By 2025, it is expected that there will be a huge number of electric vehicles (EVs) plying on the road alongside other automobiles. An effective battery management system is critical for automobile manufacturers. Apart from EVs, Battery management systems are used in several other areas such as aviation, industrial UPS, domestic UPS, medical instruments, and drones however, most of its revenue comes from electric vehicles. It is also being used in the military domain and in telecommunication devices for efficient battery usage. The automotive industry uses battery management systems for various applications like E-bikes, Automotive guided vehicles, and electric cars. Moreover, to control several functions and also to ensure safe and proper operation of batteries, battery management systems are required. These systems also help to monitor batteries against parameters such as voltage and current, temperature, battery reliability, and maintenance schedule to check whether the battery is overcharged or undercharged.
The increasing demand for battery management systems comes from renewable energy systems and the need for an effective electric grid system. The global battery management system market size is estimated to grow from USD 5.4 billion in 2019 to USD 17.8 billion by 2026, at a CAGR of 18.6%.
1. Improvement in technical parameters of a Battery:
It’s key qualities like increased capacity and temperature resistance are the driving factors for the sales and marketing in the battery management system market. Some batteries such as Nickel-metal batteries are made up of eco-friendly metals which not only contribute to the novelty but also make the disposing process much easier and less harmful.
2. Rising Demand For Electric Vehicles
Additionally, the rising demand for electric vehicles provides a market boost to the battery management system market and ensures promising market growth in the next 5 years (2020-2025). Stringent regulations aimed at reducing carbon emissions in developed economies and growing penetration of Electric vehicles in emerging economies are expected to drive the product demand in the automotive sector.
3. The growing need for effective grid management
The growing need for effective grid management has also helped in driving growth in the battery management system market
4. Growing need to protect batteries from overheating and overcharging
With the growing demand for Lithium-ion batteries, it also comes with few challenges faced while manufacturing it in bulk quantities. They can be damaged if overcharged and result in overheating or even cause emission of hazardous fumes which is often overlooked upon. Also, the lithium-ion batteries can be damaged if discharged below 5% of the total capacity and this unawareness of this fact among potential buyers reduces the effectiveness of such battery management systems. These types of damages are permanent damage and that makes recycling of the product more difficult, thereby hindering the growth of this market. This makes it imperative for consumers to adopt battery management systems thereby driving growth in the battery management systems market.
The standalone battery system provided by the lead-acid batteries and the growing popularity of Lithium-ion battery has increased the market for these two types of batteries; however, this has impacted the market of Nickel-based battery management systems. The market growth is also being hindered by the lack of standards and regulations for developing Battery Management Systems.
It is expected that demand for effective battery management systems will rise in the future because of the huge investments made by many economies for the larger adoption of renewable energy. This provides an opportunity to companies operating in the battery management systems market value chain.
Grinch from Chennai introduces power-efficient EV batteries for two-wheelers, autos, and light vehicles. Its new invention Pintail is an IoT (Internet of Things) enabled battery designed especially for two-wheelers. Its other invention Falcon is a much bigger battery that supports larger vehicles like tractors. This shifting phase of automobiles from being fuel-driven to electrically driven is a sustainable development approach that is expected to benefit both the industry and the people in the long run. Nissan Motors is testing new technologies to re-use the old vehicle batteries to cut down the cost of production of E-vehicles.
The automotive and power industrial sector has witnessed a downfall during the global pandemic. The decrease in sales and demand for electric vehicles has also impacted the battery management system sector, decreasing its market for the lockdown period. Despite the lockdown, there has been a considerable increase in the sales of UPS systems that helps the recovery of the battery management system market.
The report analyses the Battery Management Systems Market and its ecosystem in detail. Some of the top-level battery manufacturing companies are scattered around Europe, which might be the reason for its highest growth during the forecast period. Some of the major players in this market are Lechlanche from Switzerland, Saft from France, Eberspaecher Venture from Canada, and Nuvation Engineering from the United States. E-transport solutions and effective energy management systems are key reasons for the huge success of these companies.
The research report analyses the ecosystem of the Battery Management Systems Market and categorizes the Battery Management Systems Market to forecast the revenues and analyze the trends in each of the following below-mentioned market segments.
The key players operating in the market are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.