Nickel-Metal Hydride Battery Market Overview:
Nickel-metal hydride battery market size was worth over USD 1.87 Billion in 2022 and is anticipated to reach over USD 3.33 Billion by 2030, registering a CAGR of 7.5% during the forecast period (2022-2030).
A nickel-metal hydride battery (Ni-MH) is an important component of power source in many appliances. It is a battery that can be easily recharged. The materials used for the electrodes are nickel hydroxide for the cathode and hydrogen-absorbing alloys for the anode. These batteries are used instead of nickel-cadmium batteries in a variety of devices such as calculators, flashlights, and GPS systems.
These batteries are typically used in a variety of applications, including electric vehicles, portable electronics, and power tools. One of the main benefits of Ni-MH batteries is their high energy density, which allows them to store more energy in a smaller package as compared to other types of rechargeable batteries such as nickel-cadmium (NiCad) batteries. This makes them well-suited for applications where space is limited. Additionally, Ni-MH batteries do not suffer from the “memory effect”, a phenomenon where a battery’s capacity is reduced due to frequent charging before complete depletion.
Moreover, the demand for Ni-MH batteries as reliable energy sources has increased due to growing global industrialization and technological advancements. Manufacturers of these batteries are focusing on better energy efficiency along with the long life of these batteries. Also, these batteries are considered to be more environment-friendly than other types of batteries, as they do not contain the toxic heavy metal cadmium which is present in nickel-cadmium batteries. Moreover, these batteries are used in a broad spectrum of applications such as medical devices, vehicles, and industrial equipment which are driving the growth of the global nickel-metal hydride battery market.
Nickel-Metal Hydride Battery Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||3.33 Billion|
|By Type||Small-sized and Large-Sized Batteries|
|By Application||Automotive (HEV) and Consumer Electronic Goods (Cameras, Camcorders)|
|By Geography||North America [United States, Canada, Mexico]
Europe [Germany, Spain, UK, Italy, France, Russia, Netherlands, Turkey, Switzerland]
Asia-Pacific [China, India, Southeast Asia, Japan, Korea, Western Asia]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Argentina, Brazil, Columbia, Peru, Chile]
|Key Players||Panasonic Corporation, Primearth EV Energy Co., Ltd., Duracell Inc., Energizer Holding, Inc, Saft Group SAS, FDK Corporation, NEXcell Battery Co, Ltd, GP Batteries International|
A key factor accelerating the market’s growth is the rise in electricity demand across the globe. Nickel-metal hydride batteries provide electric vehicles with the necessary high power capacities. As a result, the market for global Ni-MH batteries is primarily fueled due to increasing demand for electric vehicles. The nickel-metal hydride battery can also be charged and discharged quickly making it convenient for portable electronic devices. Moreover, the increasing application of Ni-MH batteries in medical devices, and vehicles is further driving the nickel-metal hydride battery market growth. As a result, it is anticipated that the nickel-metal hydride (Ni-MH) battery market will expand in the forecast period. Further, advancements in technology have enabled the development of more efficient and powerful NiMH batteries. This has increased the range of applications for which they can be used and has made them more reliable and convenient to use.
The availability of low-cost alternatives such as lithium-ion batteries in the market is expected to restrain the market growth. Furthermore, restrictions imposed by various governments on the production of rechargeable batteries also impede the expansion of the global market. This is due to the release of pollutants that are harmful to the environment such as cobalt, copper, cyanide, lead, mercury, nickel, and zinc from the manufacturing of Ni-MH batteries. Moreover, storage of Ni-MH batteries at high temperatures affects the battery performance, which further restrains the market growth. Further, the Ni-MH batteries are prone to overheating and catching fire in case of extreme temperatures. This makes them less suitable for usage in certain applications where safety is one of the major concerns.
Changing lifestyle and increasing adoption of technologically advanced gadgets has opened up new opportunities for the growth of the global market. This industry is expected to benefit from the rising popularity of portable electrical appliances such as laptops, electric toothbrushes, mobile phones, and electric shavers. Such innovations are anticipated to create favorable opportunities for electronics, further increasing the demand for Ni-MH batteries.
The COVID-19 pandemic has moderately impacted the growth of the industrial batteries market as the majority of manufacturers were facing issues due to the shortage of raw materials used for the production of Ni-MH batteries. As a result, the prices for raw materials also increased due to COVID-19 restrictions. Furthermore, the government’s strict regulations also affected the imports and exports of these batteries which resulted in gaining less revenue from the market. On the other hand, the demand for electronic devices increased as people were staying at their homes. Several offices and companies were shut down leading to work-from-home practices which further increased the demand for electronic devices such as laptops and smartphones. Therefore, COVID-19 had a moderate impact on the Ni-MH batteries market.
Based on the type, the market is bifurcated into small-sized and large-sized batteries. The large-sized batteries account for the major contribution to nickel-metal hydride battery market shares. They are safer and more durable as compared to other batteries in the market. They are majorly used in Hybrid Electric Vehicles (HEVs). As a result, the rising application of large-sized batteries in the automobile sector accounts for the dominance of this segment. On the other hand, the small-sized battery segment is expected to grow in the forecast period. Small-sized batteries are widely used in toys, laptops, vacuum cleaners, remotes, and other small appliances.
The application segment is separated into automotive and consumer goods. Automotive is expected to contribute significant shares to the market growth in terms of value. The increasing usage of Ni-MH batteries in commercial vehicles, especially hybrid electric vehicles, is one of the main reasons for segment growth. As Ni-MH batteries offer several advantages over lithium-ion batteries, they are increasingly being used in various electric cars. Moreover, improvements in these batteries to give better performance are also expected to help the market to witness increased growth in the forecast period. On the other hand, Ni-MH batteries are also used in multiple consumer electronic devices such as cameras, toothbrushes, camcorders, and many more. These batteries are also being used in toys, remotes, and other appliances, which are used frequently on daily basis.
Based on regional analysis, the North-American region dominates the global market. This is based on its increasing application in HEVs, telecommunications, and medical devices. Moreover, the increasing popularity of consumer electronics in this region is also estimated to further propel the market growth. Also, the Asia-Pacific region is expected to witness the highest CAGR in the coming period. This is due to the fact that the majority of Ni-MH battery manufacturers are from countries like China and India, which makes it attractive for investors to invest in this market. Moreover, the European region is also expected to grow by attempting to encourage people to use electric vehicles for public and personal use. Further, the usage of Ni-MH batteries as an alternative to nickel-cadmium batteries in major applications is primarily being adopted within this region due to the strict government regulations in terms of environmental concerns.
Nickel-Metal Hydride Battery Market Competitive Landscape:
The nature of competition in terms of the global market is primarily high due to the presence of extensive numbers of market players. These industry players have adopted multiple business strategies through product innovations to attract more profits to the market. As a result, other players are also engaging to form collaborative efforts and joint ventures for the creation of revenue generation opportunities in the coming years. Mentioned are the prominent market players that consist of the latest market concentration–
- Energizer Holding, Inc
- Saft Group SAS
- FDK Corporation
- NEXcell Battery Co, Ltd
- GP Batteries International
- In January 2020, VARTA AG, a German battery manufacturer, collaborated with Energizer Holdings, Inc., to expand its product portfolio of Ni-MH batteries to serve the needs of its customers.
- In March 2020, Saft launched Intelli-Connect, a monitoring tool that allows manufacturers to check the condition of nickel-operated batteries.