Rise in demand for electric vehicles owing to ongoing developments in automotive sector and favourable government policies and support in terms of subsidies and grants is anticipated to boost Automotive Battery Management System Market during the forecast period. Automotive Battery Management System Market value was $2.7 Billion in 2020. With CAGR of 12.69% during the forecast period, the market will reach $5.4 Billion by 2026.
Automotive Battery Management System Market value was $2.67 billion in 2020. With CAGR of 12.69% during the forecast period, the market will reach $5.38 billion by 2026. The lithium-ion battery recycling market is influenced by rising demand for electric as well as hybrid electric vehicles, where lithium-ion batteries are used extensively. The adoption of these vehicles results in a price hike of battery materials such as cobalt and lithium, thus making recycling of lithium-ion battery industries more profitable. The world's number of electric vehicles has seen a dramatic rise in recent years, pegging the world's current number of EVs at around 4 million. According to International Energy Agency, the number will increase up to 125 million by 2030 and more eclectic vehicles will come with Li-ion batteries. With such volumes of Li-ion batteries driving towards their end of useful life, there is a pressing need to ensure efficient lifecycle management of the batteries.
In India the National Electric Mobility Mission Plan 2020, will boost the growth of lithium-ion battery and lithium-ion recycled battery industry, as the goal of the project is to bring 6-7 million electric vehicles on roads by 2020, and 175 GW of renewable energy production by 2022. Regulations in Europe and China hold the automaker responsible for battery recycling. Companies manufacturing electric vehicles such as BMW, Nissan, BYD, Renault and Rivian are exploring the use of recycled batteries. OEMs plan to buy back and repurpose used batteries for storage systems. The old batteries of Nissan Leaf are repurposed in Fukushima for use on other EVs and forklifts. As part of its Advanced Battery Storage Project, Renault collaborates with energy companies to build large scale storage units in Europe. These factors are supporting lithium-ion batteries recycling market.
This factor has aided the growth of the market for automotive battery management systems. China's passion for electric transportation, also known as electromobility, is unmatched by any other nation on the planet. Shenzhen has converted all of its city buses from ICE vehicles to electric buses. In addition, a significant number of e-buses continue to be inducted on a regular basis. In the electromobility segment, Chinese electric commercial vehicle manufacturers such as BYD, Yutong, and Zhongtong are forerunners. Japan, India, and South Korea, among others, are making significant progress in the production and deployment of electric buses, similar to China. These factors are fueling the growth of the Asia Pacific automotive battery management system market. The demand for battery management systems and electric vehicles, in addition to traditional IC engine vehicles, is expected to drive the battery management system market forward. Electric vehicle demand is expected to rise during the forecast period as more stringent pollution regulations are implemented across the globe. During the years 2018-2019, global electric vehicle sales rose by more than 55 percent. Since the battery is the primary source of power for electric vehicles, demand for a powerful and sophisticated battery management system is expected to rise. In 2019, the Asia-Pacific region accounted for a significant portion of the global battery management system market. Although Europe has experienced a faster rate of growth (due to a rapid rise in electric vehicle sales in 2018-2019) and is expected to continue to expand throughout the forecast period, with the EU government closely monitoring emission standards and preparing to prohibit the manufacture of IC engine vehicles in a few European countries, such as Norway, the Netherlands, and others, by 2025.
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Automotive Battery Management System Market Growth Drivers:
Favourable Governmental Regulations
Government efforts to encourage the adoption of cleaner transportation alternatives have developed at a rapid pace in recent years. Some of the major geographies where governments are proactively taking steps to increase the adoption of electric vehicles, especially buses and trucks, include the European Union, China, Japan, Canada, India, and South Korea. In the European Union, for example, major legislative changes have been made. Improvements in truck fuel efficiency requirements and the ‘Clean Vehicles Directive,' which focuses on government procurement of electric buses, are among these initiatives. Another guideline, the ‘Energy Performance Buildings Directive,' has been established, which establishes minimum requirements for charging infrastructure installation in buildings. Japan is another country where truck fuel efficiency requirements have been updated, and the country's automotive policy aims to cut 80 percent of its automotive greenhouse gas emissions by 2050.During the forecast period of 2021 to 2026, such favorable policies are expected to fuel the adoption of heavy-duty electric vehicles, such as trucks, and thus accelerate the adoption of battery management systems. China dominates the electric vehicle industry on a global scale. The demand for BMS has increased as the country's commercial vehicle segment has seen substantial growth in production and adoption of zero-emission vehicles.
The Major Players in this Market Include
Major players in Automotive BMS include Denso, BYD, LG Chem, CATL, TI, STM, Johnson Matthey, Infineon, NXP, Analog Devices among others. In December 2020, Panasonic Corporation offered a new, cloud-based battery management service, known as the UBMC (Universal Battery Management Cloud) service, utilizing a proprietary AI-based technology that incorporates its battery expertise. The technology can ascertain the state of various types of batteries installed in electric mobility (e-mobility)*1 vehicles in real time to ensure they can be used with peace of mind.
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