Battery Management System Market

Battery Management System Market Outlook (2024 to 2034)

The global battery management system market is valued at US$ 8.4 billion in 2024. Revenue from battery management system (BMS) sales is estimated to increase at a high-value CAGR of 18.5% to reach US$ 46 billion by the end of 2034.

Increasing demand for batteries for use in UPS and various other renewable energy systems for their ability to withstand pressure and extreme temperature is expected to increase sales of battery management systems for reducing CO2 emissions and emphasizing sustainability.

Constant technological innovations in energy storage systems are expected to play a pivotal role in offering more effective solutions to end users. e-Transport solutions, specialty battery systems, and various electric appliances use lithium-ion batteries as one of the economic power sources. More manufacturers of battery management systems are offering low-voltage battery management systems and high-battery management systems to match the requirements of respective end users.

• Global demand for BMS in the automotive sector is projected to increase at a CAGR of 17.2% and reach a valuation of US$ 26.7 billion by the end of 2034.
• North America is expected to capture 24.3% of the global battery management system market share by 2034.
• Sales of battery management systems in Japan are forecast to climb at a 19.1% CAGR from 2024 to 2034.

Rising preference for electric vehicles across more countries is anticipated to uplift the demand for different batteries, which is further generating lucrative opportunities for providers of battery management systems. Increasing concerns about renewable energy resources and rising demand for e-bikes are contributing to increased utilization of battery management systems. Moreover, their surging use in multiple applications, including consumer handhelds, telecommunications, energy, automotive, etc., is also expected to positively impact battery management system market trends.

Report Attributes	Details
Battery Management System Market Size (2024E)	US$ 8.4 Billion
Forecasted Market Value (2034F)	US$ 46 Billion
Global Market Growth Rate (2024 to 2034)	18.5% CAGR
Market Share of Centralized Battery Management Systems (2034F)	60 %
South Korea Market Growth Rate (2024 to 2034)	19.3% CAGR
East Asia Market Share (2034F)	23.1%
Key Companies Profiled	L&T Technology Services; Eberspaecher Vecture Inc.; Merlin Equipment Ltd.; Toshiba Corporation; Nuvation Engineering; AVL LIST GmbH; NXP Semiconductors NV; Lithium Balance A/S; Texas Instrument Inc.; Johnson Matthey Plc.

Why Has Interest in Battery Management Systems Increased Significantly?

“Rising Preference for Rechargeable Batteries in Various End-use Industries”

Governments in developed and potentially high-growth markets are implementing stringent policies and regulations for minimizing carbon dioxide emissions. Therefore, various end-use industries are switching to renewable energy sources and batteries from conventional fossil fuels. Industries, including telecom, consumer electronics, automotive, etc., use rechargeable batteries. There is an increase in the adoption of electronic gadgets, including power tools, garden tools, portable medical tools, packs, etc., in potentially high-growth countries, which is contributing to the application of battery management systems for monitoring of respective devices.

Battery management systems assist in the proper and safe operation of batteries against functions, including temperature, voltage, current, maintenance schedules, and battery performance to check the charging status of batteries.

What Issues are Battery Management System Providers Trying to Solve?

“Lack of Standard Regulations for Battery Management Systems”

Battery management systems have multiple applications, such as telecommunications, military, renewable energy, automotive, and others. There are variations in configuration as per the application and in certain cases, customization facilities are also offered. The lack of one common standard set for comparing the performance of different battery management systems is projected to adversely impact their demand to some extent.

How are Startups Making a Mark in This Business Space?

“Rising Government Initiatives for Developing Electric Vehicle Infrastructure”

Increasing preference for electric vehicles in public and private commutes is projected to generate requirements for setting up various e-Charging stations. Therefore, governments in more countries are assisting to incentivize the count of charging stations. Startups are expected to leverage this opportunity and start investing in the development of more effective battery management systems matching requirements and adhering to set regulations.

Country-wise Insights

North America is anticipated to account for a 24.3% share of the global market by 2034, as opined in the recently updated study by Fact.MR, a market research and competitive intelligence provider. The presence of some prominent market players in the region, along with growing investment in R&D activities for enhancing the capabilities of battery management systems are set to create prospects for market players. Furthermore, rising funding for developing electric vehicles and hybrid EVs is also projected to widen the application scope of BMS in North America.

Why are Battery Management Systems Lining Up in the United States?

“Abundant Resources Required for Development of Battery Management Systems”

Attribute	United States
Market Value (2024E)	US$ 900 Million
Growth Rate (2024 to 2034)	19% CAGR
Projected Value (2034F)	US$ 5.1 Billion

The United States is forecast to account for a 45.6% share of the market in North America by 2034. Early adoption of electric vehicles in the United States is set to generate remunerative opportunities for manufacturers of battery management systems due to their reliability and assistance in securing vehicle performance. In addition, the availability of abundant raw materials is also projected to make the United States a more appealing market for manufacturers of battery management systems.

What is Responsible for Rapidly Expanding Battery Management System Market Size in China?

“Rising Sales of Battery-electric Vehicles Driving Demand for Battery Management Systems”

Attribute	China
Market Value (2024E)	US$ 900 Million
Growth Rate (2024 to 2034)	18.5% CAGR
Projected Value (2034F)	US$ 4.91 Billion

China is expected to capture 47.5% of the East Asian market share by the end of 2034. Rising sales of battery-electric vehicles are estimated to have a positive impact on the demand for battery management systems. Increasing requirements for logistic vehicles and passenger cars, which are operated in battery mode are also stimulating sales of battery management systems. Therefore, as one of the prominent automotive manufacturing hubs, the market in China is forecast to contribute to the surging product demand.

Category-wise Insights

Centralized battery management systems are forecasted to experience increased demand due to their economical prices and rising application in multiple medium-power applications, such as home appliances, medical equipment, etc.

How is the Market for Centralized Battery Management Systems Shaping Up?

“Economical Prices of Centralized Battery Management Systems”

Attribute	Centralized Battery Management Systems
Segment Value (2024E)	US$ 4.6 Billion
Growth Rate (2024 to 2034)	19.5% CAGR
Projected Value (2034F)	US$ 27.6 Billion

Centralized battery management systems are estimated to hold 60% of the global market revenue share by 2034. Centralized battery management systems are comparatively more economical than other available options. Moreover, these systems function as a single unit for monitoring, balancing, and management of all cells present in the battery pack. In addition, they are least expandable if compared to other systems used for battery management. The rising use of battery management systems in medium-power applications, including portable medical equipment, home appliances, e-Bikes, etc., is also stimulating their demand.

In Which Sector are Battery Management Systems Widely Deployed?

“High Use of Battery Management Systems for Effective Functioning of Automobiles”

Attribute	Automotive
Segment Value (2024E)	US$ 5.5 Billion
Growth Rate (2024 to 2034)	17.2% CAGR
Projected Value (2034F)	US$ 26.7 Billion

The automotive sector is projected to contribute 58% of the global market share by the end of 2034. BMS is utilized for monitoring and controlling power storage systems while assuring the health of battery cells and delivering power to respective vehicle systems. Battery management systems monitor the voltage, current, and wear leveling of battery cells. In addition, some additional functions, such as system health, monitoring faults, and checking the availability of energy are also completed by these systems, which is further anticipated to contribute to the battery management system market growth.

Competitive Landscape

Some of the leading manufacturers of battery management systems profiled in the Fact.MR research reports are constantly innovating various product designs to match the current challenges related to component placement in the respective engine environments. They are actively involved in various strategies, including mergers, offering quality products, acquisitions, new product launches, management of supply chain systems, etc., to get a competitive edge.

For instance

• AVL LIST GmbH opened its new research facilities in Graz, Europe in September 2021. This is estimated to lead to the development of novel high-voltage batteries for use in electric vehicles. The company is focusing on product launching, authorizing, and executing new effective production processes.
• Texas Instruments launched wireless battery management systems for electric vehicles in January 2021. This newly developed system of the company enables wireless control and eliminates troublesome cabling.

Key players in the battery management system industry are L&T Technology Services, Eberspaecher Vecture Inc., Merlin Equipment Ltd., Toshiba Corporation, Nuvation Engineering, AVL LIST GmbH, NXP Semiconductors NV, Lithium Balance A/S, Texas Instrument Inc., and Johnson Matthey Plc.

Fact.MR provides detailed information about the price points of key manufacturers of battery management systems positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Segmentation of Battery Management System Market Research

• By Topography:

  • Centralized
  • Modular
  • Distributed

• By Component:

  • Battery Management Units
  • Communication Units

• By Application:

  • Automotive
  • Energy
  • Telecommunication
  • Consumer Handheld

• By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA