In 2030, the automotive industry is set to witness a revolutionary shift driven by Advanced Battery Management System (BMS) software. This cutting-edge technology has the potential to yield remarkable savings of US$18 billion annually for automakers, adding up to an astounding US$76 billion cumulatively from 2024. A recent study by ABI Research reveals that intelligent BMS software is capable of reducing the size of Electric Vehicle (EV) batteries without compromising their range. Such advancements hold the promise of transforming the EV landscape, mitigating the effects of limited battery production and bolstering the industry's profitability.
Challenges Faced by OEMs: Automakers face a daunting challenge, grappling with two competing issues: the ever-increasing demand for EVs with extended driving ranges and the scarcity of EV batteries due to limited supplies of critical minerals and manufacturing capacity. However, the advent of Advanced BMS software offers a glimmer of hope by enabling EV batteries to be charged to higher levels and discharged to lower levels without detrimental effects, thereby increasing their usable capacity. This innovation provides a two-pronged solution, alleviating the strain on the battery supply chain while simultaneously reducing manufacturing costs. Remarkably, these solutions are purely software-based, seamlessly integrating as AUTOSAR applications to enhance existing BMS capabilities.
Software's Pivotal Role: One example of an intelligent software-only BMS solution is Qnovo's SpectralX, poised to revolutionize the industry. This cutting-edge technology not only enhances an EV's range by 10% but also facilitates faster charging and minimizes battery degradation, effectively extending the lifespan of EV batteries. If adopted globally, such innovations could potentially reduce the required battery production by approximately 300 GWh by 2030, significantly easing the pressure on the battery supply chain and mitigating manufacturing costs.
Embracing Wireless BMS: Beyond software advancements, wireless BMS (wBMS) hardware emerges as a critical factor in cost reduction by eliminating the need for connectivity wires. The installation and maintenance of wire harnesses are not only expensive but also time-consuming, adding weight, volume, and potential points of failure to the battery. Pioneering this technology, GM has become the first major automaker to adopt a wBMS with its Ultium platform, developed in collaboration with Analog Devices and Visteon. Furthermore, key component suppliers like Marelli, NXP, and TI also offer wBMS solutions, making it the preferred choice for the next generation of EV platforms due to its cost-effectiveness.
Enhancing Profitability for Automakers: While Tesla enjoys a strong position in the market, most OEMs currently struggle to achieve significant profits from their EV business. Notably, Ford is projected to experience a US$3 billion loss pretax on its EV business this year. High battery costs and challenges in scaling production to meet surging demand contribute significantly to this issue. However, BMS software serves as a game-changer, extracting more energy from smaller batteries and slashing production costs. As an application layer solution, it seamlessly adapts to a wide range of battery formats without necessitating design or manufacturing changes, making it a highly adaptable and cost-effective solution for automakers.
The future of the automotive industry hinges on advanced battery management software. With the potential to save automakers billions annually, this innovative technology is set to redefine the landscape of EVs. By enabling a smaller battery footprint without sacrificing range, BMS software paves the way for sustainable growth, reduced costs, and enhanced profitability. As the industry embraces these transformative advancements, the era of Electric Vehicles is destined to be more promising than ever before.
Source: ABI Research
