Research firm MarketsandMarkets is projecting the battery management system (BMS) market to reach $22 billion USD by 2029, a significant increase from an expected $9.1 billion USD in 2024. That represents a CAGR of 19.3 percent.

A BMS is a critical component of rechargeable batteries that monitors and regulates their operation, particularly to ensure safe charging. Many BMSs are connected to the internet or another wireless communications system. Apps used with electric vehicle (EV) chargers, for example, typically display data that an EV battery’s BMS collects.

Key BMS functions include managing power output, providing real-time status updates on battery charging and discharging, implementing measures to safeguard batteries from potential damage, and optimizing battery lifespan and efficiency. These systems are primarily integrated with high-energy battery variants such as lithium-ion, advanced lead-acid, flow, and nickel-based batteries.

Lithium-ion batteries are considered the best performing rechargeable battery technology in terms of usable capacity, charging speed, and lifespan. Due to lithium-ion’s inherent instability, however, charging and discharging requires careful management. Consequently, battery management systems have become a critical driver in the widespread adoption and expansion of the lithium-ion battery markets.

MarketsandMarkets predicts that distributed BMS growth will be significant during the period covered in the report. In a distributed BMS configuration, every cell within the battery pack is equipped with a dedicated slave board that monitors and manages individual cell performance. These slave boards are interconnected via a single communication cable linking the battery to the central controller. Each cell is linked to voltage signals, a temperature sensor, and both internal and external communication cables.

Compared to centralized BMS setups, distributed topologies offer simpler installation and are more reliable, although they require numerous mini circuit boards and mounting these boards can be difficult. For battery packs comprising numerous cells, the overall cost of implementing a distributed system could outweigh that of a centralized alternative.

Demand in both commercial and industrial sectors for uninterrupted, high-quality power supply and contingency plans is growing, according to the report. Automated guided vehicles (AGVs) are robotic platforms commonly deployed in industrial settings to move material within manufacturing facilities or warehouses. AGVs navigate their routes through various means, including floor-installed wires/markers or advanced vision and laser systems. AGVs mostly rely on integrated advanced lead-acid batteries because of their reliability and cost-effectiveness compared to alternative battery chemistries. For optimal lead-acid battery performance and lifespan, safeguards against over-discharge and insufficient charging must be in place. A robust battery management system ensures enhanced lead-acid battery operations and prolonged shelf life.

In North America, the automotive sector and increasing demand from the renewable energy industry are driving BMS growth. Major automotive manufacturers like General Motors and Ford Motor Company are driving the need for battery management systems in the region. The adoption of lithium-ion batteries for renewable energy storage, particularly in wind and solar energy applications across the US, is surging. Automotive, renewable energy storage systems, and telecommunications are identified as sectors with the most significant growth potential within North America’s BMS market.

Major BMS companies include Sensate Technologies, Inc. (Japan), Eberspächer (Germany), Panasonic Holdings Corporation (Japan), LG Energy Solutions (South Korea), AVL (Austria), FICOSA International SA (Spain), Leclanché SA (Switzerland), Elithion (US), BMS PowerSafe (France), and PowerTech Systems (France).