Detailed insights into battery management system market

An electronic regulator known as a battery management system (BMS) keeps track of the battery’s performance and consumption. In addition to collecting and analyzing functional data from single cells in the battery pack, it ensures that the battery does not function above its maximum voltage and current levels. The battery pack is also protected from being overcharged or depleted, the amount of energy left in the battery is calculated, and a continual check is made for shorts, loose connections, or deterioration in wire insulation.

The battery management system market worth in 2021 was USD 6.42 billion and will be worth USD 35.79 billion by 2030, growing at a 21.2% CAGR during the forecast period.

Growing environmental concerns, government attempts to encourage the use of battery systems, and increased demands for electric vehicles are the main factors propelling the market’s expansion.

Market Dynamics

Drivers

The global market for battery management systems will increase as a result of the expansion of the automotive sector. Innovation and the creation of electronic cars are fueled by these factors, as well as increased environmental concerns and a decrease in the usage of fossil fuels. The global market for battery management systems will grow due to the increase in demand for these systems to reduce greenhouse gas emissions. The paper reviewed the efforts made by various nations worldwide to promote electric automobiles and their immediate effect on the volume of sales of battery management systems.

Restraints

The lack of experienced laborers qualified to install battery management systems in several emerging nations is predicted to hinder the global market for battery management systems. A significant issue for the global market for battery management systems will be the growth in declining profit margins and piece wars as the number of large players in the market rises.

Opportunities

Companies are expanding their R&D departments in response to the advancement of technology toward creating more effective systems. For instance, Infineon is creating a Wireless Battery Management System that will use radio signals to connect the cells, lowering the weight of the car and the number of electrical connections while increasing the system’s efficiency. Amazon invested USD 2 billion in ION Energy, a business that creates battery management systems for mobile applications and the automotive industry.

Market Segmentation

By Battery Type, the Lithium-ion battery segment held the largest market share in 2022. It is mainly because lithium-ion (Li-ion) batteries have various advantages over other battery types, including a longer life cycle, higher energy density, lower maintenance required, and superior resilience. In addition, Li-ion batteries are environmentally beneficial because they have comparatively lower quantities of hazardous heavy metals than other battery types like lead-acid and nickel-cadmium batteries (Ni–Cd).

By topology, the modular topology will experience the fastest growth rate. The main benefit of utilizing the modular type is that they may be further connected in series or parallel circuits, increasing the output of power or voltage while also providing the additional benefit of cheaper maintenance costs.

By application, the automotive industry is the largest market, followed by consumer electronics. The introduction of several products in both divisions is the cause of this. The IEA estimates that the total number of electric vehicle sales will double to 6.6 million units in 2021. Industry reports show that consumer goods achieved about USD 1002.64 billion in 2020. Thus, there will be a greater need for battery management systems as both major sectors’ sales grow.

Regional Insights

In 2022, Asia-Pacific held the largest share. The increase in demand for battery management from automotive applications like electric cars, e-bikes, and automated guided vehicles is to blame for this. High-energy-density lithium-ion batteries with dozens of cells stacked in series are used in these applications. These cells must be maintained and managed to prevent vehicle failure, making the system a crucial element in the design of electric vehicles. The system determines the battery’s performance, safety, and utilization. The battery life and driving range have also increased.

China is the market leader in APAC because it is a significant center for the production of automobiles. Increasing the production of cars and the batteries they utilize is driving the national market. In addition, China is the world’s top producer of electrical machinery. This will increase demand for the product across a variety of applications.

Key Players

• Robert Bosch GmbH (Germany)
• Panasonic Corporation (Japan)
• Leclanche (Switzerland)
• Toshiba Corporation (Japan)
• Midtronics Inc. (US)
• Nuvation (US)
• Eberspächer (Germany)
• ST Microelectronics
• Deutz AG ( Germany)
• Texas Instruments Inc (USA)
• Elithion Inc (USA)

The battery management system market worth in 2021 was USD 6.42 billion and will be worth USD 35.79 billion by 2030, growing at a 21.2% CAGR during the forecast period. The market is being driven by the increasing global use of electric vehicles and hybrids due to stringent rules enacted to reduce greenhouse gas (GHG) emissions, such as the Kyoto Protocol. The increased need for lithium-ion batteries will drive the battery management system industry.