The global adsorbent glass mat (AGM) battery market reached USD 10,718.0 million in 2020. Worldwide demand for adsorbent glass mat (AGM) battery saw a 4.5% year-on-year growth in 2025, suggesting an expansion of the market to USD 13,107.8 million in 2025. Projections for the period between 2025 and 2035 indicate a 5.7% compound annual growth rate (CAGR) for global adsorbent glass mat (AGM) battery sales, resulting in a market size of USD 22,857.7 million by the end of 2035.
Stationary AGM battery type accounted for highest share in the global market. Stationary AGM batteries uses high-performance components and materials, including high-surface glass mat separators, advanced lead-tin alloys and unique carbon additives in the active mass.
This type of AGM battery are proven to offer consistent power and enhanced durability. Stationary AGM batteries are ideally suited for automotive applications including start-stop or regenerative braking systems.
High life span & performance stability over prolonged usage, lower Internal resistance, limited voltage drops on high power demands and best response for safety loads with high voltage threshold requirements (e.g. break/ steer by wire) during evasive maneuvers, safe states, side-laning situations has increased the demand for stationary AGM battery in automotive end use industry.
Attributes | Key Insights |
---|---|
Estimated Value (2025) | USD 13,107.8 million |
Projected Size (2035) | USD 22,857.7 million |
Value-based CAGR (2025 to 2035) | 5.7% |
The growth trajectory of motive AGM battery is anticipated to grow at fastest CAGR in the forecast period and is expected to account for CAGR of 6.9% in 2025 to 2035.
Automotive industry has witnessed rapid development and adoption of touch screens, remote starting, backup cameras & collision warning sensors, Wi-Fi & Bluetooth connections, and auto start-stop engines has become crucial to enhance the customer driving experience & safety. All these functions require electricity supply and the demand for motive AGM batteries have gained popularity across these applications.
These batteries are designed to deliver required amps even when the engine is off. Owing to adoption of these features majority of vehicles sold after 2019 has adopted the motive AGM battery. As per the publication by Automotive World, nearly 50 million vehicles in 2022 has adopted motive AGM batteries.
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The annual growth rates of the adsorbent glass mat (AGM) battery market from 2025 to 2035 are illustrated below in the table. Starting with the base year 2024 and going up to the present year 2025, the report examined how the industry growth trajectory changes from the first half of the year, i.e. January through June (H1) to the second half consisting of July through December (H2).
This gives stakeholders a comprehensive picture of the sector’s performance over time and insights into potential future developments.
The table provided shows the growth of the sector for each half-year between 2024 and 2025. The market was projected to grow at a CAGR of 4.2% in the first half (H1) of 2024. However, in the second half (H2), there is a noticeable increase in the growth rate.
Particular | Value CAGR |
---|---|
H1 2024 | 4.2% (2024 to 2034) |
H2 2024 | 4.3% (2024 to 2034) |
H1 2025 | 4.4% (2025 to 2035) |
H2 2025 | 4.5% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2025, the CAGR is projected as 4.4% in the first half and grow to 4.5% in the second half. In the first half (H1) and second half (H2), the market witnessed an increase of 10 BPS each.
Between 2020 and 2024, the target market registered growth rate of 4.0% by reaching a value of USD 12,546.7 million in 2024 from USD 10,718.0 million in 2020.
AGM batteries are capable of starting engines for 60,000 times and these offer durability i.e., 3 times more than that of standard batteries. Adoption of AGM batteries has surged owing to its dual functionality. Every time the engine cuts off, the AGM battery steps in to run air conditioning, fuel sensor, transmission, radio and all the other electronics that keep the car running smoothly.
Backup cameras, bluetooth connections and other electronics will drain deep cycle AGM batteries in a way standard car batteries can’t handle. Standard lead-acid batteries used to fit the bill for cars because they can throw a lot of electricity into a starter in a short powerful burst.
Then they need to recharge to 100% or else they start to die. Draining a battery to 50% or so before recharging it is called deep cycling. Plain, flooded car batteries can’t deep cycle like AGM batteries.
AGM batteries, on the other hand, can deliver a steady stream of amps and still give a big burst of power to start an engine. The tight fiberglass mat design lets these batteries work well at partial discharge rates, thus making these batteries a popular choice among automotive industry.
All these factors have played pivotal role in expanding the demand for adsorbent glass mat (AGM) battery industry in 2020 to 2024.
Looking ahead to 2025 to 2035, the market is anticipated to grow faster.
The ambition for more sustainability and a greener environment has led to an irreversible trend in the evolution of alternative drive systems
The ambition for more sustainability and a greener environment has led to an irreversible trend in the evolution of alternative drive systems, thus reducing fuel consumption and CO2 emissions. This has resulted in a rapidly increasing number of Start-Stop vehicles, which need OE-compliant AGM batteries.
The change from conventional to alternative and advanced powertrains, like hybrid or full electric, is experiencing a huge shift. As a result, registrations of electric vehicles are breaking records every year. But all alternative powertrains will need the support of AGM batteries.
European car parc and changing powertrains:
All these factors are foreseen to drive the adoption of AGM batteries in the forecast period. Key players in the AGM battery are advancing their product by adopting w innovative framed grid.
For example, Continuous investments in R&D have allowed Exide to propose the latest innovative AGM batteries from OE to the aftermarket, too. They feature a new innovative framed grid, perfect for advanced Start-Stop systems where the battery needs to be quickly recharged through the energy provided by the regenerative braking system.
Advanced AGM batteries are proven to offer high dynamic charge acceptance over battery lifespan, are best suited for optimized partial state of charge operations (PSoC), and are designed and built to endure continuous battery discharge and recharge of Start-Stop systems. These advancement has further amplified the adoption of AGM batteries in automotive end use industry.
Growing demand for energy storage systems globally will drive the demand for AGM batteries
Absorbed glass mat (AGM) batteries have been predominantly used as car batteries, but in certain cases, they can be a solid choice as an energy backup system or energy storage systems. AGM batteries are a type of lead-acid battery that have traditionally been used in cars. Technological advances have made them usable for energy storage systems as well.
The combined markets for stationary and transportation energy storage are predicted to expand 2.5-4 terawatt-hours (TWh) each year by 2030, which is roughly three to five times the 800-gigawatt-hour (GWh) market.
Mobility now has the highest need for energy storage due to electrified powertrains, or onboard energy storage, which are more widely accepted and use five to ten times as much energy capacity as stationary energy storage.
Energy storage research and market deployments have exploded in the worldwide electric and transportation industries due to the combination of electrified vehicles, a sharp decline in battery storage costs, and an increase in variable renewable power.
The growth seen over the last few years in electric vehicle (EV) adoption is expected to continue as central and local government incentives for consumers remain in place in many major world markets, and as manufacturers increase the size of manufacturing platforms.
The existing capacity in stationary energy storage is dominated by pumped-storage hydropower (PSH), but because of decreasing prices, new projects are generally lithium-ion (Li-ion) batteries.
By 2030, annual global deployments of stationary storage (excluding PSH) is projected to exceed 300 GWh, representing a 27% compound annual growth rate (CAGR) for grid-related storage and an 8% CAGR for use in industrial applications such as warehouse logistics and data centers.
China has announced the development of greater than 35-GW PSH from 2020 to 2026 through development of several multi-gigawatt projects, and although not currently in the development phase, the United States is exploring avenues for PSH growth as well.
The largest markets for stationary energy storage in 2030 are projected to be in North America (41.1 GWh), China (32.6 GWh), and Europe (31.2 GWh). Excluding China, Japan (2.3 GWh) and South Korea (1.2 GWh) comprise a large part of the rest of the Asian market.
High demand for solar and wind energy drives adoption of AGM battery
As the push towards renewable energy sources continues, the importance of reliable and efficient energy storage solutions becomes increasingly apparent. AGM batteries have been shown to be effective and sustainable for energy storage in renewable energy systems. AGM batteries are an excellent choice for renewable energy storage due to their high energy density and efficiency.
They are designed to store energy in a more efficient manner than other battery types, such as flooded lead-acid batteries. Furthermore, AGM batteries are capable of supplying high levels of power for short periods of time, which makes them ideal for use in conjunction with renewable energy sources.
AGM batteries are simple to install and are well-liked option for energy storage in household and commercial applications since they don’t need any specialized machinery or ventilation. AGM batteries are also suitable for indoor usage because they don’t release any toxic fumes. AGM batteries have a long lifespan, which is crucial for systems used to store renewable energy.
They are designed to last for long periods of time, even when subjected to high charging and discharging cycles. This means that they can provide reliable energy storage for renewable energy sources for many years without needing to be replaced.
AGM batteries can be used in a variety of renewable energy storage applications. Solar energy systems, which convert sunlight into electricity, are a popular application for AGM batteries. These batteries have the capacity to store extra energy produced during the day for usage at night or in gloomy weather.
Wind energy systems, which convert wind into electricity, can also benefit from AGM batteries to store excess energy generated during periods of high wind for use during low wind conditions. AGM batteries may also be used in hybrid energy systems, which combine a number of renewable energy sources, including solar and wind, to offer dependable energy storage.
Need for reliable power backup systems in telecommunication industry
The telecommunications segment consists of companies that transmit data, voice, audio, or video across the globe. There is an increasing trend towards wireless transmission which is currently supported in many regions of the world by the fourth-generation long-term evolution (4G LTE).
Consumers demand for faster speeds, more data, security, and other features has aided the development of 5G technology upgrade to the telecommunication networks.
The amount of critical data that is being transmitted is growing with the dawn of the Internet of Things. The AGM battery plays an essential role in the telecommunications network. Several factors leads to un-stability in the electric grids supporting the telecommunication infrastructure.
AGM battery are installed to provide power backup during such un-stability and ensures the flow of network. AGM batteries, or absorbent glass mat batteries, are a technological improvement to traditional flooded lead batteries.
Over the years, AGM has become the advance lead battery choice in global telecommunication networks due to its reliability, scalability, and maintenance-free design. The AGM battery has been the global choice backing up telecommunication networks. AGM batteries are a proven technology, reliable, maintenance-free, safe, and recyclable.
The up-front cost of AGM battery as compared to a traditional flooded lead-acid battery
The main disadvantage of an AGM battery is the up-front cost, when compared to a traditional flooded lead-acid battery. AGM batteries tend to be heavier than identical group sizes in flooded lead-acid batteries this tend to limit the adoption of AGM batteries across high performance cars.
Unlike the flooded batteries, AGM batteries have a higher production and manufacturing cost. However, they are still cheaper to produce than gel type batteries.
Even though the cost of manufacturing these batteries has reduced since their introduction into the market in the 80s, it is still generally higher when compared to other battery types in the market. This, therefore, make them slightly expensive for use in some devices.
While these AGM batteries have a high-power output, they have a low specific energy. Generally, it is a necessity for batteries that are required to run for a long time under a moderate load to have a high specific load. This means that these batteries cannot be used on several devices.
Though AGM batteries keep a charge for a longer time than other batteries, they gradually reduce their charging capacity over time. This is unlike gel batteries that have an advantage in this sector because of their excellent performance dome.
Tier 1 companies comprise players with a revenue of above USD 2,000 million capturing a significant share of 40-45% in the global market. These players are characterized by high production capacity and a wide product portfolio.
These leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple adsorbent glass mat (AGM) applications and a broad geographical reach, underpinned by a robust consumer base. Prominent companies within Tier 1 include Yuasa Battery, Inc., Power Sonic Corporation, Clarios, Exide Technologies, and other players.
Tier 2 companies include mid-size players with revenue of below USD 2,000 million having a presence in specific regions and highly influencing the local industry. These are characterized by a strong presence overseas and strong industry knowledge.
These players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include C&D Technologies, East Penn Manufacturing Company, Universal Power Group, Fullriver Battery, and other player.
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The section below covers the industry analysis for adsorbent glass mat (AGM) battery demand in different countries. The demand analysis on key countries in several regions of the globe, including North America, Latin America, East Asia, South Asia Pacific, Western Europe, Eastern Europe, Middle East, and Africa is provided.
China will hold 70.1% in East Asia due to due to massive automotive and growing renewable energy sector. The USA will capture 74.3% in North America. The adoption of electric vehicles (EVs) and hybrid vehicles in the USA is growing steadily, which increases the demand for AGM batteries. Germany will lead Western Europe with 40.1%.
Germany is a leader in the push for sustainability and green technologies, both in the automotive and energy sectors. The country has aggressive environmental policies and targets for reducing CO2 emissions, which has accelerated the adoption of electric vehicles (EVs) and renewable energy solutions.
Countries | Value CAGR (2025 to 2035) |
---|---|
Spain | 7.3% |
India | 6.7% |
Brazil | 7.1% |
Germany | 5.5% |
China | 5.7% |
The sale of adsorbent glass mat (AGM) battery in China is projected to reach USD 4,823.0 million and is estimated to grow at an 5.7% CAGR by 2035.
The country is increasingly adopting electric and hybrid technologies, which require advanced battery solutions like AGM for their reliable performance. The sheer size of the automotive sector, combined with government policies that promote green energy and energy-efficient vehicles, contributes significantly to the dominance of AGM batteries in the region.
China is a global leader in manufacturing, and this extends to the production of AGM batteries. The country's established industrial infrastructure, coupled with its expertise in battery manufacturing, allows China to produce AGM batteries at a large scale, meeting both domestic and international demand.
The sales of AGM battery in the USA is projected to reach USD 4,857.2 million by 2035.
The USA has a well-established infrastructure for energy storage and backup power systems, contributing to the high demand for AGM batteries in telecommunications, data centers, and residential applications.
With the growing focus on renewable energy sources like solar and wind power, there is an increased need for efficient energy storage solutions, where AGM batteries play a crucial role. The USA also has a highly advanced manufacturing and technological base, allowing for efficient production and innovation in battery technology.
The country’s robust distribution networks ensure that AGM batteries are accessible across various industries, including automotive, telecommunications, and energy storage, solidifying the USA's position as the leading market for AGM batteries in North America.
The sale of adsorbent glass mat (AGM) battery in Germany is projected to reach USD 1,173.2 million and grow at a CAGR of 5.5% by 2035.
As home to global automotive giants like Volkswagen, BMW, Mercedes-Benz, and Audi, Germany has a significant demand for AGM batteries, particularly in electric vehicles (EVs) and vehicles with start-stop systems.
The country’s emphasis on green technologies and stringent environmental regulations has accelerated the adoption of electric and hybrid vehicles, which require efficient and reliable battery solutions like AGM batteries. These vehicles often rely on AGM batteries for their ability to handle deep discharges and quick recharges, making them ideal for advanced automotive applications.
Germany is a leader in renewable energy and energy storage systems, further driving the demand for AGM batteries. The country’s extensive investment in solar and wind power has created a growing need for efficient energy storage solutions, where AGM batteries are used to store excess energy for later use.
The section explains the market share analysis of the leading segments in the industry. In terms of type, the stationary AGM battery type will likely dominate and generate a share of around 55.6% in 2025.
Based on the end use, the automotive industry is projected to hold a major share of 40.6% in 2025. The analysis would enable potential clients to make effective business decisions for investment purposes.
Segment | Value Share (2025) |
---|---|
Stationary AGM Battery (Type) | 55.6% |
Stationary AGM batteries are ideal for applications that require reliable, maintenance-free energy storage with consistent performance, such as in uninterruptible power supplies (UPS), telecommunications, data centers, and renewable energy systems.
These industries require batteries that can provide backup power during grid outages and store energy generated from renewable sources like solar and wind. The growing demand for renewable energy solutions, along with increasing reliance on continuous connectivity in telecom and data sectors, has significantly driven the adoption of stationary AGM batteries.
Stationary AGM batteries have a longer service life and are better suited for stationary applications where they are not subject to constant motion or vibration. They are designed to be installed in a fixed position, making them more reliable and efficient for tasks like grid stabilization, emergency power backup, and energy storage in off-grid systems.
Segment | Value Share (2025) |
---|---|
Automotive (End Use) | 40.6% |
AGM batteries are widely used in vehicles equipped with start-stop systems, which help reduce fuel consumption and emissions by automatically shutting off the engine when the vehicle is idle and restarting it when needed.
As more automotive manufacturers adopt these technologies to comply with stringent environmental regulations, the need for reliable, maintenance-free AGM batteries has surged.
Additionally, the rise of electric and hybrid vehicles, which require high-performance battery solutions for efficient energy management, further boosts the demand for AGM batteries in the automotive sector.
The automotive industry's continuous innovations, including advanced driver-assistance systems (ADAS), infotainment systems, and power-hungry features, require batteries that can deliver reliable power under demanding conditions. AGM batteries, known for their superior charge acceptance and ability to perform well in extreme temperatures, meet these requirements, making them the battery of choice for modern vehicles.
Key companies engaged in the adsorbent glass mat (AGM) battery are slightly consolidate the market with about 50-55% share that are prioritizing technological advancements, integrating sustainable practices, and expanding their footprints in the region. Customer satisfaction remains paramount, with a keen focus on advanced adsorbent glass mat (AGM) battery to meet diverse applications.
These industry leaders actively foster collaborations to stay at the forefront of innovation, ensuring their adsorbent glass mat (AGM) battery align with the evolving demands and maintain the highest standards of quality and adaptability.
Recent Industry Developments
The Type segment is further categorized into Stationary AGM Battery and Motive AGM Battery.
The Voltage segment is classified into 2-4 Volts, 4-8 Volts, and >8 Volts.
The end use segment is classified into Automotive, Energy Storage Systems, Industrial, and Other Industries.
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.
The global adsorbent glass mat (AGM) battery market for automotive end use was valued at USD 5,094.0 million in 2025.
The demand for adsorbent glass mat (AGM) battery industry is set to reach USD 22,857.7 million in 2035.
The growing demand for renewable energy systems, such as solar and wind power, has significantly boosted the use of Absorbent Glass Mat (AGM) batteries for energy storage. These batteries are well-suited for storing energy generated by renewable sources due to their ability to efficiently handle deep discharge cycles, which is a common requirement for off-grid and backup power applications.
The adsorbent glass mat (AGM) battery industry was valued at USD 12,546.7 million in 2024 and the demand is projected to reach USD 22,857.7 million by 2035 growing at CAGR of 5.7% in the forecast period.
Stationary AGM Battery type is expected to lead during the forecast period.
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