- It will grow at a CAGR of 15 per cent between 2021 and 2030, according to P&S Intelligence
- The declining prices of automotive batteries, especially lithium-ion (Li-ion) batteries, are driving the battery management system market, by accelerating the sales of EVs and, in turn, the demand for batteries
The global battery management system market revenue will be worth $22,279.6 million by 2030 as per a report by P&S Intelligence. It will grow at a CAGR of 15 per cent between 2021 and 2030, according to P&S Intelligence.
This is because the key component of EVs is the battery, which provides them with the propulsive power. The battery management system is needed to control and track the charging and discharging process, monitor the health of the battery, and provide information on the amount of charge remaining.
The declining prices of automotive batteries, especially lithium-ion (Li-ion) batteries, are driving the battery management system market, by accelerating the sales of EVs and, in turn, the demand for batteries.
It said, “During the COVID-19 pandemic, the battery management system market was negatively affected, both on the demand and supply sides. Due to the closure of automotive and consumer electronics facilities as a result of the lockdown measures taken around the world, the requirement for such systems reduced. As the factories producing battery management systems were also shut down, the supply of such products suffered. On account of the widespread financial distress, people did not spend much on automobiles and consumer electronics.
Li-ion category will continue to generate the highest revenue
The report said that in the coming years the Li-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.
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 per cent. 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.
Asia-Pacific (APAC) is the largest battery management system market, 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 per cent of the 7.2 million electric cars operational around the world in 2019 were in China. China accounts for the largest fleet of electric two- and three-wheelers and buses in the world. Under Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme, the Indian government is investing Rs 10,000 crore in the EV sector.
