Battery Management System Market to Hit $ 24.83 billion by 2027 | Growing Demand for Renewable Energy
Dr. Evangelo Damigos; PhD | Head of Digital Futures Research Desk
- Competitive Differentiation
- Emerging Technologies
Publication | Update: Sep 2020
According to Markets and Markets, the global battery management system market size is estimated to grow from USD 5.2 billion in 2019 to USD 12.6 billion by 2024, at a CAGR of 19.5%. The growth of this market is expected to be driven by the growing trend of electric vehicles, increasing requirement of battery monitoring in renewable energy systems, and need for effective electric grid management.
Allied Market Research identifies key market determinants of the market: Rise in demand for hybrid electric vehicles & electric vehicles across the globe and growing adoption of lithium-ion batteries across various industry verticals propel the growth of the global battery management system market. Nevertheless, rise in product prices with addition of battery management system restrains the market growth. Moreover, growing adoption of cloud-connected battery management systems is expected to usher a number of opportunities in the near future.
COVID-19 Scenario on Battery Management System Market:
The manufacturers have stopped the production management due to disrupted supply chain amid lockdown. In addition, the interrupted the installation of battery management system.
According to the China Passenger Car Association (CPCA), sales of automobiles in China have significantly dropped in June, 2020 as compared to April and May of 2020. Decline in demand for automobiles have decreased the demand for battery management system as well.
The lithium-ion based segment to contribute maximum share
Based on battery type, the lithium-ion based segment contributed to the largest share, accounting for nearly three-fifths of the total share, and is estimated to maintain its dominant position. The majority of the electric vehicle manufacturers are installing lithium-ion batteries for better and smooth performance, which drives the growth of the segment. However, the lead-acid based segment is estimated to portray the highest CAGR of 22.7% from 2020 to 2027, as it is the cheapest secondary source, almost completely recyclable, and is significantly safer to use.
Modular topology offers advantages such as scalability based on requirement, lower maintenance cost, and immunity to noise which drive the segment growth. However, the centralized segment is expected to register the highest CAGR of 26.0% from 2020 to 2027. Centralized topology has lower design cost and replacement & troubleshooting in this type of topology is significantly easy compared to other topologies, which boosts the growth of the segment.
Asia-Pacific to dominate the market, North America to grow at a significant pace
Based on region, Asia-Pacific contributed to the highest share, accounting for nearly half of the total market share in 2019, and will maintain its dominance throughout the forecast period. This is owing to the increased sales of electric vehicles in countries such as China and Japan. However, LAMEA is expected to grow at the highest CAGR of 27.2% from 2020 to 2027. Rising inclination toward usage of renewable energy sources among end-users, and government initiatives to promote the use of clean energy make it the fastest growing region. On the other hand, North America is anticipated to manifest 22.9% of CAGR throughout the forecast period.
Market for other battery segment to grow at highest rate during forecast period
The high capacity and ability of flow batteries to withstand extreme temperatures make them suitable for applications such as renewable energy systems and UPS. Nickel-metal batteries have high energy density although they are secondary batteries in which environmentally friendly metals are used. These batteries find applications in electric vehicles, portable devices, smart grids, UPS, and others. Solid-state batteries are better than conventional batteries as they are non-flammable, have a long shelf life, are safe, and release high energy.
Modular topology to witness highest CAGR during forecast period
Based on topology, the modular topology segment of the battery management system market is expected to grow at the highest rate during the forecast period. Most of the manufacturers prefer modular topology as it offers significant computational power and is also safe as it does not require extensive wire harnesses. Modular topology is also suitable for a range of applications such as in energy storage systems, industrial UPS, medical mobility vehicles, parts of electric vehicles, and drones. Moreover, the increasing demand for modular topology from these applications is expected to drive the market at the highest rate from 2019 to 2024.
Europe to dominate battery management system market during forecast period
Europe dominates the battery management system market. Europe is home to a few major battery manufacturers such as Saft (France) and FIAMM (Italy). The automobile industry of Europe is an advanced industry with the leanest production processes where the use of water and energy is optimized. The demand for battery management systems is attributed to the presence of manufacturing facilities of major automotive manufacturers such as the BMW Group (Germany), Daimler (Germany), and Volkswagen (Germany).
Key Market Players
Leclanche (Switzerland), Lithium Balance (Denmark), Nuvation Engineering (US), Eberspaecher Vecture (Canada), Storage Battery Systems (US), and Johnson Matthey (UK), among others, are the major players operating in battery management system market.
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