A report from India-headquartered Mordor Intelligence projects that the global battery management system market is expected to reach US$8.53bn by the end of this year, and it is projected to register a CAGR of over 4.85% during the forecast period to 2027.
According to the report, the need for robust charging infrastructure, and the focus on increasing the energy efficiency of batteries are expected to drive the growth of the market. Nevertheless, technological advancements in battery management systems with advantages, such as reduced complexity, better efficiency, and improved reliability, among others, are expected to provide growth opportunities in the forecast period.
The Asian-Pacific region dominates the market and is also likely to witness the highest CAGR during the forecast period. This growth is attributed to the rapid rise in sales of electric vehicles in countries like China and Japan. This rise has been due to the extensive efforts of their governments to reduce greenhouse gas emissions."
The report points out that the global production of batteries for electric vehicles is mainly concentrated in the Asian-Pacific region, with Chinese, Japanese, and South Korean companies dominating the sector and building European factories to conserve their supremacy.
China's significant market share in the midstream and downstream value chain of li-ion batteries makes it the largest producer of li-ion batteries globally. The country is also making efforts to reduce air pollution levels, which is expected to register a high growth rate in the sales of electric vehicles and lead to high demand for EV batteries. Additionally, China is the global hotspot for electric vehicle battery manufacturing. There are 93 Giga factories in China, and the country is projected to have around 130 by 2030; the country is expected to dominate the market during the forecast period. This, in turn, is expected to create tremendous demand scope for battery management systems in the country.
