Electrolytic Nickel Market Size, Share, Growth, and Industry Analysis, By Grade (Ni 9999, Ni 9996, Ni 9990), By Application (Stainless Steel, Alloy, Electroplated steel), and Regional Forecast to 2031

Updated On: 08 April 2024

Electrolytic nickel market Report Overview

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The global electrolytic nickel market size was USD 3454.59 billion in 2021. As per our research, the market is expected to reach USD 4569.7 billion by 2027, exhibiting a CAGR of 4.77% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with the electrolytic nickel market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Electrolytic nickel is a type of nickel metal that is obtained by electrolysis, which is a process that uses electrical energy to drive a chemical reaction that is otherwise not spontaneous. Electrolysis involves passing an electric current through an electrolyte solution that contains dissolved nickel ions. The nickel ions are reduced to nickel atoms at the cathode (the negative electrode) and deposited as a thin layer of pure nickel metal.

It is produced by various methods depending on the source and quality of the nickel ore. The most common method is the Mond process, which involves roasting the nickel ore with carbon monoxide to produce nickel carbonyl gas, which is then decomposed by heat to produce pure nickel metal. It is used for various applications such as stainless steel, alloy steel, batteries, electroplating, and chemicals. It has high purity, strength, durability, lubricity, and corrosion resistance

COVID-19 Impact: Pandemic Increased the Market Demand Negatively Affecting Supply and Demand 

The COVID-19 pandemic has had a significant impact on the electrolytic nickel market share. The Covid-19 pandemic has had a significant impact on the market, affecting both the supply and demand sides. On the supply side, the pandemic disrupted the mining and smelting operations of nickel producers, especially in countries with strict lockdown measures such as Indonesia, Philippines, and South Africa. This resulted in reduced output and higher production costs for it. The pandemic also affected the transportation and logistics of nickel ore and metal, causing delays and shortages in some regions. On the demand side, the pandemic reduced the consumption of it in various end-use sectors such as automotive, aerospace, construction, and electronics. This resulted in lower prices and excess inventories for it. The pandemic also affected the consumer preferences and behaviours, leading to a shift towards more sustainable and environmentally friendly products and services, which may have implications for the future demand for it.

Latest Trends

"Increasing Demand for Nickel-Cobalt-Aluminium (NCA) Batteries is expected to Fuel the Growth in the Market"

A recent trend in the market is the increasing demand for nickel-cobalt-aluminium (NCA) batteries, which are used in electric vehicles (EVs) and energy storage systems (ESSs). NCA batteries have higher energy density, longer cycle life, and lower cost than other types of batteries such as lithium-ion or lead-acid. The growing market for EVs and ESSs is expected to boost the demand for it, as NCA batteries account for around 10% of all nickel demand. According to Reuters, EV sales in core markets such as China, Europe, and the U.S. saw a rise of around 130% on the year to over 3M units in 2021. The supportive policies and regulations from governments and international organizations to promote the adoption of EVs and ESSs as part of the efforts to reduce greenhouse gas emissions and combat climate change. For example, China has set a target to achieve carbon neutrality by 2060 and plans to phase out sales of new gasoline vehicles by 2035. The European Union has proposed a new legislation that would ban sales of new petrol and diesel cars by 2035. The U.S. has announced a goal to make half of all new vehicles sold in 2030 zero-emission vehicles.

Segmentation

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• By Grade Analysis

According to type, the market can be segmented into Ni 9999, Ni 9996, Ni 9990.

• By Application Analysis

Based on age, the market can be divided into Stainless Steel, Alloy, and Electroplated steel.

Driving Factors 

"Recovery of the Global Economy from the Covid-19 Pandemic to Fuel the Market Growth"

The pandemic has caused a severe contraction in the global economic activity and industrial production in 2020, which reduced the demand for electrolytic nickel in various sectors. However, as the vaccination programs progress and the lockdown measures ease, the global economy and industry are expected to rebound in 2022 and beyond, which will increase the demand for electrolytic nickel in various sectors. For example, stainless steel, which is the largest consumer of electrolytic nickel, is expected to see a strong growth in demand as the construction, automotive, and consumer goods sectors recover from the pandemic. Similarly, electroplating, which is another major consumer of electrolytic nickel, is expected to see a rising demand as the electronics, aerospace, and medical sectors recover from the pandemic.

"Supply Constraints of Low-Grade Nickel to Result in the Expansion of the Market"

Low-grade nickel is mainly produced by Indonesia and China as nickel pig iron (NPI), which is a cheaper alternative to electrolytic nickel for stainless steel production. However, Indonesia and China have faced challenges in maintaining their NPI output due to various factors. For example, Indonesia has banned the export of raw nickel ore since 2020, aiming to develop its domestic downstream industries and increase its value-added exports. This policy has reduced the supply of low-grade nickel ore to China, which is the largest importer and consumer of nickel ore. Moreover, China has faced environmental regulations and power shortages that affect its NPI production. These factors have reduced the availability and profitability of low-grade nickel, which may benefit the demand for high-grade electrolytic nickel.

Restraining Factor

"Volatility of the Nickel Price to hamper the Market Growth"

There is a lot of misinformation about nutrition and healthy eating. A restraining factor for the market is the volatility of the nickel price. The price of nickel is influenced by various factors such as supply-demand balance, inventory levels, exchange rates, speculation, and geopolitical events56. The price of nickel can fluctuate significantly in a short period of time, creating uncertainty and risk for both producers and consumers.

Regional Insights

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"Asia Pacific to Lead the Market Owing To Rising Prevalence Of Chronic Diseases"

The Asia Pacific region has shown the highest electrolytic nickel market growth. This is due to the rapid development of its stainless steel industry, which is the largest end-use sector. China is the world’s largest producer and consumer of stainless steel, accounting for large part of the global stainless steel production and global stainless steel consumption in 2019. Stainless steel is widely used in various industries such as construction, automotive, consumer goods, and medical equipment.

Key Industry Players

"Key Players Are Employing Advanced Technologies In Order To Stimulate Further Growth of The Market "

All the major players are motivated to offer superior and more advanced services in order to gain a competitive edge in the market. To increase their market presence, vendors are using a variety of techniques, including product launches, regional growth, strategic alliances, partnerships, mergers, and acquisitions.

List of Market Players Profiled

• Norilsk Nickel(Russia)
• Sichuan Nike Guorun Group(China)
• Xinjiang Xinxin Mining Industry(China)
• Guangxi Yinyi Science and Technic Mine Metallurgy(China)
• BHP Billiton(Australia)
• Vale(Brazil)
• Xingwang Enterprise Group(China)
• Jilin Jien Nickel Industry(China)
• Sherritt(Canada)
• Glencore PIC(Switzerland)
• Jiangxi Jiangli Sci-Tech(China)
• ERAMET(France)
• Sumitomo Metal Mining(Japan)
• Jinchuan Group(China)

Report Coverage

This report examines an understanding of the electrolytic nickel market’s size, share, and growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.