Lithium-Ion Battery Management Systems (BMS) for Vehicles Market Analysis APAC, North America, Europe, South America, Middle East and Africa - China, US, Norway, Germany, Japan - Size and Forecast 2024-2028

Lithium-Ion Battery Management Systems (BMS) For Vehicles Market Size 2024-2028

The lithium-ion battery management systems (BMS) for vehicles market size is forecast to increase by USD 8.22 billion at a CAGR of 32.14% between 2023 and 2028. The market's expansion hinges on various factors, including the growing demand for efficient and environmentally friendly batteries, the widespread adoption of intelligent Battery Management Systems (BMS), and the decreasing costs of Li-ion batteries. These elements are pivotal in driving innovation and market growth. As the need for more sustainable energy solutions intensifies, there is a corresponding surge in the development and adoption of advanced technologies that enhance battery efficiency and environmental impact. Additionally, the increasing integration of intelligent BMS ensures better performance and longevity of batteries, further fueling market expansion. Moreover, the declining prices of Li-ion batteries make them more accessible across industries and applications, stimulating broader adoption and market penetration. Collectively, these trends underscore a transformative shift towards more sustainable and efficient energy storage solutions, shaping the trajectory of the market in the foreseeable future. It also includes an in-depth analysis of market trends and analysis, market growth analysis and challenges. Furthermore, the report includes historic market data from 2018 - 2022.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market for vehicles is pivotal in rechargeable battery technology, catering to energy storage systems in sectors like telecommunications and data centers. Designed for cell towers and backup power systems, these BMS solutions optimize electronic system efficiency. They manage Nickel-based battery variants such as Nickel-cadmium (Ni-Cd), Nickel-iron (NiFe), and Nickel-zinc (Ni-Zn), crucial for telecommunication reliability and backup power resilience in extreme temperatures. Automotive applications include E-bikes and automated guided vehicles, ensuring state of charge (SoC) and state of health (SoH) are monitored to handle fluctuations in performance. BMS integrates with controller boards and software for seamless operation, safeguarding wiring harnesses and enhancing Nickel-based battery longevity. With growing military and commercial demand, advanced BMS technology addresses diverse operational needs, promising efficient rechargeable battery usage across various applications.

Key Driver

One of the key factors driving market growth is the declining prices of Li-ion batteries. The adoption of Li-ion batteries in vehicles significantly influences the global Li-ion BMS for vehicles market. One of the main factors that negatively impacts the adoption of Li-ion batteries is their high cost. However, there is a rapid decline in the manufacturing cost of Li-ion batteries over the past decade, which is expected to fuel the demand for  Li-ion batteries in vehicles.

Additionally, the decline in the cost of Li-ion batteries can be attributed to an increase in the production scale and improvements in manufacturing efficiency. Furthermore, factors such as the reduction in the prices of battery-grade lithium carbonate, lithium hydroxide, and others are expected to positively impact the demand of the market. Hence, such factors are expected to drive lithium-ion BMS for vehicle market demand during the forecast period.

Significant Trends

A key factor shaping market demand is the increasing demand for Li-ion batteries in locomotives. Locomotives are considered one of the cost-efficient ways of transportation and the increase in the adoption of battery-electric or battery-powered locomotives will make them a cost-effective option. Thus, the adoption of these is expected to positively impact the market growth.

Additionally, there is an increase in shift from diesel-powered locomotives in several countries. For instance, Germany has started adopting locomotives that are powered by alternative energy sources. Furthermore, there is increasing investment in by several countries such as the US, India, and Russia. Hence, such factors are expected to positively impact the market which, in turn, will drive the market during the forecast period.

Major Challenge

The lack of supporting electric vehicle charging infrastructure is one of the key challenges hindering market growth. The increase in the number of electric vehicles across the world is a significant challenge in terms of the lack of proper charging infrastructure. Several factors, such as the long charging times and the inability to support different charging ports, are negatively impacting the adoption of electric vehicles.

Furthermore, even though the number of publicly accessible chargers installed worldwide was 144,000, several of the publicly accessible chargers are slow-charging outlets. Additionally, other factors, such as the need to monitor fast chargers frequently, as they often shut down and require resetting every 30 minutes are negatively impacting the market. Hence, such factors are expected to hinder the market during the forecast period.

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Market Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Analog Devices Inc: The company offers battery management systems for vehicles.

The research report also includes detailed analyses of the competitive landscape of the market and information about 14 market companies, including

• AVL List GmbH
• BMS Powersafe
• Dana Inc.
• Dober
• Elithion Inc.
• Gentherm Inc.
• Infineon Technologies AG
• Johnson Matthey Plc
• Lithium Balance AS
• Panasonic Holdings Corp.
• Renesas Electronics Corp.
• Texas Instruments Inc.
• Toshiba Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation 

The automobile segment is estimated to witness significant demand during the forecast period. This segment of the Li-ion BMS mainly comprises e-scooters, e-bikes, e-motorcycles, electric cars, electric buses, and electric trucks. This segment of the global Li-ion BMS for vehicles market is expected to grow with slight fluctuations in growth rate. Chinese government's policy changes related to electric vehicles is one of the main factor contributing to the fluctuations in growth rate.

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The automobile segment was the largest segment and was valued at USD 1.25 billion in 2018. Additionally, COVID-19 across the world has significantly disrupted the operations of the automotive industry. Thus, there is an increasing focus by automotive manufacturers on reviving the existing operations and recovering the investments made earlier in 2019. Additionally, there is an increase in investment by automotive manufacturers in the development of electric vehicles since 2010. Due to the outbreak of COVID-19, there is a decrease in focus by automotive manufacturers on electric vehicles and electric vehicle infrastructure development. Hence, such factors can significantly slow down the growth of the global Li-ion BMS for the vehicles market in the automobile segment during the forecast period.

Regional Analysis

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APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the major regions that dominate the global Li-ion batteries market in terms of volume is the APAC region. However, the penetration of Li-ion batteries is lesser in APAC when compared to other regions based on vehicle production and sales. Some of the vehicles which are powered by lead-acid or Ni-MH batteries include e-bikes and forklifts which will increase the demand for the market. 

Moreover, the main reason for the reduced penetration of  Li-ion batteries in the region is due to the higher cost of Li-ion batteries than other battery types and the higher price sensitivity of the people in APAC. On the other hand, there is a decline in the price of Li-ion batteries significantly in APAC due to factors such as the prevailing oversupply of lithium, owing to the excess mining in Australia. Hence, such factors are expected to drive market growth in the region during the forecast period.

Segment Overview

The market growth and trends research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook
  • Automobile
  • Industrial
  • Locomotive
• Vehicle Type Outlook 
  • Hybrid electric vehicles
  • Battery electric vehicles
  • Other vehicles
• Geography Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is crucial amidst the shift towards sustainable industrial machinery and renewable energy systems like photovoltaic and wind energy. It plays a pivotal role in reducing reliance on fossil fuels and lowering carbon emissions, integrating seamlessly with grid operators and EV charging stations to fortify electric vehicle infrastructure. External factors such as regulations drive innovation in centralized topology BMS, optimizing Nickel-based batteries such as Nickel-metal Hydride (Ni-MH) for reliability in telecommunication and renewable energy sector applications. BMS ensures hardware safety, preventing issues like overcharging through precise charging and discharging processes, while monitoring state-of-charge (SoC) and state-of-health (SoH). Features like cell balancing, temperature, and voltage management enhance battery life and support high energy-density lithium-ion batteries in automotive manufacturing hubs. As demand surges for electric vehicles (EVs) and hybrid electric vehicles (HEVs), BMS technology evolves under government mandates to meet stringent battery technology standards.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market report during the forecast period
• Detailed information of market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market and its contribution in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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