Battery Management System Market Forecasts to 2028 – Global Analysis By Type (Stationary Battery, Motive Battery), Battery Type (Advanced Lead-Acid Battery, Lithium-Ion Battery, Sodium-Sulfur (NAS) Batteries), Topology (Modular, Centralized, Distributed),

Battery Management System Market Forecasts to 2028 – Global Analysis By Type (Stationary Battery, Motive Battery), Battery Type (Advanced Lead-Acid Battery, Lithium-Ion Battery, Sodium-Sulfur (NAS) Batteries), Topology (Modular, Centralized, Distributed), Component (Software, Hardware), Connectivity (Wireless, Wired), Application (Renewable Energy Systems, Computing Devices, Wireless Power Devices, Portable Device), End User (Military, Automotive & Transportation, Pharmaceuticals, Energy & Utility, Telecommunications), and By Geography

According to Stratistics MRC, the Global Battery Management System Market is accounted for $9.33 billion in 2022 and is expected to reach $30.00 billion by 2028 growing at a CAGR of 21.5% during the forecast period. A battery management system is a electronic system that protects a battery or battery packs from damage by receiving and analyzing data from the battery to ensure its optimum usage and increased longevity. It is an electronic system that manages a rechargeable battery and provides the necessary electric management protection from operating beyond its safe operating zone by offering thermal management protection, closely monitoring its state, calculating the secondary data, reporting that particular data, controlling its overall environment and lastly authenticating and balancing it.

According to the latest report by the US Department of Energy, in 2021, the sales of electric vehicles increased by 85%, and plug-in electric vehicles increased by 138% compared to 2020. According to ACEA, electric vehicles sold in the European Union in the first quarter of 2022 were 224,145 cars, which was an increase of 53.4% compared to the previous year. According to the International Energy Agency's Global Electric Vehicle Outlook 2020 study, China accounted for about 45 percent of the 7 million electric vehicles on the road worldwide in 2020.

Market Dynamics:

Driver:

Rising demand for intelligent battery management systems

The battery's power load has been enhanced by features such as electric power steering, start/stop, and electronic braking systems. thus, a major problem in a vehicle's electrical system has been prioritizing all of these electrical loads on a scale from comfort to safety. The demand for an intelligent battery management system (IBMS) is rising among automakers, and it is now being widely adopted across all regions. In a vehicle battery pack, IBMS is made up of advanced electronics like battery sensors that calculate the state of charge (SOC), state of health (SOH), and temperature across a cell and are linked in a series and parallel array. IBMS took all three measurements at the same time to ensure reliable results, even though the vehicle's conditions were rapidly changing. The use of IBMS assists in logically shutting down these electric vehicle systems and advising drivers about impending battery problems, effectively keeping them away from battery explosions. Continental AG, Hella, and Bosch are among the leading manufacturers of intelligent battery sensors. Technological advances have aided the automotive industry's rapid expansion. Automobiles are outfitted with sophisticated technologies, and automakers are constantly introducing new ones in the form of product enhancements and technical advancements. The adoption of these powerful batteries has resulted from technological advancements that have overhauled the automotive product lifecycles.

Restraint:

High initial cost of integration

Battery management producers have a range of costs to manage with a particular focus on raw material and production costs, i.e., labour and machinery. Other important costs include regulatory compliance costs, logistics costs, general overheads such as utilities and marketing. Costs of production continue to be a challenge for companies and a large proportion of Automotive Battery Management producers have outsourced their production totally or partially to subcontractors. Continuous fluctuations in the cost of raw materials namely lead and nickel over the past few years is one of the challenges to the increasing growth of automotive batteries ` A BMS can easily range from $300 to $10,000 depending on the nominal voltage of the battery stack and quantity of parallel stacks.

Opportunity:

Favorable government regulations and increased R&D in the sector

Governments globally are moving toward achieving their climate control goals and developing policies to change their main energy source to renewable sources. For example, the European Union has the European Green Deal, the Horizon Europe funding program, and the EU Hydrogen Strategy. The US has provisions in the CARES Act, 2020, and Nationally Determined Contribution or 'NDC' plan submission to the UNFCCC that outlines how they are moving toward net-zero emissions within a stipulated period. Thus, with policies favoring renewable energy and subsidies on various renewable energy equipment and technologies, the market for battery management systems is expected to rise significantly. With the technology improving towards making more efficient systems, companies are developing their R&D departments for the same. For example, Infineon is developing a wireless battery management system that will link the cells using radio signals, reducing the vehicle's weight and the number of electrical connections, making the system more efficient. ION Energy is a startup that manufactures battery management systems for mobile applications and the automobile sector, which received funding of USD 2 billion from Amazon. The investment aims to develop solutions to be implemented in Amazon’s transport fleet for the company to achieve its carbon neutrality goals.

Threat:

Decreasing profit margin for vendors and OEMs and complex structure of battery
Increasing rivalry in the market tied with pricing wars has hampered the profit margins. OEMs in the automotive industry and telecom hold tremendous bargaining power and price dictation of battery management system. 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. Some batteries available in the market have complex structures and are incompetent in performance. BMS has technological drawbacks and cannot be incorporated with complex battery structure. This, in turn, is expected to hamper the market growth in the near future. Moreover, the encouragement for manufacturing the HEVs is likely to raise the investments from investors of private and public sectors which are ultimate can create hurdle in the BMS.

Covid-19 Impact

The COVID-19 pandemic had a significantly adverse impact on the battery management systems market. The shutdown of multiple automotive manufacturing facilities and the closure of multiple industrial activities led to a downfall of the battery management systems market growth in 2020. The drop in the use of automobiles also had an adverse impact on the market. Demand and supply chain gaps, drop in sales and production of automotive, and shortage of raw materials are some major restraints that led to a slowdown in battery management systems market growth. As industrial activity resumes and automotive production gets back on track we are expecting the battery management systems market to make a stellar comeback in the post-pandemic era. The battery management systems market will experience good growth through 2028.

The modular segment is expected to be the largest during the forecast period

The modular segment is estimated to have a lucrative growth, due to the use of battery management systems in the automotive industry. Most of the manufacturers choose this topology as it offers important computational power and is also safe as it does not need wide wire harnesses. Modular topology is also appropriate for a range of applications such as in energy storage systems, medical mobility vehicles, industrial UPS, parts of electric vehicles, and drones. The main advantage of using the modular type is that they can be further connected in series or parallel circuits to each other, thereby increasing the power/voltage output with the added advantage of lower maintenance costs.

The automotive & transportation segment is expected to have the highest CAGR during the forecast period

The automotive & transportation segment is anticipated to witness the fastest CAGR growth during the forecast period, due to increasing demand for battery management systems in the automotive industry and rise in the demand for batteries in electronic vehicles. The initiative taken by the OEMs to develop electric versions of the passenger cars and other vehicles are being backed by government and research institutions and industrial programs.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period, due to rising sales of automobiles, stringent emission standards, increasing automotive production and the shift of auto manufacturers to APAC for production in order to capture the untapped potential.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the high percentage of electric vehicles, rising focus on the use of sustainable energy generation in this region, and infrastructure for renewable energy sources. Governments in this region are investing and providing subsidies to promote the use of batteries in multiple sectors. Europe is home to a few major battery manufacturers such as Saft (France) and FIAMM (Italy). The automobile industry of Europe is an advanced industry with the leanest production processes where the use of water and energy is optimized.

Key players in the market

Some of the key players profiled in the Battery Management System Market include Lithium Balance A/S, Texas Instruments Incorporated, East Penn Manufacturing Company, Toshiba Corporation, Elithion Inc., Johnson Matthey, Midtronics Inc., Marelli Holdings Co., Ltd., Robert Bosch Gmbh, NXP Semiconductors, Microchip Technology Inc., Deutz AG, Auto Motive Power Inc., Panasonic Corporation, Navitas System, LLC, Nidec Motor Corporation, Leclanché SA, and L&T Technology Services.

Key Developments:

In May 2022, Marelli Holdings Co., Ltd. expanded its battery management technologies for electric vehicles by launching Wireless Distributed Battery Management System (wBMS). This technology eliminates wired physical connections that are required in other battery management system architecture, thus ensuring greater flexibility, increased efficiency, improved reliability, and reduced costs.

In February 2021, Leclanche SA, one of the worlds leading energy storage companies, has developed a modular, all-in-one, high performance battery system optimized for powering new and retrofit hybrid and fully electric commercial vehicles.

In January 2021, Texas Instruments Incorporated. has released wireless battery management system for the electric vehicles. It helps in wireless control and monitoring of the better cells, it has also resulted in elimination of cabling and weight savings.
In December 2020, Panasonic Corporation offered a new, cloud-based battery management service, known as the UBMC (Universal Battery Management Cloud) service, utilizing a proprietary AI-based technology that incorporates its battery expertise. The technology can ascertain the state of various types of batteries installed in electric mobility (e-mobility)*1 vehicles in real time to ensure they can be used with peace of mind.

In August 2020, Johnson Matthey received funding for construction of new battery-material plant in Poland. Moreover, Johnson Matthey will use the factory in Konin to produce cathode materials for electric car batteries. The plant will become the world’s first production site of the company’s branded eLNO, a portfolio of ultra-high energy density next generation cathode battery materials.

Types Covered:
• Stationary Battery
• Motive Battery

Battery Types Covered:
• Advanced Lead-Acid Battery
• Lithium-Ion Battery
• Lead-Acid-Based Battery
• Sodium-Sulfur (NAS) Batteries
• Other Battery Types

Topologies Covered:
• Modular
• Centralized
• Distributed

Components Covered:
• Software
• Hardware

Charging Sources Covered:
• Hybrid
• Conventional
• Non-Conventional

Connectivities Covered:
• Wireless
• Wired

Functions Covered:
• Charging
• Gauging
• Protection
• Authentication
• Monitoring

Applications Covered:
• Renewable Energy Systems
• Industrial Systems
• Computing Devices
• Energy Harvesting and Nano Power Solutions
• Electric Bicycle Solutions
• Automotive Power Solutions
• Wireless Power Devices
• Commercial and Residential Power Backup Solutions
• Portable Device
• Other Applications

End Users Covered:
• Military
• Automotive & Transportation
• Pharmaceuticals
• Healthcare
• Energy & Utility
• Telecommunications
• Consumer Electronics/Handheld
• Aerospace & Defense
• Power Systems
• Marine

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements