Nickel powder finds its key application in the production of stainless steel. Stainless steel constitutes around 65% of global nickel demand. Nickel imparts properties like corrosion resistance and high strength to stainless steel. Rising demand for stainless steel from end-use industries such as construction, oil & gas, and consumer goods is driving the consumption of nickel powder. Global stainless steel production touched new highs in 2021 and further growth is anticipated in the coming years. Hence, increasing stainless steel output augurs well for the Nickel Powder Market.
The global Nickel Powder Market is estimated to be valued at US$ 91.39 Mn in 2024 and is expected to exhibit a CAGR of 4.5% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the nickel powder are Kawasaki Heavy Industries Ltd, CRRC Corporation Limited, Nippon Sharyo Ltd., Siemens AG, Progress Rail (Caterpillar Company), Bombardier Inc., Hitachi Ltd., Alstom SA, Escorts Group, Wabtec Corp. (previously GE Transportation), Construcciones Y Auxiliar De Ferrocarriles sa, Hyundai Rotem, Trinity Industries Inc., Stadler Rail AG, and The Greenbrier Companies. These players are focusing on capacity expansions to cater to increasing demand.
The Nickel Powder Market provides ample growth opportunities owing to rising electric vehicle sales and growing infrastructure development activities globally. Increasing infrastructure spending in developing economies will significantly boost stainless steel demand, thereby driving consumption of nickel powder.
Key players are investing in developing economies through partnerships, joint ventures, and acquisition strategies to leverage untapped opportunities in high-growth Nickel Powder Market Growth. For instance, in 2022, Nippon Yakin agreed for a joint venture with Tsingshan Holding Group to produce nickel matte in Indonesia. This enables the company to strengthen its presence in Southeast Asia.
Market drivers:
1. Growing stainless steel production: Stainless steel constitutes around 65% of global nickel demand. Rising production of stainless steel owing to increasing demand from end-use industries is the key driver for nickel powder consumption.
2. Increasing electric vehicle sales: Nickel powder finds use in lithium-ion batteries used in electric vehicles. Strong government support for electric mobility in form of subsidies and other incentives is boosting EV sales exponentially. This is expected to drive nickel powder demand over the forecast period.
Market restraints:
1. Volatility in nickel prices: Nickel prices vary frequently depending on demand-supply dynamics and various geo-political factors. Uncertainties associated with raw material prices can affect Nickel Powder Market adversely.
2. Stringent environmental norms: Nickel powder production involves emissions that are hazardous to the environment. Stringent emission control policies can increase production costs and negatively impact the market.
Segment Analysis
The Nickel Powder Market is dominated by the electronic sub segment, which accounts for over 40% of the total market share. Nickel powder finds wide application in electronic components like multichip module substrates, chip carriers, and chip capacitor electrodes owing to its high thermal and electrical conductivity. The demand for nickel powder from the electronic segment is expected to be driven by the continued growth in consumption of consumer electronics and advancement of miniaturized electronic devices.
Global Analysis:
The Asia Pacific region holds the largest share in the global Nickel Powder Market, supported by extensive nickel ore reserves and robust manufacturing capacities in key countries like China, Indonesia and Philippines. China dominates Asia Pacific Nickel Powder Market with over 60% share, attributed to strong electronic and stainless steel industries. Europe is the second largest region driven by large automotive, aerospace and medical device industries. Germany and Italy are the major consumers of nickel powder in Europe. North America is projected to expand at healthy pace through 2031 with demand centered around aerospace, defense and medical applications in the US and Canada.
Regional Analysis related content comprises:
The Asia Pacific region is expected to remain the fastest growing as well as the dominant region in the global Nickel Powder Market during the forecast period. This can be attributed to presence of major electronics Nickel Powder Companies hubs and stainless steel production facilities in countries like China, Japan, South Korea and India. The region is estimated to account for around 62% of the total nickel powder demand by 2031. China dominates Asia Pacific and global nickel powder consumption with over 40% share owing to concentrations of electronics assembly and steel processing industries.
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