The global battery management system market Growth Accelerated by Increasing Demand for EVs
A battery management system (BMS) is an important component in rechargeable batteries used to manage a battery. It monitors cell voltages, temperature, and charge/discharge current. BMS provides protection against overcharging and overheating. It balances energy drain from each cell and extends battery life by preventing performance deterioration. With growing adoption of electric vehicles driven by stricter emission standards, BMS becomes critical to properly manage high-density battery packs in vehicles.
The global Battery Management System Market is estimated to be valued at US$ 106.16 Mn in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing adoption of electric vehicles presents a huge market opportunity for battery management systems. Stringent emission norms by various governments pushing automakers to focus more on electric vehicles. For instance, countries like China, UK, France, India have announced bans on internal combustion engine vehicles starting 2030. This accelerates electric vehicle sales significantly providing a boost to battery management system demand. As electric vehicles require high-density battery packs for longer range, a robust battery management system becomes essential to safely manage these advanced lithium-ion batteries and optimize battery life. The electric vehicle revolution is estimated to drive the need for more efficient and reliable battery management systems presenting a lucrative growth opportunity for players in this market.
Porter's Analysis
Threat of new entrants: The battery management system market requires high initial investments in R&D which acts as a barrier for new companies. Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of substitutes and differentiated quality of products offered by different manufacturers. Bargaining power of suppliers: Supplier integration and collaboration with OEMs results in interdependent relationships balancing out bargaining powers. Threat of new substitutes: Alternatives like super capacitors possess threat but lack ability to store high energy. Competitive rivalry: Intense competition exists due to growing technological advancements and quality requirements.
SWOT Analysis
Strengths: Growing automotive industry and demand for electric vehicles drive the market.
Weaknesses: High dependency on lithium-ion batteries and technological limitations of existing battery management systems.
Opportunities: Developments in battery materials and alternative energy storage technologies open new areas.
Threats: Economic slowdowns and regulations on battery usage pose challenges.
Key Takeaways
The Global Battery Management System Market Size is expected to witness high growth during the forecast period of 2023 to 2030. The market size for 2024 is projected to reach US$ 106.16 Mn registering a CAGR of 6.3%.
Asia Pacific dominates the global market due to presence of large automotive manufacturing bases and fast growing adoption of electric vehicles in China and India. Regional analysis growth is backed by government initiatives and investments encouraging sustainable transportation.
Key players operating in the Battery Management System market are Croda International, Ashland Global Holdings, BASF SE, International Flavors & Fragrances Inc., Lipotec SAU, Rahn AG, and Carrubba Incorporated. These players focus on new product developments and partnerships with OEMs to gain competitive advantage.
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