead-tin alloys, unique carbon additives, and high-surface glass mat separators to deliver superior power output and reliability. The stationary AGM battery segment has emerged as a market leader, accounting for the highest share due to its suitability for automotive applications, including start-stop and regenerative braking systems.
A key factor driving adoption is the superior performance of AGM batteries under high-power demands. Their high life span, low internal resistance, and ability to maintain stable voltage make them ideal for safety-critical applications such as brake-by-wire and steer-by-wire systems. As industries increasingly prioritize efficiency and sustainability, AGM battery technology is set to play a pivotal role in meeting global energy storage needs.
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Report Coverage & Deliverables
The latest market research report provides a comprehensive analysis of the AGM battery market, covering key market drivers, industry trends, and competitive landscape. The report includes detailed segmentation by battery type, application, and region, offering insights into the growth potential across various end-use industries.
Key Factors Shaping Market Dynamics
The AGM battery market is driven by increasing demand for energy storage systems, rapid adoption of renewable energy solutions, and growing investments in backup power infrastructure. These factors are expected to fuel market expansion over the forecast period.
Growing Demand for Energy Storage Systems Globally
With the rising adoption of electric vehicles (EVs) and renewable energy systems, the need for reliable and efficient energy storage has intensified. AGM batteries are widely used in off-grid and grid-connected energy storage systems, offering excellent charge retention and deep-cycle capabilities. This trend is expected to accelerate market growth in the coming years.
The automotive sector, in particular, is witnessing a surge in AGM battery adoption due to their ability to support advanced vehicle functionalities. As automotive manufacturers integrate hybrid and electric powertrains, AGM batteries are becoming an essential component of modern vehicle architectures.
High Demand for Solar and Wind Energy Drives Adoption of AGM Batteries
The global shift towards sustainable energy has created a surge in demand for energy storage solutions that can efficiently store and distribute electricity generated from renewable sources. AGM batteries play a crucial role in solar and wind energy applications, ensuring stable power supply even during periods of low energy generation.
Governments worldwide are investing heavily in clean energy initiatives, further bolstering the demand for AGM battery technology. As renewable energy capacity expands, AGM batteries will continue to serve as a key enabler of reliable and efficient energy storage.
Need for Reliable Power Backup Systems in the Telecommunication Industry
The rapid expansion of telecommunications networks, particularly in developing regions, has heightened the demand for dependable power backup solutions. AGM batteries provide a stable power supply for telecom infrastructure, ensuring uninterrupted operations during grid failures.
With the increasing deployment of 5G networks and data centers, the requirement for efficient battery backup systems is set to rise. AGM batteries offer the reliability and long cycle life needed to support critical telecommunications infrastructure worldwide.
"The AGM battery market is experiencing steady growth, driven by advancements in battery technology, expanding renewable energy projects, and increasing applications in automotive and telecommunications sectors. As industries shift towards energy-efficient and sustainable solutions, AGM batteries are expected to play a pivotal role in the future of energy storage." opines Nikhil Kaitwade, Associate Vice President at Future Market Insights (FMI).
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Key Takeaways:
- The global AGM battery market is projected to reach USD 22,857.7 million by 2035, growing at a CAGR of 5.7%.
- Stationary AGM batteries hold the largest market share due to their superior performance and durability.
- Increased adoption in automotive, renewable energy, and telecommunications sectors is driving market growth.
- Rising demand for UPS and backup power applications is fueling AGM battery sales.
- Key market players include Yuasa Battery, Inc., Power Sonic Corporation, Clarios, Exide Technologies, C&D Technologies, East Penn Manufacturing Company, Universal Power Group, and Fullriver Battery.
The Up-Front Cost of AGM Batteries Compared to Traditional Flooded Lead-Acid Batteries
While AGM batteries offer numerous advantages, their initial cost is higher compared to traditional flooded lead-acid batteries. However, the long-term benefits of AGM technology, including lower maintenance costs, extended lifespan, and enhanced efficiency, outweigh the upfront investment.
Industries seeking reliable and high-performance energy storage solutions recognize the value proposition of AGM batteries. As technological advancements reduce production costs, adoption rates are expected to increase across various sectors.
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Rising UPS and Backup Power Applications Boost AGM Battery Sales
Uninterruptible Power Supply (UPS) systems are a critical component of modern infrastructure, ensuring continuous power supply during outages. AGM batteries are widely used in UPS applications for their rapid recharge capabilities and reliability.
The growing reliance on cloud computing, data centers, and smart grid technologies has further fueled demand for AGM batteries in backup power solutions. As digitalization accelerates, the market for AGM-based UPS systems is expected to expand significantly.
Key Players in the AGM Battery Market
Prominent companies operating in the AGM battery market include:
- Yuasa Battery, Inc.
- Power Sonic Corporation
- Clarios
- Exide Technologies
- C&D Technologies
- East Penn Manufacturing Company
- Universal Power Group
- Fullriver Battery
Increasing Military and Defense Investments Drive AGM Battery Market Growth
The defense sector is a key consumer of AGM battery technology, leveraging its reliability in mission-critical applications. AGM batteries are used in military vehicles, aircraft, and communication systems, where stable power supply is essential.
Governments worldwide are increasing defense budgets, leading to greater investments in advanced battery technologies. AGM batteries' resilience and performance under extreme conditions make them a preferred choice for military applications.
Regional Analysis
- North America: Dominates the market due to high adoption of AGM batteries in automotive and renewable energy sectors.
- Latin America: Growing demand for power backup systems is driving market expansion.
- Western & Eastern Europe: Increasing investments in renewable energy storage bolster AGM battery sales.
- East Asia & South Asia-Pacific: Rapid industrialization and electrification efforts propel market growth.
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Middle East & Africa: Expanding telecom infrastructure and renewable energy projects create significant opportunities.
As global industries continue to prioritize energy efficiency and sustainability, the AGM battery market is set for robust growth in the coming years.
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Key Segmentation
By Type:
The Type segment is further categorized into Stationary AGM Battery and Motive AGM Battery.
By Voltage:
The Voltage segment is classified into 2-4 Volts, 4-8 Volts, and >8 Volts.
By End Use:
The end use segment is classified into Automotive, Energy Storage Systems, Industrial, and Other Industries.
By Region:
Regions considered in the study include North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia & Pacific, and the Middle East and Africa.
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