According to a report released this month by international market research firm Technavio, the global lithium-ion battery management system market is expected to grow by 2.89 billion US dollars in 2019-2023, during which the compound annual growth rate will exceed 26%.
The growing demand for efficient, environmentally friendly batteries and the emergence of cloud-based BMS services are some of the main factors driving market growth. China, the United States and Norway are currently important markets for vehicle lithium-ion battery management systems.
The market for lithium-ion battery management systems is fragmented, and this level of dispersion will increase during the forecast period. Due to the increasing popularity of electric bicycles, many suppliers have begun offering advanced lithium-ion battery packs with conversion kits.
Although the accelerated growth momentum will provide tremendous growth opportunities, fluctuations in demand for lithium-ion batteries will challenge the growth of market participants due to the uncertainty in the adoption rate of electric vehicles.
The use of lead-acid batteries is increasing because it contains a large amount of harmful lead oxide toxins, which has a negative impact on the environment. But as time went by, these batteries lost efficiency and became unusable. Unusable lead-acid batteries are considered hazardous waste due to the presence of sulfuric acid. These factors force end users, especially in the automotive industry, to adopt environmentally friendly batteries. This increases the demand for lithium ion batteries for vehicles. In addition, the growing demand for efficient, environmentally friendly batteries is one of the key factors driving the growth of the lithium-ion battery management system market.
From the market perspective, 51% of the overall market growth will come from the Asia Pacific region during the period 2019-2023. Market growth in the region will be faster than growth in the European market.
To reduce overall weight, automakers are increasing the use of lithium-ion batteries in their vehicles. Increasing competition in the electric vehicle sector encourages manufacturers to develop two-way and multi-channel battery management systems for electric vehicles. This development between car manufacturers and suppliers is positively affecting market growth. Therefore, during the forecast period, the market size of lithium-ion battery management systems will expand in the automotive sector and will be faster than the market growth in the locomotive and industrial sectors.