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

Market Challenges And Opportunities

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 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.