Key Market Overview:
The Nickel-Metal Hydride Battery Market was valued at USD 3,071.09 Million in 2022, registering a CAGR of 4.7% during the forecast period (2023-2030), and the market is projected to be worth USD 4,369.72 Million by 2030.
Nickel-metal hydride battery refers to a type of rechargeable battery that is composed of nickel-oxide hydroxide and hydrogen-absorbing alloy. Nickel-metal hydride batteries offer several benefits including high safety and reliability, higher battery capacity, excellent current discharge characteristics, and are less prone to leakage. The aforementioned benefits of nickel-metal hydride batteries are key prospects for increasing its utilization in consumer electronics, automotive, medical, and others and other industries.
Factors including the increasing investments in consumer electronics sector, with a motive to raise production of electronic devices coupled with growing demand for cost-effective batteries are driving the market demand for nickel-metal hydride batteries.
Additionally, the increasing application of nickel-metal hydride batteries in automotive and medical sectors are significant factors driving the market growth.
In October 2022, Toyota Industries commenced operations on its new battery production line at Ishihama Plant, Japan that is established to increase the production of nickel-metal hydride batteries for hybrid vehicles. The nickel-metal hydride batteries manufacturing plant has a production capacity of 20,000 units per month. Hence, the rising development of nickel-metal hydride batteries for its utilization in industrial applications is further driving the growth of the market.
Nickel-Metal Hydride Battery Report Coverage:
Rising utilization of nickel-metal hydride batteries in consumer electronics sector is driving the market growth
|Report Attributes||Report Details|
|Market Size in 2030 (USD Million)||4,369.72 million|
|By Sales Channel||Online and Offline|
|By End User||Consumer Electronics, Automotive, Medical, and Others|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Panasonic, Primearth EV Energy Co. Ltd, GP Batteries International Limited, HARDING ENERGY INC., Duracell Inc., Energizer Holdings Inc., Cell-Con, Johnson Controls, Taurac, Uniross|
Nickel-metal hydride batteries are primarily used in the consumer electronics sector for application including smartphones, digital cameras, laptops, camcorders, and other portable electronics devices. Moreover, nickel-metal hydride batteries offer high energy density, good cycle life, low self-discharge rate, and high energy capacity, which are key determinants for increasing its adoption in the consumer electronics sector.
Factors including advancements in technology including AI (Artificial Intelligence) and IoT (Internet of Things), further with their gradual integration in smartphones, laptops, and other devices are driving the growth of the consumer electronics sector.
Factors including growing adoption of smartphones, laptops, and other consumer devices, advancements in consumer electronics including AI (Artificial Intelligence) and IoT (Internet of Things), and rising need for economical battery solutions are driving the adoption of nickel-metal hydride batteries in consumer electronics sector.
According to Japan Electronics and Information Technology, the overall production of electronic sector by the Japanese electronics industry was valued at USD 95.2 billion in 2021, demonstrating an increase of 9.9% as compared to 2020. Thus, the growth of consumer electronics sector is driving the utilization of nickel-metal hydride batteries in smartphones, laptops, and other consumer devices, in turn proliferating the growth of the market.
Availability of substitutes is restraining the market growth
Nickel-metal hydride batteries have multiple substitutes including nickel–cadmium batteries and lithium-ion batteries, among others. Comparatively, the substitutes have similar characteristics, performance, and applications, with respect to nickel-metal hydride batteries, which is a prime factor limiting the market growth.
For instance, nickel–cadmium batteries act as an excellent alternative to nickel-metal hydride batteries for applications in consumer electronics including laptops, camcorders, and other battery-operated consumer devices. Moreover, lithium-ion batteries are the ideal alternatives to nickel-metal hydride batteries in terms of high performance and longer shelf-life. Additionally, lithium-ion batteries offer high energy density, low maintenance, high performance, and higher charge/discharge cycles, which makes it an ideal alternative to nickel-metal hydride batteries for application in electric vehicles. Therefore, the availability of various substitutes for nickel-metal hydride batteries is restraining the growth of the market.
Nickel-Metal Hydride Battery Market Segmentation:
By Sales Channel
The sales channel segment is divided into online and offline
The online segment contributed to the largest revenue share in 2022. Online sales channel deploys a mode of distribution in which the manufacturers sell the products through the company websites or any other third-party e-commerce websites that are available on the internet. Online sales channels offer various benefits including a quicker buying process, easy access to the products, and higher flexibility. Moreover, the availability of nickel-metal hydride batteries in online sales channels allows quicker comparison of multiple products and prices and reduces overhead as compared to offline sales channels. The above benefits of online sales channels are further driving its usage for the distribution of nickel-metal hydride batteries.
For instance, Duracell Inc. is among few of the nickel-metal hydride battery manufacturers that offer a range of nickel-metal hydride batteries for online purchase directly through the company website. Moreover, Duracell also offers its nickel-metal hydride batteries for purchase through various e-commerce distributors websites including Amazon, eBay, and others. Therefore, the increasing availability of nickel-metal hydride batteries in online sales channels is a key factor fostering the growth of the segment.
Furthermore, factors including the availability of targeted advertising, ease of utilization, competitive pricing, along with reliable shipping and return policies are key prospects driving the growth of the online sales channel.
Additionally, the offline segment is expected to grow steadily during the forecast period. Offline sales channel involves the distribution of nickel-metal hydride batteries from manufacturers to the end-users directly or indirectly through offline distributors including hypermarkets/supermarkets, specialty stores, and others. Moreover, offline sales channels play a significant role in enhancing the product supply and fulfilling customer demands in the local markets, which is a prime factor in increasing its utilization for the distribution of nickel-metal hydride batteries. Further, factors including higher credibility, a strong customer base, and ease of customization as per the target market are vital determinants driving the growth of the offline sales channel for nickel-metal hydride batteries.
By End User
The end user segment is divided into consumer electronics, automotive, medical, and others.
Consumer electronics segment accounted for the largest share in the nickel-metal hydride battery market in 2022. Nickel-metal hydride batteries are utilized in the consumer electronics sector for application in smartphones, laptops, camcorders, cordless phones, digital cameras, and other consumer devices.
Factors including rising penetration of smartphones, laptops, and other consumer devices, advancements in wireless and portable consumer devices, and rising adoption of economical and efficient battery solutions are driving the growth of the consumer electronics sector. According to Atradius, the consumer electronics sector in Spain witnessed a growth of 3.5% in 2021 as compared to 2020. Thus, the growth of consumer electronics sector is driving the adoption of nickel-metal hydride battery for application in smartphones, laptops, cameras, and other consumer devices, in turn boosting the growth of the market.
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The North American region is considered to contribute the largest revenue share in the year 2022. The market growth in North America is attributed to several factors including the growing medical industry, increasing automobile production, and rising government initiatives for adoption of electric vehicles in the region, which is further fueling the demand for nickel-metal hydride batteries. Moreover, advent of electro-mobility and the rising adoption of nickel-metal hydride batteries in hybrid electric vehicles has been a prevailing factor for market growth in the North American region.
For instance, according to the International Energy Agency, plug-in hybrid electric vehicles registrations in the United States reached 165 thousand units in 2021, depicting a substantial growth of over 100% in comparison to 64 thousand units in 2020. Thus, the rising adoption of electric vehicles is anticipated to drive the utilization of nickel-metal hydride battery in hybrid electric vehicles, in turn fostering the market growth in North America during the forecast period.
The Asia-Pacific region is anticipated to witness substantial growth during the forecast period. The growing pace of industrialization and development is promoting lucrative opportunities for market growth in the region. Additionally, factors including the growth of several industries such as consumer electronics, automotive, and others are fostering the market growth for nickel-metal hydride batteries in the Asia-Pacific region.
For instance, according to the India Brand Equity Foundation, the consumer electronics sector in India was valued at USD 9.84 billion in 2021, and it is projected to grow at a substantial rate to reach USD 21.18 billion by 2025. Hence, the growing consumer electronics sector is driving the deployment of nickel-metal hydride batteries for application in smartphones, laptops, camera, and portable consumer devices, thereby boosting the market growth in the Asia-Pacific region.
Nickel-Metal Hydride Battery Market Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with the detailed profiles of the major players operating in the industry. Further, the surge in research and development (R&D), product innovation, various business strategies, and application launches have accelerated the growth of the global nickel-metal hydride battery market. Key players in the market include-
• Primearth EV Energy Co. Ltd
• GP Batteries International Limited
• HARDING ENERGY INC.
• Duracell Inc.
• Energizer Holdings Inc.
• Johnson Controls
• In October 2019, Panasonic introduced nickel-metal hydride custom battery packs that are ideal for utilization in low and high temperature applications requiring long shelf-life. The custom batteries are optimized for applications including automotive telematics, e-call, solar backups, and other.