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.
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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.
Key Segments Covered
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)
- Energy(grid, solar, wind, portable battery packs, energy storage systems and UPS)
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:
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
- North America
- Western Europe
- Eastern Europe
- Middle East & Africa