Market Size
Global Battery Management Integrated Circuit (IC) Market reached US$ 7.4 billion in 2022 and is expected to reach US$ 13.8 billion by 2030, growing with a CAGR of 8.1% during the forecast period 2024-2031.
The battery management integrated circuit (BMIC) market is experiencing substantial growth driven by the proliferation of electric vehicles and renewable energy systems has increased the demand for efficient and sophisticated BMICs. The ICs are essential for monitoring and managing battery performance, ensuring safety and extending battery life.
Furthermore, advancements in battery technology, including lithium-ion and solid-state batteries, have raised the need for more sophisticated BMICs to control and optimize these new energy storage solutions. The global push for sustainability and the reduction of greenhouse gas emissions has accelerated the adoption of BMICs in various applications, such as grid energy storage, which further boosts the market's expansion.
Asia-Pacific, particularly China, dominates the battery management integrated circuit market due to the rapid adoption of electric vehicles. According to IEA, China registered nearly 60% of global new EVs in 2022, surpassing its 2025 target for new energy vehicle (NEV) sales share, which contributed significantly to the BMIC market's growth. The surge in EVs, driven by government incentives and environmental policies, makes Asia-Pacific the leading region for BMICs, as they play a vital role in managing and optimizing battery performance in electric vehicles.
Market Summary
| Metrics | Details |
| CAGR | 8.1% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$ ) |
| Segments Covered | Type, Application and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Growing Electric Car Battery Material Demand
The surge in demand for lithium is propelled by the swift ascent of electric vehicles as the world shifts away from oil-based energy sources. The recent decline in oil prices, triggered by oversupply and weakened demand amid the COVID-19 pandemic, has accentuated the significance of electric mobility. The confluence of factors underscores the pivotal role lithium plays in the global transition toward sustainable and alternative energy solutions, particularly in the context of the automotive industry's move towards electric vehicles.
The UNCTAD report "Commodities at a glance: Special issue on strategic battery raw materials" highlights the increasing significance of electric mobility and the materials essential for rechargeable car batteries. With efforts to reduce greenhouse gas emissions gaining momentum, green energy production investments are on the rise, approaching US$ 600 billion annually. alternative energy sources such as electric batteries are assuming crucial importance.
The electric car market has experienced a substantial surge, reaching sales of 5.1 million vehicles in 2018 and projections indicate a further substantial increase to 23 million by 2030, as reported by the International Energy Agency. The growth highlights the accelerating shift toward sustainable transportation. However, the success of transitioning to a low-carbon energy system relies heavily on the sustainable sourcing and production of raw materials essential for rechargeable batteries, emphasizing the critical role of responsible supply chain practices in shaping the future of electric mobility.
Surging Lithium Demand
The battery management integrated circuit (IC) market is being propelled by the ever-growing demand for lithium-ion batteries that power a wide range of devices, from smartphones and laptops to medical equipment and electric cars. The versatile batteries provide portable electricity for electronic gadgets and power tools and their demand is set to skyrocket.
The global demand for lithium batteries is projected to undergo a more than fivefold increase by 2030, as forecasted by Li-Bridge. In 2021, global lithium production totaled 100,000 Tonss and estimated reserves globally stand at approximately 22 million Tonss. India's recent discovery of 5.9 million Tonss of lithium reserves positions the country as a noteworthy participant in the lithium market, aligning with major lithium-producing nations such as Chile, Australia and United States. The discovery underscores India's growing importance in the global lithium landscape and its potential impact on the supply dynamics of this critical resource.
Complexity and Cost Factors
Battery management integrated circuits (BMICs) are intricate integrated circuits necessitating substantial research and development efforts. The complexity contributes to the elevated production costs of BMICs, rendering them unaffordable for certain applications. The development of BMICs entails extensive engineering work to ensure precise monitoring and control of battery parameters, such as voltage, current and temperature, which is crucial for safe and efficient battery operation.
Furthermore, BMICs often incorporate advanced features like state-of-charge estimation, cell balancing and communication interfaces, further increasing their manufacturing costs. While these advanced functionalities are vital in applications like electric vehicles and high-performance electronics, their cost can be prohibitive in less demanding or cost-sensitive uses. Hence, BMICs find widespread use in industries where performance and reliability outweigh the expense, leaving simpler battery management solutions for less demanding applications.
Market Segment Analysis
The global battery management integrated circuit (IC) market is segmented based on type, application and region.
Fuel Gauge Integrated Circuits (ICs) Dominating the Battery Management IC Market
Fuel gauge integrated circuits (ICs) hold the largest share in the battery management IC market due to their crucial role in accurately monitoring battery status. The ICs use advanced algorithms to measure voltage, current and temperature, providing precise information about a battery's state of charge and health. The level of accuracy is essential for optimizing battery performance and safety in various applications, including smartphones, laptops, electric vehicles and portable electronics, driving the demand for fuel gauge ICs.
In June 28, 2023, Nordic Semiconductor unveiled the nPM1300, a highly integrated Power Management Integrated Circuit (PMIC) featuring two buck converters, two Low-Dropout Regulators (LDOs) and integrated battery charging capabilities. Designed for battery-operated applications, this innovative PMIC streamlines end-product Bill of Materials (BoM) by consolidating functions that would typically require multiple discrete components. Also, the
PMIC offers system management features and advanced fuel gauging using an algorithm-based approach for accuracy and low power consumption. Nordic claims to be the first to strike this balance. The PMIC is compatible with battery charging for nRF9160 SiP-based cellular IoT applications. It is configurable through an I2C-compatible Two Wire Interface (TWI), providing access to various system management functions, including hard reset, accurate battery fuel gauging and more.
Market Geographical Share
Asia-Pacific Dominates Battery Management IC Market, Fueled by China's Electric Vehicle Industry
Asia-Pacific holds the largest share in the battery management integrated circuit (IC) market primarily due to China's prominence in the electric vehicle industry. China stands as the world's largest new energy vehicle (NEV) market, with impressive growth in NEV ownership and electric vehicle adoption. Further Asia-Pacific holds a significant share, over one-third, of the world's battery production capacity, crucial for Electric Vehicles (EVs).
On the other hand, China's influence extends from crucial raw materials like lithium, cobalt and graphite to a dominant position in the global EV landscape. Government incentives, such as tax breaks for EVs, further bolster China's role as a pivotal player in the growing electric mobility sector. China's lower manufacturing costs, state support and favorable policies have established it as a dominant player in the global battery management IC market, making Asia-Pacific the leader in this segment.
COVID-19 Impact Analysis
The COVID-19 pandemic had a multifaceted impact on the battery management integrated circuits market. Initially, the market faced disruptions in the supply chain, with component shortages and factory closures affecting production. Travel restrictions and lockdowns also hindered research and development efforts, delaying product innovations.
On the demand side, some applications of BMICs, such as electric vehicles (EVs), saw a decline in sales due to economic uncertainty and reduced consumer spending. However, as the pandemic highlighted the importance of renewable energy and energy storage, other segments of the BMIC market, like grid energy storage and renewable energy systems, experienced increased demand.
Russia-Ukraine War Impact Analysis
The Russia-Ukraine conflict significantly impacted the battery management integrated circuits market. The war exposed the vulnerabilities in the global supply chains for electric vehicles and battery metals, including lithium-ion batteries used in EVs. The dependence on Russian nickel for battery manufacturing became a major concern as supply chains were already fragile due to the COVID-19 pandemic and semiconductor shortages. The conflict disrupted the vehicle and parts manufacturing in both Russia and Ukraine, affecting the production of EVs and components.
The impact extended to the upstream supply chain, affecting critical minerals necessary for battery and semiconductor manufacturing. The surge in nickel prices, an essential ingredient in lithium-ion batteries, added to the supply chain challenges, potentially increasing the cost of EVs. The crisis highlighted the need to reduce dependence on Russian supplies and explore alternative sources of critical battery metals.
Key Developments
- In June 2022, Sequel, a startup co-founded by two Stanford engineers and high-level athletes, launched innovative leakage-preventing battery management integrated circuit (IC). The company secured US$5 million in seed funding from investors like MaC VC, Pear Accelerator and more. Sequel's battery management integrated circuit (IC) feature a unique spiral design for even fluid absorption, addressing concerns athletes face during high-performance activities. With granted and pending patents, Sequel aims to raise women's Type standards and plans to bring its pioneering battery management integrated circuit (IC) to the market.
- In June 2022, Renesas Electronics Corporation launched an AUTOSAR-compliant complex device driver (CDD) software module tailored for designers of automotive battery management systems (BMS) used in electric vehicles (EVs). The CDD software is specifically designed to work seamlessly with Renesas' ISL78714 Li-Ion battery management IC, offering a comprehensive solution to accelerate the design process and enhance the performance of next-generation BMS.
- In October 2020, Denso Corporation introduced a groundbreaking battery-monitoring integrated circuit (IC) designed for lithium-ion batteries. The new IC was created to enhance the efficiency of electric and hybrid vehicles by accurately detecting battery voltage while simultaneously monitoring multiple cells, which is an advancement compared to traditional ICs.
Market Major Players
The major global players in the market include Infenion Technologies, Texas Instruments, STMicroelectronics, Evelta, ROHM Semiconductor, Microchip Technology, NXP Semiconductors, Mouser Electronics, Analog Devices, Semtech
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- To visualize the global battery management integrated circuit (IC) market segmentation based on type, application and region, as well as understand key commercial assets and players.
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- Excel data sheet with numerous data points of battery management integrated circuit (IC) market-level with all segments.
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The global battery management integrated circuit (IC) market report would provide approximately 53 tables, 49 figures and 183 Pages.
