Battery Management System Market

Growing adoption of rechargeable batteries across multiple end-use industries to boost market growth

The last few years have witnessed increase in adoption of electronic gadgets such as garden tools, power tools, portable battery packs, and portable medical tools across countries in emerging markets such as Asia.  Moreover, to effectively control several functions critical to safe and proper operation of batteries, battery management system monitors batteries against functions such as voltage and current, temperature, battery performance, and maintenance scheduling to check whether the battery is overcharged or undercharged.

In addition, battery management system also monitors conditions of individual cells in a battery pack. Further, rechargeable batteries also find wide application in industrial products such as vacuum pumps and power tools and a rapid increase in these products boosts the battery management system market. Additionally, Governments across the globe have implemented stringent regulations and policies, such as Kyoto protocol, to reduce Greenhouse Gas (GHG) emissions. In addition, rise in awareness regarding harmful effects of petrol and diesel-fuelled vehicles on the environment has led to innovations in the automotive industry in the form of electric and hybrid vehicles.

Moreover, growth in consumer demand to maximize vehicle efficiency and minimize fuel costs have led to consistent technological advancements in electric and hybrid electric vehicles. The need to optimize utilization of battery storage capacity in electric vehicles and to prevent dangers caused by overheating of battery in electric and hybrid electric vehicles, manufacturers have started to integrate battery management systems in vehicles. Batteries in electric vehicles can be used only in specified conditions, therefore, battery management system (BMS) is necessary to monitor battery state and ensure safety of operations

The expansion of the renewable energy sector is significantly influencing the Global Battery Management System Market Industry. As countries invest in solar and wind energy, the need for efficient energy storage solutions becomes paramount. Battery management systems are essential for optimizing the performance of energy storage systems, ensuring reliability and longevity. The increasing deployment of renewable energy sources necessitates advanced battery management solutions to manage energy flow and storage effectively. This trend is expected to drive market growth, as the global energy landscape shifts towards sustainability and resilience, with the market projected to reach 79.7 USD Billion by 2035.

The increasing adoption of electric vehicles (EVs) is a primary driver for the Global Battery Management System Market Industry. As governments worldwide implement stringent emission regulations and promote sustainable transportation, the demand for EVs is expected to surge. In 2024, the market is projected to reach 9.59 USD Billion, reflecting the growing need for efficient battery management solutions. Battery management systems play a crucial role in optimizing battery performance, enhancing safety, and extending lifespan, which are essential for EV manufacturers. This trend is likely to continue, with the market anticipated to expand significantly as EV sales increase.

The global emphasis on energy efficiency is a critical driver for the Global Battery Management System Market Industry. As industries and consumers seek to reduce energy consumption and operational costs, battery management systems are becoming integral to energy management strategies. These systems enable better monitoring and control of battery usage, leading to enhanced efficiency and reduced waste. Governments and organizations are increasingly adopting policies that promote energy efficiency, further fueling the demand for advanced battery management solutions. This growing focus on sustainability and efficiency is likely to contribute to the market's expansion in the coming years.

The proliferation of consumer electronics is a notable factor driving the Global Battery Management System Market Industry. With the rise of portable devices, such as smartphones, tablets, and wearables, the demand for efficient battery management solutions is escalating. These devices require advanced battery management systems to ensure optimal performance, safety, and longevity. As consumer preferences shift towards longer-lasting and faster-charging devices, manufacturers are increasingly investing in innovative battery management technologies. This trend is expected to sustain market growth, as the consumer electronics sector continues to evolve and expand.

Technological innovations in battery technologies, such as lithium-ion and solid-state batteries, are propelling the Global Battery Management System Market Industry forward. These advancements enhance energy density, reduce charging times, and improve overall battery efficiency. As manufacturers strive to develop more efficient and longer-lasting batteries, the demand for sophisticated battery management systems becomes increasingly critical. The integration of smart technologies, such as artificial intelligence and machine learning, into battery management systems further optimizes performance and safety. This trend indicates a robust growth trajectory for the market, with projections suggesting a compound annual growth rate of 21.22% from 2025 to 2035.

By Region, the study segments the market into North America, Europe, Asia-Pacific and Rest of the World. In order to curb the changing climatic conditions, the U.S is planning to add new renewable capacities in the coming years. For instance, Texas, Lowa, and Illinois are planning to add wind power capacities of more than 6 GW in the year 2019 as reported by U.S Energy Information Administration. Owing to the growth of the renewable industry in North America, the battery management system market is expected to grow at a decent pace in the near future

Figure 2: Battery Management System Market Share By Region 2021 (%) 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The Europe region has witnessed significant growth in the sales of electric vehicles in the recent past. Owing to this, the automotive industry in the region is expected to witness an appreciable growth in the coming years. The growth of the automotive industry in Europe is likely to drive the growth of the battery management system market in the region. Latin America region is focused on adding new renewable capacities to meet the energy demands in the region.

Owing to the growth of the renewable industry in Latin America, the battery management system market is expected to grow at significant rates in the coming years. Increasing renewable solar capacities in South Africa and GCC countries is expected to boost the energy storage and renewable industry growth in the Middle East and Africa region. Owing to this, the battery management system market is expected to gain traction over the forecast period in the Middle East and Africa

Asia Pacific region is focused on increasing the electric vehicle fleet owing to the growing concern for CO2 emissions. The Telecom industry in the region is also reported to have decent growth in the recent past. Owing to the growth of the electric vehicle market and the telecom industry, the battery management system market is expected to witness healthy growth in the region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Battery Management System market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Battery Management System industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global Battery Management System industry to benefit clients and expand the Battery Management System market sector is to manufacture locally to reduce operating costs. In recent years, Battery Management System has provided medicine with some of the most significant benefits.

Leclanché offers multiple battery management system (BMS) technologies. BMS are an integral part of Leclanché’s high voltage (e-Transport, Stationary) and low voltage systems solutions. Leclanché develops its own in-house BMS, in partnership with a hardware company. All BMS are either master-slave or single board architecture. BMS commonly provides software and hardware safety for overcharge/ deep discharge, over/under voltage, over current, over/under temperature, pre-charge, short circuit and other protection. They have built-in technology and specific algorithms such as SOC, SOH, cell/ module balancing and real time control over charge/ discharge current.

They also have the capability to indicate performance and monitor control parameters. A user-friendly Graphical User Interface (GUI) provides system performance and diagnostics for the system.  BMS provides CAN and RS485 communication ports to connect to the host/ higher layer system.

Also, Nuvation Energy’s battery management systems are field deployed in over 130 energy storage systems worldwide. These highly flexible battery management solutions can be configured for most battery chemistries, modules and stack designs, and used in any storage application. Our high- and low-voltage BMS modules are designed for long-term reliability and are UL 1973 Recognized for functional safety.