Battery Management System Market Trends

Growth Drivers

• Growing Utilization of Battery Management Systems in the Automotive Industry - Automobiles have a higher demand for battery management systems since each automobile requires the installment of a battery. The main purpose of a battery in the automobile is to create a spark for starting the engine. Hence, the battery is a major part of the starting system of a car. As of 2021, approximately 80 million motor vehicles were estimated to be manufactured across the globe.

• Increasing Manufacturing of Electric Vehicles and Hybrid Electric Vehicles – battery management system is highly required in electric vehicles since each function in these vehicles is operated by electricity that is generated by using batteries. The main type of battery used in electric vehicles is lithium-ion batteries. For instance, in 2020, around 3 million hybrid electric vehicles were produced while the number is further estimated to reach around 6 million by 2025.

• Growing Need for Battery Monitoring in Renewable Energy Systems – it was anticipated that in 2021, around 550 TWh of renewable energy were generated across the globe. Batteries are noticed to be used in this industry to power turbines. 

• Growing Utilization of Batteries in Wireless Headphones – there are separate batteries given in wireless headphones which require a battery management system. Therefore, the growing sales volume of wireless headphones is expected to boost the market growth over the forecast period. As of 2021, approximately 290 million units of wireless headphones were sold out across the globe.

Challenges

• High Upfront Cost of Battery Management Systems - The battery management system is expensive since they need an enhanced mechanism to shift energy from one point to another. Hence, it requires most upgraded equipment to be included which also plays a significant role in increasing the price of the battery management system. Therefore, this factor is anticipated to hamper the market growth over the forecast period.
• The Requirement for the Additional Space
• Less Durable and Lower Reliability