Nickel Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, Indonesia, Japan, Germany - Size and Forecast 2024-2028

Nickel Market Size 2024-2028

The nickel market size is projected to increase by USD 16.55 billion, at a CAGR of 4.06% between 2023 and 2028. Market growth hinges on multiple factors, notably the surge in infrastructure development and urbanization in emerging economies, broadening electroplating applications of nickel, and the prevalence of stringent regulations. Emerging economies' focus on infrastructure drives demand for nickel in construction and urban development projects. Additionally, the expanding use of nickel in electroplating applications across industries enhances market prospects. However, stringent regulations, particularly concerning environmental and labor standards, present challenges, potentially restraining market expansion despite favorable growth drivers.

What will be the Size of the Market During the Forecast Period?

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Market Segment 

The nickel (element) is intertwined with various industries, including lightweight vehicles, solar panels, and food and beverage. Alongside chromium (metal) and titanium, nickel contributes to the production of solar panels and other applications. However, concerns persist regarding sulfur dioxide emissions, urging the industry to adopt more sustainable practices in nickel and chromium extraction.

By Type 

The primary nickel segment is estimated to witness significant growth during the forecast period. Primary nickel, a key segment in the market, encompasses various types like nickel pig iron (NPI), ferronickel, and nickel matte, each serving distinct industrial purposes. NPI, notably favored for stainless steel production, is cost-effective and widely utilized, particularly in regions like China.

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The primary nickel segment was the largest segment and was valued at USD 29.52 billion in 2018.  Further, ferronickel, produced via nickel ore reduction, finds applications in stainless steel and alloy manufacturing. Noteworthy vendors such as Eramet and Vale SA invest in ferronickel production, driving market growth alongside nickel matte usage by companies like PJSC MMC Norilsk Nickel.

By Application 

Stainless steel, a significant segment in the market, finds widespread use across industries like construction, automotive, healthcare, and food processing due to its corrosion resistance, strength, and durability. With nickel playing a pivotal role in stainless steel production, its alloying process accounts for a substantial portion of global stainless steel output. Key vendors like BHP Group plc and PT Indonesia Asahan Aluminum provide various nickel grades tailored for stainless steel applications, driving market growth.

By Region

APAC is estimated to contribute 93% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.

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Indonesia and China are major contributors to the market in the APAC region, collectively dominating global nickel output. Indonesia's vast nickel reserves drive its significant production levels, with the country boasting the world's largest nickel reserve according to the US Geological Survey. China's robust stainless steel industry, fueled by infrastructure development and urbanization, heavily relies on nickel imports. Additionally, China's rapid progress in electric vehicle (EV) manufacturing boosts demand for nickel-based batteries, further amplifying nickel's importance in the APAC market.

Market Dynamics

The market plays a pivotal role in various sectors, including the automotive industry and consumer goods industry. As a key component in lithium-ion batteries such as Nickel Cobalt Aluminum (NCA) and Nickel Manganese Cobalt (NMC), nickel powers the rise of electric cars and energy storage systems. Nickel plays a crucial role in secondary battery recycling, as it is a valuable material recovered and reused in the production of new batteries. Its applications extend to special steels, stainless steel (SS), and automobile batteries, ensuring lightweight and durable solutions. However, concerns over greenhouse emissions and health risks persist, prompting ongoing innovations in nickel usage across the construction industry, wind turbines, and medical industry.

Key Market Driver

An increase in infrastructure development and urbanization in emerging economies is the key factor driving the market. The rapid economic expansion in emerging economies such as China, India, and Southeast Asia is fueling urbanization and industrial development. Nickel, known for its corrosion resistance and strength, is witnessing heightened demand due to the surge in infrastructure projects worldwide, spanning transportation networks to residential and commercial structures. Stainless steel, a key construction material, is extensively utilized, particularly in initiatives like China's Belt and Road Initiative (BRI), where it's integral in bridge, railway, and port infrastructure development. Similarly, India's urbanization efforts, like the Smart Cities Mission, further drive the need for nickel-based materials in construction, aligning with the global trend towards sustainable and modern urban infrastructure. These factors collectively contribute to the anticipated growth of the market.

Significant Market Trends

Expanding electroplating applications of nickel is the primary trend shaping the market. The market is experiencing growth due to rising demand for electroplating across industries like automotive, electronics, aeronautics, and construction. Electroplated nickel is crucial in these sectors for corrosion protection, ornamental finishes, and enhancing component longevity and conductivity. Technological advancements in electroplating, including pulse plating and electroless nickel processes, offer improved control over coating thickness and uniformity while reducing waste and energy consumption, further propelling the market growth. Additionally, the proliferation of electronic devices and emerging technologies like 5G and electric vehicles drive demand for high-performance nickel-coated components, fostering market expansion.

Major Market Challenge

The prevalence of stringent regulations in nickel production, processing, and distribution is the major challenge that affects the market expansion. Environmental, labor, and trade policies impact various stages from mining to end-user industries. For instance, the Philippines enforces responsible mining practices to mitigate environmental impact, necessitating investments in pollution reduction technologies. Similarly, European Union air quality standards impose compliance burdens on nickel processing facilities, leading to increased operational costs. These regulatory hurdles are anticipated to impede market growth in the forecast period.

Who are the Major Market Companies?

Companies are implementing various market trends and analysis strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market and result in market growth analysis.

• Anglo American plc: The company offers nickel which is used to make other alloys with special properties. Corrosion-resistant alloys are used in chemical plants, while super alloys withstand extreme temperatures and are used in aviation.

The  market  growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

BHP Group plc, Eramet, FPX Nickel, Glencore Plc, Global Ferronickel Holdings, Inc., Jinchuan Group International Resources Co. Ltd., Lundin Mining Corp., Lygend Resources and Technology Co., Ltd., Nickel Industries, Otto Chemie Pvt. Ltd., Pivotal Metals Ltd, PJSC MMC Norilsk Nickel, PT Indonesia Asahan Aluminum, PT. Trimegah Bangun Persada., Sherritt International Corp., Solway Investment Group, GmbH, SOUTH32, Sumitomo Metal Mining Co. Ltd., Vale SA, and Vedanta Ltd

The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Global Market Customer Landscape

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Market Analyst Overview:

The market plays a crucial role in various industries like oil & gas, marine, and aerospace due to its properties such as corrosion & heat resistance. It is used in manufacturing exhaust systems, fuel tanks, suspension systems, and gaskets, among others. Nickel is also essential in the production of non-ferrous alloys, superalloys, and Ni-based alloys like Ni-Cu alloys and Ni-Al-Bronze. With the rise of electric vehicles (EVs), the demand for nickel, especially Class 1 and Class 2 nickel, is expected to increase further. Additionally, technologies like Electroless Ni-plating, Ni-Co plating, and Ni-Tin plating are used for various applications in the industry.

Moreover, the market is vital for industries requiring non-ferrous alloys like Ni-P-PTFE (Polytetrafluoroethylene) plating used in gas tanks and body & frame parts. It plays a crucial role in the aerospace industries for nickel (Ni)-based alloys, Non-ferrous alloys segment and Ni-Ag alloys. The market is influenced by nickel projects aimed at ensuring a sustainable supply of this essential metal.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market forecast during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across APAC, Europe, North America, South America, and Middle East and Africa
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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