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 billion by 2030, from US$ 2.93 billion 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, low self-discharge rate, long service life.

The Nickel Metal Hydride Battery Market is segmented by product type, application, end-user 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 wide applications in consumer electronics like mobile phones, laptops, cordless phones.

Nickel Metal Hydride Battery Market Regional Insights

• North America 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 high adoption of electric vehicles and hybrid electric vehicles.
• The Asia Pacific 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 increase adoption of electric vehicles.

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

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 is 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 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 low self-discharge of about 10-15% per month versus 30% per month for NiCD batteries. This makes them suitable for applications requiring 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/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 duration such as in EVs, electronics etc. Their long service life and durability drives preference for NiMH batteries.

Nickel Metal Hydride 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.
• Product development and innovation - Investments in R&D to improve NiMH battery technology presents significant opportunities in the market. Areas of focus include increasing energy density, improving low-temperature performance, reducing production cost and developing new cathode materials. Product innovations such as introduction of ultra-fast charging NiMH batteries for EVs can accelerate adoption across applications. Technology enhancements leading to performance improvements supports growth of the NiMH battery market.
• 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 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.
• Potential applications in aerospace and defense - The long cycle life, ability to operate in extreme conditions and high tolerance to physical damage makes NiMH batteries suitable for defense and aerospace applications. Their ability to deliver sudden boosts of 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 adoption in the aerospace and defense sectors.

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 focus on 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.
• 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.
• 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 second-life use of NiMH batteries from old HEVs/EVs.
• Advancements in production technologies - Battery manufacturers are adopting new electrode production technologies to improve performance and lower costs. Some key advances include use of gas atomization process for production of alloy-based powder electrodes, ceramic 3D printing of cathode materials, use of conductive additives like graphene etc. Such production advancements are likely to improve NiMH battery characteristics.

Nickel Metal Hydride 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 and facilities increases their cost. The nickel and metal hydride alloy components also add raw material costs making NiMH costlier than lithium-ion and lead-acid batteries. The high costs have hindered wider adoption of NiMH batteries.
• 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.
• Safety concerns - Concerns regarding the safety issues with NiMH batteries has limited their adoption for certain applications. Risk of hydrogen gas evolution in overcharged conditions makes safety a key consideration. Special venting systems and current limiting electronics add to the complexity for safe operation compared to batteries like Li-ion. Safety concerns have hindered the growth of NiMH batteries.

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 supports increased EV driving range.
• In January 2021, Primearth EV Energy launched new Ni-MH battery for hybrid electric trucks. The batteries offers high power, long life and supports over 5, 00,000 deep charge-discharge cycles.
• In June 2020, GP Batteries launched new Ni-MH batteries for cordless power tools. The batteries offer up to 20% more power, longer runtime and usage life than previous models.

Acquisition and partnerships

• In May 2021, Huanyu acquired EVE Energy’s NiMH battery business. This strengthened Huanyu's position in OEM automotive battery supply.
• 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.
• In January 2022, Spectrum Brands extended its partnership with Energizer for manufacturing and distribution of Ni-MH batteries under the Rayovac brand. This enhanced Rayovac’s Ni-MH batteries portfolio.

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

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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