• Evolving alongside larger battery capacities in xEVs, the demand for more advanced BMS spawns.
• The Total Addressable Market (TAM) for BMS has enjoyed impressive double-digit growth over the past few years and is anticipated to continue this upward trajectory with a 15% year-over-year increase expected in 2024.
• Analog Devices, NXP Semiconductor, Texas Instruments, Infineon, Qualcomm, Qorvo, CATL and LG Energy to be key providers in the BMS sector.
• Currently, 400V-based xEVs dominate the market, but we expect the potential for 800V architecture to grow.

Battery Management Systems (BMS) present significant opportunities for enhancing analog content in the electric vehicle (xEV) sector. The BMS’ primary role is to manage the distribution of electric energy for traction and various electrical needs within the vehicle. This is especially important given that batteries can account for 30-40% of the overall cost of an xEV. As battery capacities grow to accommodate extended driving ranges and alleviate range anxiety, energy storage solutions have started incorporating larger battery packs, driving demand for more advanced BMSs. As batteries get more complex and innovations increasingly focus on enhancing management efficiency, the BMS TAM has seen remarkable double-digit growth in recent years. It is projected to sustain this momentum with a 15% year-over-year rise expected in 2024 although the electric vehicle market is currently experiencing a destocking situation. We anticipate that semiconductor and battery companies, ranging from the upstream substrate suppliers to downstream auto manufacturers, will be substantial participants and beneficiaries in this expanding TAM.

We highlight Analog Devices, NXP Semiconductor, Texas Instruments, Infineon, Qualcomm, Qorvo, CATL and LG Energy to be key providers in the BMS sector.

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