Partnerships create growth opportunities for vendors that are reluctant to invest in R&D, finds Frost & Sullivan
SANTA CLARA, Calif., Feb. 1, 2019 /CNW/ -- The growth of telecom infrastructure and advancements in electronics and communications systems are creating a fertile market for advanced battery management systems (BMS). Vendors are increasingly incorporating sophisticated technologies such as intelligent sensors, cryptographic algorithms, and improved fault detection capabilities to improve their reliability and performance in telecom, electronics, and communications systems and a host of other applications. In addition, increasing adoption of electric vehicles (EVs) and rising popularity of battery energy storage (BES) solutions are expected to produce steady growth for BMS. Consequently, BMS has evolved from a simple monitoring unit to an advanced system capable of managing and protecting rechargeable battery packs.
Frost & Sullivan's recent analysis, Global Battery Management Systems Market, Forecast to 2024, examines the major trends in the BMS markets as well as the drivers and restraints that altered market dynamics from 2015-2025. It covers the battery chemistries of lithium-ion, lead-acid, and others, across the applications of automotive, battery energy storage system, telecommunications, and others.
For further information on this analysis, please visit: http://frost.ly/35v
"The growth of the EV market and greater integration of renewable energy into power grid is augmenting the demand for BMS," said Sama Suwal Research Analyst Energy & Environment. "Battery-based grid-scale and commercial energy storage of higher capacity require multiple BMS, and residential storage of smaller capacity (less than 50 KWh) require one or two BMS to ensure their smooth and safe operation."
The analysis notes BMS manufactures need to invest in R&D to make their products compatible with increasingly complex application systems and emerging battery chemistries such as solid state batteries.
"Additionally, they need to make sure their BMS are compliant with emerging industry standards," noted Suwal. "Battery cell vendors, automotive original equipment manufacturers (OEMs), and energy storage solution integrators are likely to merge or acquire dedicated BMS OEMs in order to expand geographically and gain technical expertise. M&As and partnerships are viable options for battery or automotive OEMs that wish to penetrate the BMS value chain without investing in R&D."
As the global BMS market grows at a CAGR of 16.3 percent and reaches an estimated $6.34 Billion in 2024, up from $2.20 Billion in 2017, BMS manufacturers will enjoy greater growth opportunities by:
- Offering simpler BMS with wireless systems, user-friendly features, and compatibility with multiple battery chemistries.
- Collaborating with industry players to develop and implement BMS standards. They could also consider standardizing BMS for the same application with different battery chemistries.
- Expanding their technology and product portfolio as well as marketing their products globally so they may tap the demand in diverse geographies and applications.
- Transferring manufacturing facilities to locations with low labor costs and proximity to hubs of technological innovation.
Global Battery Management Systems Market, Forecast to 2024 is part of Frost & Sullivan's global Energy Storage Growth Partnership Service program.
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SOURCE Frost & Sullivan