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The global automotive battery management system market size was USD 5.14 billion in 2021. The market is projected to grow from USD 5.56 billion in 2022 to USD 15.18 billion by 2029, exhibiting a CAGR of 15.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 10.0% in 2020 as compared to 2019.
Factors such as rise in adoption of electric and hybrid electric vehicles, increasing partnership and collaboration for the development, and integration of BMS and increasing government efforts for electric mobility charging infrastructure will boost the market’ growth prospects. Besides, soaring demand for intelligent battery management system in advanced electric vehicles will also boost the automotive BMS adoption.
Furthermore, increasing technological advancements in automotive BMS are also anticipated to propel market expansion. For instance, in January 2022, Bird Global, Inc. developed an innovative BMS, which helps to power millions of micro-electric vehicle (EV) trips globally. Bird’s BMS is aimed at assisting riders and communities safely by minimizing typical lithium-ion battery failure scenarios. Moreover, in February 2022, Innovation Labs launched the BaMoS battery management system, which employs ultra-thin printable temperature and pressure sensors to gather comprehensive battery information at the individual cell level, which can be utilized to improve battery lifespan by up to 40%.
Moreover, the integration of BMS into the vehicle increases the overall cost of vehicles, owing to the high cost of these components. Therefore, such factors are expected to hinder the market growth during the forecast period. However, leading market players are continuously focusing on latest innovations on lowering the overall cost and design complexity of such battery control units.
Decline in Sales of Mobility Impacted Market Growth
Pandemic has caused immense uncertainty and panic in the industry for all industrial value chain members involved. To avoid the spread of the COVID-19 pandemic, governments worldwide have adopted robust policies. Moreover, with social distancing rules in place, the demand for automobiles reduced, affecting the market. Lockdown measures caused production and demand disruptions to automobile manufacturers and their sub-contractors. Furthermore, restrictions were lifted across different sectors and countries at a different pace which have resulted in input shortages in the automobile sector’s complex value chains. According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2020, production declined by 16% globally to less than 78 million vehicles, equivalent to sales levels in 2010.
Although, in 2021, the industry recovered far quicker than anticipated in 2020, and demand for new vehicles was resilient among consumers. However, as facilities closed due to pandemic-induced shutdowns, the global shortage of semiconductor chips and renewed concerns about the COVID-19 pandemic deterred customers from showrooms. These factors have directly contributed to a severe loss of revenue for automotive BMS manufacturers in 2020. Moreover, the pandemic has changed how people feel about the environment, resulting in a significant rise in car buyers considering electric vehicles.
Electric vehicles are set to grow significantly during the forecast period. According to the International Energy Agency (IEA), based on the current trends and policies, the unit sales of electric cars, heavy trucks, vans, and buses are projected to reach 145 million on the road worldwide by 2030. Thus, it is worth noting that due to the significant increase in sales of electric vehicles during the pandemic, the companies operating in the market are optimistic that once the pandemic eases out, this market is set to grow rapidly.
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Implementing Wireless BMS to Drive Market Growth
Most electric vehicles use wired BMS to monitor battery states such as charge status and battery health. Traditional wired systems use copper wires that are physically attached to each cell of the battery. Such a design can be unreliable and expensive. With the help of a wireless BMS, there is no longer a need to develop specific communication systems or redesign wiring schemes for new vehicles. The system will help ensure the scalability of its ultimate battery in the future lineup of various brands and vehicle segments.
In addition, it can also help to increase the driving range by building lighter vehicles and opening up extra room for more batteries as the wireless BMS has 90% fewer wires. These are implemented in electric vehicles using SmartMesh or the Zigbee communication protocol. Moreover, one of the key advantages of wireless connectivity is that it provides flexibility where battery modules can be placed, making it easier for manufacturers to customize the size. Also, its flexibility makes it possible to mount sensors in the BMS in places that are unsuitable for a wiring harness.
Owing to numerous advantages of the wireless variants, players operating in the market are focusing on the development of units that is less complicated, lighter, and less expensive to produce. For instance, in January 2021, Texas Instruments launched wireless BMS for an electric vehicle. Also, in December 2020, Visteon, an automobile technology firm, introduced a truly wireless automotive BMS that continually monitors battery packs for charge and health. General Motors is the first carmaker to outfit its EVs with Visteon's wireless BMS.
Thus, implementing a wireless BMS will be a growing trend in the electric vehicle marketplace as this advancement gives designers more flexibility as well as reduces complexity and cost compared to traditional systems.
Rise in Adoption of Electric and Hybrid Electric Vehicles to Drive Market Growth
Besides vehicles with typical IC engines, the demand for electric vehicles (EV) is significantly increasing owing to stricter pollution laws, such as the Kyoto protocol, favorable government policies, and subsidies on the purchase of battery and hybrid electric vehicles, and increased awareness regarding harmful effects of petrol and diesel-fueled vehicles on the environment among consumers and others. For instance, as per the report by PWC, the global sales of battery electric vehicles (BEVs) increased by 121% in 2021 compared to 2020, among which China led the market with sales of almost three million BEVs by 172% from 2020. Similarly, the new electric vehicle registration in Germany, the U.K., and the U.S. went up by 83%, 76%, and 62% in 2021 respectively. Also, according to Bloomberg Finance L.P., the global passenger and commercial ZEV fleet is expected to reach 677 million vehicles by 2040. Likewise, according to new data from BloombergNEF, battery-electric, and plug-in hybrids, made up 7.2% of global car sales in 2021, compared to 2.6% in 2019 and 4.3% in 2020. In addition, owing to environmental concerns and stringent regulations on vehicular emission, the automobile manufacturers and customers have shifted focus to developing and deploying EVs. For instance, General Motors, Ford, and other automakers announced that all car sales will be zero-emissions by 2040. Thus, the main power source for EVs in the battery and demand for an efficient BMS are expected to rise. Hence, the rising penetration of EVs due to growing concern regarding the environment and incentives for manufacturing BEVs and HEVs are expected to generate huge demand for automotive BMS.
Increasing Partnership and Collaboration for Development and Integration of BMS to Boost Growth
Players operating in the market are increasingly focusing on investing in research & development of BMS technologies to introduce more efficient, flexible, and scalable products. For which, manufacturers are collaborating and partnering with automotive OEMs, other technology vendors & integrators, and other stakeholders for the development of advanced battery monitoring & control systems. For instance, in October 2020, automotive component system manufacturer, SM Auto Engineering Pvt Ltd (SMA), partnered with Taiwan-based Gotech Energy Co Ltd (GTE) to develop, and produce advanced controller and battery packs for the two-wheeler, three-wheeler, and four wheeler EV market as well as use in Automated Guided Vehicles (AGVs) applications. Also, in February 2020, Varroc Engineering Limited, a global Tier-1 auto component supplier, collaborated with Lithium Balance A/S, a Danish battery monitoring & control solutions provider, to design, develop and manufacture electric vehicles’ BMS in India. Under the agreement, Varroc will develop and manufacture these components with the help of lithium-ion batteries for electric two-wheelers and three-wheelers.
Furthermore, manufacturers and suppliers are entering into a long-term agreement with automotive manufacturers for the research and development of optimized battery monitoring & control systems and to expand their global footprint. For instance, in October 2020, NXP Semiconductor collaborated with Volkswagen AG for the development and integration of NXP’s BMS into Volkswagen’s innovative MEB platform to help increase vehicle range, extend battery longevity, and enhance safety. Therefore, increasing partnership and collaboration among key players for the development and integration of BMS are anticipated to drive the growth of the market.
Technological Advancement in Automotive BMS to Fuel Market Growth
There is a growing demand for the development and introduction of technologies in electric vehicles battery and charging technology. This has increased the need for automotive battery monitoring & control systems, which includes capabilities such as the ability to track and manage the charge of single battery cells, individual cell defect detection, and others. In addition, the adoption and implementation of technologies, such as the IoT, AI, machine learning, and others are expected to increase the efficiency of these components. Moreover, leading players operating in the market, including Robert Bosch GmbH, NXP Semiconductors NV, Denso Corporation, Analog Devices, Inc., among others, are developing and introducing various technologically advanced battery management systems for battery electric and hybrid vehicles. For instance, in August 2020, Grinntech, a start-up specializing in Lithium-ion batteries for EVs and energy storage systems, launched IoT-based battery monitoring & control systems for 2-wheelers, 3-wheelers, and tractors/light vehicles. Thus, technological advancement in an automotive battery monitoring & control systems with advantages, such as reduced complexity, increased battery efficiency, improved reliability, among others, are providing lucrative opportunities for market growth.
Increase in Overall Price of Vehicle to Hinder Market Growth
Installation of sin vehicles according to vehicle type and design is increasing additional manufacturing costs in the automotive sector, as it requires a proper cooling system for smooth functioning of battery monitoring & control systems components. In addition, the battery management system needs lots of ports and connectors to connect with all battery packages, as all batteries should be connected to the BMS directly. Thus, the implementation of a such systems can lead to a notable rise in the final cost of a vehicle, which may result in reduced demand from cost-sensitive consumers. This factor somehow discourages vehicle manufacturers from using BMS despite their potential benefits. Thus, cost-sensitive consumers avoid paying an additional amount for vehicle purchase, which discourages manufacturers investing in technological innovations and capital investments, thereby hampering the growth of the battery management system market.
High Cost of BMS to Hamper Market Expansion
The most difficult challenge for automotive BMS in car batteries is the balance between price and functionality. There are numerous innovative technologies available, including wireless sensing and optical sensing of cell voltage, that also offers more cell data with greater precision; state-of-health (SOH) algorithms and advanced state-of-charge (SOC); and active cell balancing, that recirculates power that is presently dissipated across the system in the existing battery monitoring & control systems. Most of these technologies, however, are prohibitively costly to incorporate into mass-production automobiles. This may have an impact on the total cost of the EV. As a result, the cost element may stifle market expansion.
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Growing Adoption of Battery Electric Vehicles to Drive Segment Growth
Based on propulsion type, the market is segmented into BEV, PHEV, and HEV.
The BEV segment held the largest market share in 2021 and is expected to continue its dominance during the forecast period. Some of the factors supporting the segment growth include government policy support for the purchase of battery-electric vehicles, higher deployment of battery charging stations in tourist & public places, and lowering the cost of BEV due to technological advancement. Moreover, the high penetration of battery electric vehicles in major regions, such as the U.S., Europe, China, and others, is likely to fuel the segment growth.
Increasing Demand for Efficient and Fast Charging Solutions to Drive Segment Growth
Based on vehicle type, the global market is segmented into passenger cars and commercial vehicles.
The passenger cars segment led the market in 2021 and is likely to dominate by 2029 in terms of revenue. This is due to the significant growth in the urban population and their commute requirement. Moreover, the factors, such as increasing fuel price, rising environmental concerns along with the low operating cost of electric cars are increasing the adoption of electric cars.
The commercial vehicle segment is anticipated to witness the fastest growth rate over the forecast period. Increasing stringent emission regulations on commercial vehicles in major countries across the world are primarily increasing the demand for electric commercial vehicles. Moreover, leading commercial vehicle manufacturers are focusing on the development and introduction of commercial vehicles with high power capacity and range. Therefore, the commercial vehicles segment is expected to grow at a significant CAGR during the forecast period.
Asia Pacific Automotive Battery Management System Market Size, 2021 (USD Billion)
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Asia Pacific dominated the global market with market size of USD 2.40 billion in 2021 and is expected to retain its position over the forecast period. The high adoption of electric cars in China has fueled the market growth. Moreover, increasing penetration of commercial electric vehicles in emerging countries of APAC, including India, South Korea, Japan, and others is also likely to boost the market growth in future. For instance, according to the China Passenger Car Association, the total passenger electric vehicles sales in China increased by 169.1% from 2020 to nearly 2.99 million in 2021.
Europe is the second-fastest-growing market. The presence of a large number of leading market players as well as the major automobile manufacturers are fueling the market growth in Europe. In addition, the increasing stringency on vehicular emission, rising support for electrification along with the growing investment in electric vehicle innovations are also boosting the market expansion in Europe.
North America is expected to witness the highest growth rate after Asia Pacific. Significant growth in sales of electric commercial and passenger vehicles in the U.S. is driving the market growth. Moreover, the rising focus toward the development and commercialization of electric autonomous vehicles and Robo-taxis is further expected to provide a lucrative growth rate over the forecast period.
The rest of the world is expected to register a considerable CAGR from 2022 to 2029. Increasing adoption of battery-electric cars in Brazil, the UAE, South Africa, Saudi Arabia, among others, coupled with increasing investment in public charging infrastructures in Latin America and the Middle East, is also anticipated to drive the adoption of an electric vehicle, which, in turn, fuels the automotive battery management system market growth.
Focus on Early Development of Electric Vehicle Battery Technology to Drive Competition
This market is fragmented, with various players worldwide. The companies operating in the market are increasing strategic moves such as partnership, collaboration, and acquisition to expand their business and grab untapped opportunities in emerging markets. For instance, in October 2020, Extreme Vehicle Battery Technologies Corp. acquired RichPower New Energy Co. Ltd., a leader in the battery management system and energy storage system (ESS) industries in China, and Intelligent Battery Technologies. The acquisition will allow EV Battery Tech to develop battery type and technologies for the target markets. Apart from global expansion, market players are also focusing on the development of advanced battery monitoring & control systems for vehicles. For instance, in January 2022, battery management semiconductor vendor, Dukosi, partnered with GlobalFoundries to produce a next-generation automotive battery management system for electric vehicles.
Continental AG is a Leading Player in Market
Continental AG is a global automobile parts manufacturing firm based in Germany that specializes in automotive safety, chassis components, interior electronics, powertrain, and other automotive components. Its headquarters are located in Hanover, Germany. Continental's customers include all major automobile, truck, and bus producers such as Volkswagen, General Motors BMW Ford, Toyota Renault, Porsche, PSA, Honda, BharatBenz, Schmitz, Volvo, Freightliner Trucks, Koegel, and Daimler AG. In addition, Continental also joined hands with several leading industry players, including Verta and SK Innovations for the development and commercialization of advanced automotive battery monitoring & control systems and related technologies for electric vehicles.
An Infographic Representation of Automotive Battery Management System Market
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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.
Value (USD Billion)
By Propulsion Type
By Vehicle Type
Fortune Business Insights says that the global automotive battery management system market is projected to reach USD 15.18 billion in 2029 from USD 5.14 billion in 2021.
The automotive battery management system market is expected to register a growth rate of (CAGR) 15.4% during the forecast period 2022-2029.
Rise in adoption of electric and hybrid electric vehicles and technological advancement in the product are expected to drive the automotive battery management system market growth.
Asia Pacific led the global automotive battery management system market in 2021.
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