BATTERY MANAGEMENT SYSTEM MARKET ANALYSIS

Global Battery Management System market was valued at US$ 7.47 Bn in 2022, exhibiting a CAGR of 21.5% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 35.4 Bn by 2030. A battery management system (BMS) is an electronic system that governs a rechargeable battery such as a battery pack or cell. This is done by supervising its state, preventing it from operating outside its safe operating area, reporting data, calculating secondary data, and controlling its environment. BMS has three main objectives namely maintaining prolonged life for the battery, protecting cells or battery from damage, and maintaining the battery in a state in which it can fulfill the functioning requirements. There are three distinct types under the battery management system. centralized, where the battery cells are linked to a single controller via a network of cables. Many controllers, each supplying a certain number of cells with communication between controllers, define a modular system. With a BMS board distributed, each cell is linked to the controller and battery by a single communication wire.

Global Battery Management System Market- Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 outbreak has majorly impacted the global battery management system market, owing to the strict lockdown and stringent regulations, followed by the government, and thus there was a decrease in demand for betavoltaic devices across the automation industry. Moreover, the production process of the battery management system is disrupted due to social distancing and a lack of manpower. However, some battery management systems that are used for automation, energy, among others, is likely to increase demand for battery management system during the forecast period. Moreover, battery management systems are expected to be in high demand over the forecast period due to the expanding developments and advances.

Figure 1. Global Battery Management System Market, By Vertical Segment, 2022

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Global Battery Management System Market - Growth Drivers

• Increasing demand for electric vehicles worldwide

In the recent past, demand for electric vehicles has increased significantly, especially in Europe, North America, and Japan. This is partly due to growing fuel costs and strict regulatory policies imposed by the governments to reduce CO2 emissions. For instance, in June 2022, EV start-up Mecwin India announced that it planned to invest approximately US$ 6.38 million to establish a production facility for EV motors, controllers, and BMS systems in Karnataka, India. The factory's first production capacity will probably be 2,000 units per day, and it will probably satisfy the need for EV Original Equipment Manufacturers. (OEMs). Therefore, during the projection period, such upcoming developments are likely to raise demand for BMS systems in India.

Growing demand for e-bikes, e-scooters, and S-Pedelecs is expected to propel the global battery management (BMS) market over the forecast period

Key manufacturers in the industry are focused on investing in research and development activities, in order to enhance e-bike technology. This is owing to increasing demand for e-scooters and e-bikes from developed countries such as Germany, France, Japan, Italy, and the U.S. Moreover, increasing disposable incomes in developed countries is expected to boost the demand for e-bikes and thereby drive the global battery management (BMS) market growth over the forecast period.

Figure 2. Global Battery Management System Market, By Region, 2022

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Global Battery Management System Market - Restraints

• Decreasing profit margin for vendors and OEMs is expected to restrain growth of the global battery management system (OEMs) market over the forecast period

Growing competition in the market coupled with pricing wars has hindered the profit margins. Moreover, OEMs in the automotive industry and telecom hold tremendous bargaining power and price dictation of battery management systems. This, in turn, reduces profit margins for vendors. Furthermore, cost-sensitive markets such as ASEAN and India with intense competition among BMS providers are expected to restrain the market growth over the forecast period.

• Complex structure of battery is expected to hinder the global market growth over the forecast period

Some batteries available in the market have complex structures and are incompetent in performance. According to Coherent Market Insights’ analysis, BMS has technological drawbacks and cannot be incorporated with complex battery structures. This, in turn, is expected to hamper the market growth in the near future.

Market Opportunities

• Growing adoption of battery-operated vehicles in public transport is expected to pose excellent growth opportunities for market players

Growing CO2 emission has compelled governments of various countries to adopt battery-operated vehicles for public transport. Government agencies are investing in the endorsement of electric vehicles in public transport. For instance, in July 2019, the Government of India approved Phase II of Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II). This, in turn, is expected to offer lucrative business opportunities for market players in the near future.

• Proactive initiatives by government agencies to promote the use of electric vehicles is expected to offer significant growth opportunities for market players

Governments of various countries are encouraging the adoption of EVs with concessions on tax and subsidies. Moreover, governments are increasingly investing in installing charging stations around the country, to provide convincing of rapid charging to EV owners. For instance, in September 2019, the government of the U.K. invested around US$ 535 million (£400m) in the country’s electric vehicle charging infrastructure, of which around US$ 267 million ((£200m) would be invested in rapid charging points. This, in turn, is expected to pose significant growth opportunities for market players during the forecast period.

Market Trends

• Increasing demand for BMS for E-bikes and E-vehicles

Increasing demand to reduce fuel costs and optimize vehicle efficiency has led to technological advancements for hybrid electric and electric vehicles. Key manufacturers in the market are incorporating battery management systems in e-bikes and e-vehicles, to increase the battery utilization capacity and prevent hazardous incidents.

• Long-term contract with OEMs is a major emerging trend in the market

Since there is intense competition in the market due to a large pool of manufacturers, BMS suppliers and OEMs are entering into long-term contracts. This is done to increase their market share for an extended period.

Segment information:

By Vertical segment, the global battery management system market is categorized into automotive, telecom, energy, drones, and consumer/handheld.  The automation segment held the largest market share in 2022 and is further projected to grow at the highest CAGR during the forecast period owing to rising the need for electric vehicles. For instance, in February 2020, The BaMoS battery management system, developed by Innovation Labs, uses incredibly thin printed temperature and pressure sensors to collect extensive battery data at the battery longevity by up to 40% by utilizing data at the individual cell level.

Global Battery Management System Market– Recent Developments

• In May 2022, Marelli Holding Co, Ltd., a battery management technology company, expanded its technology solution for electric vehicles with the launch of distributed battery management system. This newly launched technology ensures superior flexibility and greater efficiency at a relatively lower cost by eliminating wired physical connections that are generally required in other battery management systems.
• In September 2020, Analog Devices, Inc., a battery management system company, improved design flexibility and production by launching a wireless battery monitoring system without giving up range and accuracy during the battery’s lifespan. This newly launched system can save 15% of the volume and 90% of the wiring. It can enable automakers to increase the production of electric vehicles over a large range of vehicle classes.
• In September 2022, Sensata Technologies, Inc. announced the release of a new battery system termed lithium Balance n3-Bms for high voltage applications. Sensata Technologies, Inc. is one of the top providers of sensing, electrical protection, control, and power management products and services in the globe.
• In June 2022, Renesas Electronic Corporation presented a software module for complex device drivers (CDDs) that complies with AUTOSAR for use in automotive battery management systems (BMS) for electric vehicle (EV) applications. Renesas Electronic Corporation is a Japanese semiconductor producer with its main office in Tokyo.
• In April 2022, Infineon Technologies AG introduced a new series of battery management integrated circuits (ICs) that includes the TLE9012DQU and TLE9015DQU. These ICs are ideal options for balancing and monitoring battery cells. Moreover, they make measurements with exceptional accuracy using the most resilient application possible. Infineon Technologies AG is a German semiconductor manufacturer that has been established in 1999.
• In January 2021, Texas Instrument Incorporated introduced a wireless battery management system for electric vehicles. The newly introduced system ensures superior wireless control and monitoring of the superior cells. Furthermore, it has resulted in the elimination of cabling and weight saving. Texas Instrument Incorporated. Texas Instrument Incorporated is a Dallas-based American technology startup.
• In October 2021, Brill Power introduced a new intelligent battery management technology that will contribute to a 60% increase in battery life. Also, a 129% increase in storage capacity is anticipated, which will enable the systems to operate for longer. Brill Power is a clean-tech platform that creates advanced battery management technology to improve lithium-ion battery lifespan performance.
• In June 2022, Xing Mobility introduced its battery solution that is immersion-cooled at a convention in Germany. The new battery management technology has been developed to function in demanding settings like the summer heat and deteriorating driving conditions. Xing Mobility is a supplier of battery and powertrain technology for electric vehicles.

Global Battery Management System Market– Regional Insights

Asia Pacific held the largest revenue share of 40.7 % in the global Battery Management System market in 2022 and is expected to maintain its dominance over the forecast period. Furthermore, Asia Pacific region is projected to be the fastest-growing region in the global battery management system market during the forecast period. Moreover, due to technological developments and an increase in demand to enhance the customer experience in China and Japan, the Asia Pacific market is anticipated to have the quickest rate of revenue growth. In addition, due to the growing demand for rechargeable and long-lasting batteries in the Asia Pacific region, BMS companies are focusing on expanding their production capacity there. Batteries are used in a variety of items in developing nations in industries such as consumer electronics, telecommunication, energy supply, and storage.

During the forecast period of 2023–2030, North America is expected to experience the fastest growth, owing to numerous industry competitors and significant research & development (R&D) efforts being made in power battery management systems. Furthermore, increased EV adoption and helpful government measures are credited with further fuelling market revenue growth for BMS in North America. For instance, the American Recovery and Reinvestment Act funds the development of hybrid electric vehicles (HEVs), which is anticipated to boost sales of battery management systems in the U.S.

Global Battery Management System Market – Key Players

Major players operating in the global Battery Management System market include AVL, Cummins, Inc, Johnson Matthey Battery Systems, L&T Technology Services, Merlin Equipment Ltd., Navitas System, LLC, Nuvation Engineering, The Ventec Company, Toshiba Corporation, TWS (Technology with Spirit), Vecture Inc.

*Definition: A battery pack, which is an assembly of battery cells electrically organized in a row-by-column matrix configuration, is under the control of a battery management system (BMS), a piece of technology designed to deliver a targeted range of voltage and current for a while against anticipated category.