Battery Design & Manufacturing Software Market
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Battery Design & Manufacturing Software Market size was valued at USD 1.3 billion in 2023 and is estimated to register a CAGR of over 9% between 2024 and 2032. The increasing awareness regarding the environmental impacts of traditional batteries coupled with the burgeoning interest in sustainable batteries incorporated with eco-friendly materials or recycling existing resources will drive the market growth.
Governments worldwide are enforcing stringent regulations on emissions and waste disposal through directives to limit adverse battery impacts throughout their lifecycle, from manufacturing to disposal. To cite an instance, in August 2023, in August 2022, Government of India published the Battery Waste Management Rules for ensuring the environmentally sound management of waste batteries. The robust preference for sustainable batteries as they help store energy from renewable sources like solar and wind power will also favor the market development.
| Report Attribute | Details |
|---|---|
| Base Year: | 2023 |
| Battery Design & Manufacturing Software Market size in 2023: | USD 1.3 Billion |
| Forecast Period: | 2024 to 2032 |
| Forecast Period 2023 - 2032 CAGR: | 9 |
| 2023 Value Projection: | USD 3 Billion |
| Historical Data for: | 2018 - 2023 |
| No of Pages: | 250 |
| Tables, Charts & Figures: | 334 |
| Segments Covered: | Category, Deployment model, Manufacturing type, End users |
| Growth Drivers: |
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| Pitfalls Challenges: |
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Technological advances and expansion strategies for enabling the development of batteries with improved energy density, longer lifespan, and reduced reliance on environmentally harmful materials will play an ideal role in the market growth. For instance, in October 2023, FEV opened an advanced laboratory for customized battery systems as well as cells in Aachen, Germany.
The higher initial investment for software licenses, infrastructure, and training in implementing advanced software solutions for battery design and manufacturing may pose as a restriction for battery design & manufacturing software market size. The increased risk of cyber threats driven by the proliferation of interconnected systems, and the subsequent need to protect sensitive design and manufacturing data from breaches and cyberattacks may also limit the adoption for battery design & manufacturing software to some extent.
The rising focus on developing sustainable battery solutions is another important factor benefiting the industry expansion. Software tools not only facilitate the evaluation of environmental impacts of different designs and materials, but also aid in creating eco-friendly batteries. For instance, in September 2023, Capgemini disclosed a research partnership with the Chair of Electrical Energy Storage Technology at the TUM (Technical University of Munich) to develop AI solutions for optimizing sustainable advanced virtual battery design. The surging R&D efforts by governments, industries, and research institutions for developing sustainable battery technologies will assist in the market development.
Based on category, the Battery Management System (BMS) segment generated a market revenue of around USD 437.78 million in 2023, due to its ability to optimize battery performance by managing the charging and discharging rates whilst preventing overcharging or deep discharging to extend battery life. Growing cruciality in stationary energy storage systems to cater to renewable energy applications will prove favorable for the product adoption. To cite an instance, in June 2023, ABB powered up one of the largest integrated grid-scale Battery Energy Storage Systems (BESS) for supporting the integration of renewable energy sources for Universal Power Solutions Inc.
Based on end users, the automotive segment accounted for 35% of the battery design & manufacturing software market share in 2023, attributed to the rising environmental concerns and government regulations aimed at reducing emissions. The higher incorporation of advanced battery systems in battery powered EVs is leading to the increased demand for software to optimize the design and manufacturing processes. The rapid advancements in materials, chemistry, and manufacturing processes along with the growing deployment of new technologies for improving battery performance will also boost the segment expansion.
Asia Pacific battery design & manufacturing software market size dominated around USD 764.68 million in 2023. As per statistics from Vahan, the EV registration in India rose to 10.20 lakh in 2022 from 3.29 lakh in 2021. The strong focus on clean energy is further driving heavy investments in renewable energy sources like solar and wind power. The surge in policies and regulations for promoting sustainable energy storage will further push the adoption of battery software in the region, further outlining the industry growth.
Major companies focus on continuous innovation in their software solutions, introducing advanced features and capabilities. Embracing cutting-edge technologies, such as artificial intelligence (AI) and machine learning (ML), to optimize battery design processes and enhance manufacturing efficiency. Establishing strategic collaborations with battery manufacturers, electric vehicle (EV) companies, and research institutions to create comprehensive solutions. Partnerships with other software providers, hardware manufacturers, or industry experts to offer integrated solutions that address the entire battery lifecycle.
Expanding market reach by targeting international markets and adapting software solutions to regional specifications and standards. Establishing a global presence through partnerships, subsidiaries, or distribution agreements to better serve diverse customer bases. By implementing these strategies, battery design and manufacturing software companies aim to differentiate themselves, attract a wider customer base, and solidify their position in a dynamic and evolving industry.
Major companies operating in the battery design & manufacturing software industry are:
Market, By Category
Market, By Deployment Model
Market, By Manufacturing Type
Market, By End Users
The above information has been provided for the following regions and countries:
Asia Pacific market was worth USD 764.68 million in 2023, driven by strong focus on clean energy, which is further driving heavy investments in renewable energy sources like solar and wind power.
Altair Engineering Inc., Ansys, Autodesk, Inc., AVL GmbH are some of the major industry contenders.
The market size of battery design & manufacturing software reached USD 1.3 billion in 2023 and is set to grow at 9% CAGR from 2023 to 2032, led by the increasing awareness regarding the environmental impacts of traditional batteries alongside government regulations.
The automotive segment accounted for a market share of around 35% in 2023, backed by the higher incorporation of advanced battery systems in battery-powered EVs.