Battery Management System Market size was over USD 7.19 Billion in 2023 and is projected to cross USD 76.14 Billion by the end of 2036, witnessing more than 19.9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of battery management system is estimated at USD 8.48 Billion. The growth of the market can be attributed to the demand for battery management systems in the smartphone industry since smartphones are electronic devices that have an escalated requirement of battery in each unit. Hence, the surge in the sales and production volume of smartphones is anticipated to propel the market growth during the forecast period. For instance, in 2022, it was estimated that nearly 6 billion people across the globe were observed to be using smartphones.
In addition to these, global battery management system markets trends such as the surge in the utilization of batteries in various products that are wireless electronics, toys, handheld power tools, and others are expected to influence the market growth positively over the forecast period. For instance, in 2022, around USD 30 billion were generated from the sales of electric toys in the United States alone. Furthermore, escalating demand for the management of lithium-ion batteries backed by the growing consumer electronic industry is also expected to enlarge the market size over the forecast period.
Growth Drivers
Growing Utilization of Battery Management Systems in the Automotive Industry - Automobiles have a higher demand for battery management systems since each automobile requires the installment of a battery. The main purpose of a battery in the automobile is to create a spark for starting the engine. Hence, the battery is a major part of the starting system of a car. As of 2021, approximately 80 million motor vehicles were estimated to be manufactured across the globe.
Increasing Manufacturing of Electric Vehicles and Hybrid Electric Vehicles – battery management system is highly required in electric vehicles since each function in these vehicles is operated by electricity that is generated by using batteries. The main type of battery used in electric vehicles is lithium-ion batteries. For instance, in 2020, around 3 million hybrid electric vehicles were produced while the number is further estimated to reach around 6 million by 2025.
Growing Need for Battery Monitoring in Renewable Energy Systems – it was anticipated that in 2021, around 550 TWh of renewable energy were generated across the globe. Batteries are noticed to be used in this industry to power turbines.
Growing Utilization of Batteries in Wireless Headphones – there are separate batteries given in wireless headphones which require a battery management system. Therefore, the growing sales volume of wireless headphones is expected to boost the market growth over the forecast period. As of 2021, approximately 290 million units of wireless headphones were sold out across the globe.
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
19.9% |
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Base Year Market Size (2023) |
USD 7.19 Billion |
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Forecast Year Market Size (2036) |
USD 76.14 Billion |
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Regional Scope |
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Battery Type (Lithium-Ion, Lead-Acid, Nickel-Based)
The global battery management system market is segmented and analyzed for demand and supply by battery type into lithium-ion, lead-acid, nickel-based, and others. Out of these battery types, the lithium-ion segment is estimated to gain the largest market share in the year 2036. The growth of the segment can be attributed to the rising utilization of lithium-ion (Li-ion) batteries in multiple applications such as electronics, handheld power tools, toys, wireless headphones, and others. For instance, as of 2021, the presence of lithium reserves across the globe was estimated to be around 15 million tons. Furthermore, the less possibility of battery failure is also expected to hike the segment growth over the forecast period. Lithium-ion batteries are used widely in multiple sectors, especially in electronic industries to power electronic devices. The failure rate of lithium-ion batteries is estimated to be around 1 battery in a million. Hence, such factors are anticipated to be some of the major factors to propel the segment growth over the forecast period.
Application (Automotive, UPS, Telecommunications, Renewable Energy Systems)
The global battery management system market is also segmented and analyzed for demand and supply by application into automotive, ups, telecommunications, and renewable energy systems. Amongst these segments, the automotive segment is expected to garner a significant share in the year 2036. The growth of the segment can be accounted to the higher demand and production volume of electric vehicles across the globe backed by the rising awareness of global pollution owing to CO2 emission. Electric vehicles use electric energy and lithium-ion batteries are a highly suitable medium to provide energy to these cars. The higher sales volume of electric vehicles was anticipated to hike the segment growth over the forecast period. For instance, it was anticipated that between 2012 to 2021, the number of electric vehicles sold out across the globe was estimated to be around 18 million units. Electric cars are considered to be beneficial for the environment since they do not require fuel that generates CO2. For instance, nearly 38 billion metric tons of carbon dioxide were emitted into the environment by fossil fuels in 2021.
Our in-depth analysis of the global market includes the following segments:
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By Battery Type |
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By Application |
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APAC Market Statistics
The Asia Pacific battery management system market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2036. The growth of the market can be attributed majorly to the growing demand for consumer electronics, high volumes of production of electric vehicles in China, and increasing integration of battery management systems in several applications for safety purposes. For instance, electric vehicle sales in China grew by more than 5o percent in 2021 since 2020. About 1.3 million EVs were sold in the country in 2020. Asia Pacific is the region to have a highly developed automotive industry with higher demand for batteries.
Europe Market Forecast
The European battery management system market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The growth of the market can be attributed majorly to the owing to the rise in manufacturing capacities of prominent automobile manufacturers and the surge in demand for renewables for energy generation in the region. Apart from these, the strong presence of major market players is also projected to drive the region’s market growth in the future. For instance, as of 2021, nearly 2500 TWh of electricity was anticipated to be generated in Europe.
North American Market Forecast
The North American battery management system market, amongst the market in all the other regions, is projected to hold the second largest share during the forecast period. The growth of the market in the region can be ascribed to the higher demand for electricity owing to its escalated consumption in household facilities and in multiple industries. Furthermore, the rise in the utilization of smartphones triggering the demand for batteries is also expected to enlarge the market size over the forecast.
Texas Instruments, Inc launched a scalable Arm Cortex-MO+ microcontroller (MCU) portfolio that includes a variety of pinout, computing, and integrated analog options. This new portfolio is affordable and suitable for all sorts of applications.
Johnson Matthey Plc stepped into a strategic partnership with Plug Power to accelerate the green hydrogen economy. Johnson Matthey Plc is required to become the supplier of MEA components
Author Credits: Dhruv Bhatia
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