AGM Battery Market - By Application (Stationary {Telecommunications, UPS, Control & Switchgear}, Motive, SLI), By Sales Channel (OEM, Aftermarket), By Region & Global Forecast 2022 - 2032

AGM Battery Market - By Application (Stationary {Telecommunications, UPS, Control & Switchgear}, Motive, SLI), By Sales Channel (OEM, Aftermarket), By Region & Global Forecast 2022 - 2032

The global AGM (Absorbent Glass Mat) Battery market is anticipated to record a CAGR of 2.8% during 2023 and 2032. The industry growth is primarily fueled by the increasing need for dependable energy storage solutions across industries.

With the rising instances of blackouts due to uncertain weather conditions, the industries and households are seeking efficient backup power sources. The AGM batteries with their ability to deliver consistent power and maintain a long service life makes them an attractive option for applications ranging from uninterruptible power supplies (UPS) to emergency lighting systems. This factor, along with the robustness of AGM batteries that makes them well-suited for harsh operating conditions, including extreme temperatures, will boost the product demand and stimulate the industry growth in the coming years.

The overall AGM battery market is segmented on the basis of application, sales channel, and region.

Based on application, the motive segment share is poised to grow with a CAGR of over 3% through 2032, owing to the growing usage in the vehicles. The automotive sector is witnessing a rapid shift towards electric and hybrid vehicles, driven by environmental concerns and government regulations promoting cleaner transportation. AGM batteries are increasingly integrated into these vehicles to provide reliable power for starting, lighting, and ignition (SLI) systems. Their ability to deliver high cranking power and withstand deep cycling makes AGM batteries an ideal choice for this application, contributing significantly to the market growth.

Moving on to sales channel, the AGM battery industry size from the OEM (Original Equipment Manufacturer) segment will expand at the rate of more than 2.5% during the study period, favored by the increasing product usage in automotives, industrial equipment, and consumer electronics. This is encouraging partnerships and collaborations between battery manufacturers and OEMs. These strategic alliances enable seamless integration of AGM batteries into a wide array of products. The expanding OEM sales channel is expected to bolster the market growth in the coming years by providing a platform for efficient distribution.

On the regional level, North America AGM battery market will emerge as a lucrative avenue and grow at over 2% CAGR through 2032, attributed to the robust industrial base and significant adoption of advanced energy storage solutions in the region. North American countries, especially the United States and Canada, are investing heavily in renewable energy projects, such as solar and wind power installations. AGM batteries play a pivotal role in storing energy generated by these sources, ensuring a stable power supply even during intermittent energy production. Furthermore, the shift in automotive sector toward AGM batteries for reliability, efficiency, and sustainable nature is creative a conducive environment for market growth in North America.