The global lithium-ion battery management system market will grow by 26% from this year to 2023
According to a report released this month by Technavio, an international market research organization, the global lithium-ion battery management system market is expected to grow by US$2.89 billion from 2019 to 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 lithium-ion battery management system market is fragmented, and this degree of fragmentation will increase during the forecast period. Due to the increasing popularity of electric bicycles, many suppliers have begun to provide advanced lithium-ion battery packs with conversion kits.
Although the accelerated growth momentum will provide huge growth opportunities, due to the uncertainty of the adoption rate of electric vehicles, fluctuations in demand for lithium-ion batteries will challenge the growth of market participants.
The use of lead-acid batteries is increasing because they contain a large amount of harmful lead oxide toxins, which have a negative impact on the environment. But over time, these batteries lost their efficiency and became unusable. Due to the presence of sulfuric acid, unusable lead-acid batteries are considered hazardous waste. These factors force end users, especially in the automotive industry, to adopt environmentally friendly batteries. This has increased the demand for lithium-ion batteries for vehicles. In addition, the increasing demand for high-efficiency, environmentally friendly batteries is one of the key factors driving the growth of the lithium-ion battery management system market.
From the perspective of market area, during 2019-2023, 51% of the overall market growth will come from the Asia-Pacific region. The market growth in this region will be faster than the growth of the European market.
To reduce overall weight, automakers are increasing the use of lithium-ion batteries in their vehicles. Increasing competition in the field of electric vehicles encourages manufacturers to develop two-way and multi-channel battery management systems for electric vehicles. This development between automakers and suppliers is positively affecting market growth. Therefore, during the forecast period, the market scale of lithium-ion battery management systems will expand in the automotive field, and will grow faster than the market growth in the locomotive and industrial fields.