Nickel Market (By Application: SS, Non-ferrous Alloys, Plating, Batteries) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

The global nickel market size was estimated at around USD 20.47 billion in 2023 and it is projected to hit around USD 34.15 billion by 2033, growing at a CAGR of 5.25% from 2024 to 2033. 

Key Pointers

• Asia Pacific dominated the global market with the largest market share of 73% in 2023.
• By Application, the stainless steel captured segment captured the maximum market share of 65% in 2023.
• By Application, the plating application segment predicted to grow at the CAGR between 2024 to 2033.

Nickel Market Overview 

The nickel market, a cornerstone of the global metal industry, is characterized by its widespread applications, economic significance, and complex supply-demand dynamics. This overview delves into the key aspects of the nickel market, shedding light on its production, consumption patterns, major players, and future trends.

Nickel Market Growth 

The growth of the nickel market is propelled by several key factors. Firstly, the increasing demand for stainless steel in construction and infrastructure projects drives substantial nickel consumption, given its pivotal role in enhancing steel's corrosion resistance and durability. Secondly, the surge in electric vehicle (EV) production amplifies nickel demand, as nickel is a fundamental component in EV batteries, supporting the global shift toward sustainable transportation. Furthermore, the growing focus on renewable energy solutions, such as wind turbines and solar panels, further stimulates the nickel market. These technologies rely on nickel-containing alloys for their robustness and longevity, contributing to the metal's rising demand. Additionally, advancements in battery technology, particularly the development of nickel-rich cathodes, enhance the efficiency and energy density of batteries, fostering greater demand in both consumer electronics and energy storage sectors. Lastly, ongoing efforts toward sustainable mining practices and eco-friendly initiatives play a vital role, ensuring a responsible supply chain and fostering market growth. These factors collectively underpin the steady expansion of the nickel market, making it a key player in the global metal industry.

Report Scope of the Nickel Market

Nickel Market Dynamics

Drivers

• Growing Stainless Steel Demand: Nickel's corrosion-resistant properties make it indispensable in stainless steel production, driving demand in construction, automotive, and manufacturing sectors.
• Rising Electric Vehicle (EV) Adoption: Nickel is a vital component in lithium-ion batteries used in EVs, fueling the demand as the world shifts towards sustainable transportation solutions.

Restraints

• Environmental Concerns: Nickel mining and processing can have adverse environmental impacts, including habitat disruption and pollution. Stricter regulations and increased scrutiny regarding environmental practices present challenges to the industry, necessitating investments in eco-friendly technologies.
• Supply Chain Disruptions: Natural disasters, political instability in major producing regions, and transportation issues can disrupt the nickel supply chain. These disruptions can lead to shortages, affecting industries reliant on nickel-based products.

Opportunities

• Infrastructure Development: Rapid urbanization and infrastructure development in emerging economies drive the demand for stainless steel, where nickel is a critical component. The construction of bridges, airports, and buildings creates a continuous market for nickel, especially in developing regions with burgeoning construction sectors.
• Innovation in Alloy Development: Nickel alloys play a vital role in industries requiring corrosion resistance, such as chemical processing and marine engineering. Research and development in nickel alloy formulations create opportunities to cater to specific industry needs, driving growth in niche markets.

Challenges

• Price Volatility: Nickel prices are subject to fluctuations influenced by geopolitical tensions, market speculation, and supply-demand imbalances. These rapid price swings pose challenges for both producers and consumers, impacting budgeting, investment decisions, and profitability.
• Energy Intensity: Nickel extraction and processing are energy-intensive processes. Fluctuations in energy prices directly influence production costs, making the industry vulnerable to energy price volatility. Transitioning to renewable energy sources can mitigate this challenge but requires substantial investments.

Application Insights

Stainless steel was the largest application segment contributed the largest market share of 65% in 2023. Stainless steel production accounts for a significant portion of nickel consumption globally. Nickel's unique properties, including corrosion resistance and durability, make it an indispensable component in stainless steel alloys. This inclusion enhances stainless steel's structural integrity and ensures it remains impervious to rust and corrosion, making it ideal for applications in construction, automotive manufacturing, and aerospace engineering. As these sectors continue to expand, the demand for nickel in stainless steel production remains robust, driving growth in the global nickel market.

The plating application segment predicted to grow at the CAGR during the forecast period. Nickel plating offers exceptional corrosion resistance, making it a preferred choice for coating various metal substrates, including steel, brass, and copper. The plating industry relies on nickel to create aesthetically pleasing surfaces on consumer goods like kitchen appliances, furniture, and automotive components. Furthermore, nickel plating enhances the durability and longevity of these products, ensuring they withstand harsh environmental conditions and wear over time. This durability makes nickel-plated items not only visually appealing but also long-lasting, meeting the demands of discerning consumers and industries alike.

Regional Insights

Asia Pacific dominated the global market with the largest market share of 73% in 2023. SS melt production drives the demand for nickel in the region. The region accounted for a share of nearly 70% of the world’s SS melt production. In 2022, China accounted for a share of 80% in Asia Pacific, as reported by the International Stainless Steel Forum. Moreover, China is also the largest consumer of SS products in the world, with more than half of the world’s demand. Investments associated with nickel metal and chemicals are projected to push the market demand in the Middle East & Africa region.

• For instance, in May 2023, EV Metals Group announced an investment of USD 1.27 million to set up a nickel and lithium chemicals complex in Saudi Arabia.

The group has signed an agreement with Saudi Arabia’s Royal Commission for Yanb to lease industrial land. Europe region has observed sluggish demand in the recent past, as it was highly impacted by the energy crisis and limited Russian supply of different materials, including nickel. This also impacted the operation costs of SS manufacturers leading to temporary and permanent shutdowns.

• For instance, in May 2022, Aperam closed its SS mill at Genk, Belgium amidst high energy costs.

Nickel Market Key Companies

• Anglo American Plc
• BHP
• Eramet
• Glencore
• IGO Ltd.
• Metallurgical Corporation of China Ltd.
• Norlisk Nickel
• Rio Tinto
• South32 Ltd.
• Vale

Nickel Market Report Segmentations

By Application

• Stainless Steel
• Non-ferrous Alloys
• Plating
• Batteries
• Others

By Region

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa