In recent years, with the rapid growth of new energy vehicle production and sales, and the large-scale application and promotion of energy storage systems, the development of the BMS industry has been greatly promoted.
Whether it is the complexity of the structure, the number of cells equipped with batteries, or the overall requirements for safety and performance, new energy vehicle power batteries and energy storage batteries are much favored than consumer batteries. BMS gradually shows its strength in market.
According to data from QY Research, the global automotive BMS market is expected to increase to 88.474 billion yuan by 2027, with an average annual compound growth rate of 26.35% from 2021 to 2027.
GGII, an Industrial Research Institute, predicts that by 2025, the market value of China’s energy storage BMS will reach 17.8 billion yuan (including overseas exports), with a compound annual growth rate of 47%. The BMS market has broad room for growth.
What makes the battery exactly benefit from the BMS?
BMS (Battery Management System), through the monitoring and detection of voltage, current and temperature, realizes the protection and fault handling functions of the battery system. Then prolongs the service life of the battery, and improves the reliability and efficiency of the battery.
BMS establishes a communication bridge between the battery and the user. The user controls the contactor to complete the charging and discharging of the battery pack through the information fed back by the BMS, and understands the basic parameters and fault information of the battery system in time.
BMS implements various functions through modularization, including acquisition module, main control module, communication module and display module. The acquisition module is the working basis of BMS, which realizes data acquisition through sensors.
Based on the data returned by the acquisition module, the main control module will analyze the data and dynamically formulate battery management strategies in real time. It has functions such as thermal management, balance management, SOC (battery state of charge) estimation, charge and discharge management, and information interaction. The communication module is responsible for the communication between the various modules of the BMS.
From the perspective of BMS applications, it is mainly divided into consumer batteries, power batteries and energy storage batteries.
Overall, the BMS industry will grow rapidly in the future. According to BusinessWire estimates, the global BMS market size is expected to be 6.512 billion USD in 2021, and is expected to reach 13.1 billion USD by 2026, with a CAGR of 15%.
Looking forward to the future, the digital battery market is mature and the demand tends to be stable. There is a huge incremental market for new energy vehicles and energy storage, and power batteries and energy storage batteries will rapidly increase in volume, driving the rapid growth of BMS.
The power battery field competition will become more fierce
In 2020, among the downstream applications of global BMS, power battery applications accounted for 54%, consumer batteries accounted for 22%, and energy storage and other batteries accounted for 24%.
The battery on an electric vehicle is composed of small battery cells (CELL), which are connected in series and parallel to form a battery pack (Module). The battery pack supports, fixes and protects the battery cells. A battery pack (PACK) is finally composed of multiple battery modules. It is jointly controlled and managed by BMS and thermal management system, and becomes the power battery unit of the vehicle.
Due to the characteristics of electrochemical properties, there are subtle differences in the performance of each battery after leaving the factory, which is usually called the difference in consistency. Thousands of batteries are used in electric vehicles. Thus, how to ensure that each battery can be fully charged without overcharging and damaging the battery is the key to evaluating the BMS system.
The BMS system collects the voltage, current, and temperature of each battery and each battery pack through sensors, and estimates the state of charge SOC (State Of Charge), power state SOP (State Of Power), and state of health SOH (State of Health) of each battery. ). Reflect the remaining mileage and the aging degree of the battery pack, allocate how to charge the battery, respond in a timely manner, and adjust the temperature of the battery.
BMS contains a number of key core technologies, with high technical thresholds and high certification barriers.
The underlying basic software of the BMS must have the functions of the underlying IO driver, CAN communication, safety monitoring reset, CAN program refresh, fault diagnosis and processing, measurement calibration, and chip self-test.
Enterprises need to invest a lot of time and capital in research and development. Only through long-term accumulation, precipitation, and a lot of practice can they get through the industry Know-how and produce high-quality products.
Thanks to the vigorous development of the domestic new energy vehicle industry, the development of China’s BMS chain is relatively complete.
However, the core AFE (analog front-end chip) and ADC (analog-to-digital converter) still rely on imports, and only some low-end MCUs (microcontrollers) can be produced, and there is a wide space for domestic substitution.
Judging from the market competition pattern, the degree of concentration is gradually increasing.
According to the statistics, CR5 will be 56.5% in 2021, more than half. The top five in the industry are FinDreams Battery (a subsidiary of BYD), CATL, Tesla, CNEV, and Ligoo Technology, and CR10 will reach 74.0%.
In 2022H1, the top five rankings in the industry will remain unchanged, with CR5 reaching 61.9%, and CR10 reaching 77.2%, and the industry concentration will further increase compared with 2021.
From the perspective of market participants, it is mainly divided into three categories, namely, vehicle manufacturers, power battery manufacturers, and independent BMS manufacturers.
Industry chain integration and vehicle control strategies have made BMS a key area for car companies to consider. Car companies have outstanding R&D capabilities, and it is usually not a problem to set up a professional BMS R&D team.
Automakers and battery factories are speeding up their deployment. In the future, automakers will supply their own BMS and battery factories will supply BMS, and their market share will gradually increase. Only third-party manufacturers who master core technologies and have strong R&D capabilities can gain market recognition. Some OEMs are bound with battery factories to stabilize market share.
Thus, the competition in the power battery BMS industry may become more intense.
Energy storage BMS will usher in an opportunity for rapid development under high demand
Compared with power batteries, due to different application scenarios, energy storage batteries have higher requirements on various indicators.
The energy storage system is more complex and large, with a deeper charge and discharge depth and a longer life cycle. The energy storage BMS needs to deal with a more complex energy management system.
The energy storage system puts forward high consistency requirements for battery performance, requiring the energy storage BMS to have strong battery balancing management capabilities.
Most of a complete energy storage BMS system has a three-tier structure, consisting of battery BMS, battery cluster BMS and battery cluster BMS, from individual batteries to the overall battery management system.
The power supply to be managed by the energy storage battery BMS is MWh or even hundreds of MWh. There are many batteries connected in series and parallel. It is a systematic project to effectively manage thousands of these batteries.
It is difficult to collect the internal temperature of the battery, and calculate the internal state. Beside, a large number of sampling points and wiring harnesses cause safety hazards. Active equalization requires high voltage acquisition accuracy, and the circuit structure is also more complex and the cost is higher.
In the future, with the advancement of technologies such as communication, big data and cloud computing, BMS-related software algorithms will continue to be optimized.
The reliability and accuracy of BMS data monitoring, the estimation of battery status, and safety management will be greatly improved. BMS will develop towards the trend of high integration, high precision estimation, and intelligence.
Under the huge demand for energy storage systems, energy storage BMS will usher in an opportunity for rapid development.