The “Electric Vehicle Battery Management System Market – Growth, Trends, COVID-19 impact, and Forecast (2021 – 2026)” report from ResearchAndMarkets.com shows that the Electric Vehicle Battery Management System Market was valued at $2 billion in 2020 and is expected to reach $9 billion in 2026 by registering a CAGR of around 28% during the forecast period (2021 – 2026).
Electric vehicles market across the world experience a shift as consumers seek affordable products amid Covid-19, this potential shift in consumer preferences have been diverted towards the used vehicles, as in 2020, the demand of used vehicles increased in almost every part of the world.
The rapid spread of Covid-19 has left the complete supply chain with unpredictable challenges and issues such as OEM shutdowns, insufficient labor, output reduction, and raw material, which in turn has affected the market. However, the market expected to regain its momentum as economic activities resumed worldwide.
Factors such as rise in adoption of electric vehicles (EVs) and hybrid electric vehicles (HEVs), and surge in industry preference for use of lithium-ion batteries drives growth of the battery management system market. In addition, growth in adoption of rechargeable batteries across multiple end-use industries propels the market growth.
However, rise in overall price of products with addition of battery management system hinders growth of the market. Further, increasing government emphasis on increasing the adoption electric vehicles and availability of incentives from government for electric vehicles expected to drive the demand for electric vehicles during the forecast period. Europe anticipated to remain as the largest market for the battery management system due to the presence of several leading manufacturers. The adoption of electric vehicles (EVs), plug-in electric vehicles, and hybrid electric vehicles (HEVs) technology is expected to rise considerably across small and medium-sized businesses in countries across Europe.
Key Market Trends Battery Electric Vehicle Segment to Dominate the Market
In the automotive sector, installation of battery management system in vehicles face burden of additional manufacturing costs, according to vehicle type and design. In addition, it requires proper cooling system for smooth functioning of battery management system components. Electric mobility is swiftly growing around the world, owing to which goods transportation companies are also converting their existing fleet into electric propulsion-based vehicles.
Governments around the world have been proactive in enacting policies to encourage the adoption of electric vehicles. China, India, France, and the United Kingdom have announced plans to phase out the petrol and diesel vehicles industry completely before 2040.
Thus, based on the aforementioned factors, growing investments in electric vehicle manufacturing, and the government’s EV supporting policies around the world are likely to drive the electric vehicle battery management system market over the forecast period.
Europe Expected to Hold Significant Share in the Market
Europe is one of the largest market for electric vehicles across the world, where the demand for electric cars is growing rapidly in every country, which is fueling the demand for battery management system in the region. Owing to the growing sales of hybrid and electric passenger cars, automobile manufacturers plan to extend their battery management system production capacities over the forecast period.
EV technology is becoming more mainstream in Germany, the Europe’s car-making heartland, where Germany’s Volkswagen AG, BMW AG and Daimler AG are preparing for a major battery-car push. As the market in Germany is becoming lucrative several local manufacturers are entering into a joint venture with other companies in the market.
The Electric Vehicle Battery Management System Market is moderately concentrated as it is dominated by several global players. Moreover, the market tends to be highly attractive for new players and Companies operating in the market have been focusing on launching advanced technologies to gain a competitive advantage.
Some of the major players in the market include Renesas Electronics Corporation, NXP Semiconductors, Keihin Corporation, TE Connectivity and Analog Devices Inc.
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