Automotive Battery Management System Market Size

Updated on : October 23, 2024

Automotive Battery Management System Market Size

The global automotive battery management system (BMS) market size is projected to reach USD 11.7 billion in 2028 from USD 4.7 billion in 2023, Growing At a CAGR of 19.8% from 2023 to 2028. An automotive BMS is a crucial system in electric vehicles (EVs) that accurately monitors, protects, and optimizes the performance of the batteries used in EVs.

The surging demand for EVs driven by environmental awareness and government incentives is the primary factor propelling the growth of the automotive BMS industry . This increasing popularity of EVs can also be attributed to advancements in battery technologies such as lithium-ion and solid-state batteries. The enhanced energy density and declining prices of batteries, along with heightened competition in the EV sector are some of the key developments that are expected to offer opportunities for leading automotive BMS players such as Eberspächer (Germany), Sensata Technologies, Inc. (US), AVL (Austria), LG Energy Solution (South Korea), Ficosa Internacional SA (Spain), and Leclanché SA (Switzerland). The global shift toward sustainability in manufacturing & material resourcing and environmental consciousness will continue to boost the EV sector growth, thus driving the demand for automotive BMS solutions.

Automotive Battery Management System Market Trends & Dynamics

DRIVERS: Impressive growth in EV demand

EVs are powered by batteries comprised of a series of connected battery packs, which necessitate close monitoring to function correctly. As a result, BMS is an essential part of these battery-operated vehicles. In the past decade, the global EV market has taken a giant leap in terms of sales growth. The key factors responsible for this growth include rising awareness of clean energy sources, new zero emissions, switching to sustainable fuel alternatives, etc. With this impressive rise in EV sales, the demand for batteries will rise rapidly, fueling the demand for automotive BMS systems.

RESTRAINTS: Challenges faced in the development of universal battery management system standards

Most products in the automotive BMS market are manufactured by multiple companies and vary in terms of their technical specifications and functions, such as measuring parameters, type of estimation, communication channels, etc. Hence, finding common grounds to compare the performance of two BMSs is challenging and difficult. There is a strong need to develop concrete and common standards for BMS design so that they can act as a universal system across different types of vehicles.

OPPORTUNITIES: Emergence of novel battery technologies

The EV market is budding and fast-evolving, with substantial growth prospects in the near future. Hence, many startup companies and research institutions are undertaking research projects to develop more efficient materials and battery technologies. For instance, many companies are working on using silicon anodes instead of graphite anodes in EV lithium-ion batteries. Companies such as Sila Nanotechnologies and Group14 Technologies, Inc. are working with silicon-based battery technologies that can be used in EVs to increase range and safety.

CHALLENGES: Performance issues due to external factors

There are many functions that a BMS performs in an EV, for instance determining the state of charge (SoC) and state of health (SoH) required to work batteries effectively. However, there are uncertain external environmental conditions, such as extreme temperatures, that could directly impact the performance of these BMS systems. For instance, BMS integrated into an EV or PHEV can be affected by the sudden vibrations caused by speed breakers and high-temperature conditions. Therefore, BMS manufacturers need to work on increasing the reliability and accuracy of BMS systems in such extreme conditions.

Automotive BMS Market Ecosystem

Prominent companies in the automotive BMS market include well-established, financially stable manufacturers such as Eberspächer (Germany), Sensata Technologies, Inc. (US), LG Energy Solution Ltd. (South Korea), AMP (US), and Ficosa Internacional SA (Spain). These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Along with the well-established companies, there are a large number of small and medium-sized companies operating in this market, such as Elithion, Inc. (US), Ewert Energy Systems, Inc. (US), Futavis Gmbh (Germany) and XING Mobility (Taiwan).

Automotive Battery Management System Market Share

Lithium-ion battery segment is expected to grow at the highest CAGR during the forecast period.

Lithium-ion batteries are currently the most popular choice for EVs due to their exceptional energy density, power-to-weight ratio, and minimal self-discharge. However, ensuring their safety and durability requires precise oversight of the battery and the vehicle. Hence, BMS plays a crucial role in the assembly of the automotive battery. BMS is an indispensable component for overseeing and controlling Li-ion battery performance in EVs, encompassing parameters such as battery health, charge status, voltage, current, and environmental temperature.

The market for passenger vehicles is projected to grow with substantial CAGR during the forecast period.

The rising popularity of EVs in the passenger vehicle segment is shaping the future of the automotive industry. This surge in demand for EVs plays a pivotal role in propelling the development and adoption of advanced BMS solutions. BMS is essential for enhancing EV batteries' performance, safety, and longevity, ensuring they meet the high expectations of today's environmentally conscious customers. Some of the popular companies offering BMS for passenger EVs include Sensata Technologies, Inc. (US), Eberspächer (Germany), and Elithion, Inc. (US), among many others.

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Automotive Battery Management System Market Regional Analysis

The Asia Pacific market is projected to hold the largest market share from 2023 to 2028.

China, Japan, South Korea, India, and the Rest of Asia Pacific are considered in the Asia Pacific market. Currently, Asia Pacific region is the largest manufacturer, supplier, and consumer of lithium-ion batteries due to the vast availability of raw materials and strong presence of both battery and EV manufacturers in the region. Countries in this region, such as China, India, Indonesia, and Malaysia, have tremendous potential for the growth of the automotive BMS market. China is one of the largest EV and battery manufacturing hubs with immense growth potential for the automotive BMS market. It is also witnessing significant investments by top companies such as CATL and BYD. The rising penetration of EVs in the country will increase the demand for batteries, which, in turn, boost the demand for automotive BMS.

Top Automotive Battery Management System Companies

• Eberspächer (Germany),
• Sensata Technologies, Inc. (US),
• AVL (Austria),
• LG Energy Solution (South Korea),
• Ficosa Internacional SA (Spain),
• Leclanché SA (Switzerland),
• Nuvation Energy (US),
• Futavis GmbH (Germany), and
• AMP (US) are few of the top players in  the automotive BMS Companies.

Automotive Battery Management Market Report Scope :

Automotive Battery Management System Market Highlights

This research report categorizes the Automotive Battery Management System Market size by component, system type, battery type, topology, application, and region.

Recent Developments in Automotive Battery Management System Industry

• In September 2022, Sensata Technologies, Inc. announced the launch of a new BMS solution named Lithium Balance n3-BMS for high-voltage applications.
• In April 2022, Infineon Technologies AG introduced a new family of battery management ICs, which includes TLE9012DQU and TLE9015DQU. These ICs are optimized solutions for battery cell monitoring and balancing. In addition, they have excellent measurement performance and the highest application robustness.
• In May 2021, Analog Devices, Inc. announced that it had expanded its battery management system (BMS) products portfolio, including ASIL-D functional safety and innovative new low-power features to enable continuous battery monitoring.

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