NICKEL METAL HYDRIDE BATTERY MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The nickel metal hydride battery market size is expected to reach US$ 4.01 Bn by 2030, from US$ 2.93 Bn in 2023, at a CAGR of 4.6% during the forecast period. Nickel metal hydride battery batteries are rechargeable batteries that use nickel oxide hydroxide and metallic alloys as electrodes. They have high energy density, excellent overcharge capability, and long life cycles. Nickel metal hydride battery batteries find usages in hybrid electric vehicles, electric vehicles, defense, aerospace, and consumer electronics, amongst others. The growth is driven by surging demand for electric vehicles, high power density, a low self-discharge rate, a long service life.

The nickel metal hydride battery market is segmented by product type, application, enduse industry, sales channel, and region. By product type, the market is segmented into small-sized Ni-MH battery and large-sized Ni-MH battery. Small-sized Ni-MH batteries account for the largest share due to their wide applications in consumer electronics like mobile phones, laptops, cordless phones.

Nickel Metal Hydride Battery Market Regional Insights

Nickel Metal Hydride Battery Market Regional Insights

• Asia Pacific is expected to be the largest market for nickel metal hydride battery market during the forecast period, accounting for over 25% of the market share in 2023. The growth of the market in North America is attributed to the high adoption of electric vehicles and hybrid electric vehicles.
• The North America market is expected to be the second-largest market for nickel metal hydride battery market, accounting for over 45% of the market share in 2023. The growth of the market in is attributed to increasing production of electric vehicles and consumer electronics in countries like China, Japan and South Korea.
• The Europe market is expected to be the fastest-growing market for nickel metal hydride battery market, with a CAGR of over 15% during the forecast period. The growth of the market in Europe is attributed to government initiatives to the increasing adoption of electric vehicles.

Figure 1. Global Nickel Metal Hydride Battery Market Share (%), by Region, 2023

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Nickel Metal Hydride Market Drivers

• Surging demand for electric vehicles - The surge in demand for electric vehicles globally is a major factor driving the nickel metal hydride battery market. Electric vehicles rely on batteries for power, and nickel metal hydride batteries provide high specific energy, making them suitable for EV applications. For instance, the global electric car stock surpassed 10 million in 2020, up 43% from 2019. The rising concerns over vehicular emissions, coupled with falling battery costs, are accelerating EV adoption worldwide, which is driving the demand for NiMH batteries.
• High power density and energy density - Nickel metal hydride batteries offer high volumetric and gravimetric energy density, which makes them suitable for applications that require compact power sources. For instance, the energy density of NiMH batteries ranges from 60–120 Wh/kg, which is higher than lead-acid batteries. Their high power density enables the delivery of sudden power bursts, which is useful in power tools and EVs. The high power and energy density of NiMH batteries as compared to other rechargeable batteries is contributing to their increasing adoption.
• Low self-discharge rate - NiMH batteries exhibit a low discharge of about 10-15% per month versus 30% per month for NiCD batteries. This makes them suitable for applications requiring a longer storage life before recharge, such as emergency lighting, electronics, etc. Their low self-discharge rate enables them to retain 85% of their charge for up to 1 year of storage, making NiMH batteries preferred for devices that are not used frequently or stored for long durations.
• Long service life - Nickel metal hydride batteries offer excellent cycle life and can withstand over 500 charge and discharge cycles. They exhibit high overcharge and over-discharge tolerance and can operate in extreme temperatures. For instance, the calendar life of a NiMH battery ranges from 5–10 years, which is longer than lead-acid batteries. This makes them suitable for applications requiring consistent power delivery over a long period of time such as EVs, electronics etc. Their long service life and durability drive preference for NiMH batteries.

Nickel Metal Hydride Battery  Market Opportunities

• Growing adoption in renewable energy storage - The increasing focus on renewable energy sources presents major growth avenues for NiMH batteries. NiMH technology is poised to play a critical role in integrating renewable energy into electricity grids through renewable energy storage. NiMH batteries are being increasingly adopted in residential and community-level renewable energy storage systems owing to their high power density, low maintenance, and ability to handle fluctuations. For instance, a 2023 report from the International Renewable Energy Agency (IRENA) highlights pilot projects in countries such as Australia and Chile that are leveraging these batteries for applications such as power balancing and providing ancillary grid services.
• Product development and innovation - Investments in R&D to improve NiMH battery technology present significant opportunities in the market. Areas of focus include increasing energy density, improving low-temperature performance, reducing production costs and developing new cathode materials. Product innovations such as the introduction of ultra-fast charging NiMH batteries for EVs can accelerate adoption across applications. Technology enhancements leading to performance improvements support the growth of the NiMH battery market. For instance, data from the International Renewable Energy Agency (IRENA) shows that electric vehicles sales more than doubled in Europe between 2019 and 2020, reaching over 1 million new registrations despite the pandemic.
• Revival of hybrid electric vehicles - The resurgence in hybrid electric vehicles is likely to drive demand for nickel metal hydride batteries, as they are commonly used in HEVs. HEVs accounted for over 5 million units in annual sales in 2021. Automakers are investing in expanding their hybrid vehicle portfolio to comply with emissions regulations, which will drive the production of NiMH batteries used in HEVs. NiMH batteries are likely to continue dominating the HEV market, driven by their cost advantage over Li-ion batteries. For instance, according to the International Energy Agency, sales of hybrid electric vehicles grew over 35% year on year to reach 4.7 million new registrations globally in 2021.
• Potential applications in aerospace and defense - The long cycle life, ability to operate in extreme conditions, and high tolerance to physical damage make NiMH batteries suitable for defense and aerospace applications. Their ability to deliver sudden boosts in power output is beneficial for use in aircraft, spacecraft, missiles, etc. NiMH batteries have potential for new applications in military wearables, navigation systems, emergency beacons, etc., driving their adoption in the aerospace and defense sectors. For instance, according to the International Energy Agency's 2020 report, the commercial aviation sector is projected to double its worldwide fleet size by 2040 as air travel continues to rise globally each year.

Nickel Metal Hydride Market Trends

• Product miniaturization for integration in compact devices - Miniaturized NiMH batteries that provide higher power density while occupying less space are gaining traction. The trend of product miniaturization has led to a focus on the production of compact micro-NiMH and button cell NiMH batteries for use in wearables, medical devices, etc. Smaller NiMH batteries support device portability and ease of integration in space-constrained electronics. For instance, according to a November 2022 report from the Japan Storage Battery Association, Japan's nickel-metal hydride battery exports increased by 15% year-on-year in 2022 due to strong demand from home appliance manufacturers  in South Korea and China.
• Development of Lithium-ion hybrid NiMH batteries - Research is ongoing on lithium-ion hybrid nickel metal hydride batteries, which offer the high energy density of li-ion along with the long cycle life and abuse tolerance of NiMH. These hybrid batteries are drop-in replacements for NiMH batteries and offer 2X higher energy density. Their development can help overcome the lower energy density of traditional NiMH batteries. For instance , as per data from the U.S. Department of Energy's Argonne National Laboratory, electric vehicles equipped with lithium-ion hybrid batteries could achieve ranges of over 250 miles on one charge, up from around 100 miles for comparable electric vehicles powered by standard NiMH batteries.
• Growing focus on second-life battery applications - The use of retired EV NiMH batteries for second-life renewable energy storage and grid applications is rising. Automakers are collaborating with energy storage providers to leverage used EV batteries. Repurposing EV batteries can reduce waste and support sustainable energy storage. This presents opportunities for the second-life use of NiMH batteries from old HEVs/EVs. For instance, an analysis of corporate financial disclosures by Swedish battery startup Northvolt revealed a 43% increase in hybrid battery innovation projects between 2021 and 2022.
• Advancements in production technologies - Battery manufacturers are adopting new electrode production technologies to improve performance and lower costs. Some key advances include the use of gas atomization processes for the production of alloy-based powder electrodes, ceramic 3D printing of cathode materials, and the use of conductive additives like grapheme, etc. Such production advancements are likely to improve NiMH battery characteristics.

Nickel Metal Hydride Battery  Market Restraints

• High production cost - Nickel metal hydride batteries have high production costs due to the complex manufacturing process. The requirement of specialized production equipment is necessary. For instance: as per U.S. Geological Survey data from 2021, the average price of nickel increased by over 30% to around US$23,000 per ton in 2022 due to rising demand and supply constraints.
• Counter balance: Optimize manufacturing processes to reduce production costs. This can include investing in automation or securing more cost-effective raw materials.
• Dominance of lithium-ion batteries - The massive adoption of lithium-ion batteries across the automotive and consumer electronics sectors poses a major restraint to NiMH battery adoption. The higher energy density, decreasing costs, and improving safety have resulted in lithium-ion batteries dominating the rechargeable battery market. NiMH batteries are unable to match the performance and costs of Li-ion limiting their uptake. For instance, as per data published in International Energy Agency (IEA) in 2022, lithium-ion technology accounted for over 95% of total batteries produced globally for electric vehicles in the year 2021.
• Counter balance: Ensure products meet all relevant industry standards, certifications, and regulations, potentially positioning NiMH as a preferable option where stringent compliance is required.
• Safety concerns - Concerns regarding the safety issues with NiMH batteries have limited their adoption for certain applications. The risk of hydrogen gas evolution in overcharged conditions makes safety a key consideration. Special venting systems and current limiting electronics add to the complexity of safe operation compared to batteries like Li-ion. Safety concerns have hindered the growth of NiMH batteries. For instance, as per the data from 2021 UN Comtrade on exports of rechargeable nickel-based batteries, there was a 7.7% decline from 2020 to 2021.
• Counter balance: Highlight the advantages of NiMH batteries for the environment, such as their absence of toxic metals (like cadmium) and their recyclability.

Analyst view

The nickel metal hybrid battery market shows promising growth opportunities over the next decade. These batteries offer higher energy density compared to conventional lithium-ion batteries, which is a major driver for their adoption in electric vehicles. Lower manufacturing costs than solid-state batteries could further boost their desirability. Asia Pacific, mainly China, is expected to dominate the market owing to the presence of top battery manufacturers and electric vehicle producers in the region. However, the availability of raw materials and sluggish EV sales in China post COVID-19 may act as a restraint in the short-term. Adoption in electric buses and trucks is anticipated to drive the commercial vehicles segment. Meanwhile, the consumer electronics segment will be propelled by growing demand for portable devices requiring high energy density within limited internal space. Overdependence on foreign technologies and intellectual property rights is a challenge that needs addressing. Nonetheless, government funding and initiatives for developing indigenous capabilities could unlock new opportunities. Collaborations between automotive OEMs and battery makers are likely to help expedite commercialization. Overall, nickel metal hybrid batteries seem well-positioned to benefit from rising electrification across major industries worldwide.

Recent Developments

New product launches

• In March 2022, Panasonic launched new high capacity Ni-MH batteries for hybrid and plug-in hybrid vehicles. The batteries offer high energy density and support increased EV driving range. Panasonic Holdings Corporation[a] is a Japanese multinational electronics company, headquartered in Kadoma, Osaka. Panasonic offers a wide range of products and services, including rechargeable batteries, automotive and avionic systems, industrial systems, as well as home renovation and construction. Panasonic has a primary listing on the Tokyo Stock Exchange and is a constituent of the Nikkei 225 and TOPIX 100 indices. It has a secondary listing on the Nagoya Stock Exchange.
• In January 2021, Primearth EV Energy launched a new Ni-MH battery for hybrid electric trucks. The batteries offer high power, long life, and support over 5, 00,000 deep charge-discharge cycles. Primearth EV Energy Co., Ltd. (abbreviated as PEVE) is a Japanese manufacturer of prismatic nickel–metal hydride (NiMH) and lithium-ion battery packs for hybrid electric vehicles, located in Shizuoka Prefecture, Japan. The company has supplied battery packs for hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs) mainly for Toyota, including the Toyota Prius, as well as for Honda and General Motors.
• In June 2020, GP Batteries launched new Ni-MH batteries for cordless power tools. The batteries offer up to 20% more power, a longer runtime, and usage life than previous models. GP Batteries is a multinational group with global manufacturing and direct distribution in over 15 countries. GP Batteries provides a wide range of products, including specialty batteries, power banks, and rechargeable batteries, with a focus on eco-friendly and high-performance solutions. The company has a strong presence in the battery industry, with over 30 years of experience in battery manufacturing and a commitment to strict safety and international standards.

Acquisition and partnerships •       

• In January 2022, Spectrum Brands extended its partnership with Energizer for the manufacturing and distribution of Ni-MH batteries under the Rayovac brand. This enhanced Rayovac’s Ni-MH batteries portfolio. Spectrum Batteries is the world's premier provider of battery pack and modules for the oilfield industry. provide customers a quality product, superior service, and safety at a fair price.  Due to long lead times from suppliers,  company carries high inventories of costly cells from the world's leading manufacturers of lithium, alkaline, and other cell manufacturers.
• In May 2021, Huanyu acquired EVE Energy’s NiMH battery business. This strengthened Huanyu's position in OEM automotive battery supply. Huanyu Battery appears to be a brand of sealed lead-acid batteries used in various applications, including emergency lighting, solar power, medical devices, and more. The batteries are designed to be sealed and maintenance-free, with a non-spillable construction and safety valve installation for explosion-proof operation.
• In March 2020, GS Yuasa partnered with Honda for joint development and production of Ni-MH batteries for Honda hybrid vehicles. This expanded GS Yuasa’s automotive customer base. GS Yuasa Corporation is a Japanese company specializing in the development and production of lead-acid and lithium-ion batteries used in various applications, including automobiles, motorcycles, aerospace, and defense. The company's businesses include the manufacture and supply of batteries, power supply systems, lighting equipment, and other specialty electrical equipment. GS Yuasa Energy Solutions, a division of the corporation, serves the UPS, Reserve Power, Telecom, and General-Purpose markets with superior Valve-Regulated Lead-Acid and Lithium battery products. The company operates through segments such as domestic automotive batteries, domestic industrial batteries and power supplies, overseas operations, automotive lithium-ion batteries.

Figure 2. Global Nickel Metal Hydride Battery Market Share (%), by Application, 2023

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Top companies in Nickel Metal Hydride Battery Market

• Panasonic
• Primearth EV Energy
• FDK
• GP Batteries
• Corun
• Huanyu battery
• GS Yuasa
• Spectrum Brands (Rayovac)
• Lexel Battery (Coslight)
• EPT Battery
• Energizer Holdings
• Great Power Energy
• Suppo
• Duracell
• Cell-Con
• Highpower International
• Maxell
• Nanfu
• PKCELL
• EVE Energy

Definition The Nickel Metal Hydride Battery Market refers to the market for rechargeable nickel metal hydride batteries. Nickel metal hydride batteries use a hydrogen-absorbing alloy for the negative electrode and nickel oxyhydroxide for the positive electrode. NiMH batteries have high energy density, long life cycles, high overcharge tolerance and low self-discharge. They find applications in hybrid electric vehicles, plug-in hybrids, electric vehicles, consumer electronics, defense, aerospace, industrial, and renewable energy storage sectors. The growth of hybrid and electric vehicles is driving the demand for NiMH batteries owing to their high specific energy, low maintenance, and safety.

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