Automotive Battery Management System Market Size, Share & Industry Analysis by Battery Type (Lithium-ion, Lead-acid, Nickel-based, Solid-state), Topology (Modular, Centralized, Distributed), Application (Passenger Vehicles, Commercial Vehicles) and Region- Global Forecast to 2028
Updated on : October 10, 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.
To know about the assumptions considered for the study, download the pdf brochure
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 :
|
Report Metric |
Details |
| Estimated Market Size | USD 4.7 billion in 2023 |
| Projected Market Size | USD 11.7 billion in 2028 |
| Growth Rate | CAGR of 19.8% |
|
Market Size Available for Years |
2019–2028 |
|
Base Year |
2022 |
|
Forecast Period |
2023–2028 |
|
Units |
Value (USD Million/Billion) |
|
Segments Covered |
Component, System Type, Battery Type, Topology, and Application |
|
Geographic Regions Covered |
North America, Europe, Asia Pacific, and RoW |
|
Companies Covered |
Major Players: Eberspächer (Germany), Sensata Technologies, Inc. (US), AVL (Austria), LG Energy Solution (South Korea), Ficosa Internacional SA (Spain), Leclanche SA (Switzerland), Nuvation Energy (US), Futavis GmbH (Germany), AMP (US), and Others- (Total 23 players have been covered) |
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.
|
Segment |
Subsegment |
|
By Components: |
|
|
Automotive Battery Management System Market Share, By System Type: |
|
|
By Battery Type: |
|
|
By Topology: |
|
|
Automotive Battery Management System Market Size, By Application: |
|
|
By 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.
Frequently Asked Questions(FAQs) :
What is the overall CAGR expected to be recorded for the automotive BMS market from 2023 to 2028?
The global automotive BMS market is expected to record a CAGR of 19.8% from 2023–2028.
What are the key driving factors for the automotive BMS market?
The growing penetration of EVs and strong government support through subsidies/incentives are some of the driving factors for the automotive BMS market.
Which application will grow at a fast rate in the future?
The passenger vehicle application is expected to grow at the highest CAGR during the forecast period. The rising adoption of passenger EVs globally is anticipated to contribute toward the growth of the automotive BMS market.
Which are the significant players operating in the automotive BMS market?
Eberspächer (Germany), Sensata Technologies, Inc. (US), AVL (Austria), LG Energy Solution (South Korea), and Ficosa Internacional SA (Spain) are among a few top players in the automotive BMS market.
Which region will grow at a fast rate in the future?
Asia Pacific is expected to grow at the highest CAGR during the forecast period.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
The study involved four major activities in estimating the current size of the automotive BMS market. Exhaustive secondary research has been done to collect information on the market, peer, and parent markets. The next step has been to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches have been employed to estimate the total market size. After that, market breakdown and data triangulation methods were used to estimate the market size of segments and subsegments. Two sources of information—secondary and primary—have been used to identify and collect information for an extensive technical and commercial study of the automotive battery management system (BMS) market.
Secondary Research:
Secondary sources include company websites, magazines, industry news, associations, and databases (Factiva and Bloomberg). These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, articles by recognized authors, regulatory bodies, trade directories, and databases.
Primary Research
Primary sources mainly consist of several experts from the core and related industries, along with preferred automotive BMS providers, distributors, alliances, standards, and certification organizations related to various segments of this industry’s value chain.
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts such as Chief Experience Officers (CXOs), Vice Presidents (VPs), and Directors from business development, marketing, product development/innovation teams, and related key executives from automotive BMS providers, such as Eberspächer (Germany), Sensata Technologies, Inc. (US), AVL (Austria), LG Energy Solution (South Korea), and Ficosa Internacional SA (Spain); research organizations, distributors, industry associations, and key opinion leaders. Following is the breakdown of primary respondents.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the total size of the automotive BMS market. These methods have also been used extensively to estimate the size of various subsegments in the market. The following research methodology has been used to estimate the market size:
- Major players in the industry have been identified through extensive secondary research.
- The industry’s value chain and market size (in terms of value) have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the overall market has been split into several segments and subsegments. The market breakdown and data triangulation procedures have been employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data has been triangulated by studying various factors and trends from both the demand and supply sides. The market has also been validated using both top-down and bottom-up approaches.
Top-Down Approach
In the top-down approach, the overall market size has been used to estimate the size of the individual market segments (mentioned in market segmentation) through percentage splits from secondary and primary research. For specific market segments, the size of the most appropriate immediate parent market has been used to implement the top-down approach. The bottom-up approach has also been implemented for data obtained from secondary research to validate the market size of various segments.
Bottom-Up Approach
The bottom-up approach has been used to arrive at the overall size of the automotive BMS market from the revenues of the key players and their market shares. Calculations based on revenues of key companies identified in the market led to the estimation of their overall market size.
Market Definition
A battery management system (BMS) is an electronic device that monitors and controls the operation and functioning of a rechargeable battery. It is called the brain of the battery, as it enhances safety, performance, charging rates, and longevity by managing current, voltage, temperature, and battery capacity. Its primary functions include protection from overcharging, ensuring safe operation, cell balancing, voltage and temperature control, and determining the state of charge (SoC) and state of health (SoH) of the battery. A battery management system typically comprises hardware and software customized per applications and battery specifications.
An automotive BMS is a crucial component of electric vehicles (EVs) that accurately monitors, protects, and optimizes the performance of the EV battery. The BMS is responsible for ensuring the battery's safety, preventing it from operating outside its safe operating area. The main functions of an automotive BMS include monitoring, protection, optimization, integration, scalability, safety, and compliance.
Key Stakeholders
- Battery Manufacturers
- Automotive BMS Manufacturers
- IC Manufacturers
- Battery Cell and Battery Pack Manufacturers
- Testing, Inspection, and Certification Providers
- Electric Vehicle Manufacturers
- Government Agencies and Regulatory Bodies
Report Objectives
- To define and forecast the automotive BMS market regarding battery type, topology, and application.
- To describe and forecast the automotive BMS market and its value segments for four regions—North America, Europe, Asia Pacific, and the Rest of the World (RoW), along with their respective countries.
- To provide detailed information regarding the drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze micro-markets concerning individual growth trends, prospects, and contributions to the overall market
- To study the complete value chain of the automotive BMS market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the market
- To strategically profile key players and comprehensively analyze their market position regarding ranking and core competencies, along with a detailed market competitive landscape.
- To analyze strategic approaches such as agreements, collaborations, and partnerships in the automotive BMS market
- To provide an analysis of the recession impact on the growth of the market and its segments
Available Customizations
Based on the given market data, MarketsandMarkets offers customizations in the reports according to the client’s specific requirements. The available customization options are as follows:
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Automotive Battery Management System Market