The battery management system (BMS) market is expected to grow at a CAGR of over 15% during 2020 – 2025. Factors such as increasing adoption of electric vehicles and focus on increasing the energy efficiency of batteries, are expected to drive the demand for the battery management systems. However,the high upfront cost of electric vehicles have hampered the growth of the battery management system market.

  • Automobile sector is expected to lead the market growth owing to the increased sales of electric vehicles which contribute a large share to the battery management system market globally.
  • The growing environmental concerns and reducing fossil fuels have led to the innovation and development of electric vehicles. BMS is required in every lithium-ion battery, especially when used in electric vehicles. Hence, BMS finds wide application in electric vehicles, owing to the safety concerns related to lithium-ion batteries.
  • Asia-Pacific is the biggest market for battery management systems, owing to the increased sales of electric vehicles in countries such as China and Japan. This rise have been due to the extensive efforts of the governments to reduce greenhouse gases emissions.



Key Market Trends

Increasing Demand from Automobile Sector

  • With EV sales hitting 2 million units in 2018, the market for EV is expected to grow rapidly in the forecasted period, owing to growing consumer demand for greener vehicles, and favorable government policies.
  • Reduced taxes and high subsidies on Electric vehicles in countries such as China and Norway have led to a rapid increase in sales and have paved a growing path for battery management systems.
  • In 2018, a total fleet of 5.1 million EV saved about 36 Mt of CO2-eq compared to an equal no of internal combustion engine fleet.
  • The increasing trust and low operating cost of electric vehicles have helped the market for battery management systems grow in recent years and is expected to grow in forecast period.



Asia-Pacific to Dominate the Market Growth

  • Asia-Pacific is likely to witness fastest growth during the forecast period. In Asia-Pacific, China is expected to witness strong growth, owing to the rapid growth in the EV market.
  • The rising demand for consumer electronics is likely to further add to the demand for BMS, owing to the increasing integration of BMS in consumer electronics for safety purpose.
  • China is the biggest market for EVs, globally. China’s EV market share increased from 25% in 2015 to 45% in 2018, with over 2.31 million units deployed by end of 2018.
  • Therefore, the above stated factors can be considered the major driving factors for battery management systems in the region, where the market is expected to grow in forecast period.



Competitive Landscape

The battery management systems market is slightly fragmented with a lot of big and small players sharing the market. Some of the players are Eberspaecher Vecture Inc. , Elithion, Inc., Renesas Electronics Corporation, Johnson Matthey PLC, Lithium Balance, Navitas System, LLC Corporate., amongst others.

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