Battery management system (BMS), often referred to as battery nanny or battery housekeeper, is mainly used for intelligent management and maintenance of individual battery cells, preventing overcharging or over-discharging of batteries, extending the service life of batteries, and monitoring the status of batteries. The development of China’s BMS industry is mainly accompanied by the growth of the new energy vehicle battery market. After years of technical research and product testing, the technical level of the BMS has been significantly improved and is now equipped with several functions, such as thermal management, charging and discharging management, safety management, and communication. The domestic battery management system has entered the stage of large-scale promotion and wide application. This blog will discuss the development history of BMS, the development overview of the global and Chinese BMS market, and the forecast of future development.
Battery Management System Overview
BMS Development History
Battery management systems (BMS) first emerged in the late 20th century, spearheaded by advances in the United States and Germany’s robust automotive sector.
As electric vehicles gained popularity worldwide in the 2000s, automakers like Toyota, Tesla and GM helped drive rapid BMS progress. Expanding applications from electric mobility to consumer devices, renewable power, and energy storage have also fueled market growth.
Why a Battery Management System is So Essential?
BMS is an essential electric vehicle technology alongside batteries and electric motors. By preventing issues like overcharging/discharging and regulating temperature, BMS maximizes battery safety, lifespan, and performance.
Without BMS, large battery packs containing thousands of cells could not operate efficiently or viably. BMS enables coordination between individual cells to optimize the system as a whole. It also facilitates battery-vehicle-charger communication.
Given rising industry demand and continued innovation, BMS promises to play an integral role in the future of sustainable transportation, renewable energy storage, and smart consumer electronics.
Battery Management System Industry Supply Chain
The BMS serves as a crucial link between batteries, vehicle controllers, and drivers, facilitating communication and control. The BMS controls the charging and discharging of the power battery pack through relays and supplies vital battery system data and fault information to the Vehicle Control Unit (VCU). The components upstream consist of PCB boards, chips, electronic parts, wiring harnesses, LED displays, and more. Software algorithms, relying on data accumulation from various stages, form the critical core of the BMS. The downstream uses of BMS primarily involve consumer batteries (for 3C electronics), power batteries (for electric vehicles), and energy storage batteries (for defense, military, renewable energy, communications, healthcare, etc.).
Thanks to the rapid progress of electrification in both the Chinese and European automotive sectors, there has been a significant surge in global sales of new energy vehicles since 2016, leading to a concurrent rise in power battery installations, and creating many top battery management system companies. As of 2022, the worldwide installed capacity of power batteries reached 518 GWh, showing a remarkable year-on-year growth rate of 72%. China’s installed capacity of power batteries reached 295 GWh, with a growth rate of 91%, surpassing the global average growth rate. During the initial six months of 2023, the worldwide installed capacity of power batteries amounted to 238 GWh, with China alone contributing 119 GWh to the total.
Global Battery Management System Industry Current Status Analysis
Benefiting from the development of electric vehicles, consumer electronics, and other industries, the BMS market space has a promising future. Due to the impact of global health events, the growth rate of the global BMS market size declined in 2020. In the future, as the electric vehicle market size expands and battery efficiency requirements improve, we expect the BMS market size to experience steady growth. According to the estimation of Business Wire and the analysis of Qianzhan Industry Research Institute, The global BMS market size was valued at USD 6.512 billion in 2021 and is expected to reach USD 13.1 billion by 2026, registering a CAGR of 15%.
The rapid growth of the electric vehicle industry promotes the rapid development of BMS. According to the Qianzhan Industry Research Institute, power battery applications accounted for 54% of the global downstream applications of BMS in 2020. In 2020, as the new energy vehicle market regained momentum, the BMS market size also experienced growth. In 2021, the global automotive battery management system BMS market size reached USD 3.341 billion, representing a significant growth of 94.36% compared to the previous year. By 2022, the size of the global market for automotive battery management systems had grown even larger, reaching a substantial value of USD 4.6 billion. Looking ahead to 2023, the market size is expected to reach USD 5 billion for automotive battery management systems.
China’s Battery Management System Industry Current Status Analysis
Benefiting from the development of electric vehicles, consumer electronics, and other industries, China’s BMS market space has a promising future. Due to the impact of global health events, the growth rate of the global BMS market size declined in 2020, but China’s BMS market still occupies an important position. According to Huajing Industry Research Institute, China’s BMS market demand size in 2020 was 9.7 billion yuan.
In the future, as the electric vehicle market expands and battery efficiency requirements improve, we anticipate that the BMS market will steadily grow in size. As per data, in 2021, the size of China’s automotive BMS market reached 10.308 billion yuan, showing a remarkable year-on-year growth of 138.78%. By 2022, the market further escalated to 19.3 billion yuan, experiencing an 87.3% year-on-year surge. Projections indicate that by 2023, the automotive BMS market in China is anticipated to reach a substantial 27.9 billion yuan.
The domestic demand for BMS in the market has risen sharply, with the demand increasing from 81,000 sets in 2014 to 7.0582 million sets in 2022, with a CAGR of 55.8% during this period.
Battery Management System Trends
Currently, the global power battery management system market size has reached $14 billion and is expected to grow to $35 billion by 2026. Among these lithium-ion battery markets, China holds the largest energy management system market share and battery management system market potential, comprising over 33% of the global market, with the United States and European markets following closely behind.
Battery management systems will receive more attention from consumers across the globe in 2023 due to technological advancements and growth. Here are a few directions in which they are likely to evolve:
Transition to Intelligent BMS
Smart networking capabilities, remote monitoring/control, and predictive analytics are being integrated into battery management systems. These intelligent BMS solutions optimize battery performance and safety.
Integration with Renewable Energy Storage
Combining battery storage with renewable energy sources like solar and wind enables clean, reliable off-grid power. BMS is crucial for efficiently managing these storage systems.
Shift to Active Cell Balancing
While passive balancing is currently more common, active balancing offers higher efficiency and reduced energy losses. As BMS technology improves, active balancing will likely prevail.
Distributed and Modular Architectures
Distributed BMS designs allow flexible configuration across different battery pack models and sizes. This scalability promotes standardization and customization. MOKOEnergy‘s BMS architecture encompasses centralized, distributed, and modular approaches. Distributed BMS is more popular among customers. It is a kind of energy storage system that combines multiple small energy storage units to form a whole. The energy management system market is also a growing area, we have several companies in the energy storage and electric vehicle industries that have adopted and benefited from distributed energy storage system technology. Our products provide them with efficient energy management solutions that help reduce costs, improve energy utilization, and drive sustainable development and the green energy transition.
Domestic BMS Chip Production
Rising Chinese BMS chip manufacturing will reduce costs and reliance on imported components. Government policies encourage automotive and battery management chip localization.
Increased Specialization
Dedicated third-party BMS firms with extensive battery testing data and customization capabilities are gaining market share from battery and vehicle makers. Their specialization enables advanced and cost-effective solutions.
With these technology innovations, falling prices, strong policy support, and booming market demand, China’s BMS industry appears well-positioned for robust expansion.
Conclusion
The growth of the battery management system market reflects the global shift towards clean energy and sustainability.BMS has become an integral part of modern energy management, optimizing battery performance and extending battery life. With continued technological advancements and growing market demand, the BMS industry is poised for continued growth. The trajectory of China’s BMS market is aligned with the country’s commitment to growth in the electric vehicle, clean energy, and industrial sectors. By utilizing BMS technology and supporting battery sustainability, we can create a greener and more efficient future for energy storage solutions. If you need any assistance, feel free to contact us anytime!
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