Battery Management IC Market Size, Share, Opportunities, And Trends By Type (Fuel Gauge IC, Battery Charger IC, Authentication IC), By Industry Vertical (Consumer Electronics, Automotive, Communication, Industrial, Others), And By Geography - Forecasts From 2023 To 2028

The battery management IC market is projected to grow at a CAGR of 4.21% to reach US$3.148 billion in 2028 from US$2.359 billion in 2021.

A battery management IC is an electronic device that manages and monitors the discharge and charging abilities of various batteries. It is commonly used in applications such as electric vehicles, renewable energy storage systems, and portable electronic devices. The primary function of a battery management IC is to ensure the safe and efficient operation of the battery by controlling its charging and discharging processes through the collective use of sensors, microcontrollers, and other electronic components to monitor the battery's voltage, temperature, and current. Further, battery management ICs provide various protection features such as overcharge and over-discharge protection, short-circuit protection, and thermal management which aid in the prevention of damage to the battery and ensure its longevity and reliability. The ability of battery management ICs to ensure the safe and efficient operation of batteries in a wide range of applications is increasing its demand across various sectors such as consumer electronics, automotive, communication, and industrial areas. Further, the addition of advanced monitoring and protection features to battery management ICs to aid in the optimization of the performance of batteries and extend their lifespan is stimulating the demand for the market by resulting in cost savings and improved customer satisfaction.

Market Drivers

• Increase in the demand for battery storage systems.

The growing demand for battery storage systems is increasing the consumption of battery management ICs as battery management ICs play an important role in battery storage systems (BSS). Battery management ICs are used in BSS to monitor and control the charging and discharging of batteries safely and efficiently which aids in the extension of the lifespan of batteries by preventing overcharging or over-discharging. In addition, battery management ICs provide real-time data on battery performance, allowing operators to optimize the operation of the BSS and identify potential issues before they become serious problems. The rising demand for BSS driven by the increasing adoption of renewable energy and the need for grid stabilization is promoting the launch of new battery management ICs to cater to the needs of BSS. For instance, Renesas Electronics launched a new battery management IC, ISL94216 in August 2020. The ISL94216 is a battery management IC designed for use in medium to large-scale BSS and contains features of advanced safety and monitoring capabilities that can support up to 16 cells. In addition, Maxim Integrated launched MAX17852, a battery management IC intended to be used in large-scale BSS due to its ability to support up to 14 cells in February 2021.

• Growing production of electric vehicles

The increase in consumption of EVs and the production of EVs by major companies such as Tesla is driving the demand for the battery management IC market as battery management ICs are a critical component of the battery management systems (BMS) installed in EVs. The BMS is responsible for monitoring and controlling the health, performance, and safety of EV batteries as EVs rely on large battery packs to power their operations. The International Energy Agency revealed that the sales of battery EVs in the US increased from 104,000 in 2017 to 466,000 in 2021 whereas the European region witnessed an increase in its battery EV sales from 139,000 in 2017 to 1,231,000 in 2021. In addition, leading automotive companies are expanding their EV product offerings which are further anticipated to drive the growth of the battery management IC market over the forecast period. For instance, in March 2023, BMW company declared that it will be introducing six new battery EV models by the end of 2025.

Key Developments

• In May 2023, Lithionics Battery, a company specializing in the manufacture of battery management systems and IC products using its patented NeverDie Technology was acquired by Winnebago Industries.
• In March 2023, Qorvo, a semiconductor company in the US providing solutions to the communication industry introduced two new battery management systems, PAC22140 and PAC25140 that employ single battery management ICs to offer support to up to 20 battery pack cells.
• In October 2020, Texas Instruments launched the BQ79616-Q1 battery management IC for electric vehicles to provide high-accuracy cell voltage monitoring, overvoltage and under-voltage protection, and diagnostics for up to 16 series-connected lithium-ion cells.

By industry vertical, the communication sector is anticipated to grow prominently over the forecast period.
In the communication industry, battery management ICs are used in various applications such as wearables and wireless communication devices since these devices rely on batteries to power their operations. In addition, efficient battery management is crucial to ensure longer battery life and better device performance of communication devices. The rapid advancements in wireless communication and the increasing adoption of 5G networks are expected to result in the growth of the consumption of battery management ICs by the communication industry. 

Asia Pacific region holds a significant portion of the battery management IC market and is expected to grow in the forecast period.

The growing production of consumer electronics and the increasing consumption of EVs in major Asian economies such as South Korea, China, and India is expected to drive the battery management IC market in the region. According to the International Energy Agency, China is one of the largest EV-consuming vehicles which witnessed a massive increase in EV consumption from 468,000 in 2017 to 2,734,000 in 2021. In addition, the expansion of consumer electronics production activities in the region is further stimulating market growth as fuel gauge ICs, battery charger ICs, and authentication ICs are extensively consumed by this sector. A fuel gauge IC is used to measure and report the remaining capacity of a battery whereas a battery charger IC is used to manage the charging of a battery. Further, authentication ICs are employed to verify the authenticity of a battery or other component.

Key Market Segments:

• By Type
  • Fuel Gauge IC
  • Battery Charger IC
  • Authentication IC
• By Industry Vertical
  • Consumer Electronics
  • Automotive
  • Communication
  • Industrial
  • Others
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Taiwan
    • Others