The battery management system (BMS) plays a crucial role in monitoring performance parameters like voltage, current and temperature of battery packs while charging or discharging. A BMS ensures battery safety by controlling the formation, charging and discharging of the battery. It prevents overcharging and overdischarging as well as increases battery life cycles. Batteries find extensive usage in consumer devices like smartphones, laptops, tablets and electric vehicles amongst others which further necessitates the need for an effective BMS to optimize their performance.
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 key trends:
One of the major trends driving the battery management system market growth is the increasing demand for electric vehicles. Governments across the globe are promoting the adoption of electric vehicles to lower emissions from gasoline-powered vehicles. Advanced BMS is crucial for electric vehicles as it plays a key role in monitoring battery parameters like voltage, current and temperature to ensure optimized performance, safety and durability of batteries during vehicle operation as well as charging. Furthermore, the rising focus on developing smarter and more efficient BMS further widens the scope of innovations in the electric vehicle battery management system market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate in the Battery Management System market. High initial costs such as R&D spending, manufacturing plants setup, and talent acquisition to develop cutting edge technologies acts as a deterrent for new players.
Bargaining power of buyers: The bargaining power of buyers is high in this market. Buyers can negotiate on the pricing and demand additional features in the Battery Management Systems. Growing options from multiple vendors also increases buyer leverage.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Suppliers of specialized components and technologies have some control over pricing but overall the suppliers segment is fragmented.
Threat of new substitutes: The threat of substitutes is low. While alternate energy storage solutions exist, Battery Management Systems offer improved efficiencies, longer lifespan and safety features.
Competitive rivalry: The competitive rivalry is high. The presence of technology giants and numerous smaller players has led to intensive competition based on innovation, pricing and performance.
Key Takeaways
The Global Battery Management System Market Size 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.
Regional analysis: North America dominates the Battery Management System market currently due to growing electric vehicles adoption and stringent vehicle efficiency norms. Asia Pacific is expected to be the fastest growing market owing to strong presence of automotive and consumer electronics manufacturers in countries like China and India.
Key players: Key players operating in the Battery Management System market are Croda International, Ashland Global Holdings, Givaudan, BASF SE, Symrise AG, International Flavors & Fragrances Inc., Biolandes SAS, Lipotec SAU, Rahn AG, and Carrubba Incorporated.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it