India Battery Management Market Outlook to 2028

India Battery Management Market Overview

In recent years, the India Battery Management market has experienced rapid growth, this is reflected by the global Battery Management market reaching a valuation of USD 9 Bn in 2023 driven by the increasing adoption of electric vehicles (EVs), advancements in battery technologies, and the rising demand for efficient energy storage solutions.

The India Battery Management system (BMS) market is fragmented. Exide Industries, Amara Raja Batteries, Luminous Power Technologies, Okaya Power, and Su-Kam Power Systems are some of the major players.

A recent market development is Tata Motors' April 2023 launch of the Tata Nexon EV Max, equipped with an advanced BMS to optimize battery life and boost performance. This underscores the trend of using sophisticated BMS in EVs to address the increasing demand for longer battery life and enhanced safety.

India Battery Management Current Market Analysis

The India Battery Management Market has a substantial impact on the country's energy landscape. The adoption of BMS in various applications, including EVs, renewable energy storage, and consumer electronics, enhances energy efficiency and safety.

The primary growth drivers of the India Battery Management Market include the surge in electric vehicle adoption and the increasing need for efficient energy storage solutions. EV sales in India reached a record 1.53 million units in 2023, a jump of over 50% year-over-year (Yo Y) against the 1 million units sold in 2022.

Maharashtra, dominates the India Battery Management Market. Maharashtra's leadership is driven by the presence of major automotive manufacturers and a well-established industrial base.

India Battery Management Market Segmentation

The India Battery Management market is segmented by various factors like application, battery and region.

By Application: India Battery Management market segmentation by application is classified into Electric Vehicles (EVs), Renewable Energy, and Consumer Electronics. In 2023, Electric vehicles (EVs) dominated the India Battery Management Market due to the rapid growth of the EV market, driven by government incentives, environmental concerns, and technological advancements in EV batteries.

By Battery: India Battery Management market segmentation by battery is classified into lithium-ion batteries, lead-acid batteries, and Ni MH batteries. Lithium-ion batteries dominated the India Battery Management market in 2023. Their high energy density, long cycle life, and lightweight properties make them ideal for applications in EVs, renewable energy storage, and consumer electronics.

By Region: India Battery Management market is segmented by region into North, South, West, and East. Northern India leads the regional segmentation in 2023 due to the presence of major automotive hubs and industrial zones, particularly in states like Haryana and Uttar Pradesh, drives the demand for advanced India Battery Management systems.

India Battery Management Market Competitive Landscape

Company Name

Establishment Year

Headquarters

Exide Industries

1947

Kolkata

Amara Raja Batteries

1985

Tirupati

Luminous Power

1988

Gurugram

Okaya Power

1989

New Delhi

Su-Kam Power Systems

1998

Gurugram

Amara Raja: In June 2023, Amara Raja Batteries (now known as Amara Raja Energy & Mobility) is setting up a lithium-ion battery gigafactory in Divitipalli, Mahabubnagar, Telangana. The total planned investment for the project is USD 1.2 billion.

Exide Industries' Advanced Lead-Acid Batteries: In March 2023, Exide Industries introduced a new range of advanced lead-acid batteries with enhanced performance and longer life. These batteries are designed for both automotive and industrial applications.

Luminous Power's AI-Powered BMS: Luminous Power Technologies launched an AI-powered India Battery Management system in May 2023. This system uses artificial intelligence to monitor and optimize battery performance in real-time, enhancing efficiency and safety.

India Battery Management Market Analysis

India Battery Management Market Growth Drivers

Expansion of Renewable Energy Projects: India added a record 18.48 GW of renewable energy capacity in the financial year 2023. This is over 21% higher than the 15.27 GW added in the previous year. The demand for efficient energy storage systems is increasing. India Battery Management systems are essential for optimizing the performance and lifespan of renewable energy storage solutions.

Technological Advancements in Battery Systems: Innovations in battery technologies, such as the development of solid-state batteries and improvements in lithium-ion battery performance, are driving the BMS market. In 2023, several Indian companies invested heavily in R&D to enhance battery efficiency and safety. In 2022, Tata Chemicals acquired the battery materials business of Johnson Matthey at a valuation of USD 500 million, aiming to produce batteries with higher energy density and faster charge capabilities.

Growing Demand for Energy Storage Solutions: The increasing reliance on renewable energy sources and the need for grid stability are driving the demand for efficient energy storage solutions. In 2023, India witnessed a important rise in the deployment of energy storage systems, with over 8 GWh of new installations. India Battery Management systems are critical in ensuring the optimal performance and safety of these storage solutions.

India Battery Management Market Challenges

High Cost of Advanced BMS: The average cost of a India Battery Management system in 2023 was USD 200, which adds to the overall cost of electric vehicles and energy storage solutions. This high cost can be a barrier to widespread adoption, particularly in price-sensitive markets. The challenge lies in reducing the cost of BMS while maintaining or improving performance and safety standards.

Lack of Standardization: The absence of standardized protocols for BMS design and implementation poses a substantial challenge to manufacturers. This lack of standardization affects the compatibility and interoperability of different battery systems, hindering market growth. In 2023, industry stakeholders called for the development of universal standards to streamline BMS production and integration.

Infrastructure and Supply Chain Issues: The development of EV charging infrastructure and the supply chain for battery components are still in nascent stages in India. In 2023, there were only about 1,000 public EV charging stations operational across the country. The insufficient infrastructure limits the growth of the EV market and, consequently, the BMS market.

India Battery Management Market Government Initiatives

FAME II Scheme: The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) II scheme, launched in 2023, is a flagship initiative by the Indian government to promote electric mobility. With a budget of USD 1.4 billion, the scheme aims to support the production of 1 million electric two-wheelers, 500,000 electric three-wheelers, and 55,000 electric four-wheelers by 2024.

National Programme on Advanced Chemistry Cell (ACC) Battery Storage: In 2023, the Indian government launched the National Programme on Advanced Chemistry Cell (ACC) Battery Storage with an outlay of USD 2.5 billion. This program aims to achieve a manufacturing capacity of 50 GWh of ACC and 5 GWh of niche ACC by 2024.

PLI Scheme for Advanced Batteries: The Production Linked Incentive (PLI) scheme for advanced batteries was introduced in 2023 with an allocation of USD 1 billion. This scheme aims to boost domestic manufacturing of advanced battery systems, including BMS, by providing financial incentives to manufacturers. The scheme targets the production of 10 GWh of advanced batteries by 2024, thereby reducing dependence on imports and promoting self-reliance.

India Battery Management Future Market Outlook

The India Battery Management market is poised for remarkable growth, driven by growth in EV market, advancements in battery technologies, and expansion of renewable energy storage solutions.

Future Market Trends

Advancements in Battery Technologies: Technological advancements in battery systems, such as the development of solid-state batteries and improvements in lithium-ion battery performance, will impact the BMS market. By 2028, solid-state batteries are expected to become commercially viable, offering higher energy density, faster charging times, and improved safety. These advancements will drive the adoption of sophisticated BMS to manage and optimize the performance of next-generation batteries.

Expansion of Renewable Energy Storage Solutions: The renewable energy sector in India is set to witness substantial growth, with the government targeting 450 GW of renewable energy capacity by 2030. This expansion will increase the demand for efficient energy storage solutions, including advanced India Battery Management systems.
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