Nickel Metal Hydride (NiMH) Battery Market Size, Share & Growth

Updated on : October 22, 2024

Nickel Metal Hydride (NiMH) Battery Market Size & Growth

The nickel metal hydride (NiMH) battery market size is expected to grow from USD 2.4 billion in 2023 to USD 2.7 billion by 2028, growing at a CAGR of 3.1% from 2023 to 2028.

The market for NiMH batteries in the automotive industry is fueled by the constant growth of the automotive industry and the rising adoption of hybrid electric vehicles. As urbanization and income levels across the world are increasing, it is leading to increased demand for vehicles. Further, governments around the world are implementing policies to promote the use of hybrid and electric vehicles, which is expected to boost the growth of the NiMH battery market.

Nickel Metal Hydride (NiMH) Battery Market Forecast to 2028

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Nickel Metal Hydride (NiMH) Battery Market Trends:

Market Dynamics

DRIVERS: Growing adoption in critical industries for emergency power backup applications

NiMH batteries can be used for emergency power backup for various industrial, commercial, and residential applications. They offer advantages such as long life and high energy density over other types of batteries, such as alkaline and NiCd batteries, making them ideal for many applications. NiMH batteries are used in critical power, utility, and telecom industries. For instance, NiMH batteries are being used in various utility equipment, such as smart meters. These devices require a reliable power source that can be charged quickly and easily, and NiMH batteries are well-suited for such applications. Hence, these factors will help to drive the market for NiMH batteries.

RESTRAINTS: High cost of NiMH batteries

For some applications, NiMH batteries become more expensive than other types, such as alkaline or NiCd batteries. This is due to the cost of the materials used to make them, such as nickel and hydrogen. Further, NiMH batteries have a high self-discharge rate, which means that they lose power even when they are not in use, and this can be a problem if a user wants to store their batteries for a long time. Moreover, these batteries have a limited service life, which means they will eventually wear out and need replacing. The service life of a NiMH battery can vary depending on how it is used, but it is typically around five years or less. Hence, these factors could act as a restraint to the nickel metal hydride (NiMH) battery market.

OPPORTUNITIES: Growing adoption of NiMH batteries in HEVs

NiMH batteries are used in many hybrid electric vehicles (HEVs) applications owing to their favorable characteristics such as high energy density, safety, and high-power delivery. The rising adoption of hybrid electric vehicles among consumers has helped boost the market for these batteries. The number of automobile companies involved in the development of new and improved electric and hybrid electric vehicles has also increased. All these developments are expected to offer ample growth opportunities for the NiMH market.

CHALLENGES: Availability of other alternative battery technologies

The nickel metal hydride (NiMH) battery market faces increasing competition from other technologies, such as lithium-ion batteries, lead acid batteries, and emerging battery technologies. Lithium-ion batteries offer several advantages over NiMH batteries, including a higher energy density, longer lifespan, and faster charging time. This competition is limiting the growth of the NiMH battery market.

Nimh Battery Market Ecosystem

Nickel Metal Hydride (NiMH) Battery Market Segmentation

Small size segment is expected to hold a substantial market share during the forecast period.

As the name entails, small NiMH batteries are compact in size and majorly used in small portable devices. Typically, NiMH batteries have the ability that they can be recharged hundreds of times, and that makes them potentially equivalent to hundreds of alkaline batteries in total service over their lifetime. The battery life of NiMH battery is quite reasonable, and it is a cost-effective power source for many frequently used battery-operated devices found in the home and industries. These batteries are mainly used in consumer electronic devices such as digital cameras, wireless speakers, toys, cordless phones, flashlights, remote control devices, and personal care products. In addition, these batteries are also being used in many portable medical devices, such as pulse oximeters and defibrillators. Thus, the multi-applicability of these batteries is expected to drive their market in the near future.

The market for an industrial segment is projected to grow at a steady CAGR during the forecast period.

NiMH batteries are widely used in oil & gas, mining, and manufacturing industries, mainly in small tools and equipment. These batteries also provide emergency backup power in critical equipment used in various process and manufacturing industries. NiMH batteries are used in several industrial applications, such as robotics, IoT devices, emergency lights, electric tools, memory backup, elevator landing devices, scanners, electricity meters, wireless communication devices, smart security equipment, and professional tools. The growing industrial sector in developing countries such as India and China is expected to drive the growth of the NiMH battery market during the forecast period.

Nickel Metal Hydride (NiMH) Battery Market by Region

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Nickel Metal Hydride (NiMH) Battery Industry Regional Analysis

The market in Asia Pacific is projected to grow at the highest CAGR from 2023 to 2028.

The Asia Pacific region mainly consists of countries such as China, Japan, India, and the rest of the Asia Pacific. The region is a major manufacturing hub of batteries as well as consumer electronics. The key players in the NiMH battery market establish their manufacturing plants here due to the region's easy availability of raw materials. China is a global manufacturing hub for batteries, consumer electronics, automotive, and electronic components. Growing industrial manufacturing activities and the increasing demand for consumer electronics are creating an opportunity for the players in the NiMH battery market. Moreover, the country also has a strong medical device and pharmaceutical manufacturing industry, which creates a significant potential market for NiMH batteries. Nickel metal hydride batteries are widely used in medical equipment as they provide better energy density than other batteries, such as alkaline and nickel-cadmium (NiCd).

Top Nickel Metal Hydride (NiMH) Battery Companies - Key Market Players

• Energizer Holdings, Inc. (US),
• Panasonic Holdings Corporation (Japan),
• Duracell (US),
• VARTA AG (Germany), 
• FDK Corporation (Japan),
• BYD Company Limited (China),
• Primearth EV Energy Co., Ltd. (Japan),
• GP Batteries International Limited (China) are among a few top players in the NiMH battery companies.

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Scope of the Report

Nickel Metal Hydride (NiMH) Battery Market Highlights

This research report categorizes the NiMH battery market report by component, battery type, size, sales channel, vertical, and region.

Recent Developments

• In March 2022, FDK Corporation launched the new NiMH battery "HR-AAUTEWM" for a variety of applications such as security, medical and in-vehicle applications, which includes tracking devices, e-call, dashboard cameras, car alarms, and other in-vehicle applications.
• In June 2021, FDK Corporation launched the new NiMH battery "HR-AAUTEW" for applications such as tracking devices, e-call, dashboard cameras, car alarms, and other in-vehicle applications.
• In January 2020, VARTA AG completed the acquisition of Europe-based VARTA  consumer batteries business from US-based Energizer Holdings, Inc. to strengthen its position in global battery industry.

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