Nickel Hydrogen Batteries Market Size Growth - By Type (Small-Size, Large Sized), By Application (Automotive, Electrical and Electronics, Consumer Goods), By Sales Channel (OEM, Aftermarket), and By Region: Statistics Reports, Supply & Demand Analysis, Global Opportunity 2025-2032

Global Market Synopsis, Forecast, Trend, and Growth Up To 2032

The Nickel Hydrogen Batteries Market size was valued at US$ 6.73 Bn in 2025, it is estimated to grow at a CAGR of 18.8% from 2025 to 2032 and reach US$ 22.16 Bn by the end of 2032. The North America region is expected to dominate the global industry across the years of 2025 and 2032.

Overview of Nickel Hydrogen Batteries Market

Nickel metal hydride batteries are gaining widespread applications in hybrid vehicles. The batteries were among the best suited for the automobile industry due to offering a temperature range of -30 °C to + 75 °C with charging capabilities in short time. In order to exploit high power levels associated with electric vehicles, NiMH batteries can be used. According to the Bloomberg New Energy Finance (BNEF), by the end of 2040, the electric car sales will almost reach 540 million units and make up for about 32% of the world's passenger cars. Steadily increasing demand in electric cars will fuel the increase in NiMH battery market.

Moreover, an industrially as well as technologically advanced world thrives on increasing demand of Ni-MH batteries for energy-friendly supplies. Moreover, companies that manufacture batteries emphasize on better efficiencies and long lifespans of their batteries. Also, these are considered more environment-friendly compared with the other types of batteries as they do not carry toxic heavy metal cadmium held in nickel-cadmium batteries. Moreover, these are used extensively in medical appliances, vehicles, and industrial machinery, which is driving the overall global nickel-metal hydride battery market.

Covid 19 Impact Analysis

Closure of factories, roads, and grounding of planes has brought about severe economic crises during the pandemic. The side effect from the pandemic during lock down has been a silver lining for the environment because levels of pollutions have decreased significantly since both transport and industrial sectors have been shut down. Transportation and industrial sectors significantly degrade the environment due to several forms of emissions brought about by the use of fossil fuel. After the pandemic with Covid-19, energy consumption in transportation and industry sectors will be a change to viable sources that are both available, economically and environmentally friendly, with no buildup of carbon. Hydrogen energy remains the best alternative technology for reducing greenhouse gas emissions and pollution in various forms.

This has badly affected imports and exports due to the restrictions provided by the government. This also created less market revenue. On the other hand, since everyone was staying at home, there was an increased demand for electronic devices. Since most offices and businesses were closed, people were required to work from home. This increased the demand for gadgets like laptops and mobile phones. So, COVID-19 impacted the Ni-MH battery market only by a certain percent.

Top Key Players

Some of the major players functioning in the nickel hydrogen batteries industry include:

• Primearth EV Energy
• FDK
• GP Batteries International
• Highpower International Inc
• Corun
• Panasonic
• Huanyu battery
• GS Yuasa
• Spectrum Brands (Rayovac)
• Lexel Battery (Coslight)
• EPT Battery Co., Ltd
• Energizer Holdings
• Great Power Energy

Segment Analysis

Type Segment

Small-size batteries is likely to grow during the forecast period

Large-sized batteries take up most of the market share in the nickel-metal hydride battery niche. The marketplace offers fewer large-sized batteries safety and much longer longevity in comparison to other types of batteries. Large-sized batteries are mainly used in HEVs. Therefore, with more applications for large-sized batteries for use in the automobile industry, this niche takes the lead. It has impressive energy density and capacity of rechargeable battery technology for aerospace energy storage.

On the contrary, the small-sized battery segment is likely to have growth in the forecast period. Small batteries are seen in toys, vacuum cleaners, laptops, remote controls, and other small appliances. The future spacecraft is believed to have power levels above 6 kW. The trend is for small, low-cost spacecraft to be powered at around 1 kW level. The objective would be reduced battery mass, volume, and cost. A lightweight battery supporting a light storm is part of the in-house and contracted effort by NASA Lewis. For example, Toyota's new Acqua compact HEV has a bipolar nickel-hydrogen battery, which the Japanese automaker claims is the world's first for a road vehicle (Peter Donaldson). It has lower energy density than lithium-ion batteries but much longer service life. The new nickel-hydrogen battery puts out 1.5 times the output from each cell and packs 1.4 times as many cells into the same volume, effectively doubling the production of the previous car's battery, Toyota said.

Application Segment

Automotive is expected to grow in the forecast period

Automotive is expected to contribute significantly in the market growth. Major application driver for the segment is the rapid usage of Ni-MH batteries in commercial vehicles, particularly hybrid electric cars. These batteries are increasingly getting used across types of electric vehicles since they have many advantages over lithium-ion batteries. Further developments on these to enhance performance will contribute towards the growth of the market during the forecast period. On the other hand, Ni-MH batteries are applied to various consumer electronic products like cameras, toothbrushes, camcorders, and many others. These batteries are also applied in toys, remote controls, and other appliances.

Furthermore, A reliable battery is a crucial technological element in building practical electric cars. The science and technology of a nickel metal hydride battery are described. Which stores hydrogen in the solid hydride phase and has high energy density, high power, long life, abuse tolerance, a wide operating temperature range, quick-charge capability, and wholly sealed maintenance-free operation. To be used as the negative electrode in this battery, a diverse set of multi-element metal hydride materials with structural and compositional disorder on multiple length scales have been engineered. The battery is nontoxic and recyclable, and it works at room temperature. Manufacturing technology demonstration has been finished.

Market Scope

Nickel Hydrogen Batteries Market Dynamics

Drivers: Increased electricity demand will be the main growth driver for nickel metal hydride batteries

Global electricity demand is a significant contributor to the acceleration of market growth, and Nickel-metal hydride batteries help provide the needed high-power capacities for electric vehicles.  This has resulted in the increase of global demands for Ni-MH batteries primarily due to electric cars and vehicles. Besides, nickel-metal hydride battery charges quickly and discharges fast. This makes them ideal for portable electronic devices.

Due to its excellent reliability, stability, and life time, nickel-hydrogen battery is very reliable and maintains a high rechargeability with no capacity fade over 30,000 cycles. Its application in space and planes has served for more than three decades.

Restraint: Government policies restraint growth in the market

In addition, the alternatives which are available in the forms of lithium-ion batteries and limits enforced by different governments on rechargeable batteries might hinder the growth in the global market due to the nature of wastewater and pollutants emitted from the battery manufacturing process.

Opportunities: The low-cost, high storage makes the market very lucrative

Movable batteries have plenty of scope for designing low cost, high capacity, and highly reliable systems of large energy storage. An aqueous nickel-hydrogen battery with industrial-level areal capacity of 35 mAh cm 2 and low-cost bifunctional nickel-molybdenum-cobalt electrocatalyst as hydrogen anode that could catalyze both the hydrogen evolution and oxidation reactions in alkaline electrolyte. The nickel-hydrogen battery displays an energy density of 140 Wh kg 1 in aqueous electrolyte with superb rechargeability over 1,500 cycles without decrease of capacity.

The nickel-hydrogen battery is expected to be as cheap as $86 per kilowatt-hour and, hence, provides a very promising prospect for useful large-scale energy storage. Moreover, for at least 32 years, the nickel-hydrogen battery technology has also been a commercially viable technology in satellite applications. Due to the higher specific energy as compared with Ni-Cd cells, Ni-H2 batteries have been used on all communication satellites since the 1990s. However, due to space applications of lithium-ion batteries and likely to be an enormous application in the space, the technology of Ni-H2 will soon replaced. Most of the satelliteproducing companies accepted the change and modified their satellite power arrangements accordingly, using lithium-ion batteries.

Regional Perspective

Nickel hydrogen batteries market was dominated by North America

In the regional analysis, North America is found to dominate the global nickel hydrogen batteries market. This can be attributed to the fact that HEVs, telecommunication, and medical devices are highly being used in this region. All these factors are believed to fuel market growth in this region.

In Europe, growth is expected to occur through encouragement of citizens' use of electric vehicles both for public and personal purposes. Again, due to stringent government rules regarding environmental issues, Ni-MH battery use as a substitute to nickel-cadmium batteries in major applications is being adopted mainly in this region. Varta (Ellwangen, Germany) and SAFT (Bagnolet, France) are two European leaders which have developed consumer-type Ni/MH batteries and filed patents in this field over the last twenty years. The Varta micro battery was spun off from Varta and focused on the button cell business. SAFT sold its Small Nickel Battery division to Arts Energy (Nersac, France). Alcatel (now merged with Lucent Technology, Paris, France) was producing Ni/MH batteries for cell phones and was filing patents. Nilar, Täby, Sweden has recently been offering bi-polar prismatic Ni/MH batteries for transportation. Hoppecke, Brilon-Hoppecke, Germany was producing prismatic flooded-type Ni/MH batteries for transportation.

Recent Development

• Storage startup in California Ener Venue, in 2021, raised $100 million to further develop and manufacture its nickel-hydrogen battery technology.
• Intelli-Connect 2020, is a monitor device by Saft that allows the manufacturers to check the status of nickel-powered batteries.
• VARTA AG battery company paid subsidiary Energizer Holdings, Inc. an amount of $401 million for VARTA Consumer Batteries 2020. The acquisition will most likely benefit the battery business of VARTA AG, as well as its product line. VARTA Consumer Batteries manufacture and sell dry and primary batteries across the globe.
• EnerVenue, a US nickel-hydrogen battery startup that made its debut at the height of the pandemic in summer 2020, has signed a master supply agreement with Green Energy Renewable Solutions, which will procure and supply 250 MWh of batteries over the next three years

Segments covered in the report

By Type

• Small-Size
• Large Sized

By Application

• Automotive
• Electrical and Electronics
• Consumer Goods

By Sales Channel

• OEM
• Aftermarket

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa