Automotive Battery Management System Market Research Report and Outlook by 2028

The market for automotive battery management systems is projected to expand significantly, increasing from US$ 61.03 million in 2022 to US$ 161.84 million by 2028. This growth represents a compound annual growth rate (CAGR) of 17.6% over the period from 2022 to 2028.

The outlook for the automotive battery management system market is optimistic, driven by the rising popularity of electric and fuel cell vehicles among consumers. The growing acceptance of these vehicles is prompting manufacturers to broaden their product offerings, which in turn increases the demand for battery management systems (BMS) that ensure efficient battery operation and monitor battery pack temperatures. This trend is anticipated to significantly boost the global automotive battery management system market. Furthermore, original equipment manufacturers (OEMs) and battery producers are increasingly acquiring BMS in large volumes to support pilot projects and the development of electric vehicles. For example, in October 2022, Vitesco Technologies, a German automotive supplier, secured a contract valued at US$ 1.93 billion to supply its advanced battery management systems to major global electric vehicle manufacturers, luxury car brands, and emerging EV startups. Consequently, the rise in electric vehicle production capabilities is creating a heightened demand for BMS to oversee battery performance, thereby propelling the automotive battery management system market's growth.

According to the Global Electric Vehicle Outlook, the sales of electric vehicles, encompassing fully electric and plug-in hybrid models, reached a record high of 6.6 million units in 2021. The growth in EV sales was particularly notable in Europe, where sales surged by 65% to 2.3 million units, and in the United States, where they doubled to 630,000 units in the same year. Additionally, favorable government regulations supporting the establishment of electric vehicle charging infrastructure are further stimulating electric vehicle sales, which in turn drives the demand for automotive battery management systems.

China is currently the dominant player in the global electric vehicle market. The country has witnessed remarkable growth in the production and adoption of zero-emission vehicles, positively influencing the automotive battery management system market share. China's commitment to electric transportation, or electromobility, is unmatched by any other nation. For instance, Shenzhen has converted its entire fleet of city buses from internal combustion engine (ICE) vehicles to electric buses and continues to add a significant number of e-buses regularly. Supportive government policies and regulations aimed at promoting electric vehicle adoption are also enhancing the automotive battery management system market share. According to the China Passenger Car Association (CPCA) and the Ministry of Finance, in September 2022, China announced an extension of the 5% purchase tax exemption for new-energy vehicles (NEVs) for an additional year, lasting until the end of 2023, to bolster the sector's growth and encourage electric vehicle consumption. Leading Chinese electric commercial vehicle manufacturers such as BYD, Yutong, and Zhongtong are at the forefront of the electromobility movement. Other countries in Asia, including Japan, India, and South Korea, are also making significant strides in the development and deployment of electric buses, further driving the growth of the automotive battery management system market in the Asia Pacific region.

The United States and several European nations are also making progress in the development and deployment of electric buses, light commercial vehicles (LCVs), and heavy commercial vehicles (HCVs). Growing awareness of the environmental impacts associated with diesel vehicles has led to an increased demand for electric trucks. The expanding production capabilities of electric vehicles are expected to further enhance the automotive battery management system market in the years ahead. For instance, in May 2022, Hyundai Motor Group announced plans to establish its first dedicated electric vehicle plant and battery manufacturing facility in the U.S., with an investment of approximately US$ 5.54 billion. Similarly, Bajaj Auto revealed a US$ 40 million investment to set up an electric vehicle manufacturing plant in India, aiming for an annual production capacity of 500,000 electric vehicles. Such initiatives are driving the demand for battery management systems, thereby contributing to the growth of the automotive battery management system market.

Moreover, government initiatives aimed at transitioning to electric, hybrid, or fuel cell vehicles from ICE vehicles are encouraging electric bus manufacturers to ramp up EV production. For example, in October 2022, the New York State Government became the third state to announce a ban on new internal combustion engine-powered vehicles by 2035, with a goal for electric vehicles to represent 35% of new car sales by 2026, 68% by 2030, and 100% by 2035. Additionally, in July 2021, the European Commission proposed a 55% reduction in carbon emissions from cars by 2030 compared to 2021 levels, significantly exceeding the previous target of 37.5% set for 2021. It has also mandated a complete elimination of carbon emissions by 2035, effectively prohibiting the sale of new ICE vehicles across 27 European countries. These developments are driving the need for balanced charging states across all battery cells and ensuring the efficient operation of batteries, further fueling the automotive battery management system market growth.

Key players in the automotive battery management system market include Continental AG, Dana Limited, GENTHERM, Hanon Systems, Mahle GmbH, NXP Semiconductors, Renesas Electronics Corporation, Robert Bosch GmbH, Valeo, and Marelli Holdings Co., Ltd. The automotive battery management system market report offers comprehensive insights that assist key players in strategizing for market growth.

Technological advancements in automotive battery management systems are also contributing to the market's expansion. For instance, in September 2022, NXP Semiconductors partnered with Elektrobit to create software for next-generation automotive battery management systems. This collaboration aims to lower the entry-level development costs for battery management systems and improve the usability of NXP's high-voltage BMS reference design.

The automotive battery management system market is categorized based on vehicle type, including buses, trucks, and off-highway vehicles.

The market is further segmented into five primary regions: North America, Europe, Asia Pacific (APAC), and the Rest of the World. In 2022, Asia Pacific led the market with a significant revenue share, followed closely by Europe. Furthermore, Asia Pacific is anticipated to exhibit the highest CAGR in the market from 2022 to 2028.