Battery Management System Industry Analysis in Korea

Analytical Study of Battery Management System in Korea from (2023 to 2033)

The battery management system industry in Korea is poised for substantial growth, with a robust projected CAGR of 18.3% through 2033. Forecasts indicate that the Korean battery management system industry could present lucrative opportunities, anticipating an estimated revenue of USD 305.4 million in 2023. By 2033, the sales of battery management systems are anticipated to reach a substantial USD 1,661.10 million.

The exceptional demand for battery management systems in Korea can be attributed to their ability to drive a revolutionary shift in the automotive industry. Key players are developing advanced Battery Management System (BMS) software to help automakers realize significant annual cost savings. Intelligent BMS software facilitates the reduction of Electric Vehicle (EV) battery size without compromising their range, addressing the issue of limited battery production and boosting industry profitability.

Korea currently holds significant potential for vehicle electrification, positioning it as a top industry for battery management systems. Players are securing substantial orders to equip next-generation electric cars with battery system assemblies. Leading firms and battery experts in the country are also laying the groundwork for research and innovation in battery-related technologies to further advance industry growth.

Attributes	Details
Industry size of Battery Management System in Korea	USD 305.4 million
Expected Industry Size Battery Management System in Korea by 2033	USD 1,661.10 million
Forecast CAGR between 2023 to 2033	18.3%

Key Trends in Impacting the Sales of Battery Management System in Korea

• Increasing utilization of battery management systems in multiple sectors such as telecommunications, aerospace, and maritime highlights the high adaptability of these systems.
• There is a surging demand for specialist battery management system solutions to meet the specific requirements of aviation applications.
• The rising adoption of energy storage technologies, particularly large-scale batteries, is driven by the increasing deployment of renewable energy sources like solar and wind power. This positive trend is impacting the sales of battery management systems. These systems play a critical role in integrating renewables into the energy mix as they enhance grid stability, increase energy storage capacity, and optimize usage efficiency.
• The growing use of battery management systems to monitor and control backup batteries is reducing downtime in data-intensive sectors like IoT and cloud computing, ultimately maximizing their efficiency.

Segment-wise Insights

EV Manufacturers Favor Lithium-ion Batteries for Longevity and Efficiency in Korea

Leading Battery Type	Lithium Ion
Value Share in % (2023)	41.80%

Lithium-ion battery types are projected to account for a 41.80% industry share in 2023, according to the latest statistics revealed by FMI's analysts. The robust increase in electric cars is expected to drive the demand for lithium-ion batteries. Several factors contribute to the growth of this segment:

• The growing preference for lithium-ion batteries among EV manufacturers is due to their long cycle life, high energy density, and lightweight nature. This increased preference necessitates a demand for sophisticated battery management systems to ensure efficient lifespan, performance, and safety.
• Lithium-ion batteries typically play a crucial role in energy storage systems, thanks to the increasing utilization of renewable energy sources such as solar and wind power. To ensure grid stability and optimal energy usage in renewable energy systems, an efficient battery management system is crucial.

Increasing Attractiveness of CBMS among Businesses and Organizations is contributing to its Large Value Share

Leading Battery Type	Centralized Battery Management Systems
Value Share in % (2023)	42.90%

The centralized battery management systems (CBMS) are expected to occupy an industry share of 42.90% in 2023. Given below are the leading factors that are propelling the sales of CBMS:

• The surging demand for electric vehicles (EVs), which require high-performing and durable batteries, is creating a need for CBMS. These systems assist in optimizing battery performance and increasing battery life.
• CBMS are known for their flexibility and scalability, making them suitable for a wide range of applications. The increasing demand for customizable CBMS, which can be adjusted according to the battery pack size, is expected to boost sales of centralized battery management systems.
• The growing preference for cost-effective battery management systems like CBMS among organizations and businesses of various sizes is further driving the sales of CBMS.

Key Players Competing for a Larger Pie in the Battery Management System in Korea

An increasing number of battery management system providers are vying for a larger share of the Korean landscape. Key players have been implementing various strategies to strengthen their position in the competition, such as mergers, acquisitions, and collaborations. Participants are also embracing the concept of Industry 4.0. They are integrating new software and hardware technologies with components like artificial intelligence for improved communication, machine learning for issue resolution, and cloud computing for collecting critical circuit data.

Key Developments Taking Place in the Battery Management System Industry in Korea

• In August 2023, SK C&C, a system integration firm based in Korea, made its entry into the battery sector with DNA Motors. The company is going to supply battery packs for electric motorcycles and develop its own battery management system for mass production.
• In August 2023, the United States-based semiconductor manufacturer called Texas Instruments, announced its efforts to strengthen its business ties with battery makers and EV manufacturers in Korea. The company considers Korea as a key consumer for vehicle electrification and a forerunner in battery technology. A company representative claimed that it is closely engaged with Korean customers in industrial as well as automotive space, particularly in the field of battery management systems. The company is set to expand its business relations with Korean companies, commending its robust portfolio that sits well with the rapidly growing EV industry in Korea.
• In July 2023, the South Korean public university Seoul National University and automaker giant Hyundai Motor Group came together to open their Joint Battery Research Center, targeting to further battery technologies and enable industry-academia cooperation.

Leading Companies Offering Battery Management System in Korea

• LG Energy Solutions
• Samsung SDI
• SK On
• Ficosa International SA
• Schneider Electric SE
• Renesas Electronics Corporation
• NXP Semiconductors NV
• MinTech
• SungEel HiTech
• Korea Environment Corporation
• Gyeongbuk Institute of IT Convergence Industry Technology
• Others

Scope of the Report

Attribute	Details
Estimated Industry Size in 2023	USD 305.4 million
Projected Industry Size by 2033	USD 1,661.10 million
Anticipated CAGR between 2023 to 2033	18.3% CAGR
Historical Analysis of Demand for Battery Management System in Korea	2018 to 2022
Demand Forecast for Battery Management System in Korea	2023 to 2033
Report Coverage	Industry Size, Industry Trends, Analysis of Key Factors Influencing Battery Management System Adoption in Korea, Insights on Korea Players and their Industry Strategy in Korea, Ecosystem Analysis of Local and Regional Korea Providers
Key Provinces Analyzed	South Gyeongsang, North Jeolla, South Jeolla, Jeju
Key Companies Profiled	LG Energy Solutions; Samsung SDI; SK On; Ficosa International SA; Schneider Electric SE; Renesas Electronics Corporation; NXP Semiconductors NV; MinTech; SungEel HiTech; Korea Environment Corporation; Gyeongbuk Institute of IT Convergence Industry Technology; Others

Segmentation Analysis of the Battery Management System Industry in Korea

By Battery Type:

• Lithium Ion Battery
• Advanced Lead-Acid Battery
• Others

By Topologies:

• Centralized System
• Modular System
• Distributed System

By Components:

• Control Unit
• Communications Interfaces (CAN bus)

By Application:

• Automotive
  • Electric Vehicles
  • E-Bikes
  • Others
• Military
  • Military Drones
  • Submarines
  • Others
• Consumer/ Handheld
  • Power Tools
  • Home Appliances
  • Others
• Telecom
  • Battery Management System in Energy
  • Grids
  • Wind/Solar Farms
  • Others

Key Provinces:

• South Gyeongsang
• North Jeolla
• South Jeolla
• Jeju

Frequently Asked Questions

What is the Projected Growth Rate for the Battery Management System Industry in Korea?

The anticipated CAGR for the battery management system industry in Korea through 2033 is 18.3%.

How Big Will the Battery Management System Industry be in Korea?

Demand for battery management system in Korea is expected to reach USD 1,661.10 million by 2033.

What is the Key Strategy Providers in Korea Adopting for the Battery Management System?

Growing focus on research and development to develop intelligent BMS is a top strategy of industry players.

Which Battery Type is Widely Used by End Users in the Battery Management System Industry in Korea?

Lithium ion is extensively used in battery management systems in Korea.

Which Topology Accounts for a Significant Share in the Battery Management System Industry?

Centralized battery management system is a highly preferred topology by end users.