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The global battery management system market was valued at $5.1 billion in 2019, and it is predicted to register a CAGR of 14.5% during the forecast period (2020–2030), reaching $22.3 billion by 2030.
Among all regions, Asia-Pacific (APAC) is expected to witness the fastest growth in the battery management system market during the forecast period. This can be mainly attributed to the growing adoption of electric vehicles (EVs) in the region, particularly in Japan, China, India, and South Korea. Additionally, increasing demand for Li-ion battery in consumer electronics applications and rising focus toward renewable energy storage systems are the other factors driving the growth of the market.
Factors Governing Battery Management System Market
The key trend being observed in the battery management system market is cloud-connected battery management system. The cloud-connected battery management system offers online analysis and monitoring of the battery data, estimates the precise state of charge (SOC) and state of health (SOH), and helps in identifying the possible critical failures at an early stage. Hence, due to various benefits of the cloud-connected battery management system, companies are increasingly focusing on its development. For instance, in July 2019, engineering firm Robert Bosch GmbH launched a new service “battery in the cloud,” which helps to extend the life of electric car batteries by 20%.
Increasing demand for EVs is a major factor driving the growth of the battery management system market, globally. Due to increasing traditional fuel consumption in conventional vehicles, pollution is increasing rapidly, which leads to enforcement of government policies and increased adoption of EVs in several countries. For instance, in 2018, New Zealand joined the EV initiative and adopted a transition to a net-zero emissions economy by 2050. According to the International Energy Agency (IEA), China accounts for world’s largest electric car market with sales of around one million units in 2018. Battery management systems are used in EVs for controlling the cells’ voltages and for optimizing the performance of the battery. Hence, increasing demand for EVs is driving the market growth across the globe.
Growing demand for renewable energy is a key opportunity observed in the market. Due to rising global warming and pollution level across the globe, demand for renewable energy is increasing rapidly. According to IEA, presently the renewable energy sources make almost 26% share of the world’s electricity demand, and the share is expected to reach around 30% by 2024. Owing to various subsidies and incentives from the governments toward adoption of renewable energy, demand for solar energy as a renewable energy source is increasing. All the renewable energy sources require Lead–acid or Li-ion battery-equipped storage systems for storing the energy. Further, battery management systems are required for these energy storage systems for proper monitoring and control of all operations. Hence, growing demand for renewable energy is creating opportunities for the growth of the battery management system market.
Segmentation Analysis of Battery Management System Market
The Li-ion category in battery type held the largest share in the battery management system market in 2019. It is expected to be the fastest-growing category during the forecast period. This can be attributed to the increasing adoption of Li-ion battery due to its various advantages, such as longer life cycle, higher density, and improved resiliency over lead–acid battery.
In 2019, the distributed category held the largest share in the battery management system market. This is attributed to the growing usage of this topology in EVs and in other large-sized battery packs as it is simplest to install.
The automotive vertical category held the largest share in the battery management system market in 2019. This is attributed to the various government initiatives in developing economies toward adoption of EVs; owing to this, the demand for battery management system in the automotive industry is increasing globally.
The Li-ion category is expected to grow fastest during the forecast period, in terms of electronic battery type in the battery management system market. This can be attributed to the growing demand for Li-ion batteries in various consumer electronics products, such as laptops, cell phones, and tablets, owing to more energy storage capacity as compared to the other batteries.
Geographical Analysis of Battery Management System Market
Globally, APAC was the largest region in the battery management system market during the historical period. Also, it is expected to be the fastest-growing market during the forecast period. This can be attributed to the increasing demand for EVs in the region, particularly in China, South Korea, and India. For instance, according to IEA, in 2018, the sales of electric cars in China increased by around 86% from 72% in 2017. Moreover, with growing usage of energy storage applications in telecommunications and industrial sectors for the backup power supply, demand for Li-ion battery management system is increasing in the region.
Recent Strategic Developments of Major Battery Management System Market Players
The global battery management system market is fragmented in nature with presence of several global and regional players. Some of the major players operating in the market are Leclanché SA, Panasonic Corporation, Lithium Balance A/S, Nuvation Energy, Eberspaecher Vecture Inc., Storage Battery Systems LLC, Renesas Electronics Corporation, Elithion Inc., Cummins Inc., Navitas Systems LLC, and LION Smart GmbH. In the recent years, the major players in the battery management system market have taken several strategic measures, such as product launches, partnerships, and mergers & acquisitions, to improve their position in the market. For instance, in June 2019, Lithium Balance A/S launched n-BMS version 2.4.0, which includes changes for the associated creator PC support tool and management control unit (MCU) firmware. This new version includes general-purpose input/output (GPIO) access and control via controller area network (CAN) and custom data processing. It also includes time and date stamps for the error logging.
Market Size Breakdown by Segment
The battery management system market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Battery Type
Based on Connectivity
Based on Topology
Based on Vertical
Key Questions Answered in the Report