Market Size of Automotive Battery Management Systems Industry
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2021 |
| CAGR | > 12.60 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Automotive Battery Management Systems Market Analysis
The automotive battery management system market was valued at USD 5.17 billion in 2021, and it is expected to register a CAGR of over 12.7% during the forecast period (2022-2027). The market seems to be promising due to the increased adoption of electric vehicles globally. With growing electrification in vehicles, the need for safe and optimum use of the energy stored in a vehicle battery pack has increased significantly among automakers.
Demand remained muted during the FY 2020 due to COVID-19, which affected the supply chain. Government-regulated lockdowns shut down the production houses, causing a decline in annual sales during Q2 FY2020. The COVID-19 pandemic decreased consumer purchasing power and contributed to a significant drop in oil and gasoline prices. For traditional vehicles with internal combustion engines (ICEs), the drop in gasoline prices may decrease the total cost of ownership. Although EVs will still have lower total costs of ownership than traditional ICE vehicles in most segments, the advantage will not be as great, and this shift could influence sales. Moreover, the market has been recovering after Q2 2021 in terms of revenue and annual sales. The supply chain is working efficiently. Thus, the market is likely to grow significantly during the forecast period.
Thus, the demand for battery management systems from the automotive industry has been growing significantly, and it is expected to continue to grow during the forecast report. In addition, regional government policies regarding EV adoption have primarily driven the business dynamics. Companies are focusing on entering international deals and are heavily investing in R&D projects.
The anticipated increase in demand for electric vehicles may primarily drive the market during the forecast period, as most electric vehicles worldwide utilize lithium-ion batteries. The battery management system is essential for the safe and optimal performance of lithium-ion batteries.
Automakers are initiating several plans to launch a greater number of electric vehicles. They are also entering partnerships and making investments to have a competitive edge in the markets. For instance,
· In April 2021, PACCAR announced a five-year supply agreement for battery power systems with Romeo Power Inc. PACCAR may purchase Romeo Power’s battery packs and battery management software for heavy-duty battery-electric Peterbilt 579EV vehicles and Peterbilt 520EV refuse trucks in North America.
· Mahindra & Mahindra (M&M) announced an investment of INR 30 billion in electric vehicle (EV) space over the next three years. Mahindra is exploring partnerships in the EV segment, including battery management systems. It is also planning to launch a new EV platform.
