Increasing Demand of Electric Vehicles to Boost the Battery Management Systems Market

Battery management systems (BMS) are electronic systems that prevent rechargeable batteries (cells or battery packs) from operating outside their safe operating area, calculate a set of secondary data, control it, monitor it, and authenticate and balance it.

The global battery management system market was worth $6.41 billion in 2021 and is predict to be worth $35.79 billion by 2030, with a CAGR of 21.2% from 2021 to 2030.

The market trends for battery management systems show an increase in overall demand for electric and hybrid vehicles and an increase in demand for effective power grid management, which will be major factors boosting the global market growth. Furthermore, increasing government initiatives to promote the use of electric vehicles will boost market value during the forecast period. Efforts to standardize battery management regulations are anticipate to boost market growth over the forecast period. As per the most recent report by the US Department of Energy, electric vehicle sales increased by 85% in 2021, and plug-in electric vehicle sales increased by 138% compared to 2020. According to ACEA, 224,145 electric vehicles can be sold in the Europe in 2022, representing a 53.4% increase over the year. Battery management systems are require for all vehicles in the military and aviation sectors, including Jeeps, heavy-duty trucks, multi-copters, drones, and amphibious vehicles.

Growth Factors

The industry anticipates that as the use of electric vehicles grows, advanced automotive battery management systems will advance as well. Factors such as the increasing battery demand and the rising trend of electric vehicles are driving the growth of the market. The battery management system aids the effective management of the electric grid. The system aids in safeguarding or guarding against damage to the battery. Governments all over the world have active, strict regulations and policies to raise awareness of the negative effects of conventional fuels and an available alternative, which is the use of electronic vehicles and hybrid electric vehicles, in order to prevent the emission of greenhouse gases. Manufacturers have started to use battery management systems in cars to make the best use of the battery storage capacity and prevent any risks that faulty batteries may bring on in electric and hybrid cars.

Market Opportunity

Governments around the world are working to achieve their climate control goals and developing policies to shift their primary energy source to renewable sources. The European Union, for example, has the European Green Deal, the Horizon Europe funding program, and the EU Hydrogen Strategy. The United States has provisions in the CARES Act, 2020 and its Nationally Determined Contribution or ‘NDC’ plan submission to the UNFCCC that outline how it will achieve net-zero emissions within a specified time frame. As a result of renewable energy policies and subsidies on various renewable energy devices and technologies, the market for battery management systems is likely to grow significantly.

Segment Analysis

  • On the basis of battery type, the lithium-ion battery segment accounts for the majority of the battery management system market share. According to the IEA, lithium-ion batteries are preferrer over traditional nickel manganese cobalt batteries in China due to lower costs, environmental safety, and overall stability. As a result of increasing storage capacities for batteries, such as the 18650 battery, the demand for cost-effective and energy-saving battery management and monitoring systems will grow.
  • The modular topology is expect to grow at the fastest rate in the topology segment. The main benefit of using the modular type is that it can be connect in series or parallel circuits to each other, increasing the power/voltage output while also lowering maintenance costs.
  • Automotive has the largest market share in the application segment, followed by consumer electronics due to the emergence of new products in both segments. According to the IEA, total electric vehicle sales will more than double to 6.6 million units by 2021. According to industry estimates, the consumer goods segment was worth more than USD 1002.64 billion in 2020. As a result of increase sales in both major segments, there will be increase demand for battery management systems.
  • On the basis of region, North America and Europe shared a dominant position in the market by region due to the high percentage of electric vehicles and renewable energy infrastructure, which would necessitate efficient power battery management systems.

Competitive Landscape

  • Elithion Inc
  • Nuvation
  • Deutz AG
  • Toshiba Corporation
  • Leclanche
  • Panasonic Corporation
  • ST Microelectronics
  • Texas Instruments Inc
  • Other Players

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