Nickel Metal Hydride Battery Market Size and Trends

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 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.