Driven by increased EV adoption globally, reports suggest that the battery management system market may cross 39 billion USD with a CAGR of 19.4% in another eight years.
The global battery management system (BMS) market was valued at USD 7.94 billion in 2023 and is expected to grow to USD 39.18 billion by 2032, with a CAGR of 19.4%, according to a report published by Polaris.
BMS technology monitors battery performance, ensuring safety and longevity by managing charge levels and temperature. With the growth of renewable energy, BMS is crucial for efficiently storing intermittent power from sources like solar and wind, enhancing system reliability and grid stability.
As per the report, in 2023, North America led the BMS market, holding over 32% of the share. The lead-acid segment was the largest by battery type, while the automotive sector is expected to experience growth with a high CAGR throughout the forecast period.
Conducting a comprehensive study on the market drivers behind this anticipated growth, Polaris inferred that the rise in electric vehicles is responsible for the demand for advanced BMS to ensure optimal battery performance, safety, and longevity. Additionally, expanding EV charging infrastructure and the government’s stringent regulations and incentive schemes for EVs globally further boost the need for BMS solutions.
On the other hand, rising costs are also challenging the BMS market due to increased technology and functionality complexity. Advanced algorithms, hardware, and communication protocols raise development and manufacturing expenses. High-performance requirements and strict safety regulations further contribute to the cost pressures.
Despite having its fair share of benefits and challenges, the BMS market is highly competitive, featuring major players like Texas Instruments, NXP Semiconductors, and Analog Devices.
In the past three years, significant BMS advancements include Renesas’ AUTOSAR software and multi-cell BFE ICs, Marelli’s Wireless Distributed Battery Management System, and Qnovo’s SpectralX software integration with NXP Semiconductors.
The report highlighted that companies are leveraging agreements, collaborations, and partnerships while also focusing on innovation and enhanced product features to strengthen their market positions. This factor is anticipated to contribute to market growth.
