Global Automotive Battery Management System Market By Battery Type (Lithium-Ion, Advanced Lead-Acid, Nickel Batteries, Flow Batteries), Vehicle Type (Passenger Vehicle, Commercial Vehicle, Golf Cart, E-Bikes), Connection Topology (Centralized, Distributed, Modular), Propulsion Type (IC Engine Vehicle and Electric Vehicle), Battery Capacity (<100 kWh, 100-200 kWh, 200-500 kWh, >500 kWh), End-Use (OEMs, Aftermarket), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032

Market Perspective

The global Automotive Battery Management System Market size is projected to grow from USD 5.9 billion in 2022 to USD 13.5 billion by 2032, at a CAGR of 9.6%.

The battery management system (BMS) controls and manages all of the energy storage and transfer facilities in EV systems, including charging and discharging, battery cell voltage monitoring and balancing, battery charge equalization, and others. Government policies have supported the development of electric cars and other energy vehicles, which can further fuel the explosive growth of battery technology and automotive computer science toward smart mobility.

Some of the top players in the BMS market are actively adopting some emerging technologies, including artificial intelligence (AI), cloud computing (CC), and blockchain technology, as a result of ongoing improvements in information, communication, and computing

Key Insights of the Global Automotive Battery Management System Market

• Based on battery type, the lithium-ion battery segment held the largest market share in 2021
• Based on the vehicle type, the passenger vehicle type segment is anticipated to register a high growth rate by the end of 2030
• Based on connection topology, the modular segment is expected to register high growth over the forecast period
• Based on propulsion type, battery electric vehicles have the highest market share
• By battery capacity, <100 kWh voltage capacity is leading the segment
• Based on end-use, the OEMs segment dominated the market share
• On the basis of region, North America held the largest market share

Increasing Trend of Electric Vehicles (EVs) is Augmenting the Market Growth

The rising popularity of electric vehicles is anticipated to open up attractive business prospects, which can accelerate the growth rate of the automotive battery management system market in the coming years. Based on current trends and regulations, the International Energy Agency (IEA) predicts that 145 million electric cars, heavy trucks, vans, and buses will be in use worldwide by 2030. 

Over the projection period, producers of automotive battery management systems estimate that the electric vehicles market would be the most lucrative. The proliferating demand for electric and hybrid vehicles is being driven in large portion owing to the stringent government regulations governing automobile pollution around the world. 

Government Initiatives and Policies Favoring Towards Low-Emission Vehicles Drive the Market Growth

Electric bus producers are being positively influenced by government plans to move from internal combustion engines (ICE) to electric, hybrid, or fuel cell vehicles to enhance EV manufacturing. For instance, the New York State Government announced its intention to become the third state to outlaw the sale of new internal combustion engine-powered cars by the year 2035, with the goal of having 100% of new car sales come from electric vehicles by the year 2026, 2030, and 2035.

The European Commission suggested in July 2021 that carbon emissions from cars be reduced by 55% by 2030 compared to levels in 2022, which is significantly more than the objective of 37.5% in 2021. The sale of new ICE vehicles in 27 European nations would be prohibited under the regulation's requirement for a 100% reduction in carbon emissions by 2035. All of these elements contribute to the market growth for automotive battery management systems.

High Upfront Costs Restrict the Market Growth

The automotive battery management system sector is facing financial constraints due to fundamental issues in many developing countries. Import duties on non-emerging market parts are consistently high. Therefore, the automotive battery management system market is expected to be constrained during the forecast period due to the high cost of manufacturing battery management systems due to barriers such as port duties, import duties, and taxes. As a result, while demand for high-priced automotive BMS is high, sales are sluggish due to high costs.

Emergence of Internet of Things-enabled Smart Battery Management System

The Internet of Things is a growing field of wireless technologies that aid in creating, integrating, and implementing the IoT to help alleviate some of the problems affecting daily activities. For instance, Bacancy introduced IONDASH, a cloud IoT platform for monitoring battery lifecycles for the EV market, in May 2022. IONDASH - BMS Cloud Analytics Platform manages this BMS hardware device portfolio using AI/ML and advanced telematics, which provides users with a completely safe and secure EV experience, increases the life of lithium-ion batteries, and enhances EV performance. The battery management system, one of its essential components, intends to enhance the overall performance of IoT-enabled devices and contribute to the widespread adoption of renewable energy systems.

Segmentation Analysis

On the basis of battery type, the market is categorized into lithium-ion, advanced lead-acid, nickel batteries, and flow batteries. Lithium-ion batteries are expected to grow at the highest CAGR throughout the estimated timeframe. The technology of lithium-ion batteries is developing, and numerous small lithium-ion batteries are used in portable electronics, and a few big lithium-ion batteries have been developed to power electric vehicles (EVs).

Based on the topology, the market is divided into centralized, distributed, and modular. The modular segment dominated the market in 2022. With higher computational power and safer wiring, modular BMSs are becoming more common. Energy storage systems, industrial UPS, medical mobility vehicles, electric automobile parts, and drones are just a few of the applications that are taking advantage of modular architecture.

Based on the vehicle type, the market is divided into passenger vehicles, commercial vehicles, golf carts, and e-bikes. The passenger vehicle segment is expected to showcase the highest share with benefits related to a number of factors, such as the expanding urban population and its transportation needs. Due to the low operating costs and increased concern over environmental pollution, end customers prefer EVs, and this trend is expected to continue.

Recent Developments

In October 2022: Sensata Technologies introduced the Lithium Balance n3-BMS, a novel battery management system (BMS) for high-voltage applications. The Lithium Balance n3-BMS is perfect for power applications up to 1000 volts/2000 amps, notably for battery manufacturers and producers of electric trucks, buses, and other large commercial vehicles.

In September 2022: Elektrobit and NXP Semiconductors jointly developed the software platform in order to complement NXP's recently unveiled high-voltage battery management system (HVBMS) reference design. Building HVBMS architectures for electric vehicles (EVs) is made easier by the new software platform of the HVBMS reference design, which abstracts communication and control interactions between the BMS microcontroller and the battery cell controllers.

In January 2022: BorgWarner Inc. completed its investment in Qnovo Inc., strengthening battery management capabilities and accelerating the potential to expand its battery solutions portfolio by working with Qnovo, which focuses on battery health measurement and quick charging. 

North America to Dominate the Market Owing to the Increased Focus Towards Clean Energy Platforms

North America holds the dominating position in the automotive battery management system market owing to the increasing demand for commercial and passenger vehicles within the region.  The U.S. Department of Energy (DOE) issued two notices of intent to provide USD 2.91 billion in accordance with the Bipartisan Infrastructure Law to increase production of the advanced batteries that are crucial to the future's rapidly expanding clean energy industries, including electric vehicles and energy storage.

The Department intends to subsidize battery material refineries, battery cell and pack production facilities, and recycling facilities that lead to the development of well-paying sustainable energy jobs. The government of Canada is seeking a combination of investments and legislation to assist customers and industry in transitioning to achieve 100% zero-emission vehicle sales by 2035 in order to guarantee Canada reaches this objective and to provide certainty about the path towards limited emissions. 

Europe Registered a Faster Growth Rate Due to its Rapidly Increasing Electric Vehicle Sales

The European market is expected to expand rapidly during the projection period as the EU government is closely regulating pollution regulations and intends to forbid the production of IC engine vehicles in a few European nations by 2025, including Norway and the Netherlands. In the EU-27, the adoption of electric vehicles and vans increased significantly in 2022. In comparison to 2020, all nations (EU-27, Iceland, and Norway) saw an increase in the percentage of electric cars (BEVs and PHEVs) in national new car registrations. The countries with the highest percentages were Norway (86%), followed by Iceland (64%), Sweden (46%), and Denmark (35%).

The number of incentives for electric mobility has increased as a result of the approximately 63% of BEV registrations that came from Germany, France, and Norway. For instance, Estonia installed 165 fast chargers across the country, making sure that each community with at least 5,000 residents had access to at least one station. Several European countries and cities, including Norway, Denmark, the Netherlands, France, the United Kingdom, Oslo, Amsterdam, Paris, and London, are promoting electric mobility through their own initiatives. The market is expected to increase as a result of rising sales of electric cars (EVs), rising demand for clean-energy vehicles, encouraging government initiatives, and increasing environmental awareness among the populace.

Key Market Players

Major manufacturers operating in the automotive battery management system industry include Robert Bosch GmbH, Continental AG, Toshiba Corporation, Intel Corporation, Texas Instruments Incorporated, Analog Devices, Inc., Denso Corporation, Visteon Corporation, Renesas Electronics Corporation, LG Chem, Ltd, Sensata Technologies, Inc., BorgWarner Inc., amongst others.

The global automotive battery management system market is segmented as follows:

By Battery Type

• Lithium-Ion Based
• Advanced Lead-Acid Based
• Nickel-Based
• Flow Batteries

By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle
• Golf Cart
• E-Bikes

By Connection Topology

• Centralized
• Distributed
• Modular

By Propulsion Type

• IC Engine Vehicle
• Electric Vehicle

By Battery Capacity

• <100 kWh
• 100-200 kWh
• 200-500 kWh
• >500 kWh

By End Use

• OEMs
• Aftermarket

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic countries
    • Denmark
    • Finland
    • Iceland
    • Sweden
    • Norway
  • Benelux Reunion
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • New Zealand
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America