Automotive Battery Management System Market Size, Share & COVID-19 Impact Analysis, By Propulsion Type (BEV, PHEV, and HEV), By Vehicle Type (Passenger Cars and Commercial Vehicles), and Regional Forecasts, 2023-2030

The global automotive battery management System market size was valued at USD 8.25 billion in 2022. The market is projected to grow from USD 9.27 billion in 2023 to USD 26.46 billion by 2030, exhibiting a CAGR of 16.17% during the forecast period.

An automotive Battery Management System (BMS) acts as a brain for an electric vehicle battery pack, and its performance significantly affects the driving range and battery life of an Electric Vehicle (EV). The automotive battery management system assists in monitoring battery usage and ensuring optimum performance from a battery. This system manages the recharging of the battery by controlling its operating area, balancing it, and protecting the battery. It is one of the crucial parts of the EV powertrain and helps in current control during battery charging, usage, cell balancing, and thermal protection of batteries.

Lithium Ion battery is the most expensive component in EVs. Therefore, as the demand for battery management and efficient working of EV batteries is increasing, so is the adoption of BMS systems among the new generation automobiles. Moreover, inclining automakers’ focus on improving the travel range of their EV models is further driving the development of advanced BMS systems.

COVID-19 IMPACT

Favorable EV Regulations during the COVID-19 Pandemic Fueled Market Growth

The COVID-19 pandemic negatively impacted the overall automotive sector, halted transportation activities, and disrupted the supply chain, significantly suppressing the sales of automobiles worldwide. However, EV sales witnessed a surge during the pandemic. Favorable government spending, stringent regulations, and subsidies offered by governments worldwide fueled the sales of electric vehicles. For instance, as per data from the International Energy Agency (IEA),  consumers spent nearly USD 120 billion on electric car purchases in 2020, which was 50% higher compared to 2019. In 2020, governments worldwide spent approximately USD 14 billion on tax deductions and direct purchase incentives for electric cars.

LATEST TRENDS

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Developing Wireless BMS Systems is the Latest Technology Trend in the Market

Most electric vehicles use wired automotive battery management systems to monitor battery states such as charge status and battery health. Traditional wired systems use copper wires that are physically attached to each battery cell. 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. Therefore, increasing demand for these wireless BMS systems for efficient battery monitoring and management will likely accelerate market growth. For instance, in May 2022, Marelli launched its wireless distributed battery management system that reduces wiring harness by 90%, providing more flexibility, reliability, efficiency, and reduced cost in electric vehicles.

Owing to these advantages, almost all the leading BMS system providers are focused on developing wireless systems that are less complicated, lighter, and less expensive than their counterparts. 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 monitors battery packs for charge and health. General Motors is the first carmaker to outfit its EVs with Visteon's wireless BMS.

DRIVING FACTORS

Surging EV Production & Sales to Drive Market Growth

The surging demand for electric vehicles (EV) is anticipated to boost the automotive battery management system market growth. With stringent emission regulations worldwide, electric vehicle demand will likely increase during the forecast period. The battery is the primary source of power for electric vehicles. Hence, surging EV sales will boost the demand for BMS. Moreover, rising environmental concerns and incentives for EV purchases are expected to generate huge opportunities for this market over the forecast period.  

Rising Urbanization and Local Commute Requirements Are Anticipated to Drive the Market Growth

In recent years, a majority of the population is shifting to urban areas owing to the increasing work opportunities and rapid industrialization in the urban areas. Moreover, urban passengers are more inclined to technologically advanced and green mobility. Therefore, factors such as rising urbanization, improving the standard of living, rising disposable income, and requirement for efficient local commutes are likely to fuel the adoption of electric vehicles in the near future, further driving the demand for automotive BMS in years to come.

RESTRAINING FACTORS

High Cost of the BMS Can Hinder Market Growth

The greatest challenge for the BMS in automotive batteries is the tradeoff between costs versus functionality. There are numerous advanced technologies such as optical sensing of cell voltage, wireless sensing, which provides more cell data with higher accuracy; advanced state-of-charge (SOC) and state of health (SOH) algorithms; and active cell balancing, which recirculates the energy that is currently dissipated across the system in the current BMS. Many of these technologies, however, are too expensive to install in the vehicles. This may affect the overall cost of the EV. Hence, the cost factor can hinder market growth. In addition, the automotive battery management system needs many ports and connectors to connect with all battery packages, as all batteries should be connected to the BMS directly. Thus, the implementation of a BMS can lead to a notable rise in the final cost of a vehicle, which may result in reduced demand from cost-sensitive consumers.

SEGMENTATION

By Propulsion Type Analysis

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Growing Popularity of Fully Electric Vehicles to Boost Market Growth

By propulsion type, the global automotive battery management system market is segmented into BEV, PHEV, and HEV.  

BEV holds the leading market share globally and is expected to retain its leading position in this market throughout the forecast period. Battery electric and plug-in hybrid vehicles enable recharging of electric motors via an external plug; however, the main difference is that BEVs are powered entirely by electricity.

PHEVs have a fuel tank & engine to support their battery-powered motors. Increasing demand for emission-free mobility worldwide is the major reason which is anticipated to drive the demand for BEVs in years to come. Moreover, the high penetration of battery-based electric vehicles in major regions and countries, such as the U.S., Europe, China, and others, will likely fuel the segment growth.

HEV segment is likely to witness certain growth in regions where EV infrastructure is lacking.

By Vehicle Type Analysis

Adoption of Electric Cars for Personal Commute to Drive Passenger Car Segment Growth

By vehicle type, the global automotive battery management system market is classified into passenger cars and commercial vehicles.   

The passenger cars segment led the market in 2022 and is likely to dominate by 2030 in revenue. This is due to the significant growth in the urban population and their commute requirement. Moreover, the factors such as increasing fuel prices, rising environmental concerns, and the low operating cost of EVs 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 worldwide are primarily increasing the demand for commercial electric vehicles. Moreover, leading commercial vehicle manufacturers are focusing on developing and introducing commercial vehicles with high power capacity and range. Therefore, the commercial vehicles segment is expected to grow at the highest CAGR during the forecast period.

REGIONAL INSIGHTS

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Rising EV Penetration in Emerging Economies of Asia Pacific to Drive Market Growth

Regionally, the market is categorized into North America, Europe, Asia Pacific, and the Rest of the World.

Asia Pacific dominated the global market with a market size of USD 3.87 billion 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 Asia Pacific, including India, South Korea, Japan, and others, is also likely to boost market growth in the future. For instance, IEA says China sold more electric vehicles than any other country worldwide. Therefore, surging EV sales in these emerging economies of APAC are anticipated to boost market growth.

Europe held the second-largest battery management system market share in 2022. The presence of many leading market players and major automobile manufacturers is fueling European market growth. In addition, the increasing stringency on vehicular emission, rising support for electrification, and the growing investment in electric vehicle innovations are also boosting the market expansion in Europe.

North America held a significant market share in 2022. Significant sales of electric commercial and passenger vehicles in the U.S. are driving market growth. Moreover, the rising focus on developing and commercializing autonomous electric vehicles and Robo-taxis is further expected to provide productive growth opportunities for the market during the forecast period.

The Rest of the World is expected to register a considerable CAGR from 2023 to 2030. Increasing adoption of battery-electric cars in Brazil, the UAE, South Africa, and 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 electric vehicles, which, in turn, fuels the market growth.

KEY INDUSTRY PLAYERS

Strategic Partnerships and Collaborations is Driving the Competition in the Market

The automotive BMS market is fragmented, with various key players globally. 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 January 2022, battery management system vendor, Dukosi, partnered with GlobalFoundries to produce a next-generation automotive battery management system for electric vehicles.

Moreover, in October 2020, Extreme Vehicle Battery Technologies Corp. acquired RichPower New Energy Co. Ltd., a leader in China's battery management system and energy storage system (ESS) industries. The acquisition allowed EV Battery Tech to develop battery types and technologies for the target markets.    

LIST OF KEY COMPANIES PROFILED:

• Robert Bosch GmbH (Germany)


• Continental AG (Germany)


• Toshiba Corporation (Japan)


• Intel Corporation (U.S.)


• NXP Semiconductors NV (Netherlands)


• Analog Devices, Inc. (U.S.)


• Denso Corporation (Japan)


• Johnson Matthey, Inc. (U.K.)


• LG Chem, Ltd. (South Korea)


• Midtronics, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2023: Qorvo unveiled the industry’s first single-chip intelligent battery management solutions for 20-cell systems. These systems leverage an intelligent motor control foundation to provide intelligent battery management solutions (BMS) for various industrial, battery backup, and e-mobility applications.


• October 2022:  Sensata Technologies launched a new battery management system, the Lithium Balance n3-BMS, for high-voltage applications. The company stated that Lithium Balance n3-BMS is ideal for up to 1000 volts/2000 amps, applications such as electric trucks, heavy commercial vehicles, and buses.


• May 2022: Marelli launched its wireless distributed battery management system that reduces wiring harness by 90%, providing more flexibility, reliability, efficiency, and reduced cost in electric vehicles.


• February 2021: Sensata Technologies acquired ownership of Lithium Balance. This strategic acquisition advances Sensata’s electrification business and strategy in the clean energy markets. The addition of Lithium Balance further expands Sensata’s portfolio to offer battery management solutions to various automotive OEMs and integrated energy storage solutions to commercial and industrial customers.


• January 2021: Texas Instruments (TI) unveiled the highest-performing solution for wireless BMS Texas Instruments (TI) unveiled the highest-performing wireless BMS solution with apparently the first independently analyzed functional safety concept. This solution will prompt automakers to improve reliability, minimize the complexity of their designs and reduce vehicle weight to extend driving range.

REPORT COVERAGE

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The report provides detailed market analysis and focuses on key aspects such as leading companies, vehicle types, design, and technology. Besides this, the report offers insight into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market over recent years.

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