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Market Definition

Battery management ICs are integrated circuits, used in an electronic system to manage rechargeable batteries. These are small electronic components that include transistors, diode, among others, on a semiconductor crystal or chip. Battery management IC protects the battery from operating outside from its SOA (Safe Operating Area) and monitors the state of the battery, authenticates the battery, calculate and report data, among others. This battery management ICs are of different types depending on their functionality and specifications. In this report, we have considered only three types of battery management ICs, i.e., battery charger IC, fuel gauge IC, and authentication IC. Fuel gauge IC, sometimes also referred to as gas gauge IC determines the battery health and state of charge (SOC).

Market Dynamics

Technological Advancements

The rapid technological advancements, rising urbanization, improving consumer spending coupled with rising living standards have led to the rise in the demand for consumer electronics devices; which is further enduring demand for batteries, cell, and packaging solutions. Additionally, the increasing adoption of electric vehicles to control the ever-increasing carbon footprint has boosted the demand for lithium-ion batteries.

In light of the Go Green trend in the market, individuals are looking for a more sustainable source to meet their energy demand. This trend, in turn, has led to a rise in the demand for batteries across various sustainable energy sectors for energy storage. Also, the increasing awareness of users towards zero-emission vehicles has further boosted the demand for batteries across the automotive industry.

Figure: GLOBAL EV SALES 2017 VS. 2018

Global-Ev-Sales-2017-vs-2018For instance, according to the Edison Electric Institute (EEI), the global EVs sales were sized around 2.1 million for 2018, which was an increase of 64% more than the total EVs sold in 2017. This was led by China, which is the largest manufacturer of EVs vehicles. There has been a paradigm shift in the technological advancements, driving the market with full sway. These aforementioned factors are anticipated to be the key factors fueling the growth of the global battery management ICs market during the forecast period.

Complex Integration Process, and Challenging Economic and Political Scenarios

The battery management integrated circuits have very sophisticated technology. Its integration process is way too complicated, requiring highly skilled technicians to manufacture it. Hundreds of integrated circuits are produced simultaneously on a single, thin slice of silicon and are then cut apart into individual IC chips. The entire manufacturing process occurs in a tightly controlled environment, also known as a cleanroom. It also requires a high level of expertise to assemble the whole circuit making the process slow, and that poses a challenge for the battery management ICs market.

Furthermore, the ongoing trade war between the U.S. and China and the withdrawal of the U.K. from the European Union have severely hit the consumer electronics market, inflicting a slow growth rate of the IC market.

In Germany, the economy is moving towards recession and economic crisis, affecting other dependent economies such as Spain and Greece. The trade dispute between the two giant economies has also affected many sectors, including construction and infrastructure development. High tariffs levied on products have disrupted global trade and economy. Moreover, the immediate impact of the high tariffs levied by the U.S. on Chinese products, steel, aluminum, battery, has adversely affected the electronics sector. China is one of the major producers and the largest consumers of electronics devices in the world. The U.S. and several other countries are heavily dependent on the Chinese imports of these materials.

In May 2019, the U.S. government raised the tariffs from 10% to 25% on Chinese goods worth USD 200 billion. The failure of the economies to resolve the issue has increased the overall cost of electronics products or even led to the temporary closure of the items. Furthermore, the construction sector has been affected by the trade war has indirectly influenced the battery system market.

According to the National Association of Home Builders (NAHB), residential construction activities in the first quarter of 2018 fell from 61.6% to 57.1%, owing to higher construction costs and tight inventory conditions. The significant level of uncertainty among the countries is threatening the infrastructure spending, disturbance in supply chains, and reduced investments in construction projects.

Widening Application Areas for Battery Management

The constant transformation of battery technology has compelled many manufacturers to learn about designing battery management systems. Today's electronic devices have higher mobility and are greener than ever before. Battery advancements are stoking this progression in a large array of products right from portable power tools to plug-in hybrid electric vehicles and wireless speakers.

In the past few years, the efficiency of a battery in terms of how much power it can output with respect to size and weight has enhanced drastically. For instance, although the primary purpose of a car battery is to start the car, it is cumbersome and bulky. With recent developments and advancements, a lithium-ion battery can be used to jump-start the car, and it only weighs a couple of pounds. The application of power management has increased, positively affecting the demand for battery management integrated circuits.

The rising global temperatures have nudged governments and private organizations to take active steps to mitigate the adverse effects of global warming. The Paris agreement that was signed in 2015 stipulates that countries must reduce the global carbon footprint. Governments are providing tax rebates and subsidies to companies that are willing to switch towards green technologies. This is nudging the companies to invest in more energy-efficient devices, and power batteries can back that up.   Furthermore, increasing penetration of the internet and social media has made the average consumer more environmentally conscious and nudges them to opt for less carbon-emitting technologies. This has led companies to invest more in green technologies and capitalize on the market, thereby bolstering the market for battery management integrated circuits.

Segmental Overview

Battery Charger IC

The battery charger ICs accounted for the highest share, with USD 4,238.7 million in terms of value, and is expected to reach USD 6,200.4 million by 2029. Battery Charger ICs can offer the correct charge current and voltage for a particular battery cell in different appliances.

Most of these battery chargers are designed and developed for Li-Ion batteries, as it is the most popular in handheld equipment. These ICs work with system microprocessors or microcontrollers in cell phones, PDAs, and other handheld devices to provide a complete battery charger.

Analog Devices offer an impressive portfolio of high-performance battery charger IC devices for any rechargeable battery chemistry that includes Li-Ion, lead-acid, and nickel-based for wired and wireless applications. It is used in electric vehicles extensively. Another importantly known battery monitoring ICs include a device that is designed and developed at the NXP semiconductors company. The MC33771 is a Li-Ion battery cell controller IC. Although it is made for automotive applications like EVs and HEVs, the MC33771 is also made to support high voltage industrial applications when an uninterrupted power supply is required.

Automotive

The battery management integrated circuits market is greatly influenced by the upsurging demand from the automotive industry. They are used in the reading devices used in cars, especially in electric vehicles these days. According to Organization Internationale des Constructeursd'Automobiles (OICA), the worldwide automotive production was on the rise by more than 20% from the year 2010 to 2017. Other factors affecting the automotive production are the rising population, changing consumer aspirations, and high disposable income levels. Furthermore, supportive government policies, along with substantial investments, will most likely support production growth.

The favorable trends associated with automotive production will augment the market during the stipulated period. The automotive sector is always booming in the European region, thereby driving the demand for battery management ICs. According to the European Commission data, the automobile industry employs around 13.9 million Europeans, and the turnover generated by this industry contributes around 7% of the total GDP. Thus, the rise in the automotive industry is key to the growth of the battery management ICs market.

Figure: Number of electric vehicle models available in Europe, 2010–2017

Number-of-electric-vehicle-models-available-in-Europe-2010-2017

Several prominent motor vehicle manufacturers have scaled up their investments and funding to provide more EV models in all vehicle sizes. However, the choice of EV models is still limited compared to conventional vehicles. As per the recent report published by the European Commission's Joint Research Centre (JRC), in the year 2017, there was around 28 battery electric vehicle (BEV) models and 33 plug-in hybrid electric vehicle (PHEV) models available in Europe. This is further expected to augment the demand for battery management ICs.

Regional Overview

North America: The Largest Share Holding Region

Battery management integrated circuits, also known as power management ICs or PMICs, are integrated circuits for power management. The PMIC mainly pertains to a broad range of chips or modules in system-on-a-chip devices. But most of them include various DC/DC converters or their control part. The integrated circuit is present in battery-operated devices such as mobile phones and portable media players, wearable devices, and many other electronic devices to decrease the amount of space required and always reflect the device's reading.

Considering its paramount importance, ICs are widely used in data centers. North America has one of the largest data centers built in the U.S. — data centers that use these battery management ICs. The data center is experiencing enormous growth, both internationally and nationally. The national data center has been thriving since the year 2012, both on the global platform and new construction demands.

The burgeoning growth in cloud computing has drastically increased the size and economic impact of data center investments made by the four crucial service providers that are Amazon, Google, Facebook, and Microsoft, in the U.S. The data center market in the U.S. is currently roaring, measured in terms of new construction of data centers, and by absorption. In contemporary times, the double-digit annual growth rates have become the new normal, and CAGR projections in the range of 14% to 17% have become surprisingly common.

The ever-growing demand for data centers to store the unlimited data being bombarded from almost anywhere and everywhere has nudged the demand for battery management ICs in the North American region. Northern Virginia is the largest data center marketplace in the U.S. that surpassed its nearest competitor with more than 100% in scale and the magnitude of new growth.

Figure: H1 2017 Data Centre, Net Absorption in (MW) by U.S. Region.

H1-2017-Data-Centre-Net-Absorption-in-by-US-RegionAPAC to Grow at a Fast Pace

The battery management ICs also find extensive applications in the automobile industry. On account of the ever-growing demand for vehicles and electric cars, the demand for battery management ICs has increased.

In April 2020, China's Motor Vehicles Sales recorded 2,069,962 units compared with 1,430,217 units in the month of March the same year. According to the China Association of Automobile Manufacturers, the sale of motor vehicles reached an all-time high of 3,060,271 units in December 2017. China is one of the foremost automotive markets globally, accounting for 45% of the electric vehicles on the road that is 2.3 million cars. Considering the giant automobile industry, the ICs market has vast potential in this region.

Apart from China, over the decades, Japan is known for its technological superiority, which aids in driving the production of various electrical and automotive components. For instance, Japan's automotive sector employs more than 5.5 million people, or 8.7% of Japan's workforce is working in the automotive sector. Furthermore, Japan is also among the leading producers of industrial machinery. In 2017, its export of machinery having various individual functions was around USD 22, 600 million.

Battery Management IC Market: Key Players

  • Analog Devices, Inc.
  • Semiconductor Components Industries, LLC
  • Maxim Integrated
  • Microchip Technology Inc
  • NXP Semiconductors
  • Semtech Corporation
  • ROHM Co., Ltd.
  • Richtek Technology Corporation
  • Renesas Electronics Corporation
  • Texas Instruments Incorporated
  • Skyworks Solutions, Inc.
  • STMicroelectronics
  • Diodes Incorporated
  • Others

Battery Management IC Market: Segmentation

By Type

  • Battery Charger IC
  • Fuel Gauge IC
  • Authentication IC

By Application

  • Building Control
  • Consumer Electronics
  • Healthcare
  • Industrial and Retail
  • Automotive
  • Wearable Devices

By Region

North America

  • The U.S.
  • Canada
  • Mexico

Europe

  • Germany
  • France
  • Spain
  • Italy
  • Russia
  • Poland
  • The U.K.
  • Rest of Europe

The Asia Pacific

  • Japan
  • China
  • India
  • South Korea
  • Indonesia
  • Australia
  • Vietnam
  • Rest of Asia Pacific

Central and South America and the Caribbean

  • Argentina
  • Brazil
  • Rest of Central and South America and the Caribbean

Middle East

  • Saudi Arabia
  • The U.A.E.
  • Rest of Middle East

Africa

  • Nigeria
  • South Africa
  • Rest of Africa

Frequently Asked Questions (FAQs)

Rapid technological advancements, rising urbanization, improving consumer spending, increasing adoption of electric vehicles are the key factors expected to drive Battery Management IC Market during the forecast period.
Analog Devices, Inc., Maxim Integrated, Microchip Technology Inc, NXP Semiconductors, Semtech Corporation, ROHM Co., Ltd., STMicroelectronics, Diodes Incorporated are the top players in Battery Management IC Market.
North America is expected to hold the highest market share in Battery Management IC Market.
Battery Charger IC Segment is expected to be the leading segment in Battery Management IC Market during the forecast period.
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