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 2030, Exhibiting A CAGR Of 15.4% During The Forecast Period.

Automotive Battery Management System Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Demand has been higher than expected in all areas compared to levels before the pandemic. According to our research, the global market grew by 10% in 2020 compared to 2019.

The growth prospects of the market will be helped by things like a rise in the use of electric and hybrid electric vehicles, more partnerships and collaborations for the development and integration of BMS, and more work by the government on electric mobility charging infrastructure. The adoption of automotive BMS will also be boosted by the rising demand for intelligent battery management systems in new electric cars.

Also, growing technological improvements in automotive BMS are expected to help drive market growth. For example, Bird Global, Inc. made a new BMS in January 2022 that helps power millions of micro-electric vehicle (EV) trips around the world. Bird's BMS is designed to help riders and communities stay safe by reducing the most common ways that lithium-ion batteries fail. Innovation Labs also released the BaMoS battery management system in February 2022. This system uses ultra-thin, printable temperature and pressure sensors to collect detailed information about each battery cell. This information can be used to make batteries last up to 40% longer.

Also, adding BMS to a vehicle makes it more expensive overall because these parts are so expensive. So, these things are likely to slow the market's growth over the next few years. But the top players in the market are always working on new ways to lower the overall cost and design complexity of these battery control units.

Market Dynamics:

Latest Trends:

Putting in place wireless BMS to help the market grow

Most electric cars use a wired BMS to keep track of the battery's health and charge level. Copper wires are physically connected to each cell of the battery in traditional wired systems. A design like this can be hard to use and expensive. With the help of a wireless BMS, it is no longer necessary to create new communication systems or rewire new vehicles. The system will help make sure that its ultimate battery can be used by a wide range of brands and vehicle types in the future.

Also, since the wireless BMS has 90% fewer wires, it can help increase the driving range by making cars lighter and giving more room for more batteries. The SmartMesh or Zigbee communication protocol is used in electric vehicles to set these up. Also, one of the best things about wireless connectivity is that it gives manufacturers more options for where to put battery modules. This makes it easier for them to customize the size. Also, its flexibility lets you put sensors in the BMS in places where a wiring harness wouldn't work.

Due to the many benefits of wireless versions, market players are focusing on making units that are easier to use, lighter, and cheaper to make. For example, Texas Instruments released a wireless BMS for an electric vehicle in January 2021. Also, in December 2020, Visteon, a company that makes technology for cars, came out with a truly wireless automotive BMS that checks the charge and health of battery packs all the time. General Motors is the first company to put Visteon's wireless BMS in their electric cars.

So, using a wireless BMS will become more popular in the market for electric vehicles. This is because this new technology gives designers more freedom and reduces complexity and cost compared to older systems.

Driving Factors:

The market will grow as more people buy electric and hybrid electric cars.

In addition to cars with regular internal combustion engines (IC), the demand for electric vehicles (EV) is going up a lot. This is because of stricter pollution laws like the Kyoto protocol, better government policies and subsidies for buying battery and hybrid electric vehicles, and more people being aware of how harmful gasoline and diesel-powered cars are to the environment. For example, according to a report by PWC, global sales of battery electric vehicles (BEVs) grew by 121% from 2020 to 2021. China led the market with sales of almost 3 million BEVs, which was up 172% from 2020. In 2021, the number of new electric cars registered in Germany, the United Kingdom, and the United States all went up by 83%, 76%, and 62%, respectively. Also, Bloomberg Finance L.P. says that by 2040, there will be 677 million passenger and commercial ZEVs around the world. Also, new data from BloombergNEF shows that battery-electric and plug-in hybrid cars made up 7.2% of global car sales in 2021, compared to 2.6% and 4.3%, respectively, in 2019 and 2020. Also, because of concerns about the environment and strict regulations on vehicle emissions, automakers and customers have shifted their attention to making and selling EVs. For example, General Motors, Ford, and other car companies have said that by 2040, all cars sold will have no emissions. So, the main source of power for EVs is the battery, and the need for a good BMS is likely to grow. Since people are becoming more concerned about the environment and there are incentives for making BEVs and HEVs, there is likely to be a huge demand for automotive BMS.

Increasing partnership and collaboration for the development and integration of BMS to boost growth

More and more market players are putting money into research and development of BMS technologies to make their products more efficient, flexible, and scalable. For this reason, manufacturers are working with automotive OEMs, other technology vendors and integrators, and other interested parties to create advanced battery monitoring and control systems. For example, in October 2020, SM Auto Engineering Pvt Ltd (SMA), a company that makes parts for cars, teamed up with Taiwan-based Gotech Energy Co Ltd (GTE) to develop and make advanced controllers and battery packs for the two-wheeler, three-wheeler, and four-wheeler electric vehicle (EV) market and for use in Automated Guided Vehicles (AGVs). Also, in February 2020, Varroc Engineering Limited, a global Tier-1 supplier of auto parts, teamed up with Lithium Balance A/S, a Danish company that makes solutions for battery monitoring and control, to design, develop, and make BMS for electric vehicles in India. Under the agreement, Varroc will develop and make these parts for electric two-wheelers and three-wheelers with the help of lithium-ion batteries.

Also, manufacturers and suppliers are making a long-term deal with automakers to research and develop better monitoring and control systems for batteries and to grow their global presence. For example, in October 2020, NXP Semiconductor and Volkswagen AG worked together to develop and integrate NXP's Battery Management System (BMS) into Volkswagen's innovative MEB platform. This was done to help increase the range of vehicles, extend the life of batteries, and improve safety. So, the growth of the market is likely to be driven by more partnerships and collaborations between key players for the development and integration of BMS.

Changes in technology for automotive BMS will help the market grow.

More and more people want battery and charging technology for electric vehicles to be developed and put into use. This has made it more important to have monitoring and control systems for automotive batteries. These systems can do things like track and manage the charge of single battery cells, find defects in individual cells, and more. Also, the adoption and use of technologies like the Internet of Things (IoT), artificial intelligence (AI), machine learning, and others are likely to make these parts work better. Also, market leaders like Robert Bosch GmbH, NXP Semiconductors NV, Denso Corporation, and Analog Devices, Inc., among others, are developing and releasing a variety of technologically advanced battery management systems for battery electric and hybrid vehicles. For example, in August 2020, Grinntech, a start-up that specialises in Lithium-ion batteries for EVs and energy storage systems, released IoT-based battery monitoring and control systems for 2-wheelers, 3-wheelers, and tractors/light vehicles. So, technological advances in automotive battery monitoring and control systems, which have benefits like less complexity, more battery efficiency, and better reliability, are creating good opportunities for the market to grow.

Restraining Factors:

Market growth will be slowed by a rise in the overall price of vehicles.

Installation of sin vehicles based on the type and design of the vehicle is adding to the cost of making cars because it needs a good cooling system for the parts of the battery monitoring and control systems to work well. Also, the battery management system (BMS) needs to have a lot of ports and connectors so that it can connect directly to all of the battery packages. So, putting in such systems can cause the final price of a car to go up by a lot, which may make consumers who care about prices less likely to buy cars. Because of this, automakers are less likely to use BMS, even though they could be helpful. So, consumers who want to save money don't pay extra when they buy a car. This makes manufacturers less likely to invest in new technologies and capital, which slows the growth of the battery management system market.

The high cost of BMS will stop the market from growing.

Finding a good balance between price and function is the hardest thing for automotive BMS in car batteries to do. There are many new technologies available, such as wireless sensing and optical sensing of cell voltage, which offer more cell data with more accuracy; state-of-health (SOH) algorithms and advanced state-of-charge (SOC); and active cell balancing, which recirculates power that is currently lost across the system in existing battery monitoring and control systems. Most of these technologies, on the other hand, are too expensive to be used in mass-produced cars. This could change how much the EV costs all together. So, the cost factor may stop the market from growing.

Segmentation Analysis:

By Propulsion Type Analysis:

The market is split into BEVs, PHEVs, and HEVs based on how they move.

In 2021, the BEV segment had the largest share of the market, and this is likely to stay the case during the forecast period. Some of the things that are helping the segment grow are government policies that make it easier to buy battery-electric vehicles, more battery charging stations in tourist and public areas, and the cost of BEVs going down as technology improves. Also, the fact that there are a lot of battery-powered cars in big markets like the U.S., Europe, China, and others is likely to help the segment grow.

By Vehicle Type Analysis:

The global market is split into two groups based on the type of vehicle: passenger cars and commercial vehicles.

In 2021, passenger cars brought in the most money, and this is likely to still be the case in 2029. This is because the number of people living in cities has grown a lot and they need to get to work. Electric cars are also becoming more popular because of things like rising gas prices, rising environmental concerns, and the low cost of running an electric car.

Over the next few years, the commercial vehicle segment is expected to grow at the fastest rate. Most of the increase in demand for electric commercial vehicles is due to stricter emission rules for commercial vehicles in major countries around the world. Leading commercial vehicle makers are also putting a lot of effort into making and selling commercial vehicles with a lot of power and a long range. As a result, the segment of commercial vehicles is expected to grow at a high CAGR over the period of the forecast.

Regional Insights:

Asia-Pacific was the biggest market in the world in 2021, with a size of USD 2.40 billion, and this is likely to stay the case over the next few years. Electric cars are used a lot in China, which has helped the market grow. The market is also likely to grow in the future because more commercial electric vehicles are being used in developing APAC countries like India, South Korea, Japan, and others. For example, the China Passenger Car Association says that from 2020 to 2021, the number of electric passenger cars sold in China grew by 169.1%, to almost 2.99 million.

Europe is the second market with the fastest growth. The growth of the market in Europe is helped by the fact that there are a lot of major market players and major automakers. Also, the European market is growing because regulations on vehicle emissions are getting stricter, support for electrification is growing, and more money is being put into electric vehicle innovations.

After Asia Pacific, North America is expected to have the fastest rate of growth. The market is growing because sales of electric cars and trucks in the U.S. are going up by a lot. Also, the growing interest in developing and selling electric autonomous vehicles and Robo-taxis is expected to give the market a good growth rate over the next few years.

From 2022 to 2029, the CAGR for the rest of the world is expected to be quite high. More people are buying battery-powered cars in Brazil, the United Arab Emirates, South Africa, and Saudi Arabia, among other places. This, along with more investment in public charging infrastructure in Latin America and the Middle East, is expected to drive the adoption of electric vehicles, which in turn drives the growth of the automotive battery management system market.

Scope Analysis

Recent Development:

• January 2021: Texas Instruments (TI) unveiled its highest performing solution for wireless BMS. This solution enables automakers to improve reliability, minimize design complexity, and reduce vehicle weight to extend range.
• August 2020: Infineon Technologies Launches New Battery Management System Infineon Technologies has launched a new battery management system called the TLE9012AQU to balance and manage battery charge in electric vehicles. Primarily designed for hybrid and electric vehicle batteries, but also suitable for other applications such as energy storage systems and e-bike battery management systems.

Market Segmentation

By Propulsion Type:

• BEV
• PHEV
• HEV
• Others

By Vehicle Type:

• Passenger Cars
• Commercial Vehicles
• Others

By Companies:

• Robert Bosch GmbH. (Germany)
• Continental AG (Germany)
• Toshiba Corporation (Japan)
• NXP Semiconductors (Netherlands)
• Denso Corporation (Japan)
• Intel Corporation (U.S.)
• Analog Devices (U.S.)
• Johnson Matthey (U.K.)
• LG Chem (South Korea)
• Midtronics (U.S.)
• Others