Nickel-Metal Hydride Battery Market

Market Study on Nickel-Metal Hydride (NiMH) Battery: Delving into Advancements in Energy Storage Technologies, PMR Identifies a Host of Lucrative Prospects for Battery Manufacturers in this Space

A Detailed Analysis of the Nickel-Metal Hydride Battery Market Based on a Global shift Towards Enhanced Energy Storage Solutions

Report ID: PMRREP33659

Number of Pages: 187

Format: PPT*, PDF, EXCEL

Industry: Chemicals and Materials

Published Date: January-2024

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Nickel-Metal Hydride Battery Market

The global nickel-metal hydride battery market is forecast to expand at a CAGR of 4.5% and thereby increase from a value of US$3.2 Bn in 2023, to US$4.2 Bn by the end of 2030.


Key Insights

Nickel-Metal Hydride Battery Market Size (2023E)

US$3.2 Bn

Projected Market Value (2030F)

US$4.2 Bn

Global Market Growth Rate (CAGR 2023 to 2030)


Historical Market Growth Rate (CAGR 2018 to 2022)


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Market Introduction and Definition

Nickel metal hydride batteries are a category of rechargeable batteries whose electrodes are composed of a metal hydride and nickel oxide hydroxide. In comparison to conventional nickel-cadmium batteries, they provide a greater energy density, rendering them an environmentally sustainable alternative that also exhibits enhanced performance. As a result of their durability and dependability, NiMH batteries are frequently utilized in portable electronic devices, hybrid electric vehicles (HEVs), and other power-hungry applications.

The nickel-metal hydrogen battery market is experiencing substantial expansion due to the increasing demand for environmentally sustainable energy storage solutions. The market for effective power storage technologies is propelled by the ongoing emphasis on sustainable energy practices and the growing adoption of such technologies in the automotive and consumer electronics industries. Consequently, NiMH batteries have established themselves as a significant contender in the dynamic realm of rechargeable batteries.

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Market Growth Drivers

The Surge in E-Commerce, and Rising Consumer Expectations

Significant forces propelling the Nickel metal hydride battery market are an increase in environmental awareness and a worldwide transition to sustainable transportation. In the light of the automotive sector's ongoing effort to mitigate carbon emissions, HEVs present a compelling market for NiMH batteries on account of their remarkable energy density and economical nature. To reduce vehicle emissions, governments across the globe are enacting rigorous policies that encourage the use of hybrid electric vehicles (HEVs), and electric vehicles (EVs).

Automobile manufacturers favour NiMH batteries as an intermediary solution before the adoption of lithium-ion technologies, this is due to the technology's maturity and dependability. The ongoing paradigm shift in the automotive industry presents an opportunity for the Nickel-Metal Hydride battery market to gain ground, given the increasing demand for environmentally sustainable mobility solutions.

Moreover, the widespread use of wearables, laptops, and smartphones is a significant factor propelling the market for nickel-metal hydride batteries. The growing dependence of consumers on these devices for purposes such as communication, entertainment, and productivity underscores the criticality of dependable and durable power sources.

NiMH batteries satisfy the requirements of contemporary electronic device consumers due to their elevated energy density and capacity to provide uninterrupted power for prolonged durations. Furthermore, the environmental friendliness and recyclability of NiMH batteries are to the increasing consciousness among consumers concerning the ecological footprint of electronic devices. The ongoing expansion of the portable electronics market acts as a strong catalyst for the sustained development and integration of nickel-metal hydride batteries across a wide range of consumer applications.

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Market Restraints

Obstacles in Last-Mile Infrastructure, and Regulatory Challenges

The market for nickel-metal hydride batteries is confronted with obstacles mostly stemming from technological constraints, notwithstanding its benefits. An important limitation is the reduced energy density in comparison to more recent lithium-ion technologies, which restricts the efficiency and range of electric vehicles. Moreover, NiMH batteries demonstrate a memory effect, which, if not effectively managed, can have a detrimental effect on their overall performance as time passes.

The production of NiMH batteries necessitates the utilization of rare earth metals, which results in adverse environmental effects and increases the risk of supply chain instability. In an ever-evolving energy storage sector, the progress made towards more sophisticated and energy-efficient battery solutions is accompanied by environmental concerns and technological constraints that impede the extensive implementation of NiMH batteries in emerging uses. Consequently, this constraint hampers the batteries' capacity for expansion.

Fragmentation Within the Industry

The Nickel metal hydride battery industry encounters obstacles attributable to the formidable competition posed by more developed lithium-ion technologies. In contrast to lithium-ion batteries, NiMH batteries demonstrate a diminished energy density, which restricts their suitability for implementation in high-performance industries like electric vehicles (EVs) and specific consumer electronics. Furthermore, the concern regarding the memory effect, which results in a gradual decline in performance, presents a formidable obstacle in ensuring the enduring dependability of NiMH batteries.

Furthermore, the utilization of rare earth metals in the production and disposal of NiMH batteries gives rise to sustainability considerations within an industry that is progressively placing greater emphasis on environmentally favourable alternatives. It is critical to surmount these technological and environmental obstacles to maintain the competitiveness and continued relevance of NiMH batteries in the energy storage industry, which is undergoing rapid change.


Practices Focused on Environmental Sustainability

One area of growth potential for the Nickel metal hydride battery industry is its incorporation into energy storage systems that utilize renewable energy. As the importance of sustainable energy sources increases, NiMH batteries may become an indispensable tool for storing surplus energy produced by renewable sources such as wind and solar. Known for their durability and longevity, these batteries can offer stationary energy storage applications a cost-effective solution. The growing need for energy independence and grid stability presents a favourable prospect for the Nickel-Metal Hydride battery industry to contribute to the establishment of more sustainable and robust energy infrastructures.

Further, the emergence of affordable electric vehicles (EVs) in developing economies offers NiMH batteries a strategic opportunity. Although lithium-ion technologies are prevalent in high-end electric vehicles, NiMH batteries present an economically viable substitute for entry-level electric vehicles. By functioning as a transitional measure, these batteries enable manufacturers to produce electric vehicles at a lower price point, thereby expediting the integration of electric mobility in areas where cost continues to be a significant determinant. By focusing on this specific sector, the NiMH battery industry can capitalize on the increasing need for electric vehicles in emerging economies, thereby making a significant contribution to the global electrification of the automotive industry.

Analyst’s Viewpoint

The future of the nickel metal hydride battery market is anticipated to be bright by our analysts, due to a confluence of technological progress and shifting consumer inclinations. Although the market encounters obstacles associated with rivalry with lithium-ion technologies, NiMH batteries' intrinsic advantages-including their dependability, established status, and economical nature-establish them as a significant participant across diverse sectors. The increasing need for environmentally favourable and sustainable energy solutions, specifically in the automotive industry and for storage purposes in renewable energy, is anticipated to generate fresh prospects for the growth of NiMH batteries.

The continuous advancements in energy storage technologies, in conjunction with possible developments in the design and production of NiMH batteries, can augment their operational efficiency and market competitiveness even further. In general, the Nickel-Metal Hydride battery industry is positioned for consistent expansion, owing to its adaptability and utilization in various sectors, which sustains its significance in the ever-evolving realm of energy storage solutions.

Supply-Side Dynamics

The market dynamics of nickel metal hydride batteries are subject to supply-side influences stemming from manufacturing, raw materials, and technological advancements. Components utilized in the fabrication of NiMH batteries comprise nickel, metal hydride alloys, and additional materials that are susceptible to supply chain disruptions and commodity price fluctuations. Manufacturers must guarantee a consistent and economical provision of these materials to preserve their competitive edge.

Further, the supply-side dynamics are significantly influenced by the accessibility of proficient labour and production infrastructure. To satisfy the growing market demand for NiMH batteries in a variety of applications, manufacturers must allocate resources towards enhancing production processes and implementing quality control protocols.

Technological advances in the production of NiMH batteries have a substantial impact on supply-side dynamics. Ongoing investigations and advancements strive to improve the energy density, operational lifetime, and overall efficacy of nickel metal hydride batteries. Electrical battery quality assurance, electrode design, and assembly technique enhancements are all crucial for achieving economies of scale and ensuring a steady supply of high-quality batteries.

With the increasing demand for NiMH batteries in sectors such as renewable energy storage and electric vehicles, manufacturers must remain at the vanguard of innovation to satisfy evolving performance criteria and exploit market prospects. In conjunction with technological advancements in manufacturing, a robust and flexible supply chain will have a significant impact on the supply-side dynamics of the nickel-metal hydride battery industry.

Market Segmentation

Which Capacity is Anticipated to Experience the Highest Benefit in Terms of Revenue Generation?

Small NiMH Batteries Thrive with Increased Energy Density, Cost-Effectiveness, and Miniaturization Trends in Wearables and IoT

The capacity segment is segmented into small sized, medium sized, and large sized. The market for nickel metal hydride batteries is dominated by the medium-sized segment, which holds the largest market share. The multifaceted nature of its implementations in portable electronics, hybrid electric vehicles (HEVs), and consumer devices accounts for this.

Due to the rising demand for compact and lightweight energy storage solutions in applications such as wearables and IoT devices, the small-sized category is the fastest-growing. The rapid expansion of small-sized NiMH batteries is attributed to various factors, including enhanced energy density, cost-effectiveness, and the increasing trend of miniaturization in electronics. These developments establish small-sized NiMH batteries as a dynamic and evolving market segment. 

Which Application Segment is the Primary Target?

The Dominance of Electrical and Electronics Industries Intact

The application segment is bifurcated into online sales of electrical and electronics, automobile, and consumer goods. The electrical and electronics sector holds the most significant market share in Nickel metal hydride batteries, primarily due to the widespread application of these batteries in portable electronic devices, laptops, and other similar appliances. Their high energy density, and dependability in supplying power to consumer electronics drive the demand.

The automobile sector is experiencing the most rapid growth, predominantly attributed to the expanding utilization of NiMH batteries in hybrid electric vehicles (HEVs). Environmental regulations that encourage sustainable transportation and the demand for energy storage solutions that are particularly efficient are elements that contribute to the automotive industry's accelerated growth of NiMH batteries.

Top Regional Markets

North America Spearheads with Widespread Integration in Electronics, Hybrid Vehicles, and Green Transportation Initiatives

The substantial growth of the nickel metal hydride battery market in North America can be attributed to the extensive integration of NiMH batteries into portable electronic devices and hybrid vehicles. The market dominance of North America can be attributed to key factors such as the strong presence of the automotive and electronics industries, as well as rigorous environmental regulations that encourage the use of greener transportation alternatives. Increased emphasis on sustainable practices and technological advancements in energy storage contribute to the expansion of NiMH batteries in the region.

East Asia to Witness Explosive Growth in Line with Expansion of Consumer Electronics, and Electric Vehicles

East Asia is experiencing the most rapid growth due to the expanding consumer electronics market and the escalating demand for electric vehicles. The adoption of NiMH batteries in East Asia is propelled by the presence of major automotive manufacturers and government initiatives that promote electric mobility. Moreover, East Asia's status as a centre for electronic manufacturing increases the need for dependable and economical energy storage solutions, establishing the region as a dynamic and swiftly developing market for NiMH batteries.

Competitive Intelligence and Business Strategy

Established participants in the Nickel metal hydride battery market vie for market share, while new entrants attempt to seize emergent opportunities. This dynamic creates a competitive environment in the Panasonic Corporation, Duracell (a subsidiary of Procter & Gamble), Energizer Holdings, Inc., GP Batteries International Limited, and Spectrum Brands Holdings, Inc. are significant market participants. To strengthen their market position, these businesses frequently implement mergers and acquisitions, collaborations, and product innovation strategies.

Prominent industry participants utilize their extensive knowledge, cutting-edge technologies, and worldwide reach to address a wide range of needs, with a particular emphasis on the automotive and consumer electronics sectors. Additionally, the NiMH battery market experiences the emergence of niche competitors and startups that concentrate on technological advancements or specific niches. With the increasing need for sustainable energy solutions, these newcomers frequently introduce novel ideas and advancements, thereby enhancing the overall vitality of the competitive environment.

Competitiveness among market participants is significantly influenced by elements such as research and development endeavours, end-user partnerships, and a strategic emphasis on environmentally sustainable battery technologies. In general, the competitive landscape of the nickel-metal hydride battery market is characterized by a harmonious coexistence of well-established industry leaders and emerging contenders, all striving to meet the ever-changing demands of the market and remain at the vanguard of technological progress.

Key Recent Developments

New Product Launch

Dominion Energy will conduct a pilot deployment of an innovative metal-hydrogen battery in November 2023. This battery represents the utility's most recent experimentation with a non-lithium technology. The technology, developed by  EnerVenue, a start-up, will be implemented at a community event venue situated on the campus of Virginia State University (VSU), where it is a local subsidiary of Dominion Energy Virginia.

Market Impact: Dominion Energy's implementation of an innovative metal-hydrogen battery demonstrates an increasing inclination toward investigating alternative technologies instead of lithium. Although this does not have a direct bearing on the Nickel-Metal hydrogen (NiMH) battery market, it does illustrate an industry-wide tendency toward exploration of novel energy storage solutions and diversification, which may affect the competitive environment.

(Source:Energy Storage News)

The most recent metal-hydrogen "vessel" developed by EnerVenue, an American start up, will have "even more advantages over lithium-ion for stationary storage applications" in September 2023, according to the company's chief revenue officer. In 2020, Enervenue emerged from covert mode and introduced nickel-hydrogen batteries to the market. These batteries are derived from a technology that is currently employed in spacecraft such as the Hubble Telescope and the International Space Station.

Market Impact: The potential introduction of EnerVenue's nickel-hydrogen battery, which purports to offer stationary storage benefits over lithium-ion, could potentially disrupt the Nickel metal hydride battery industry. The stationary storage sector may witness heightened competition for NiMH batteries as non-lithium technologies acquire traction, potentially influencing market dynamics.

(Source: Globalnewswire)

Nickel-hydrogen batteries, a technology originally developed for NASA satellites, were redesigned by the California-based startup EnerVenue in September 2023 to be utilized in grid-scale energy storage facilities.

Market Impact: EnerVenue's redevelopment of nickel-hydrogen batteries for grid-scale energy storage may indicate heightened competition in the market for nickel metal hydride batteries. The potential consequences of integrating alternative nickel-hydrogen technologies into large-scale applications could affect the market share and growth prospects of conventional NiMH batteries.

(Source: IEE Spectrum)

Nickel-Metal Hydride Battery Market Report Scope



Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Capacity
  • Application
  • Region

Key Companies Profiled

  • Panasonic Corporation
  • Duracell (a subsidiary of Procter & Gamble)
  • Energizer Holdings, Inc.
  • GP Batteries International Limited
  • Spectrum Brands Holdings, Inc.
  • FDK Corporation
  • Highpower International, Inc.
  • Huanyu Battery Co., Ltd.
  • Primearth EV Energy Co., Ltd. (PEVE, a joint venture between Toyota and Panasonic)
  • Ansmann AG.

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Nickel-Metal Hydride Battery Market Research Segmentation

By Capacity:

  • Small Sized
  • Medium Sized
  • Large Sized

By Application:

  • Electrical & Electronics
  • Automobile
  • Consumer Goods

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

For report customisation and delivery information contact our sales representative.

Companies Covered in This Report

  • Panasonic Corporation
  • Duracell (a subsidiary of Procter & Gamble)
  • Energizer Holdings, Inc.
  • GP Batteries International Limited
  • Spectrum Brands Holdings, Inc.
  • FDK Corporation
  • Highpower International, Inc.
  • Huanyu Battery Co., Ltd.
  • Primearth EV Energy Co., Ltd. (PEVE, a joint venture between Toyota and Panasonic)
  • Ansmann AG.

Frequently Asked Questions

The market is anticipated to grow at a CAGR of 4.5% during the projected period.

The nickel-metal hydride battery market was valued at US$3.1 billion in 2023.

The US held the largest market share in 2023.

Some of the prominent players in the market are Panasonic Corporation, Duracell (a subsidiary of Procter & Gamble), Energizer Holdings, Inc., GP Batteries International Limited, and Spectrum Brands Holdings, Inc.

The automobile segment is expected to grow at the fastest CAGR during the forecast period.

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