A battery management system (BMS) monitors and controls rechargeable battery packs and cells. It protects batteries from operating outside safe parameters like over-charging, over-discharging, and providing balancing for long cycle life. BMS play a vital role in electric vehicles by constantly monitoring battery parameters and informing the driver about charging needs, remaining battery life, and charge levels. They optimize battery performance, improve vehicle range, and enhance driving comfort. The increasing popularity of electric vehicles is creating high demand for advanced BMS to efficiently manage large lithium-ion battery packs.
The global Battery Management System Market is estimated to be valued at US$ 106.16 Mn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing industrial applications is expected to flourish the battery management system market over the forecast period. Rapid industrialization and increasing use of automation equipment in industries like manufacturing, mining, oil & gas, and material handling is boosting the demand for UPS, emergency power backup systems, industrial vehicles which promotes the growth of BMS market. Rapid growth in the adoption of electric vehicles worldwide is another key driver fueling the battery management system industry. Stringent government regulations regarding carbon emission cuts and rising environmental awareness among consumers have increased the demand for electric vehicles incorporating advanced lithium-ion battery packs with reliable BMS. The rising penetration of EVs will continue spurring market expansion through the projection timeframe.
Segment Analysis
The battery management system market is dominated by the automotive segment which holds around 68% share of the total market. Within automotive, electric vehicles sub segment is growing at the fastest pace on back of supportive government policies and increasing consumer preference for electric vehicles due to environmental concerns. The electric vehicle sub segment is expected to continue dominating the automotive battery management system market during the forecast period.
PEST Analysis
Political: Many countries are providing subsidies and tax benefits for adoption of electric vehicles which is positively impacting the battery management system market. Economies are focusing on developing local supply chain to encourage domestic manufacturing of battery management systems.
Economic: Increasing investment towards developing charging infrastructure is driving the battery management system market. Cost of lithium ion batteries is declining which is making electric vehicles more affordable and encouraging automakers to invest more in electric vehicles.
Social: Growing awareness about environmental issues and carbon emissions is encouraging people to shift to electric vehicles. Carbon neutral goals adopted by many nations is boosting the adoption of electric mobility.
Technological: Advancements in connectivity, battery chemistry, and cloud technology is driving innovation in battery management system. 5G connectivity and advance driver assistance systems are enabling more functionalities to be integrated with battery management systems.
Key Takeaways
The global battery management system market share is expected to witness high growth during the forecast period driven by supportive regulations, declining battery prices and increasing electric vehicle sales. The Asia Pacific region currently dominates the market and is expected to continue its lead during the forecast period with China and Japan being the major markets. The global Battery Management System Market is estimated to be valued at US$ 106.16 Mn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.
North America is expected to witness fastest growth during the forecast period on back of growing electric vehicle adoption in US and Canada supported by government incentives and initiatives.
Key players operating in the battery management system market are Croda International, Ashland Global Holdings, Givaudan, BASF SE, Symrise AG, International Flavors & Fragrances Inc., Biolandes SAS, Lipotec SAU, Rahn AG, and Carrubba Incorporated.. Croda International and Ashland Global Holdings have significant market share in battery management solutions for electric vehicles.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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