Battery Management Systems Market Size, Share, Industry, Forecast and outlook (2024-2031)

Battery Management Systems Market is segmented By Type (Motive Battery, Stationary Battery), By Battery Type (Lithium-ion, Lead-acid, Nickel-based, Solid-state, Flow battery), By Application (Automotive, Industrial, Renewable energy, Telecommunication, Military and Defence), and By Region (North America, South America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Battery Management Systems Market Size

Global Battery Management Systems Market reached US$ 7.1 billion in 2022 and is expected to reach US$ 28.4 billion by 2030 growing with a CAGR of 18.9% during the forecast period 2024-2031.

The global battery management system market is driven due to increases in demand for various sectors such as the automotive and renewable industries. The demand for environmentally friendly and advanced vehicles in the automotive market is driving the growth of battery management systems. With the increase in population, most people adopt compact and advanced feature batteries. Furthermore, the rising demand for electric vehicles and the adoption of sustainable batteries increases are other factors boosting the market.

Continuous advancement in technology is witnessed in the battery management system market. A battery management system can handle battery cell packs and provides various functions for protecting batteries, monitoring battery life storing, and calculating its secondary data. Demand, for batteries, increases because countries are shifting from gasoline vehicles to electronic vehicles. 

Asia-Pacific countries such as China India, and Japan have the largest market for the development of batteries covering more than 55.5% globally. The region’s growth is due to expanding consumer electronics and rising investments by the government and key players in R&D activities to boost the technology.

Battery Management Systems Market Scope

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Battery Management Systems Market Dynamics

Growing Demand for Efficient Battery Monitoring in the Renewable Sector

Battery monitoring system plays an important role in the renewable energy sector. It allows power control, efficient storage of power, and evaluation of renewable energy. The battery monitoring system provides accurate information which helps to identify issues related to power. The growing demand for battery monitoring systems in the renewable energy sector leads to optimized energy production.

The utilization of renewable energy increases by 7% compared to other fuels. Wind and Solar PV combine contribute 2/3rd of renewable energy growth. The tremendous increase in the renewable energy sector led to encouraging the key players to increase the BMS application.

For instance, on 27 Mar 2023, ARENQ and RDL technologies joined hands for battery monitoring systems. ARENQ collaborated for 5 years with RDL technologies for monitoring batteries with IOT devices. RDL Technologies is a manufacturer of IOT products in which data from battery management systems are uploaded to the cloud.

Increasing Sales of Hybrid Vehicles 

With the growth of the population, the number of vehicles on the road also increases. Pollution caused by these vehicles also increases which is an alarming situation for the entire nation. To address this situation people move more toward the adaption of electric vehicles.

Due to this, the demand for hybrid electric cars increases to 9.9 million. Hybrid vehicles rely on battery management systems for various applications. BMS systems monitor and control various parameters of the hybrid vehicle battery, including temperature, voltage, and state of charge. 

Furthermore, BMS helps to optimize the battery's performance by regulating charging and discharging processes, ensuring that the battery operates within its optimal range. This results in improved battery life and overall longevity, which is crucial for hybrid vehicle owners and manufacturers. Thus the growing shift towards hybrid vehicles drives the demand for the BMS market.

For instance, on 8 Jun 2023, Asia-Pacific holds a large number of sales of the electric car in the automotive sectors. Hybrid electric cars are a combination of both gasoline cars and electric. NiMH supplies power to batteries and it has regenerative braking through which batteries get charged. A report by P and S, on 8 Jun 2022 stated that 66% growth in the hybrid electric car market.

Lack of Regulation 

A lack of regulation in the battery management system leads to a significant challenge for both individual consumers and companies. Proper attention is required for battery management systems by both governments as well as people all around the globe as batteries can be vulnerable to short circuits, overcharging, undercharging, and other malfunctions that cause safety and performance issues.

Proper monitoring and maintenance are required daily for the growth of the battery management system. Lack of standardization hampers the batteries' growth. The consumer should get a time-to-time update and notifications about malfunctions in batteries. One common guideline cannot serve all applications leading to harm the market growth.

Battery Management Systems Market Segment Analysis

The global battery management system is segmented based on type, battery type, application and region.

Surging Demand for Lithium-Ion Batteries in Various Applications

Lithium-ion batteries power the lives of people every day thus covering a major chuck of more than 1/3rd of the market. These batteries were first developed for portable electronics but with the increase in application which includes electric cars, medical devices etc. The common concept integrated with batteries is power density and energy density. As per a report by IEA from the 8th national conference, the demand for Lithium-ion batteries increased by 65 % in 2022 compared to 2021.

In China, the demand for batteries for vehicles increased by 70%, and sales of electric vehicles by 80%. Report by McKinsey on 20 Feb 2023 globally the demand for electric vehicles increases. By 2030 the consumption of lithium-ion batteries will increase up to 4.7 TWH.

The process of recycling lithium-ion batteries increases by up to 30% by the end of this year. Thus, the growing popularity of lithium-ion batteries in various applications, including electric vehicles (EVs), consumer electronics, and renewable energy storage has raised the need for efficient BMS systems to monitor and optimize their performance.

Source: DataM Intelligence Analysis (2023)

Battery Management Systems Market Geographical Share

Asia-Pacific’s Increasing Electric Vehicle Adoption and Government Initiatives

Asia-Pacific is the fastest-growing market for battery management systems and is expected to cover more than 60.5% in the forecast period predominantly due to the increasing adoption of electric vehicles. China leading the development of lithium-ion batteries with nearly 80% compared to other countries. It has the largest manufacturing unit for the development of batteries. Japan, South Korea, and Germany are also the fastest-growing markets across regions.

Governments in this region announce various policies and incentives for the growth of battery management systems. The growth of electric vehicles increases by 10 million compared with last year. By deployment of government policies and emission standards due to which adoption of electric cars increases. According to the report by IEA in 2022 5.9 million cars were sold across the globe. Thus, the region's push towards sustainable transportation fuels the demand for BMS systems in the EV market.

Source: DataM Intelligence Analysis (2023)

Battery Management Systems Market Companies

The major global players in the market include Leclanche, Lithium Balance, Hydrogenic Corporation, Eberspaecher Vectures, Storage Battery System, Johnson Matthey, Linear Technology Corporation, BMS Powersafe, Texas Instruments, NXP Semiconductors NV.

COVID-19 Impact On Battery Management Systems Market

COVID Impact

The pandemic affects supply chain management which leads to the storage of materials, equipment, and components. That results in delays in the production and development of battery management systems. Furthermore, projects which involved energy storage systems got canceled or delayed due to lockdown and travel restrictions. 

As the downfall in the market during the pandemic the investors became more risk-averse and likely to delay their investments. As a result battery management projects faced a more cautious investment landscape. The economic downturn and disruptions led to reduced liquidity in the market. Revenue losses and cash flow challenges made businesses more conservative with spending.

AI Impact

The algorithm used in AI analyzes real-time data from sensors used in the battery. This technology improves efficiency, battery life, and overall battery performance. AI detects any failures and data patterns in the system. By using AI it will reduce operational costs. By learning patterns of battery usage and performance AI predicts how long the battery would last. 

 AI technology provides optimized solutions for battery management by analyzing key factors such as the availability of renewable energy. AI Battery Type learns strategy based on the battery and its useful resources. This application ensures time-to-time recharge of the battery when needed.

Russia- Ukraine War Impact

The Russian-Ukraine war caused disruptions in the supply chain of battery components and their materials. Due to the war, the production of graphite and manganese decreases. Due to this, the production cost of raw materials increases, which results in increases price of batteries. Due to the increment in production cost the quality of batteries degrade. 

Energy security is a major concern in the Russian-Ukraine war. Infrastructure damaged during the war such as power grid stations impacted the operation and deployment of storage systems. That leads to delays in battery management projects. For instance, on 8 Nov 2022, according to the Ukraine government, 40% of the power system got damaged, and 30% were destroyed.

Key Developments

• On 14 Feb 2022, Principle engineer from Tsuda post a blog where he offers a multi-cell evaluation lithium-ion battery kit which is a wireless battery management system. This packed battery set is used in EVs which provide power that consist of multiple cells.
• On 17 May 2023, Sensata Technologies launches Compact Battery Management(c-BMS24X) with advanced technology which was used in the automotive industry and this compact battery provides more benefits for low-voltage electric vehicles. 
• On 26 April 2022, Infineon Technology launches ICs for battery management that include TLE9012DQU and TLE9015DQU which provides advanced solutions for cell monitoring and cell balancing.

Why Purchase the Report?

• To visualize the global battery management systems market segmentation based on type, battery type, applications, and regions, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of battery management systems market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global battery management systems market report would provide approximately 57 tables, 60 figures, and 195 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies