The global battery management system market is projected to reach $32.3 billion by 2032 and exhibit growth at a CAGR of 19.6% between 2022 and 2032, according to a new report by Fact.MR. Emergence of cloud-connected battery management systems owing to the rising convergence of industrial technology and operations is set to propel the growth in the market.
The ability of cloud-based analysis and monitoring framework for battery management systems to analyze and monitor the algorithms and data associated with batteries is anticipated to drive sales, the report states. This framework provides vital information regarding State of Health (SOH) and State of Charge (SOC) estimates which is beneficial for end-users.
Further, cloud-based solutions offer information related to long-term tracking of cell aging and enables the online identification of critical battery failures at numerous stages of its operations, the report states. Hence, the growing popularity of similar high-tech features is estimated to incur transformational changes in business strategies for stakeholders in the market.
Besides this, the increasing demand for environmentally-friendly solutions is likely to bode well for the market. According to the International Energy Agency (IEA), in 2019, sales of EVs reached 2.1 million across the globe. Hence, rising sales and production of EVs across the globe are expected to drive the market in the near future.
Key takeaways from the report include:
- The U.S. is expected to account for around 78% of the market share in 2022 owing to the higher adoption of EVs with rising air pollution caused by internal combustion engines.
- In 2022, sales in China are likely to grow by US$ 585 Mn backed by the surging sales of battery-electric buses and high demand for passenger cars.
- South Africa battery management system market is anticipated to procure 21.4% of the share in the assessment period stoked by the rising shift of people toward automation.
- North America is set to account for approximately 35% of the total market share in 2022.
- Higher adoption of advanced technology is projected to exceed the sales of battery management systems in Europe by US$ 1.7 Bn by 2022.
- By topology, the modular segment is estimated to surpass 20.7% in terms of CAGR as it does not require broad wire harnesses and has high computational power.
- In terms of application, the automotive segment is likely to grow 7.7x during the forecast period with rising sales of EVs across the globe.
- Based on component, the battery management unit segment is anticipated to hold around 64% of the share in 2032.
- High demand for lithium-ion battery powered four wheeler vehicles is set to create new growth opportunities for manufacturers worldwide.
- Increasing need for sustainable vehicles, such as e-bikes, golf carts, and commercial vehicles in emerging economies is expected to bolster the market.
- Requirement of battery monitoring in cutting-edge renewable energy systems is projected to fuel the market in the upcoming years.
- Increasing import duties levied by government bodies on the battery management system industry, especially in developing countries, may hamper the demand.
- Stringent regulations pertaining to import duties on battery management systems and components are likely to hinder their adoption in the automotive industry.
- Battery management systems with technological deficiencies cannot be integrated with complex battery structures, which is likely to impede the growth in the market.