In 2019, the global Battery Management Module market was valued at US$ 5,102.6 million and is projected to experience a compound annual growth rate (CAGR) of 14.0% from 2020 to 2027, reaching an estimated US$ 14,513.5 million by 2027.
The increasing integration of portable batteries in consumer electronics, a rising preference for electric vehicles, and the demand for energy storage solutions are the primary drivers of the battery management module market. Currently, devices such as computers, smartphones, tablets, and various consumer electronics predominantly utilize batteries, particularly lithium-ion types. The need for advanced energy storage technologies is crucial for the decarbonization efforts of contemporary economies. In recent years, these technologies have significantly influenced the energy and power, automotive, medical, and electronics sectors. Despite the presence of various technologies, the application of battery technologies has provided essential energy and power solutions to meet the specific energy storage requirements across these industries. Market participants are investing heavily in adopting innovative and robust technologies to enhance their product offerings. The role of batteries is vital in consumer electronics, medical applications, and the automotive sector. Over time, the increasing demand for batteries in electric vehicles has been a dominant factor in the battery management module market, as these batteries are economically advantageous for manufacturers. The transition from graphite to silicon in battery production is expected to extend battery life, thereby increasing demand from end users. This trend is anticipated to further propel the growth of the battery management module market throughout the forecast period.
In recent years, the electric mobility sector has witnessed remarkable growth. The sales of electric vehicles (EVs) are surging due to heightened awareness of environmental issues and supportive government policies aimed at promoting EV adoption globally. According to the Global EV Outlook 2019 report by the International Energy Agency (IEA), the number of electric vehicles in freight transport, particularly light-commercial vehicles (LCVs), reached 250,000 units in 2018. Additionally, medium electric truck sales were recorded at approximately 1,000 to 2,000 units during the same year. Currently, China leads the electric vehicle market, followed by Europe and the United States. Government policies are instrumental in fostering the development and expansion of the electric vehicle market worldwide. Countries at the forefront of electric mobility have implemented various initiatives to promote EV adoption, including fuel economy standards and incentives for zero and low-emission vehicles. Furthermore, ongoing advancements in battery chemistry and the expansion of electric vehicle manufacturing capabilities are contributing to cost reductions, thereby stimulating the growth of electric vehicles. The active involvement of the private sector is another significant factor driving the global electrification of transport. Numerous vehicle manufacturers are announcing plans to introduce electric cars, buses, and trucks. Investments in charging infrastructure, the growth of battery manufacturing, and favorable government policies are expected to significantly boost the demand for battery management modules from 2020 to 2027.
Germany, home to major automotive manufacturers such as Daimler AG, BMW, VW, Opel, and Audi, is the largest contributor to the European automotive industry. According to the European Automobile Manufacturers Association, around 15.8 million passenger cars were produced in the region in 2019. European car manufacturers are increasingly investing in electric vehicle production. In October 2017, the European Commission launched the European Battery Alliance, an initiative aimed at establishing battery factories operated by European companies across the continent. The European Commission recognizes substantial potential in the battery management module sector, where new market entrants can also achieve rapid progress. Consequently, several leading battery manufacturers have announced plans to establish production facilities in Europe. Notable companies planning to invest in the battery management module sector in Europe include NXP Semiconductors N.V., Leclanch?, and Lithium Balance. For example, in 2020, Varroc Engineering Limited entered into an agreement to manufacture an EV Battery Management System in India for Lithium Balance A/S, a Danish provider of BMS solutions.
Transportation is a significant source of pollution globally, with heavy-duty vehicles like trucks and buses being major contributors. To combat this issue, governments in key countries such as the US, UK, Germany, Japan, and China are implementing initiatives to accelerate the adoption of electric buses and trucks. The superior efficiency of electric trucks and buses compared to traditional diesel and natural gas vehicles is another factor expected to drive growth in this segment in the coming years. Although still in its early stages, this segment is projected to experience substantial growth as the push for electrification in the transport sector intensifies worldwide. China is aggressively advancing its position as the largest market for electric buses, followed by Europe and the US. According to the Electric Vehicle Outlook 2019 report by BloombergNEF, it is anticipated that in the next two decades, electric vehicles in the LCV category will account for approximately 56%, including light trucks and vans, while medium commercial electric vehicles will reach 31% in the US, China, and Europe. The future production of these heavy electric vehicles will depend on various factors, including improvements in fuel efficiency, energy costs, emission reductions, and declining battery costs. With rapid advancements in electric vehicle technology, battery improvements, and a supportive regulatory environment, the demand for electric buses, trucks, and other heavy-duty electric vehicles is expected to grow significantly, presenting ample opportunities for battery management module providers during the forecast period from 2019 to 2027.
Key players in the Battery Management Module market include NXP Semiconductors N.V., Johnson Matthey, Texas Instruments Incorporated, Renesas Electronics Corporation, Nuvation, Analog Devices, Inc., Elithion Inc., L&T Technology Services Limited, Lithium Balance, and Leclanch?.
The overall size of the global Battery Management Module market has been determined through a combination of primary and secondary research. The research process begins with comprehensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the global Battery Management Module market. It also provides an overview and forecast for the Battery Management Module based on all the segmentation provided for the global region. Additionally, primary interviews were conducted with industry participants and commentators to validate the data and analysis. Participants typically involved in this process include industry experts such as VPs, business development managers, battery management module intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the Battery Management Module industry.