The battery management system (BMS) market is poised for significant growth as the demand for efficient energy system management continues to rise. The integration of renewable energy sources like solar and wind into the power grid necessitates effective energy storage solutions. BMS plays a crucial role in managing the performance and safety of energy storage systems, including batteries. The increasing adoption of renewable energy is a key driver propelling the growth of the battery management system market. Additionally, the expanding market of electric mobility has created a higher demand for batteries, emphasising the need for efficient battery management.
According to Fairfield Market Research, the global battery management system market is projected to reach a valuation of US$28.4 billion by 2029.
EV sales surge to drive business opportunities
Electric vehicles (EVs) have gained significant traction due to concerns about sustainability. EVs are expected to help the automotive sector reduce its carbon footprint. The surge in EV sales has driven the adoption of batteries, thereby bolstering the growth of the battery management system market. With the increasing demand for high-performance batteries with minimal damage risk, the global battery management system market is projected to witness substantial growth.
Lithium-Ion batteries to maintain dominance
On the basis of battery coverage, the global battery management system market is primarily categorised into lithium-ion and advanced lead-acid. Fairfield Market Research reveals that currently, the lithium-ion segment holds a dominant market share of 41% in the battery management system market. Key sectors utilising lithium-ion batteries include the automotive and consumer electronics industries. Lithium-ion batteries offer higher charge density and lighter weight compared to other battery types.
Battery management systems enhance the efficiency and reliability of lithium-ion batteries through precise control, real-time monitoring, and performance optimisation.
Favourable government initiatives improving EV adoption
North America accounts for nearly 30% of the global battery management system market’s revenue share, according to Fairfield Market Research. The region is expected to maintain its dominant position in the global market, driven by the strong presence of industry leaders. Electric vehicles (EVs) and hybrid electric vehicles (HEVs) are gaining significant traction among consumers in North America due to supportive government policies.