The popularity of electric vehicles is growing, but not as quickly as industry forecasts had predicted. The main brake on demand is the battery itself — more specifically, customer concerns about its lifespan, production costs, and the time and convenience of charging. As a component that can account for up to half of a vehicle’s cost, the battery must be as efficient as possible if OEMs are to maintain profitability in a competitive market. In addition, global regulations on durability, traceability and sustainability are becoming stricter. As early as 2027, the EU is expected to introduce a mandatory digital battery passport, ensuring full transparency of battery data. According to experts, the only way to meet this challenge is to implement modern, AI-based battery management systems, or BMS, which are becoming a new engine of innovation in the industry.
Manufacturers are racing to bring batteries with ever greater capacity and longer warranty periods to market. The charging process itself is also being developed, with innovations such as wireless charging stations and battery swapping. However, fast charging remains the holy grail of the automotive industry.
Newer model generations and the development of smaller urban vehicles are partly addressing the issue of affordability. New market players such as BYD, for example, are offering affordable models that are gradually entering the European market. Lower upfront costs also ease concerns about resale value. In the long term, however, this approach will not solve the problems related to battery costs, charging or lifespan. This is why next-generation battery management systems are being developed, giving OEMs an opportunity to regain a competitive advantage and improve performance, safety and sustainability.
Experts from Capgemini point out that, in this context, the battery management system is moving into a leading position in automotive innovation. It turns out that implementing advanced BMS solutions connected to the cloud and supported by AI can bring a range of benefits — from better battery performance to greater regulatory compliance and improved cost control for OEMs.
Governments around the world are demanding greener, safer and more traceable batteries. The EU, the United States, India and China are moving towards legal frameworks requiring proof of performance, lifecycle transparency and circular economy principles. Safety standards require real-time diagnostics, thermal runaway testing and cybersecurity-by-design. At the heart of these requirements lies the BMS, where battery health monitoring, sensor redundancy and secure over-the-air updates are no longer optional, but essential.
“As the quality and precision of battery data increase, so does its significance and the role it plays in building trust, ensuring performance and shaping the future of mobility. Since up to half of the value of an electric vehicle may come from its battery, the data generated by that battery is too important to ignore. Thanks to a wide range of sensors, the battery management system will provide deep insight into the condition of the battery, usage patterns and even the vehicle’s operating history. The introduction of the digital battery passport gives this data legal and regulatory backing, increasing the transparency and credibility of battery information that can serve many stakeholders,” says Krzysztof Janusz, Head of Market Unit Automotive at Capgemini Poland.
As batteries become more advanced, collect more data and are connected to networks, cybersecurity is no longer just an option. It is a mission-critical task. A breach of a battery management system may result in operational problems and pose a risk to data. With the development of remote monitoring, BMS solutions have become a major target for cyberattacks. This clearly shows how important a component the battery has become in the modern car.
On the one hand, manufacturers must keep pace with rapid innovation while managing real-world battery degradation without compromising performance and safety. This requires constant adjustment of both product portfolios and production systems.
On the other hand, this “arms race” and modern BMS architecture are opening the door for the electromobility market to entirely new business models, such as Battery-as-a-Service and predictive maintenance. Automotive and industrial OEMs may consider investing in data-driven, software-defined BMS platforms. These solutions are modular, secure and scalable, allowing competitiveness to be maintained throughout the entire battery lifecycle.
“An OEM or vehicle manufacturer diagnoses failures, enforces warranties, and improves design and quality. It enables business models based on battery buybacks. Intermediaries, repair services, lessors, recycling companies and appraisers rely on data to assess the condition, value and reuse potential of a battery, often using cloud-based solutions. This is a very promising and rapidly developing subsector of the automotive industry,” adds Krzysztof Janusz.
This raises several questions:
- How can OEMs and battery integrators that do not produce battery cells gain an advantage comparable to fully integrated players?
- How can they shift value creation from the battery as a static object to the use of the hardware?
- How can they gain access to battery data, performance information and lifecycle insights?
The answers lie in rethinking the battery not merely as a component, but as a service, a source of data and a strategic asset. The solution is clear: the battery management system must evolve. It must become smarter, more flexible and more integrated in order to meet both rapidly emerging innovations and long-term reliability requirements.
Capgemini is an international consulting and technology company providing services in strategy, design, engineering and business operations. It was founded in France in 1967. Today, it operates in more than 50 countries and employs around 420,000 experts. In Poland, Capgemini has been present since 1996, operating centres in Warsaw, Kraków, Wrocław, Katowice, Gdańsk, Opole, Lublin and Poznań.
Source: CEO.com.pl
