Lithium-ion batteries to engulf market

Lithium-ion Battery
E-mobility is inclining towards substantial demand for lithium-ion batteries

Transparency Market Research suggests bills-of-materials will increasingly be including cloud-based battery management systems as lithium-ion captures the renewables market.

Cloud-based monitoring of battery management systems lets users monitor battery data and present information on state-of-charge and state-of-health. They also identify potential battery failures at various stages of operation, plus long-term tracking of cell aging. The growing popularity of such systems is driving transformational changes in the battery landscape.

For instance, in July 2019, Bosch announced cloud-based swarm intelligence services to extend the service life of electric vehicle batteries by supplementing individual vehicles’ battery management systems. Smart software functions in the cloud continually analyse battery status and take appropriate actions to prevent or slow down cell aging.

With the onset of electric-powered drivetrains, the future of e-mobility is inclining towards substantial demand for lithium-ion batteries. Battery management systems have become an integral part of lithium-ion batteries, accounting for 40 per cent revenue share of the battery management system market. The sales potential of lithium-ion battery management systems will remain instrumental in shaping the energy storage revolution.

Renesas Electronics has announced its fourth-generation lithium-ion battery management integrated circuit, designed to maximise cell life and driving range for hybrid and electric vehicles. This sets a benchmark for data acquisition, temperature control and safety performance requirements.

Public transport is also undergoing transformations. In a 200m euro deal, battery systems manufacturer BMZ Germany announced an agreement to deliver over 1,000 lithium-ion battery systems to Berlin-based bus maker Eurabus.

One obstacle that battery management systems face is the high final product cost in specific industries. For example, in the automotive sector, heavy-duty vehicles face the burden of additional manufacturing costs according to the vehicle type, design and type of cooling required for the smooth functioning of components.

Cost sensitive end users may shy away from paying the additional amount, which discourages manufacturers to take risks to fulfil the demands in terms of technological innovations and capital investments. This is anticipated to hamper the battery management system market in the coming years. However, overall, the industry is seeing a fall in battery prices, thanks to rigorous R&D carried out by key manufacturers to overcome technological obstacles, which will ultimately benefit manufacturers and product producers.