Battery Management System Market

How Does Historical and Future Outlook of Battery Management System Market Match Up?

According to the study, the global battery management system (BMS) market is projected to grow from a valuation of US$ 6,221.8 Mn in 2021 to US$ 32,241.3 Mn by 2031. In the past few years, the battery management system market has gained enormous interest due to improvements in wireless and connected electronic devices and technology.

Battery management system (BMS) manufacturers are emphasizing on the manufacture of miniature versions of BMS to be integrated with small size electronics devices. A battery management system offers different features such as battery charger control, monitors the health of battery pack, and cell over-voltage and under-voltage protection, and others. Their demand across diverse industries will enable growth in the market at an impressive 17.8% CAGR between 2021 and 2031.  

How Are Stringent Regulations driving the Battery Management System Market?

Governments across the world have implemented stringent regulations to reduce carbon footprint and are promoting the usage of e-vehicles to reduce carbon emissions. For instance, the U.S. energy and environmental policy is driving the commercialization of EVs.

Automotive and telecom manufacturers are inclined towards the adoption of environmental-friendly and renewable energy sources to capitalize on various tax benefits and other related policies by governments across the world. Presence of such favorable policies is encouraging BMS adoption.

How are Technological Advancements Aiding BMS Adoption?

The demand for development and implementation of new technologies such as electric vehicle battery charging station technologies is rising. This has been in turn creating the need for battery management systems, which includes various features such as the ability to monitor and balance the charge of individual battery cells, fault detection of individual cells, and others.

Advantages such as increased business productivity, reduced complexity, and improved reliability, are the primary factors resulting in the increasing demand for BMS. Integration of technologies such as the Internet of Things (IoT), machine learning, artificial intelligence (AI), and others is expected fuel the demand for battery management systems.

Why Strategic Partnerships & Collaboration is Key to Market Consolidation?

Battery management system manufacturers are entering into a strategic partnership with other technology vendors and integrators, automotive OEMs and others stakeholders for the development of new technologies and solutions. Partnership among key players in the market is a major trend observed in the global battery management system (BMS) market.

For instance, in December 2020, Schindler partnered with L&T Technology Services for digital & engineering transformation. According to the agreement, L&T Technology Services is offering product development, innovation, and engineering services & solutions that will help Schindler to accelerate its digitization and connectivity initiatives.

Apart from this, industry players are focusing on investing in research and development (R&D) activities to improve BMS technology and introduce more efficient products. Battery management system suppliers also are entering into long-term contracts with automotive manufacturers to expand their global footprint.

How is BMS Sales Related to Proliferation of E-vehicles & E-bikes?

To ensure optimum usage of battery storage capacity and avoid hazardous incidents caused due to battery overheating, manufacturers of e-vehicles and e-bikes are integrating BMS systems in their vehicles. Increasing fuel costs and stringent government regulations regarding CO2 emissions are fueling the demand for electric vehicles across the globe. This in turn is expected to bode well for the market.

Original equipment manufacturers are constantly investing in R&D activities to improve e-bike/e-scooter technology, as demand for these products in countries such as Japan, the U.S., Germany, France, and Italy is growing at a rapid pace. Battery management system offers various benefits such as safety, reliability, extended battery life, and reduces the risk of battery damage. These factors, in turn, are propelling growth of the market

What are the Key Challenges for Battery Management System (BMS)?

An increasing number of players in the market has resulted in cut-throat competition. This has resulted in price wars and dwindling profit margins. This trend could inhibit the growth of the global battery management system market. This challenge is felt more in cost-sensitive markets such as India and ASEAN.

Country-wise Insights

How Big is the Opportunity in US? 

North America will remain the largest market for the battery management system due to the presence of several leading manufacturers. This is attributable to the increase in various sectors as automotive, military, consumer/ handheld among others. According to the report, the overall battery management system (BMS) spending in the U.S. alone is likely to increase by above 12% between 2021 and 2031.

Furthermore, the U.S. is the dominant country in the global battery management system (BMS) market accounting for around 20%-25% of the market share in 2021. The high per capita income and stringent regulations implemented to reduce carbon emissions are expected to drive the growth of the U.S. battery management system market. The increasing sales of E-bikes in the U.S. also is expected to bode well for the market.

What Drives the Germany Battery Management System Market?

The adoption of electric vehicles (EVs), plug-in hybrid (PHEV), and hybrid electric vehicles (HEVs) technology is expected to rise considerably across small and medium-sized businesses in countries in Germany. The automobile industry of Germany is an advanced industry with the leanest car manufacturing processes where the use of energy and water is optimized. The Germany market is therefore expected to continue exhibiting lucrative growth opportunities.

As per a research by Berlin-based Schmidt Automotive Research, published in Automotive News Europe, in November last year sales of full-electric cars rose by 523%. This figure is represents high potential for the expansion of the BMS market in Germany.

What Factors are Driving BMS Sales in China?

Stringent environmental laws and debris mitigation standards are driving growth in China. The automobile and telecom sectors are growing rapidly in the China owing to the presence of several leading players. This has been creating growth opportunities for the market.

The demand for battery management systems is attributable to the presence of some of the leading automotive manufacturers such as the Guangzhou Automobile Group, Geely, and others in the country. The growing adoption of rechargeable batteries across automotive and telecom is a major trend driving BMS sales in China.

Government Initiatives Backing BMS Market Growth in Japan

The government of Japan h provides started providing subsidies for the purchase of new clean energy vehicles such as electric vehicles, fuel-cell-powered vehicles, plug-in hybrid vehicles, and clean diesel passenger vehicles to reduce fissile fuel and CO2 emissions from the transport sector. Such government initiatives will positively impact market.

The demand for the battery management system is increasing significantly due to its application in telecommunications backup systems, uninterruptible power systems, electric utility storage for renewable energy, among others. The increasing demand for e-vehicles, e-bikes, and rechargeable batteries are expected to have the highest impact on the Japan battery management system market over the forecast period.

Category-wise Insights

Which is the Most Preferred BMS Battery Type?

In terms of battery type, the market is segmented into lithium-ion, advanced lead-acid, and others. The advanced lead-acid sub-segment is expected to rise at a relatively higher CAGR over the forecast period. However, the lithium-ion sub-segment is also accounted for the dominant share of 41.6% in 2021.

Lithium-ion batteries are often incorporated in mobile electronic devices and electric vehicles due to their high efficiency and high energy density. These batteries can be used in a wide range of applications, such as small mobility vehicles (golf carts, electric motorcycles, and others), trucks/buses, stationary batteries for home energy management system (HEMS), and industrial machinery.

Why are Modular Topologies Gaining Traction?  

Among the topologies segment, the modular topologies segment is expected to register a CAGR of 22.7% during the forecast period. Also, the modular topologies segment is expected to create an incremental opportunity of above US$ 8.0 Bn between 2021 and 2031.

Several manufacturers prefer modular topology as it provides substantial computational power and is also safe as it does not need extensive wire harnesses. This type of topology is also suitable for a wide range of applications such as industrial UPS, energy storage systems, parts of electric vehicles, medical mobility vehicles, and drones. 

Which Industry Accounts for Maximum Application of Battery Management System?

In terms of application, the market is segmented into military, automotive, consumer/ handheld, telecom, energy, and others. The automotive segment currently dominates the market and it is estimated to account for 33.9% of the total market value share by the end of 2021. The increasing demand for rechargeable batteries in hybrid electric vehicles (HEVs), EVs, and plug-in hybrid vehicles (PHEVs) will significantly contribute towards the expansion of the market.

Increasing demand for minimize fuel costs and maximize vehicle efficiency has led to technological advancements in electric and hybrid electric vehicles. To increase utilization of battery storage capacity and avoid hazardous incidents caused due to battery overheating, OEMs of E-vehicles and E-bikes are integrating BMS systems in vehicles. Such factors driving market.

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Why Does Battery Control Unit Segment Exhibit High Growth?

The battery control unit segment is estimated to dominate the global battery management system market through the forecast period. The increasing demand for battery control unit as a result of surging electric vehicles sales will fuel demand in the market. Battery control unit is also used for control of battery charging and managing remaining battery voltage.

Competitive Landscape

Companies operating in the market have been focusing on launching advanced technologies to gain competitive advantage. For instance, in July 2019, Bosch launched cloud-connected battery management to extend the life of EV batteries. According to Bosch, the new connectivity will enable companies to remotely monitor and manage battery status to reduce wear and tear on the batteries by up to 20%.

In September 2020, Analog Devices announced the launch of a state-of-the-art wireless battery management system, intended to help automakers improve their flexibility in scaling electric vehicle fleet into volume production.

Some of the leading companies operating in the market are:

• Vecture Inc.
• Toshiba Corporation
• L&T Technology Services
• Navitas System, LLC
• Merlin Equipment Ltd.
• Ashwoods Energy Limited
• Lithium Balance Corporation
• Nuvation Engineering
• The Ventec Company
• Johnson Matthey Battery Systems

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report

Key Questions Answered in the Report

• Which is the leading market for battery management system?

  North America currently holds dominant in the global market for battery management system (BMS). Within North America, the U.S. has emerged as a highly lucrative market backed by increasing production and sales of electric vehicles.

• What are the major trends impacting the battery management system (BMS) market growth?

  The development of next-generation advanced battery management system is enabling growth in the market. These systems are cost effective and can enhance safety and extend the life of critical battery systems, including high-voltage Li-ion batteries that are used in electric vehicles and other next-generation renewable energy applications.

• Which are some of the leading companies offering battery management systems?

  Some of the leading companies manufacturing battery management system (BMS) are Toshiba Corporation, Vecture Inc., L&T Technology Services, Navitas System, LLC, Merlin Equipment Ltd., Lithium Balance Corporation, and others.

• Which industry exhibits maximum application of battery management systems?

  Maximum sales of battery management system currently concentrates in the automotive sector. Increasing electric vehicle sales will fuel demand in the industry.

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Battery Management System (BMS) Market by Category

Battery Type

• Lithium Ion
• Advanced Lead-Acid
• Others

Topologies

• Centralized
• Modular
• Distributed

Components

• Battery Control Unit
• Battery Communications Interfaces (CAN bus )

Application

• Automotive
  • Electric Vehicles
  • E-Bikes
  • Others
• Military
  • Military Drones
  • Submarines
  • Others
• Consumer/ Handheld
  • Power Tools
  • Home Appliances
  • Others
• Telecom
• Energy
  • Grids
  • Wind/Solar Farms
  • Others
• Others

Region

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East and Africa (MEA)