As sales of electric vehicles soar, and as the price of automotive batteries declines, demand for battery management systems will jump. The battery management system market is projected to grow at a 15% CAGR between 2021 and 2030, according to a new report from ResearchAndMarkets.
Battery management systems are needed to control and track the charging and discharging process of batteries in electric vehicles. They also monitor the health of the battery and provide information on the amount of charge remaining.
While the pandemic adversely affected the battery management system market due to a reduced demand for EVs and the closure of some automotive facilities, sales are on the rise. In fact, EVs represent a $7 trillion global market opportunity between today and 2030, and $46 trillion between now and 2050, BloombergNEF recently predicted.
The lithium-ion category will continue to generate the highest revenue in the battery management system market, based on battery type. A longer life, lower maintenance requirements, higher energy density, eco-friendliness, and better resilience make these batteries preferred among end users, according to the report.
The wireless bifurcation, on the basis of connectivity, is expected to witness the higher CAGR in the battery management system market in the near future, of 54.8%. With the rising demand for reducing the wiring and the increasing adoption of the internet of things (IoT), wireless battery management systems are gaining rapid popularity.
The Asia-Pacific market is the largest market for battery management systems, and it will also witness the fastest revenue growth in the years to come. According to the International Energy Agency's (IEA) Global EV Outlook 2020 report, almost 47% of the 7.2 million electric cars operational around the world in 2019 were in China.
Moreover, China accounts for the largest fleet of electric two- and three-wheelers and buses in the world. China is also well on its way in the transition to electric heavy commercial vehicles, according to Guidehouse Insights.
Some of the most prominent players in the global battery management system market are: Leclanché SA, Nuvation Energy, Lithium Balance A/S, Eberspaecher Vecture Inc., Renesas Electronics Corporation, Storage Battery Systems LLC, Elithion Inc., Navitas Systems LLC, Cummins Inc., Panasonic Corporation, and LION Smart GmbH.
