BATTERY MANAGEMENT SYSTEM MARKET ANALYSIS

Market Challenges And Opportunities

Global Battery Management System Market - Restraints

• Decreasing profit margin for vendors and OEMs is expected to restrain growth of the global battery management system (OEMs) market over the forecast period

Growing competition in the market coupled with pricing wars has hindered the profit margins. Moreover, OEMs in the automotive industry and telecom hold tremendous bargaining power and price dictation of battery management systems. This, in turn, reduces profit margins for vendors. Furthermore, cost-sensitive markets such as ASEAN and India with intense competition among BMS providers are expected to restrain the market growth over the forecast period.

• Complex structure of battery is expected to hinder the global market growth over the forecast period

Some batteries available in the market have complex structures and are incompetent in performance. According to Coherent Market Insights’ analysis, BMS has technological drawbacks and cannot be incorporated with complex battery structures. This, in turn, is expected to hamper the market growth in the near future.

Market Opportunities

• Growing adoption of battery-operated vehicles in public transport is expected to pose excellent growth opportunities for market players

Growing CO2 emission has compelled governments of various countries to adopt battery-operated vehicles for public transport. Government agencies are investing in the endorsement of electric vehicles in public transport. For instance, in July 2019, the Government of India approved Phase II of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II). This, in turn, is expected to offer lucrative business opportunities for market players in the near future.

• Proactive initiatives by government agencies to promote the use of electric vehicles is expected to offer significant growth opportunities for market players

Governments of various countries are encouraging the adoption of EVs with concessions on tax and subsidies. Moreover, governments are increasingly investing in installing charging stations around the country, to provide convincing of rapid charging to EV owners. For instance, in September 2019, the government of the U.K. invested around US$ 535 million (£400m) in the country’s electric vehicle charging infrastructure, of which around US$ 267 million ((£200m) would be invested in rapid charging points. This, in turn, is expected to pose significant growth opportunities for market players during the forecast period.