Surging application of nickel hydroxide across various industries such as chemicals and automotive drives the nickel hydroxide market, reaching a valuation of around $ 5.5 billion by 2031.
According to the recently released data by Fact.MR, the nickel hydroxide market size is estimated to surpass $3 billion in 2021, and the overall demand is projected to increase at 6.2% CAGR between 2021 and 2031.
Nickel hydroxide, known as Ni(OH)2, has gained immense popularity due to its electroactive nature. It is extensively used as a positive electrode in nickel-metal hydride and other rechargeable batteries such as nickel-iron (Ni-Fe) and nickel-cadmium (Ni-Cd) systems.
According to Fact.MR, the market research and competitive intelligence provider, the spherical nickel hydroxide market is expected to witness positive growth with rising application in power battery, high capacity battery and high-temperature battery. In addition, the powder nickel hydroxide market to gain significant traction in the future.
The rapid transition from conventional to electric vehicles has fueled the demand for nickel hydroxide. As a result, it is frequently used in electric car batteries. Nickel hydroxide-based batteries offer many advantages, including extended battery life, reliability, and superior performance, propelling the demand. These battery chemistries include zinc-nickel hydroxide, nickel-cadmium hydroxide & nickel-cobalt hydroxide. These factors will continue to accelerate the growth of the nickel hydroxide market through the forecast years.
Besides this, application in the chemical industry as a catalyst for removing impurities from effluent water will remain a chief growth driver.
The research firm forecast that the increasing investment by governments to improve solar energy generation capacity will drive the sales of nickel hydroxide during the assessment period.
Automotive To Dominate
According to the report, the automotive industry will continue to dominate the nickel hydroxide market during the forecast period. In addition, favourable policies implemented to reduce carbon emissions and rapid electric vehicles create a huge demand for nickel hydroxide-based electrochemical batteries.
In terms of region, East Asia is expected to remain the most lucrative market for nickel hydroxide, with a valuation of $ 0.9 billion in 2021. Demand in the region will be driven by the increasing electric vehicle production, the presence of leading players, and governmental support towards the expansion of the solar infrastructure.
According to Fact.MR analyst, the leading market players are focusing on expanding their product portfolio by establishing new manufacturing facilities. Consequently, some of them are making deeper inroads in the Asia Pacific, MEA and Latin America to capitalise on the untapped potential across China, India, Brazil, and Japan.
Key Takeaways
East Asia and North America account for 30% and 23% of the global market share, respectively, in 2021. The US market is exhibiting strong growth due to rising sales of electric vehicles and increasing investments in solar energy infrastructure. China, the largest manufacturer of solar photovoltaic power systems, is anticipated to register the fastest growth across East Asia through 2031. South Asia & Oceania market is poised to exhibit growth at 4.2% CAGR between 2021 and 2031. In terms of end-use, the nickel hydroxide-based battery category is expected to dominate the market, growing at a CAGR of 6.6% through 2031. Based on the end-use industry, the automobiles segment is anticipated to account for around 34% market share by 2031.
Key Drivers
The key drivers include the increasing adoption of nickel hydroxide in electrochemical batteries, the rapid production of electric vehicles to reduce CO2 emissions, and rising fuel prices. In addition, the adoption of Ni(OH)2 as a catalyst in the industrial water treatment process is anticipated to support the market growth during the forecast period. Furthermore, the growing adoption of nickel hydroxide for manufacturing nickel salts and other products positively impacts the market Fact.MR report said.
However, the report added that the adverse effects of nickel hydroxide on skin and health restrict the market's growth.
Some prominent players operating in the nickel hydroxide market include American Elements, Bochemie, GFS Chemicals, Kansai Catalyst, Kelong New Energy, Norn Nickel, Sumitomo Metal Mining, Supraveni Chemicals, Tanaka Chemicals, Tinchem Enterprise, Umicore and Yantai Cash.
Key companies operating in the nickel hydroxide market are focusing on expanding their production capacity. In addition, they are incorporating the latest technologies in nickel hydroxide manufacturing. Mergers, partnerships, capacity expansion, and collaborations are some of the strategies adopted by market players, the report added.
Courtesy: Fact.MR. NB: Photo is representational; courtesy: Mercedes-Benz.