Battery Management System Market - Forecast(2023 - 2028)

Battery Management System Market Overview

The Battery Management System Market is estimated to grow from $7.6 billion in 2021 at a robust CAGR of 17.4% during the forecast period 2022-2027. Battery management system refers to an electronic system that helps in monitoring and maintaining the health of the batteries. Battery management systems manage and protect the cells in a battery pack ranging from advanced lead acid batteries to lithium ion batteries, primarily nickel metal hydride based. These manage the rechargeable batteries by monitoring the state of the device and data thus ensuring long life battery pack and protecting the battery from damage. These comprise of functional blocks that include cell voltage monitor, real time clock, temperature monitors, microcontroller and others.  Advantages such as prevention of batteries from voltage fluctuations and over charging, optimizing and monitoring real time condition of battery thus enabling prolonged life of batteries will result for the market growth. The key drivers attributed to the growing demand for battery management systems market include increasing demand for electric vehicles, energy storage systems and growing consumption of rechargeable batteries in consumer electronics coupled with technological advancements. The transportation sector is also responsible for global warming to a greater extent. The emissions from the vehicle after the combustion of fuel is required to be controlled. The electric vehicles and battery-powered vehicles are now being developed as a substitute to the fuel engine vehicles that reduces the intensity of emission of toxic gases along with utilization of regenerative braking. In 2019 global car sales, electric cars constituted 2.6% of market share. In particular, China at 4.9% and Europe at 3.5% achieved new records in electric vehicle market share in 2019 before a slowdown due to Covid-19.  Increasing demand for electric vehicles has significantly elevated the growth of Battery Management System Market.

Report Coverage

The report: “Battery Management System Market – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Battery Management System Market Report.

By Topology – Centralized, Distributed, Modular
By Component – Hardware (Battery Control Unit, Power Management ICs, Communication Channel) and Software
By Application – Energy Harvesting and Nano Power Solutions, Electric Bicycle Solutions, Wireless Power Devices, Handheld Consumer Medical Equipment, Portable Industrial Solutions, Automotive Power Solutions and Others
By End Use Industry – Automotive, Telecom, Power Systems, Medical, Industrial, Consumer Electronics, Others
By Geography - North America (U.S, Canada, Mexico), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, SK, Australia and Others), South America (Brazil, Argentina and others) and RoW (Middle East and Africa).

Key Takeaways

• Flow batteries' high capacity and ability to withstand extreme temperatures offer suitable for applications such as renewable energy systems and UPS.
• Nickel-metal batteries have high energy density although they are secondary batteries in which environmentally friendly metals are used. These batteries find applications in electric vehicles, portable devices, smart grids, UPS, and others.
• Solid-state batteries are better than conventional batteries as they are non-flammable, have a long shelf life, are safe, and release high energy.

Battery Management System Market Segment Analysis- By Industry

Battery Management System Market Segment Analysis- By Geography

The Automotive Battery Management market value is projected to grow with CAGR of 12.69% during 2021-2026. This growth is attributed to the increasing demand for automobiles and stringent emission standards. APAC will be the leading region for automotive battery management market mainly due to growing automobile demand in APAC and the shift of auto manufacturers to APAC for production in order to capture the untapped potential. The presence of automotive companies such as Tesla, Hyundai, General Motors, Ford will positively impact the Automotive Battery Management market. Apart from this, companies such as General Motors, Ford, Chrysler has incorporated Li-ion batteries in its electric vehicles models which in turn is driving its market growth. California is the largest plug-in car regional market in the U.S, with over 223,000 plug-in electric vehicles registered through June 2016, representing 47.6% of all plug-in cars sold in the American market.

Battery Management System Market Drivers

Increasing Demand for Intelligent Battery Management Systems

The battery's power load has been improved by features such as start/stop, electric power steering, and electronic braking systems. As a result, 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 growing 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. Electric cars are growing in popularity due to the need to reduce carbon emissions and provide energy-efficient batteries, which is propelling the growth of automotive batteries. The adoption of these powerful batteries has resulted from technological advancements that have overhauled the automotive product lifecycles.

Need for lower operational and administration expenditure

The lithium-ion battery recycling market is influenced by rising demand for electric as well as hybrid electric vehicles, where lithium-ion batteries are used extensively. The adoption of these vehicles results in a price hike of battery materials such as cobalt and lithium, thus making recycling of lithium-ion battery industries more profitable. The world's number of electric vehicles has seen a dramatic rise in recent years, pegging the world's current number of EVs at around 4 million. According to International Energy Agency, the number will increase up to 125 million by 2030 and more eclectic vehicles will come with Li-ion batteries. With such volumes of Li-ion batteries driving towards their end of useful life, there is a pressing need to ensure efficient lifecycle management of the batteries. In India the National Electric Mobility Mission Plan 2020, will boost the growth of lithium-ion battery and lithium-ion recycled battery industry, as the goal of the project is to bring 6-7 million electric vehicles on roads by 2020, and 175 GW of renewable energy production by 2022. Regulations in Europe and China hold the automaker responsible for battery recycling. Companies manufacturing electric vehicles such as BMW, Nissan, BYD, Renault and Rivian are exploring the use of recycled batteries. OEMs plan to buy back and repurpose used batteries for storage systems. The old batteries of Nissan Leaf are repurposed in Fukushima for use on other EVs and forklifts. Japan is another country where truck fuel efficiency requirements have been updated, and the country's automotive policy aims to cut 80 percent of its automotive greenhouse gas emissions by 2050.During the forecast period of 2022 to 2027, such favorable policies are expected to fuel the adoption of heavy-duty electric vehicles, such as trucks, and thus accelerate the adoption of battery management systems. As part of its Advanced Battery Storage Project, Renault collaborates with energy companies to build large scale storage units in Europe as well. These factors are supporting lithium-ion batteries recycling market.

Battery Management System Market Challenges

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.

Battery Management System Market Landscape

Acquisitions, Partnerships and R&D activities are key strategies adopted by players in the Battery Management System Market. Battery Management System top 10 companies include

1. Johnson Matthey
2. Leclanche
3. Panasonic
4. Storage Battery Systems
5. STMicroelectronics
6. Texas Instruments
7. Eberspaecher Vecture
8. Nuvation Engineering
9. Lithium Balance
10. Hitachi

Recent Developments

• 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.
• 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 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.

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