Electric Vehicle Battery Management System Market

Market Overview

The global electric vehicle battery management system market size was valued at USD 2.69 billion in 2021. It is projected to reach USD 25.35 billion by 2030, growing at a CAGR of 28.27% during the forecast period (2022-2030).

Electronic control circuits called battery management systems (BMS) keep track of and manage the battery's charge and discharge. In electric vehicles, the battery management system's primary responsibility is to detect various battery-related parameters, including type, voltages, temperature, capacity, state of charge, power consumption, remaining operational time, charging cycles, and others. The BMS must interact with several onboard systems, function under extreme and uncontrolled conditions, and perform in real-time under changing charge/discharge conditions as the vehicle accelerates and brakes.

Market Dynamics

Market Drivers

Growing Sales of Electric Vehicles

The automobile industry cannot function without electric vehicles, providing a path to greater energy efficiency and lower emissions of other greenhouse gases and pollutants. The leading causes of this growth are the rising environmental concerns and practical government measures. Governments have launched programs and initiatives worldwide to encourage consumers to select electric vehicles over conventional automobiles. One such program that promotes the purchase of electric vehicles is the California ZEV program, which plans to have 1.5 million electric vehicles on the road by 2025. Due to government laws and incentive programs, people were significantly more likely to purchase electric vehicles than automobiles with traditional IC engines. Instead of causing a decline in sales of cars with internal combustion engines, the shift has opened up a promising market for electric vehicles both now and in the future.

Increasing Investment in Electric Vehicles

The market for electric vehicle battery management systems is growing as more automakers and businesses in associated sectors see electric vehicles as an investment opportunity. Over the projected timeframe, a course shift is expected. Automakers are planning to release more electric vehicles, join forces with other companies, and invest in getting a competitive edge in the market. The firms plan to invest extensively in electric vehicles and their components globally, which is anticipated to propel the market for electric vehicle battery management systems.

Market Restraint

Lack of Charging Infrastructure

A charging infrastructure that is accessible, inexpensive, and caters to all consumer groups is necessary for the mass market adoption of EVs. It is anticipated that market expansion during the forecast period will be constrained by the emerging nations' inadequate charging infrastructure facilities. Users of electric two-wheelers and three-wheelers who commute over short distances, however, are not much impacted by this. Access to land, the energy load connection, and financing are the three main obstacles preventing the development of charging infrastructure. The financial rewards from such endeavors are uncertain due to the significant expense required in setting up a charging station. As a result, poorer nations like Africa may experience delays in developing adequate charging infrastructure. However, governments worldwide are actively attempting to improve the infrastructure for public charging.

Market Opportunities

Subsidies and Supportive Government Policies

Governments have been aggressive in adopting laws to stimulate the adoption of electric vehicles since electric mobility has been rapidly expanding worldwide. Before 2040, China, India, France, and the United Kingdom all intended to phase out the production of gasoline and diesel automobiles completely. Due to government subsidies and favorable policies that began more than ten years ago, China is the most advanced nation in producing electric vehicles. Additionally, rising investments in the production of electric vehicles and their related parts, such as batteries, are anticipated to benefit market demand. For example, Daimler announced a new investment plan for 2021 through 2025 of EUR 70 billion or USD 85 billion for introducing 30 electrified vehicles, including 20 all-electric battery vehicles.

Regional Analysis

The global electric vehicle battery management system market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Europe Dominates the Global Market

Europe is the most significant shareholder in the global electric vehicle battery management system market and is expected to grow at a CAGR of 29.09% during the forecast period. The adoption of EV technology is increasing in Germany, the hub of Europe's auto industry, where Volkswagen AG, BMW AG, and Daimler AG are gearing up for a significant battery-car push. Germany has been sluggish in adopting pro-electric policies, but it is already developing procedures to comply with the higher emission limits. The federal government's climate protection initiative, which intends to accomplish its 2030 climate targets primarily through transportation innovation, is centered on electric mobility. In order to encourage the use of clean vehicles, the nation is implementing investments and incentives such as purchase grants, ownership, and company car taxes. The Office for Low Emission Cars (OLEV) is responsible for promoting hybrid and electric vehicles (H&EVs). The policy framework put in place by the UK government aims to support and encourage the development of plug-in vehicles there. The Nissan LEAF, Tesla Model 3, and Renault ZOE are its top-selling electric vehicles in France, where Renault is the market leader for electric cars. Renault and Daimler have introduced commercial electric vehicles to the French market.

Asia-Pacific is expected to grow at a CAGR of 29.26%, generating USD 10,714.81 million during the forecast period. The world's leading producer and buyer of electric vehicles in China. Domestic demand is backed by governmental air-quality targets, favorable regulations, and national sales goals. For example, China has mandated that producers of electric or hybrid vehicles must account for at least 10% of all new sales. Beijing only gives 10,000 permits for registering combustion engine vehicles each month to encourage its citizens to transition to electric vehicles. Since the bulk of the businesses is increasing manufacturing of vehicle electronics in China, a similar trend is seen for electric vehicle battery management systems as the market for electric vehicles continuously expands. One of the best electric car ecosystems in the world is found in Japan. Automobile manufacturers like Toyota and Nissan are moving toward producing electric automobiles here. The proliferation of electric vehicle charging stations across the nation is a good indicator of the growth of the hybrid and electric vehicle market.

The United States is a significant market for electric vehicles, and there is a movement in the nation to adopt electric mobility. This is partially due to the abundance of technology and electric vehicle manufacturing startups and corporations operating in the country, like Tesla, Rivian, Lucid, General Motors, etc. Canada has ambitious plans to outlaw vehicles powered only by internal combustion engines (ICE) by 2040. Instead, the government created several refunds and incentives that were crucial in boosting the sale of new electric vehicles. A new government incentive of CAD 5,000 for EVs with an MSRP under USD 45,000 is now accessible to buyers in all provinces to continue benefiting its population. Extreme Vehicle Battery Technologies Corp. declared that it anticipates supplying Daymak International Inc. with a customized IonIX Pro Lithium Ion battery pack for Daymak's brand-new electric vehicle (EV), the Daymak Spiritus. This battery pack will be outfitted with EV Battery Tech's patented and AI-powered battery management system (BMS).

The LAMEA market is anticipated to grow at a steady rate during the forecast period. ABVE plug-in-only vehicles are unlikely to obtain a sizable market share in Brazil due to the country's high-power costs and the possibilities for ethanol-fueled hybrid and fuel-cell vehicles, according to Brazil's EV association. A bill banning the sale of brand-new gasoline and diesel vehicles in Brazil as of January 2030 was passed by the country's constitution and justice commission, CCJ. Thus, only cars powered by electricity or biofuels, such as ethanol, would be allowed. Argentina currently has a smaller electric vehicle market than other countries. Current barriers to the adoption of EVs in the nation include high EV pricing, a lack of charging stations, and an electricity grid that does not sufficiently encourage renewable energy sources. Thus, there is potential for the growth of renewable energy sources in the nation.

Segmental Analysis

The global electric vehicle battery management system market is segmented by component, propulsion type, and vehicle type.

Based on Components, the global electric vehicle battery management system market is bifurcated into integrated circuits, cutoff FETs and FET drivers, temperature sensors, fuel gauge/current measurement devices, microcontrollers, and others.

The fuel gauge/current measurement devices segment is the highest contributor to the market and is estimated to grow at a CAGR of 28.17% during the forecast period. The amount of current flowing into and out of the battery cells in electric vehicles is measured by the fuel gauge, sometimes referred to as a current measurement device. High-resolution ADC, fuel gauge IC, current-sense amplifier, and an MCU with an incorporated low-resolution ADC are a few of the alternatives accessible for constructing fuel gauge. High-resolution measurements are made possible by the current sense amplifier, which enlarges the signal. However, utilizing an ADC with a 16-bit or better resolution, a low offset, and a high common-mode rating is the most accurate and economical method for measuring the voltage across a sensing resistor. Electric vehicle applications primarily use high-resolution ADCs because they offer a wide dynamic range at the expense of speed. Most current measurement devices use analog comparators to monitor short-circuit and overcurrent conditions.

The battery management system heavily relies on temperature monitoring. Batteries for electric vehicles deliver a sizable current while maintaining a steady voltage. The battery temperature rises due to the operation, increasing the risk of an explosion. Due to the volatile chemicals that make up electric vehicles, a battery fire might result in disastrous events. Monitoring the battery's temperature is crucial, in addition to ensuring its safety, to determine if it is ready to be charged or discharged. Typically, resistive instruments like thermistors or RTDs are used to measure voltage with temperature-dependent features to determine temperature. A temperature sensor keeps track of cell clusters for compact and portable applications. Thermistors are frequently used temperature sensors driven by an inbuilt ADC voltage reference.

Based on Propulsion Type, the global electric vehicle battery management system market is bifurcated into battery electric and hybrid vehicles.

The battery electric vehicles segment is the highest contributor to the market and is estimated to grow at a CAGR of 27.42% during the forecast period. Due to the rapidly expanding use of electric mobility worldwide, enterprises that transport goods are also replacing their current fleet with electric propulsion-based vehicles. Governments all across the world have taken the initiative to develop laws that will promote the use of electric vehicles. Before 2040, China, India, France, and the United Kingdom intend to phase out the production of gasoline and diesel automobiles. The market for electric vehicle battery management systems is anticipated to increase over the projected period due to rising manufacturing investments and global government policies that encourage EVs.

The EV business has seen significant changes and advances due to the growing consumer demand for improved vehicle performance, increased economy, and better driving experiences. The key elements propelling the growth of the electric vehicle battery management system market include significant investments in R&D from automakers and suppliers to enhance vehicle performance, among other things. Worldwide demand for plug-in hybrid automobiles is rising as governments work diligently to enact strict emissions and fuel economy requirements. The product lineups of major automakers now include more electric vehicles. Several EV producers, including but not limited to established players, have plans to create and increase their plug-in hybrid electric model lineups in the upcoming years.

Based on Vehicle Type, the global electric vehicle battery management system market is bifurcated into passenger cars and commercial vehicles.

The passenger car segment owns the highest market share and is expected to grow at a CAGR of 28.7% during the forecast period. More than 70% of all EV sales worldwide in 2020 came from passenger cars. Due to demand from Asia-Pacific, North America, and Europe, the SUV segment in passenger cars has been expanding over the past few years (especially in China). The electrification of automobiles is anticipated to continue during the forecast period due to models planned by manufacturers around the world. As part of its intention to release 20 new battery-electric vehicles by 2026, Audi unveiled the e-Tron, e-Tron Sportback, Q4 e-Tron, and then the e-Tron GT.

The market study considers pick-up trucks, vans, buses, and trucks in the commercial vehicle segments. Major automakers are investing in boosting their production capacities worldwide as part of their strategy to diversify their line-up of commercial electric vehicles. Electric commercial vehicle manufacturers are forming strategic alliances to build commercial electric cars. Strategic partnerships in commercial electric vehicles require exchanging resources and experience to improve the product and double the outcome. The joint venture between IAV and Webasto disclosed intentions to handle the electrification of work vehicles, trucks, and buses in the future: The businesses have decided to work together on developing technologies for commercial electric vehicles.

Recent Developments

• February 2022- Silicon Laboratories announced Connecting battery technologies for electric vehicles from battery materials to management
• April 2022- Infineon Technologies AG introduced a new family of battery management ICs, including TLE9012DQU and TLE9015DQU.