The automotive absorbent glass mat (AGM) start-stop battery market is a vital segment within the broader automotive battery industry. AGM batteries are specifically designed for vehicles equipped with start-stop systems, offering enhanced performance, vibration resistance, and longevity. These batteries are used in various types of vehicles, including passenger cars, commercial vehicles, motorcycles, and heavy-duty trucks.
In 2024, the global automotive AGM start-stop battery market was valued at USD 12.23 billion and is projected to reach USD 20.97 billion by 2034, expanding at a compound annual growth rate (CAGR) of 5.52%.
Key Market Highlights
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Europe held the largest market share, generating the highest revenue.
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Asia Pacific is poised for the fastest growth over the forecast period.
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Passenger cars were the largest vehicle segment, while heavy commercial vehicles (HCVs) are expected to grow at the highest pace.
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Enhanced start-stop systems led the market by type; regenerative systems will rise rapidly.
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OEMs dominated the distribution channel, but aftermarket sales are forecasted to surge.
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60–90 AH batteries held the largest capacity share, while >90 AH batteries are growing fastest.
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Private use vehicles dominated application share, with fleet and commercial vehicles showing strong future potential.
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Emerging Market Trends in 2025
Business Expansions Fueling Growth
Battery manufacturers are investing in new facilities to meet the rising demand for AGM batteries. In June 2024, Clarios invested USD 16 million to establish a new AGM battery plant in South Carolina, USA. Such investments underscore the growing importance of AGM technology in modern vehicles.
Surge in Passenger Vehicle Production
Countries like Germany, China, and the United States are witnessing a rapid increase in passenger car manufacturing. For instance, Germany produced over 4 million passenger cars in 2024, significantly boosting demand for AGM batteries.
Strategic Partnerships
OEMs are forging partnerships with battery makers to incorporate advanced AGM batteries into their fleets. Hyundai Motor partnered with Amara Raja Energy in December 2024 to supply AGM batteries for its upcoming vehicles, reflecting a strong trend toward collaborative innovation.
Vehicle Type Insights
Dominance of Passenger Cars
Passenger cars accounted for 65% of the market share in 2025. High-volume production in markets like China, India, the U.S., and Germany, along with the need for batteries that offer enhanced durability and performance, have driven adoption in this segment.
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Rise of Heavy Commercial Vehicles
HCVs are expected to witness an 8% CAGR. These vehicles demand batteries capable of managing high electrical loads, shocks, and vibrations—characteristics where AGM batteries excel. The segment is also supported by rising investments in battery technology for trucks and buses.
Start-Stop System Trends
Enhanced Systems Lead the Market
Enhanced start-stop systems captured 48% of the market share. These systems are widely used in modern vehicles to reduce emissions and improve fuel economy. AGM batteries play a critical role in ensuring their reliable performance.
Growth of Regenerative Braking Systems
The regenerative braking-based systems segment is expected to expand at a CAGR of 9%. Their integration in hybrid and electric vehicles enhances driving range and environmental efficiency, making AGM batteries essential.
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Battery Capacity Outlook
Market Leadership of 60–90 AH Batteries
This segment dominated the market with a 50% share. These batteries are particularly suited for passenger vehicles and caravans, offering a blend of performance and affordability.
Rising Demand for >90 AH Batteries
These batteries are increasingly used in electric trucks and high-demand systems, making them the fastest-growing segment. Their ability to support energy-intensive vehicle components positions them as future-ready solutions.
Application Segmentation
Private Vehicles Hold the Lion’s Share
With a 68% market share, private use vehicles drive the bulk of AGM battery demand. The rise in luxury and premium vehicle sales in regions like North America and Europe is a major contributor.
Fleet and Commercial Vehicles Set for Rapid Growth
Fleet operators and commercial vehicle manufacturers are turning to AGM batteries to support their transition to electric and hybrid systems. This segment is expected to grow at a CAGR of 9.5%.
Regional Insights
Why Europe Leads the Market
Europe captured 48% of the global market share. Germany stands at the forefront due to its robust automotive manufacturing base. The continent’s focus on emission reduction and the presence of key battery players like Bosch and FIAMM have driven growth.
In November 2024, FIAMM launched a new AGM battery series targeting motorcycles and recreational vehicles, showcasing the region’s commitment to innovation.
Asia Pacific to Grow Fastest
Expected to grow at a CAGR of 15%, Asia Pacific benefits from growing demand in China, India, and Southeast Asia. Government incentives, raw material availability, and the expansion of local battery makers are supporting this momentum.
Recent Developments
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March 2025: Ahlstrom launched an AGM battery separator platform tailored for Italian consumers.
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July 2024: Exide introduced an advanced SLI-AGM battery with improved power and durability.
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July 2024: Daewoo released its AGM VRLA Silver+ battery series using advanced materials for performance enhancement.
FAQs
Q. What is an AGM start-stop battery?
An Absorbent Glass Mat (AGM) start-stop battery is a type of lead-acid battery designed to support vehicles equipped with start-stop systems. It delivers high performance, quick recharge, and strong durability compared to traditional batteries.
Which region dominated the AGM battery market in 2025?
Europe led the market with a 48% share due to strong automotive production, rising EV adoption, and the presence of leading battery manufacturers.
Q. Why are AGM batteries popular in passenger vehicles?
Passenger vehicles require durable and high-performance batteries for frequent start-stop cycles. AGM batteries offer superior vibration resistance, long lifespan, and reliable power delivery, making them ideal for this segment.
Q. What is driving the growth of AGM batteries in commercial vehicles?
Heavy-duty commercial vehicles demand batteries that can handle higher electrical loads and harsh conditions. AGM batteries are well-suited for these demands, leading to increased adoption.
Q. How is the Asia Pacific region contributing to market growth?
Asia Pacific is expected to grow at the fastest rate, fueled by expanding vehicle production, rising demand for commercial vehicles, and increasing investment in battery technology across countries like China, India, and Japan.