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Battery Management System Market - Forecast(2024 - 2030)
Battery Management System Market Overview
The Battery Management System Market is estimated to grow from $23.4 billion by 2030 at a robust CAGR of 5.5% during the forecast period 2024-2030. Battery management system refers to an electronic system that helps in monitoring and maintaining the health of the batteries. Battery management systems manage and protect the cells in a battery pack ranging from advanced lead acid batteries to lithium-ion batteries, primarily nickel metal hydride based. These manage the rechargeable batteries by monitoring the state of the device and data thus ensuring long life battery pack and protecting the battery from damage. These comprise of functional blocks that include cell voltage monitor, real time clock, temperature monitors, microcontroller and others. Advantages such as prevention of batteries from voltage fluctuations and over charging, optimizing and monitoring real time condition of battery thus enabling prolonged life of batteries will result for the market growth. The key drivers attributed to the growing demand for battery management systems market include increasing demand for electric vehicles, energy storage systems and growing consumption of rechargeable batteries in consumer electronics coupled with technological advancements. The transportation sector is also responsible for global warming to a greater extent. The emissions from the vehicle after the combustion of fuel is required to be controlled. The electric vehicles and battery-powered vehicles are now being developed as a substitute to the fuel engine vehicles that reduces the intensity of emission of toxic gases along with utilization of regenerative braking. In 2023 global car sales, electric cars constituted 16.4 of total sales rising from 2.6% of market share in 2019. In particular, China at 22% and Europe at 17.5% achieved new records in electric vehicle market share in 2023 after a slowdown due to Covid-19. Increasing demand for electric vehicles has significantly elevated the growth of Battery Management System Market.
Market Snapshot:
Report Coverage:
The report: “Battery Management System Market – Forecast
(2024-2030)”, by IndustryARC covers an in-depth analysis of the following
segments of the Battery Management System Market Report.
By Topology – Centralized, Distributed, Modular
By Component – Hardware (Battery Control Unit, Power Management ICs, Communication Channel) and Software
By Application – Energy Harvesting and Nano Power Solutions,
Electric Bicycle Solutions, Wireless Power Devices, Handheld Consumer Medical
Equipment, Portable Industrial Solutions, Automotive Power Solutions and Others
By End Use Industry – Automotive, Telecom, Power Systems,
Medical, Industrial, Consumer Electronics, Others
By Geography - North America (U.S, Canada, Mexico), Europe
(Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan
India, SK, Australia and Others), South America (Brazil, Argentina and others)
and RoW (Middle East and Africa).
Key Takeaways:
• Flow
batteries' high capacity and ability to withstand extreme temperatures offer
suitable for applications such as renewable energy systems and UPS.
• Nickel-metal
batteries have high energy density although they are secondary batteries in
which environmentally friendly metals are used. These batteries find
applications in electric vehicles, portable devices, smart grids, UPS, and
others.
• Solid-state batteries are better than conventional batteries as they are non-flammable, have a long shelf life, are safe, and release high energy.
Battery Management System Market Segment Analysis- By Industry
Battery Management market is projected to grow, with a CAGR
of 8.6% during the forecast period 2024-2030. The initiative taken by the OEMs
to develop electric versions of the passenger cars and other vehicles are being
backed by government and research institutions and industrial programs. The
Electronic Vehicle sector have witnessed huge investments by the government and
industry programs. The investments on the EV sector are likely to accelerate
the subsidy programs formulated for EVs dispersion across USA and European
nations. The high adoption of advanced technology in these regions has
triggered hefty spending by the government institutions to support EVs market
as a part of national economic stimulus program. Today, a large portion of the
European nations have introduced CO2 based car taxes, thus opening up new
opportunity market for EVs. Therefore, increasing opportunities for electric
vehicles has triggered the growth of Automotive Battery Management segment of
the market during the forecast period. For electric vehicles or battery powered
vehicles, batteries are developed such that failure of a cell among all the
cells available does not lead to failure of the entire battery system. The
battery sensors help to know the status of the batteries.
Battery Management System Market Segment Analysis- By Topology
Modular segment of Battery Management Market generated a
revenue share of 37.1% in 2023. In the modular structure, several slave
controllers are used to consolidate the data to a master controller. Over here,
no printed circuits boards are necessary to connect the individual cells.
Moreover, a modular BMS aims at improving the performance of BMS to provide a
safe, reliable and cost-efficient solution for smart-grid and electric vehicles
which in turn is set to propel its market growth. Besides, the major advantage
of modular BMS is the improved manageability. The modules are placed close to
the batteries, which avoids long cables. To improve, functional safety, the
function of the BMS can be easily replicated on the individual modules. The
scalability is also increased compared centralized BMS.
Battery Management System Market Segment Analysis- By Geography
The Battery Management market value is projected to grow with CAGR of 7.6% during 2024-2030. This growth is attributed to the increasing demand for automobiles and stringent emission standards. APAC will be the leading region for battery management market mainly due to growing automobile demand in APAC and the shift of auto manufacturers to APAC for production in order to capture the untapped potential. The presence of automotive companies such as Tesla, Hyundai, General Motors, Ford will positively impact the Battery Management demand in automotive sector. Apart from this, companies such as General Motors, Ford, Chrysler has incorporated Li-ion batteries in its electric vehicles models which in turn is driving its market growth. California is the largest plug-in car regional market in the U.S, with over 903,000 electric vehicles registered through November, 2022, representing 47.6% of all electric vehicles sold in the American market.
Increasing Demand for Intelligent Battery Management Systems
The battery's power load has been improved by features such
as start/stop, electric power steering, and electronic braking systems. As a
result, a major problem in a vehicle's electrical system has been prioritizing
all of these electrical loads on a scale from comfort to safety. The demand for
an intelligent battery management system (IBMS) is growing among automakers,
and it is now being widely adopted across all regions. In a vehicle battery
pack, IBMS is made up of advanced electronics like battery sensors that
calculate the state of charge (SOC), state of health (SOH), and temperature
across a cell and are linked in a series and parallel array. IBMS took all
three measurements at the same time to ensure reliable results, even though the
vehicle's conditions were rapidly changing. The use of IBMS assists in
logically shutting down these electric vehicle systems and advising drivers
about impending battery problems, effectively keeping them away from battery
explosions. Continental AG, Hella, and Bosch are among the leading
manufacturers of intelligent battery sensors. Technological advances have aided
the automotive industry's rapid expansion. Automobiles are outfitted with
sophisticated technologies, and automakers are constantly introducing new ones
in the form of product enhancements and technical advancements. Electric cars
are growing in popularity due to the need to reduce carbon emissions and
provide energy-efficient batteries, which is propelling the growth of
automotive batteries. The adoption of these powerful batteries has resulted
from technological advancements that have overhauled the automotive product
lifecycles.
Need for lower operational and administration expenditure
The lithium-ion battery recycling market is influenced by
rising demand for electric as well as hybrid electric vehicles, where
lithium-ion batteries are used extensively. The adoption of these vehicles
results in a price hike of battery materials such as cobalt and lithium, thus
making recycling of lithium-ion battery industries more profitable. The world's
number of electric vehicles has seen a dramatic rise in recent years, pegging
the world's current number of EVs at around 4 million. According to International
Energy Agency, the number will increase up to 125 million by 2030 and more
eclectic vehicles will come with Li-ion batteries. With such volumes of Li-ion
batteries driving towards their end of useful life, there is a pressing need to
ensure efficient lifecycle management of the batteries. Regulations in Europe
and China hold the automaker responsible for battery recycling. Companies
manufacturing electric vehicles such as BMW, Nissan, BYD, Renault and Rivian
are exploring the use of recycled batteries. OEMs plan to buy back and
repurpose used batteries for storage systems. The old batteries of Nissan Leaf
are repurposed in Fukushima for use on other EVs and forklifts. Japan is
another country where truck fuel efficiency requirements have been updated, and
the country's automotive policy aims to cut 80 percent of its automotive
greenhouse gas emissions by 2050.During the forecast period of 2024 to 2030,
such favorable policies are expected to fuel the adoption of heavy-duty
electric vehicles, such as trucks, and thus accelerate the adoption of battery
management systems. As part of its Advanced Battery Storage Project, Renault
collaborates with energy companies to build large scale storage units in Europe
as well. These factors are supporting lithium-ion batteries recycling market.
Battery Management System Market Challenges
High Initial Cost of Integration
Battery Management producers have a range of costs to manage
with a particular focus on raw material and production costs, i.e., labour and
machinery. Other important costs include regulatory compliance costs, logistics
costs, general overheads such as utilities and marketing. Costs of production
continue to be a challenge for companies and a large proportion of Battery
Management producers have outsourced their production totally or partially to
subcontractors. Continuous fluctuations in the cost of raw materials namely
lead and nickel over the past few years is one of the challenges to the
increasing growth of automotive batteries ` A BMS can easily range from $300 to
$10,000 depending on the nominal voltage of the battery stack and quantity of
parallel stacks.
Battery Management System Market Landscape
Acquisitions, Partnerships and R&D activities are key
strategies adopted by players in the Battery Management System Market. Battery
Management System top 10 companies include
- Johnson Matthey
- Leclanche
- Panasonic
- Analog Devices
- STMicroelectronics
- Texas Instruments
- Eberspaecher Vecture
- Nuvation Engineering
- Sensata
- NXP Semiconductor
Recent Developments:
• In May
2022, Endurance Technologies, one of India's largest automotive component
makers, bought the battery management system unit of energy tech startup Ion
Energy for $40 million in an all-cash deal.
• In
February 2023, Marelli was awarded an important contract to supply its Battery
Management System (BMS) – a core component of electric vehicles design, also
regarded as the “brain” of the battery – for the future BEV (Battery Electric
Vehicles) small-medium cars of a major global carmaker, Toyota from 2026.
• In November 2023, Ford Motor Company acquired Auto Motive Power (AMP), an energy management start-up based in Los Angeles. Auto Motive Power Inc (Auto Motive Power) is specialized in battery management services.
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