Battery Management System Market

Global Battery Management System Market Outlook

Worldwide demand for battery management system is projected to grow at a double digit CAGR of 19.6% during forecast period of 2022 to 2032. In 2022, the global battery management system market size is estimated at US$ 5.4 Billion and is anticipated to reach at US$ 32.2 Billion by the year 2032.

Fact.MR, a provider of market research and competitive intelligence, anticipates a robust increase in the demand for battery management systems. The global battery market size was valued around USD 90 Billion in 2021, whereas, battery management system market holds ~5% in it.

Report Attributes	Details
Market size value in 2021A	USD 4.5 Billion
Market value estimated in 2022E	USD 5.4 Billion
Market forecast value in 2032F	USD 32.3 Billion
Global Growth Rate (2022-2032)	CAGR 19.6%
North America Market Share in 2021	~35%
North America Growth Rate (2022-2032)	CAGR 21.6%
Market Share of Top 5 Companies	~75%
Key Companies Profiled	Eberspaecher Vecture Inc Toshiba Corporation AVL LIST GmbH Lithium Balance A/S Johnson Matthey Plc. L&T Technology Services Texas Instrument Inc NXP Semiconductors NV Nuvation Engineering Merlin Equipment Ltd

Batteries are under high demand for their applications in UPS and other renewable energy systems as they are highly suitable due to their ability of withstanding against extremes of temperature and pressure. High energy density batteries such as nickel-metal hydride batteries (N-Mh) have been in constant demand over past two decades due to their utilization in portable devices, UPS, electric vehicles, and smart grids.

Continuous technical innovations incurring within energy storage systems is gaining maximum traction from industrial end-use perspective. The specialty battery systems, e-transport solutions, stationary solutions and majority of electric appliances utilizes (Li-ion) lithium ion batteries as a cost-effective power source. Currently, battery manufacturers are laying emphasis on both of the high battery management systems and low voltage battery management systems to grab maximum profit within upcoming half-decade.

Exciting growth rate of electric vehicles in China uplifted the demand of batteries which is expected to gain maximum attention of battery management systems providers as a maximum potential market.

Globally, the demand for the battery management system is anticipated by the admirable evolution over the approaching years due to the rise in demand for E-bike and increasing concerns towards renewable resources. The battery management system has various applications such as in automotive, consumer handheld, energy and telecommunication.

Battery Management System Market Historical Overview (2017-2021) Vs. Forecast Outlook (2022-2032)

• North America battery management system market is expected to have a revenue share of 35% in 2022 and is likely to reach a valuation of USD 9.3 Billion by 2032 with a growth rate of 21.6%.
• The market in Europe is presumed to surpass market value of around USD 1.7 Billion by the end of 2022 owing to high technology adoption rate.
• The centralized as topology is forecast to be valued at USD 15.9 Billion by 2032 with a growth rate of 20.2%.
• By component type, battery management unit holds a maximum market share of 64% by the end of 2032.
• Under application type, automotive segment is expected to hold market share of 43% in 2022 and is likely to reach a valuation of USD 17.9 Billion by the end of forecast period.
• The modular segment in topology segment is projected to grow at a CAGR of 20.7% over the period of 2022-2032.

How rising demand for e-bikes, to fuel up the demand for battery management systems?

Escalating demand of electric vehicles in china and other APEJ countries is the driving force behind success of battery management system in automotive industry. Moreover, high demand for lithium-ion battery powered four wheeler vehicles increased the business opportunities for this market.

Similarly in India, the demand for electric vehicles is expected to increase during the forecast period, which in turn, will support the sales for battery management systems in the APEJ region. Moreover, battery management systems find huge applications in the growing electric vehicle industry (passenger cars, commercial vehicles, golf cart, e-bikes) in countries, such as China, South Korea and India, thereby fueling the growth of the automotive battery management system market over the forecast period.

How eminent import duties and taxes on raw materials to affect negatively?

In emerging nations of the APEJ region, the battery management system industry is experiencing financial imperatives to issues with poor foundation in many emerging countries. Import duties have continuously kept higher for components other than their counterparts in emerging regions.

Another inconvenience is the burden of import obligations on components and systems. Thus, the high cost of manufacturing battery management systems, due to barriers such as port obligation, import duties and taxes is also expected to act as a restraint to the automotive battery management system market over the forecast period.

How high complexity in battery structure to hinder battery management market

A battery management system for electric vehicles consists of different components such as battery packs, main/aux chargers, motor controllers, safety devices, cooling/heating elements, SOC displays and BMS main control units. Thus, battery management systems that are incompetent with complex battery structure inhibit the growth of the market. Moreover, according to our primary research, battery management systems that have technological deficiencies cannot be integrated with the complex battery structure, impeding the market growth to a major extent.

Country Wise Analysis

What make the US Growth Epicenter for the battery management system?

US remains the leader for the market with a total market share of 78% in 2022 of North America market and is likely to grow at a CAGR of 23.2% over the period of 2022-2032.

Furthermore, the population, abundant raw materials, and early growth have positioned U.S. as the most appealing market for the battery management system.

Why China has huge market for the battery management system?

In terms of battery management system output, china holds second place due to increase battery-electric bus sales and due to the large demand for passenger cars and logistic vehicles are operated on the battery mode.

In the year 2022, the battery management market is expected to grow nearly by USD 585 Mn, fueling the country’s economy.

Will the demand of battery management system increase in MEA?

The sales of battery management system are affected by the adaption nature of people and increasing expenditure of people towards automation.

There has a slight shift in consumer’s sentiments from traditional driving vehicles to electric vehicles is boosting the demand for the market. South Africa is emerging as a player in the market and is witnessed to grow with a CAGR of 21.4% in the forecast period.

Segment-Wise Analysis

How increasing sales of the battery management system for automotive as application to increase the valuation?

Japan is well-known for the presence of many big electric vehicle manufacturers, such as Nissan Motor Corporation Ltd., Honda Motor Co., Ltd., Mitsubishi Motors Corporation and Toyota Motor Corporation. Growing support from government combined with strict emission norms is spurring the sales for electric vehicles, which, in turn, will increase the demand for batteries and battery management systems in near future.

The automotive as application is expected to have a valuation of USD 2.3 Billion in 2022 and is expected to grow 7.7X over the period of 2022-2032.

Which segment in topology type is likely to witness accelerated growth?

Based on topology, the modular segment is likely to witness at the highest growth rate of 20.7% over the forecast period. Most of the leading players choose modular type of topology as it provides momentous computational power and is also considered as safe, as it does not require broad wire harnesses.

Modular topology is also suitable for many applications like in parts of electric vehicles, industrial UPS, medical mobility vehicles, drones and energy storage systems. Furthermore, such huge demand for modular topology is likely to reach the valuation at USD 9.9 Billion by the end of 2032.

Competitive Landscape

Fact.MR profiled the following key battery management system manufacturers in its report are Eberspaecher Vecture Inc, Toshiba Corporation, AVL LIST GmbH, Lithium Balance A/S, Johnson Matthey Plc., Texas Instruments, NXP Semiconductors N.V, Nuvation Engineering, Merlin Equipment, Renesas Electronics Corporation, Elithion, Inc. Key manufacturers are constantly innovating product designs to meet the modern day challenges pertaining to components placement in the engine environment.

For Instance:

• AVL LIST GmbH in 2021, has opened up its new research center in Graz, Europe. This will lead to development of new high-voltage batteries for electric vehicles, the focus is on product launching, executing and authorizing new efficient production processes.
• Texas Instruments in 2021, had launched battery management system wireless in nature for EVs. The company’s new battery management system (BMS) allows to control wirelessly, saving weight and eliminating troublesome cabling.

Key Segments Covered

• By Topology

  • Centralized
  • Modular
  • Distributed

• By Components

  • Battery Management Unit
  • Communication Unit

• By Application

  • Automotive
  • Energy
  • Telecommunication
  • Consumer Handheld