by Nickel metal hydride (NiMH) batteries are one of the most commonly used rechargeable battery chemistries for consumer electronics due to their ability to provide relatively higher energy density compared to nickel-cadmium batteries. Some key applications of NiMH batteries include cellular phones, laptops, power tools, flashlights, electric vehicles, and solar/wind power storage systems. These batteries have hydrogen-absorbing alloy electrodes that react with nickel hydroxide to facilitate the electrochemical reaction and energy storage.
The global Nickel Metal Hydride Battery market is estimated to be valued at US$ 3.38 billion in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
The increasing penetration of consumer electronics such as smartphones, tablets, cameras, and power tools across the world is propelling the demand for rechargeable battery packs. In 2020, over 1.5 billion smartphones were sold globally. NiMH batteries offer advantages over lithium-ion batteries including lower manufacturing cost and lack of volatile organic compounds, thus their adoption is rising in the consumer electronics industry.
Market Dynamics
The growing demand for consumer electronics is expected to be a major driver for the Nickel Metal Hydride Battery Market Growth over the forecast period. Smartphones, tablets, digital cameras, power tools, and various other consumer electronic devices rely on rechargeable battery packs. Moreover, rising sales of electric vehicles around the world will further fuel the need for energy storage solutions such as NiMH batteries. Government initiatives promoting eco-friendly mobility are encouraging automobile manufacturers to incorporate secondary batteries including NiMH variants. For example, under the Finance Act 2020, the Government of India increased customs duty on imported lithium-ion battery packs for electric vehicles from 10% to 15% with an aim to boost domestic manufacturing.
While offering competitive benefits over other chemistries, limitations of NiMH batteries include memory effect and relatively lower energy density compared to lithium technologies. However, ongoing research & development for new alloy compositions and production methods can help address these constraints and drive wider adoption. Significant investments by material science companies for advanced NiMH battery development are anticipated over the forecast period.
Segment Analysis
The global Nickel Metal Hydride Battery market is segmented into device type, end use, and region. Based on device type, the Nickel Metal Hydride Battery market is segmented into consumer electronics, healthcare equipment, automotive, and others. The consumer electronics segment dominated the market in 2021 and accounted for over 35% of the global revenue share. Growth of this segment can be attributed to rising adoption of consumer electronics such as wireless headphones, laptops, and power tools that incorporate nickel metal hydride batteries due to their high energy density and low self-discharge rate.
PEST Analysis
Political: Government regulations regarding the use of hazardous materials such as mercury and cadmium in batteries are expected to drive the adoption of nickel metal hydride batteries as they do not contain such materials.
Economic: The growing market for portable consumer electronics and electric vehicles is expected to boost demand for affordable rechargeable batteries like nickel metal hydride that provide high power density.
Social: Increasing consumer demand for eco-friendly products is raising awareness about battery chemistries that do not use toxic heavy metals. This is positively impacting the Nickel Metal Hydride Battery market.
Technological: Manufacturers are focusing on improving energy density and recyclability of nickel metal hydride batteries through innovations in electrode materials and manufacturing processes.
Key Takeaways
The global Nickel Metal Hydride Battery market is expected to witness high growth over the forecast period owing to growing demand from the consumer electronics and automotive industries. The global Nickel Metal Hydride Battery market is estimated to be valued at US$ 3.38 billion in 2024 and is expected to exhibit a CAGR of 5.0% over the forecast period 2024 to 2031.
Regional analysis related content comprises: The Asia Pacific Nickel Metal Hydride Battery market held around 45% of the global revenue share in 2021 owing to high demand from China, Japan, and South Korea. China dominates the Asia Pacific market due to the large production of consumer electronics in the country. Japan is also a major market on account of the presence of globally leading battery manufacturers such as Sanyo and Panasonic.
Key players operating in the Nickel Metal Hydride Battery market are Stempeutics Research Pvt. Ltd., Medipost Co. Ltd., Nipro Corporation, Dendreon Pharmaceuticals LLC, Organogenesis Inc., Novartis AG, Vericel Corporation, Allogene Therapeutics Inc., Gilead Sciences Inc. (Kite Pharma Inc.), and Takeda Pharmaceutical Company Limited (TiGenix). These companies are focused on expanding their production capacities and diversifying their product portfolios through partnerships and acquisitions to strengthen their global presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
