Battery Management System Market: Global Industry Analysis, Size and Forecast, 2015 to 2025

An Incisive, In-depth Analysis on the Battery Management System Market

This study offers a comprehensive, 360 degree analysis on the Battery Management System market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Battery Management System market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

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Increasing Demand for Battery Management Systems in Electric Bikes and Other E-vehicles to Push Global Market Growth

A growing awareness of the harmful effects of petrol and diesel-fuelled vehicles on the environment has led to innovations in the automotive industry in the form of electric and hybrid vehicles. A growing consumer demand to maximize vehicle efficiency and minimize fuel costs has led to consistent technological advancements in electric and hybrid electric vehicles. The need to optimize utilization of battery storage capacity in electric vehicles and to prevent dangers caused by overheating of the battery, electric vehicle OEMs have started integrating battery management systems in vehicles.

There is an increasing demand for electric vehicles across regions such as North America, Europe, and Japan. Increasing costs of fuel coupled with stringent governmental regulations pertaining to carbon dioxide emissions are pushing adoption of electric vehicles, hybrid electric vehicles, and plug-in hybrid vehicles in developed regions. This is expected to bode well for the battery management system market. There is also a surge in demand for e-bikes and e-scooters in countries such as Germany, Japan, France, U.S, and Italy. Vendors and OEMs in these countries are investing heavily in research and development initiatives to augment the technology underpinning e-bikes and e-scooters. This is further boosting revenues in the global battery management system market.

Governments of both developed and developing countries have implemented stringent regulations and policies to reduce carbon dioxide emissions. To maintain compliance with these regulations, end-use industries such as automotive and telecom are making a switch from traditional fossil fuels to batteries and renewable energy sources. This is fuelling growth of the battery management system market.

Long-term Contracts Between Battery Management System Suppliers and OEMs will Define the Global Battery Management System Landscape

The global market for battery management systems is highly competitive owing to the presence of several manufacturers across different regional markets. Suppliers of battery management systems are engaging with automotive OEMs with long-term agreements to augment their position in the global market.

Growing Adoption of Rechargeable Batteries Across Multiple End-Use Industries to Fuel Sales of Battery Management Systems

Industries such as automotive, telecom, and consumer electronics use rechargeable batteries extensively. Rechargeable batteries also find wide application in industrial products such as vacuum pumps and power tools, and a rapid increase in these products is boosting revenue growth of the battery management system market. Further, the last few years have witnessed increasing adoption of electronic gadgets such as garden tools, power tools, portable battery packs, and portable medical tools across countries in emerging markets such as Asia. This is expected to drive demand for battery management systems.

Factors Hindering Growth in Sales of Battery Management Systems

According to Future Market Insights analysis, the rapidly increasing global demand for electric vehicles will create the highest impact on revenue growth of the battery management system market. However, certain factors are anticipated to hinder sales of battery management systems. Firstly, the presence of a large number of players in the global battery management system market has intensified competition, leading to price wars (especially in cost-sensitive markets such as India) and subsequently reduced profit margins. This is inhibiting revenue growth of the global market for battery management systems. Then again, the complex battery structure sometimes creates compatibility issues with battery management systems. Battery management systems that are technologically deficient cannot be seamlessly integrated with a complex battery structure. This factor is expected to impede revenue growth of the global market.

Segmental Insights from the Report on the Battery Management System Market

The automotive vertical is expected to retain dominance in terms of adoption of battery management systems, primarily owing to increasing demand for e-vehicles, e-bikes, and golf carts.
In terms of topology, centralised battery management systems will continue to dominate the global market.
Among the components of battery management systems, the BMU segment will continue to retain dominance.
Of the different regional markets, Asia Pacific Excluding Japan followed by North America will lead the global market in terms of sales of battery management systems. Growth in the automotive and telecom industries in APEJ coupled with increasing economic growth are the key factors expected to boost regional market growth. Increasing demand for electric vehicles in North America and growth in the telecom industry in the region are primarily responsible for increased sales of battery management systems in the region.

In its latest market outlook, Future Market Insights report examines the ‘Battery Management System’ market for the period 2015 – 2025. The primary objective of the report is to offer updates, insights and information regarding the market opportunities in the global battery management system market.

The BMS manages batteries by controlling load environment, monitoring battery state and accordingly balancing the charging. Battery management system is useful for ensuring prolonged life of batteries, preventing battery damage due to overcharging and voltage fluctuations, managing optimal state of charging for the battery and facilitating BMS interfaces with host application to provide real-time information regarding battery health. BMS follows three types of topologies, which are distributed, centralised and modular. Distributed BMS has a single communication cable controller and battery; a cell board is installed at each cell. Centralised BMS has a single controller, which is connected to battery cells with the help of communication wires. Modular BMS has multiple controllers that handle certain number of cells and communicate with each other.

The report begins with an overview of the battery management system market. The global battery management system market is segmented on the basis of verticals into automotive, energy, telecom and drones.To understand and assess the opportunities in this market, the report is categorically split into three sections: market analysis by vertical, topology, component and region.

FMI covers the battery management system market performance in terms of revenue split in the following regions: Asia Pacific Excluding Japan (APEJ), the Middle East & Africa (MEA), Latin America, North America, Western Europe, Eastern Europe and Japan. This section also includes FMI analysis of key trends, drivers and restraints. Impact analysis of key growth drivers and restraints based on the weighted average model is included in the report to better equip clients with crystal clear decision making insights.

The report analyses the market on the basis of concerned verticals and presents forecast in terms of value and volume for the next 10 years. Vertical types covered in the report include:

Automotive(e-Vehicles (EVs, HEVs, PHEVs, BEV, racing vehicles and electric heavy vehicles), golf cart, medical mobility vehicles, e-recreational vehicles and Segways)
Telecom
Energy(grid, solar, wind, portable battery packs, energy storage systems and UPS)
Drones

The report further analyses the market on the basis of components and presents forecast in terms of value for the next 10 years. Component types covered in the report include:

Battery management unit
Communication unit

The report further analyses the market on the basis of various topologies and presents forecast in terms of value for the next 10 years. The topology types covered in the report include:

Distributed
Centralised
Modular

The next section of the report analyses the market on the basis of various regions and presents forecast in terms of value for the next 10 years.

Asia Pacific Excluding Japan
Latin America
Japan
North America
Western Europe
Eastern Europe
Middle East & Africa

All the above sections, by region, by component, by vertical and by topology evaluate the present scenario and growth prospects in the battery management system market for the period 2015 –2025. We have considered 2014 as the base year, with market values estimated for 2015 and forecast developed from 2016 onwards.

The vertical ’Home Appliances‘ mainly includes BMS for UPS and invertor systems for domestic usage that provide backup for home appliances such as television, electric water heaters, room heaters, electric ovens, air conditioners and cable boxes. Various factors such as GDP, telecom tower installations, electricity net consumption, total renewable electricity net consumption, electric vehicle stock, lithium-ion market, lead-acid battery market and telecom industry growth have been considered to calculate the indicated market numbers. We have sub-segmented the component segment by ‘Battery Management Unit (BMU)’ and ‘communication channel’. BMU represents a chip or main processing component of the battery management system. A battery management unit does not include power module, charger, battery, monitor DC/DC converter or communication (we are considering communication as a separate component). To calculate market size, by topology, we have grouped verticals as follows:

Distributed: grid, solar, wind, telecom and parts of e-vehicles
Modular: energy storage system, industrial UPS, medical mobility vehicles, e-recreational vehicles and parts of e-vehicles, drones
Centralised: E-bikes, Segways, portable battery packs, power tools, vacuum cleaner, garden tools, portable medical equipment, others (home appliances with high cell count and domestic UPS)

The forecast presented here assesses total volume and revenue generated by the battery management system market, by vertical. Given the characteristics of the market, we triangulate the outcome on the basis of various critical factors, such as supply side, demand side and dynamics of the parent market. However, quantifying the market across aforementioned segments and regions is more a matter of quantifying expectations and identifying opportunities rather than rationalising them after the forecast has been completed.

In addition, it is imperative to note that in an ever-fluctuating global economy, we not only conduct forecasts in terms of CAGR, but also analyse on the basis of key parameters such as Year-on-Year (Y-o-Y) growth rate to understand market predictability and to identify ideal opportunities across the battery management system market.

Sub-segments and/or categories have been analysed in terms of Basis Point Share (BPS) to understand individual segments’ relative contribution to market growth. This detailed level of information is important for identification of key trends in the battery management system market.

Another key feature of this report is the analysis of battery management system market, by region, vertical, component and topology and its revenue forecast in terms of absolute dollar opportunity. This is traditionally overlooked while forecasting the market. However, the absolute dollar opportunity is critical in assessing the level of opportunity that a provider has, as well as to identify potential resources from a sales perspective.

Furthermore, to understand key growth segments in terms of growth and adoption of battery management system, FMI developed the market attractiveness index. The resulting index would help providers identify ideal market opportunities.

The final section of the report includes the battery management system landscape, and provides the audience with a dashboard view, based on categories of providers across the value chain, their presence in battery management system product portfolio and key differentiators. Key players across the supply chain of the global battery management system market include OEMs/suppliers of BMS, BMU integrators and electronic devices manufacturers that manufacture BMSs. These include: