Nickel Hydroxide Market size is expected to reach USD 7 Billion by the end of 2036, growing at a CAGR of 7% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of nickel hydroxide was USD 4 Billion. The reason behind the growth is impelled by the growing manufacturing of automobiles across the globe. One of the largest sectors of the global economy is the automotive manufacturing sector led by the growing automation, digitization, and rising disposable income levels among global consumers.
For instance, more than 55 million cars are made annually, up around half of the world's oil usage. Particularly, in 2022 over 85 million motor vehicles were produced globally, a 5% increase from 2021.
The growing advancements in battery technology are believed to fuel the nickel hydroxide market growth. Increasing battery energy density and adding fast charging capabilities are top priorities for battery and electric vehicle manufacturers which has led to the development of new, advanced batteries to increase the amount of energy that can be stored in batteries.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~7% |
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Base Year Market Size (2023) |
~ USD 4 Billion |
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Forecast Year Market Size (2036) |
~ USD 7 Billion |
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Regional Scope |
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Application (Battery, Electroplating, Catalysts)
The battery segment is predicted to account for 45% share of the global nickel hydroxide market in the coming years owing to the growing adoption of renewable energy sources. Nickel hydroxide is utilized as the positive electrode in other rechargeable battery systems, such as Ni-Fe and Ni-Cd systems, and has acquired significance as the cathode active material for nickel hydride batteries. For the battery sector, nickel hydroxide combined with cobalt is a well-known powder composition that can be used in rechargeable battery electrodes, nickel metal hydride batteries, and nickel-cadmium batteries. The primary non-lithium battery material is nickel hydroxide, which is strategically significant as an essential part of high-power, high-cycle life energy storage systems used in the energy, transportation, and aerospace sectors since security concerns are the main priority in these sectors. Moreover, battery manufacturing uses nickel hydroxide as a component which is an essential part of the storage and renewable energy industries, and is a cathode substance utilized in solar cells, which these plants employ to store energy. For instance, through 2026, more than 92% of the expansion in the world's electricity capacity is expected to come from renewable sources.
In addition, the technique of nickel electroplating involves using chemical reduction or electrolytic procedures to deposit nickel on a component that is submerged in an electrolyte solution, which is a great method of surface finishing for engineering and decorative applications as it has a brighter and smoother finish, and has good corrosion resistance and wears.
Furthermore, in chemical processes, nickel hydroxide functions as a non-noble metal co-catalyst, and is considered to be the most active OER catalyst family in alkaline electrolytes.
End-Use (Chemical, Electronics, Automobiles, Pharmaceuticals, Agriculture, Food)
The automobile segment in the nickel hydroxide market set to garner a notable share shortly. In the automobile sector, nickel hydroxide is essential, especially when it comes to electric and hybrid cars (EVs and Vs) as it plays a crucial role in the lithium-ion battery's cathode which is vital for supplying energy to EVs' electric propulsion systems owing to their high energy density. With increasing environmental regulations, and government incentives for cleaner transportation options, the adoption of electric vehicles is on the rise globally which is expected to drive the demand for nickel hydroxide as it offers higher energy density compared to cobalt-rich alternatives which allows for longer driving ranges and improved performance in electric vehicles. Nickel is more abundant and less expensive than cobalt, making nickel-rich batteries more cost-effective and potentially more sustainable which can contribute to the transition toward cleaner energy and reduced greenhouse gas emissions.
Our in-depth analysis of the global nickel hydroxide market includes the following segments:
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Purity |
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Form |
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End-Use |
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Application |
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North American Market Forecast
The nickel hydroxide market in North America is predicted to account for the largest share of 40% by 2036 impelled by the growing production of chemicals. With over a million workers and significant trade surpluses, the chemical industry is one of the biggest manufacturing sectors in the US. The chemical industry is the second largest in the world and is one of the country's oldest industries led by the shale gas revolution which has brought the United States back to prominence as a low-cost chemical-producing zone. For instance, in 2022, the US chemical sector is projected to expand its output volume by more than 4%.
European Market Statistics
The Europe nickel hydroxide market is estimated to be the second largest, during the forecast timeframe led by the growing focus on sustainability. As electric vehicles (EVs) and renewable energy sources become more prevalent in Europe, there will likely be a greater need for energy storage technologies, such as batteries. Moreover, the investment in electric mobility and renewable energy storage solutions is expected to be stimulated by the European Union's efforts and legislation aimed at lowering carbon emissions and encouraging clean energy technology, which will increase the demand for nickel hydroxide. For instance, the EU's climate regulation requires member states to reduce their greenhouse gas emissions by more than 50% by 2030.
Author Credits: Smruti Ranjan, Rajrani Baghel
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