The global market for automotive Battery Management Systems has seen a sea change in demand in the past few years with burgeoning sales of battery-operated vehicles. Manufacturers in the battery management systems market view Electric Vehicle sales as the bedrock upon which the innovative and technologically advanced battery management systems are developed and maintained.
The limited operating window of automotive batteries, including lithium-ion batteries, vis-à-vis voltage, temperature, current, among other electrical aspects, creates need for efficient battery management systems. Automotive battery management systems help in improving the safety, lifespan, and performance of automotive batteries, and ultimately, the automobiles.
Increasing adoption of battery-operated vehicles, including electric cars and bikes, is encouraging power engineers to design automotive battery management systems that can sync with vastly diverse performance requirements of various electric vehicles. Thereby, an upsurge in demand for battery-based power can derive magnified growth prospects for the automotive battery management system market.
How Electric Vehicles Industry is Fueling Demand for Automotive Battery Management Systems
The green movement in the automotive industry has been growing in popularity among customers, triggering automotive manufacturers to modify their production strategies. As customers are becoming more aware of the environmental impact of conventionally fueled vehicles and strict emission control regulations implemented by governing bodies around the world. As a result, the global electric vehicle stock has grown rapidly in the past few years, and is expected to increase exponentially in the upcoming years.
According to the statistics published by the International Energy Agency (IEA), in 2017, the number of plug-in hybrid and electric cars on the roads increased by 54% as compared to that in 2016, to reach 1.1 million. During the same year, over 250 million electric two-wheelers were sold, while the stock of electric buses increased from 345,000 in 2016 to 370,000. IEA also found that the share of battery electric vehicles in the overall electric vehicles parc surged from 58% in 2013 to 62% in 2017.
A rapid uptake of electric vehicles reflects prominently in the plummeting costs of lithium ion batteries and innovations in battery management systems. Along with increasing applications of batteries in automobiles, including electric vehicles, growing demand for lithium ion batteries in consumer electronic products has led to further battery cost reductions. Thereby, burgeoning needs for battery performance improvements, not only in automotive applications but also in consumer electrics, is pushing end-users to adopt state-of-the-art battery management systems.
Innovations that Drive Automotive Battery Management System Market
Awareness about the importance of Battery Management Systems for safe operation of electric vehicles and improving the lifespan of automotive batteries has bolstered growth of the automotive battery management system market. The market reached US$ 1 billion in 2017, and with the growing adoption of technologically advanced automotive battery management systems, it is likely to expand 8x by the end of the next decade.
Increasing concerns about the driver’s safety have triggered the need for avoiding potential failures in the operation of electric vehicles. Thereby, researchers, practitioners, and power engineers are working towards expanding the operational scope of battery management systems to monitor and balance voltages between cells and avoid catastrophic failure in automotive batteries.
Leading stakeholders in the automotive battery management system market are pushing the envelope by focusing research & development activities to offer end-users more control over the operation of automotive battery management systems. Growing adoption of next-generation wireless technologies is expected to emerge as a popular trend among automotive battery management system manufacturers in the foreseeable future.
Recently, a group of Chinese researchers developed a novel portable intelligent battery management system (PIBMS), which comprises of a battery measurement unit, a controller, and a data recording unit. Researchers state that the intelligent battery management system can be connected to the battery through Bluetooth to transfer the real-time information about the status of the battery to a personal computer. By offering this information about battery voltage and temperature at the charging station, the PIBMS could also help end-users to achieve adequate charging as well as efficiently protect the battery.
Another leading manufacturer of power storage devices, Ioxus Inc. recently introduced a Bluetooth interface to offer wireless controls for its uStart battery support module. On downloading a Bluetooth application, which is compatible for both android and iOS, end-users can remotely check the status of the uStart battery management system as well as information about battery voltage, current, and temperature. The company announced that with the wireless controls, its uStart battery management system could nearly double the lifespan of automotive batteries and eliminate one or two of the batteries throughout the life of a truck.
Tesla, Inc. is an American automotive and energy company, which hinges on its battery technology innovations to maintain its strong position in the automotive market. The company recently introduced its patented ‘Multi-Channel and Bi-Directional Battery Management System’, which features dynamic redundancy across its battery management system. Dynamic redundancy is a unique feature of Tesla’s multi-channel and bi-directional architecture, which introduces a redundant command to activate a different and fully operational channel of a battery management system in case of a primary and secondary circuit failure in the system.
Recent developments in the automotive battery management systems and growing potential for electric vehicles in international markets is triggering leading automakers to search for highly innovative battery management solutions. Top-tiered companies in the automotive industry, including Daimler AG and Mercedes-Benz, are collaborating with leading companies in the battery industry. Wireless automotive battery management systems tailored to meet specific end-user requirements are witnessing high demand in automotive markets.
Asia Pacific to Remain the Most Lucrative Markets for Automotive Battery Management Systems
Growth of the automotive battery management system market hinges on the electrification trend growing in the automotive industry. Increasing sales of battery-operated electric vehicles will create lucrative opportunities for automotive battery management system manufacturers. Leading stakeholders in the automotive battery management system market are eyeing opportunities to expand their geographical footprint, and eventually, to consolidate their position in the global market.
After recovering from the economic crisis, the automotive industry has witnessed profitable growth. Emerging economies in the Asia Pacific region have been bolstering the global automotive production and sales with increased disposable income of consumers and rapid industrial growth in developing countries, such as China and India.
Consumers in the developing countries in Asia Pacific are becoming aware of environmental impact of harmful emissions increased with the escalating sales of conventionally-fueled vehicles. Governing bodies has also enacted laws to reduce emissions through transportation and promote battery-operated or electric vehicles. As a result, China accounted for more than half the electric car sales across the world.
Chinese government had been implementing strict emission control rules to boost electric vehicles on the roads, and consequently, electric car sales in the country increased by 72% over 2016 to record the sales of 580,000 electric cars in 2017, according to the statistics by IEA. Electrification of the Chinese automotive industry is limited to electric cars but the scope expands to include other modes of transportation such as two wheelers and buses. China holds a whopping 99% share in the global stock of both electric bus and electric two wheelers, which signifies profitable opportunities for automotive battery management system manufacturers in the country.
Automotive Battery Management System Sales to Surge in European Countries
The European Union is also emerging as one of the leading regional markets for electric vehicles, as well as for automotive battery management systems. European countries, including Germany and NORDIC countries, are likely to emerge as intensely competitive markets, which is attributed to burgeoning sales of electric vehicles. Norway accounted for more than one-third of the global electric cars stock in 2017, while the Iceland and Sweden held 18% share in the global electric vehicles parc, according to IEA.
The Electric Vehicles Initiative (EVI) by the European Commission launched the EV 30@30 campaign in 2017 to establish the goal to account for over 30% market share in the global electric vehicles market by 2030. The campaign is galvanizing the private and public sector to expand the potential for electric vehicle sales in European countries, which is expected to create positive growth environment for automotive battery management system market players in the European markets.
In addition, the ongoing developments in charging infrastructures in the European Union is expected to shape the future of battery industry and automotive battery management system market in the region. Thereby, leading players in the automotive battery management system market are adopting strategies to capitalize on increasing demand for electric vehicles in Europe to boost profitable sales of efficient automotive battery management systems.
The automotive battery management system market in the Asia Pacific region (excluding Japan) reached US$ 388 million in 2017, which was more than one-third of the global market revenues in the same year. The region is likely to maintain its dominance in the automotive battery management system market in the coming decade. The European Union is likely to emerge as a fast-growing market for automotive battery management system in the foreseeable future, creating highly lucrative growth opportunities for market players.
Aditi Yadwadkar is an experienced market research writer and has written extensively on the Electronics and Semiconductor industry. At Future Market Insights (FMI), she works closely with the Electronics and Semiconductor research team to serve the needs of clients from across the globe. These insights are based on a report on Automotive Battery Management System Market by FMI.