Battery Management System Market

Battery Management System Market Outlook

The Battery Management System Market is valued at USD 9.3 Bn in 2026 and is projected to reach USD 33.1 Bn,  growing at a CAGR of 20% by 2033

Climbing EV and HEV Sales Boost Rate of Adoption for Battery Management System Market

Utilizing green energy is becoming increasingly important and electric vehicles (EVs) are presently the most environmentally beneficial choice for both private transportation and public transportation. Due to their high energy and current densities, lithium-ion batteries are a typical part of electric cars. Unfortunately, lithium-ion batteries can be dangerous if used outside of their safety operation area. Every lithium-ion battery must consequently include a battery management system, especially EV batteries, and those used in hybrid electric vehicles (HEVs). The main duty of a battery management system is to ensure that the energy stored in the battery that powers the portable device is used as effectively as possible while reducing the possibility of battery damage, which is achieved by monitoring and controlling the battery's charging and discharging processes. Increasing demand for efficient performance at a minimal risk of battery damage is expected to drive the growth of battery management system market.

Modern batteries produce a lot of current while maintaining a constant voltage, which could lead to a runaway scenario if the battery catches fire. Since the chemicals used to make batteries are quite flammable, a battery can catch fire if it is accidentally punctured. Temperature readings are used for more than only determining safety; they may also be used to determine whether charging or discharging a battery is preferable. A temperature sensor is present in each cell of an energy storage system or in a group of cells in a more compact, portable application. The temperature of each circuit is typically monitored using thermocouples driven by an internal ADC voltage reference. The internal voltage reference is utilized to lessen temperature reading errors caused by variations in the outside temperature. These advantages are likely to fuel the expansion of battery management system market.

Modular Topology Preferred in Battery Management System Market, Li-ion Battery Leading Battery Type Segment

With rising application across all end-use industries, lithium-ion batteries will dominate the battery management system market in terms of battery type during the projected period. Demand will however remain the maximum within automotive industry. Compared to other typical batteries like lead acid, and nickel, lithium batteries remain the most sought-after among auto manufacturers due to their higher charge density, and lighter weight. Based on its topology, the battery management system can be categorized into modular, centralized, and distributed systems. On the other hand, the modular topology component of this system is expected to witness demand growth at the fastest rate. Many manufacturers employ modular topology since it has excellent processing power and does not require huge wire harnesses. Ascending demand for components for electric cars, commercial drones, medical mobility vehicles, and energy storage systems will further heighten the prospects of growth for modular topology segment.

Depending on the application, the battery management system market has been segmented into energy storage, automotive, consumer electronics, healthcare, telecommunication, renewable, and military and defense. Research indicates estimated dominance of the automotive battery management systems segment throughout the forecast period. The big players rely on UPSs and generators, which are predominantly utilized in the telecom industries for power generation, in addition to employing battery in the event of a power outage. The communications and power generation sectors will control the markets for the systems. Along with the demand for electric and hybrid vehicles, a growth in the need for battery systems is projected. Electric car stationary energy storage systems use high voltage battery packs.

Dominance of North America Intact in Global Battery Management System Market, Ample Opportunity Spotted in Asia Pacific

With the biggest market share, North America dominated the industry in 2020. Numerous significant participants in global battery management system market like Texas Instrument and other well-known companies, as well as of small and medium-sized businesses are based in North America, which is encouraging for the expanding uptake of battery management systems in the local market. The battery management system market in North America has been significantly impacted by the growing use of EVs, HEVs, and the favorable government initiatives. For the development of HEVs, the government is offering a variety of financial and encouraging incentives. The rise of the battery management system market can be attributed to an increase in car sales.

Battery management system market in Asia Pacific is predicted to grow at the fastest CAGR between 2022 and 2029. The expansion of the market here may be linked to businesses in Asia Pacific nations like China, and India showing an increasing demand for cutting-edge technical solutions. To reduce carbon dioxide emissions, the government continually places a focus on EVs, and HEVs. Public transportation has been witnessing a revolutionary change in the wake of the increase in air pollution. Industry players are switching to renewable energy to comply with government regulations. Batteries are widely used in the consumer electronics, telecom, and automotive industries.

Leading Vendors in Global Battery Management System Market

The battery management system market vendors have implemented various types of organic and inorganic growth strategies, such as new product launches, product upgradations, partnerships and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. Several companies steering the global battery management system market are also pursuing several other strategic initiatives, including joint ventures, and new product launches, and striking contracts and agreements to strengthen their position in the market. Some of the major vendors considered for strategic profiling in the report include 

• Robert Bosch GmbH
• DENSO Corporation
• Continental AG
• LG Chem / LG Energy Solution
• Tesla, Inc.
• Panasonic Corporation
• NXP Semiconductors
• Infineon Technologies AG
• STMicroelectronics
• Texas Instruments Inc.
• Analog Devices, Inc.
• Renesas Electronics Corporation
• Samsung SDI Co., Ltd.
• CATL (Contemporary Amperex Technology Co. Ltd.)
• Hitachi Automotive Systems, Ltd.

Recent Notable Developments

• In May 2022, Marelli Holdings Co., Ltd. expanded its battery management technologies for electric vehicles by launching Wireless Distributed Battery Management System (wBMS). This technology eliminates wired physical connections that are required in other battery management system architecture, thus ensuring greater flexibility, increased efficiency, improved reliability, and reduced costs
  
  
• In September 2020, Analog Devices, Inc. launched a wireless battery monitoring system that helps improve design flexibility and manufacturability without sacrificing range and accuracy during the battery's lifespan. This can save up to 90% of the wiring and up to 15% of the volume of the battery pack. These features enable automakers to scale up the production of electric vehicle fleets across a wide range of vehicle classes

The Global Battery Management System Market is Segmented as Below:

By Type

• Stationary
• Mobile

By System Integration

• Centralized
• Distributed
• Modular

By Battery Type

• Lithium-ion
• Lead-acid
• Nickel-cadmium
• Solid State
• Others

By Application

• EV
• ESS (Energy Storage System)
• Consumer Electronics
• Industrial
• Others

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa