The Nickel Powder Market involves fine particles of nickel metal that are manufactured through various reduction and atomization processes. Nickel powder finds extensive usage as a precursor in nickel-based alloys and superalloys for manufacturing components in aerospace, industrial gas turbines, and oil & gas industries due to their high temperature performance and corrosion resistance. Nickel powder imparts strength and sheen to stainless steel. Around 67% of global nickel production is utilized in manufacturing stainless steel and specialty steels. The ever-increasing demand for stainless steel from various end-use industries like chemical processing, architecture, and transportation is augmenting the consumption of nickel powder. Nickel powder manufacturing requires specialized facilities and equipment to ensure product consistency and quality.
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 Market 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.
The growing demand for stainless steel from various industries like chemical processing, food processing, architecture and building and construction is fueling the consumption of Nickel Powder Market Growth. Also, increasing usage of nickel superalloys in critical engine components of aircraft and gas turbines is propelling the Nickel Powder Market. Several manufacturers are expanding their production capacities and facilities across regions to cater to the increasing global demand.
The increasing adoption of nickel powder in lithium-ion batteries is also augmenting market growth. Nickel is used as anode material in lithium-ion batteries due to its high energy density. With the rising demand for electric vehicles and deployment of renewable energy, the consumption of lithium-ion batteries is growing substantially, thus benefiting the Nickel Powder Market.
Market drivers
The primary driver boosting the Nickel Powder Market is the extensive use of nickel powder in production of stainless steel. Around two-thirds of total nickel production is utilized for manufacturing various grades of stainless-steel. The burgeoning stainless steel market across the world especially in developing countries is accelerating the consumption of nickel powder. Stainless steel provides excellent corrosion resistance, durability and aesthetic appeal thereby finding wide applications in construction, transportation, chemical processing and other industries. Additionally, increasing usage of nickel superalloys in critical engine components of aircraft and industrial gas turbines due to their high strength and creep resistance even at elevated temperatures is also fueling the demand for nickel powder over the forecast period.
The current geopolitical uncertainties are likely to have a significant impact on the growth of the Nickel Powder Market in the forecast period. Russia's invasion of Ukraine has disrupted global supply chains and increased volatility in commodity prices. Nickel is a crucial raw material used in stainless steel production. Russia accounts for around 10% of the global nickel production. Western sanctions on Russia amid the ongoing conflict have constrained nickel supplies and driven up costs significantly. In March 2022, the LME nickel price surged to over $100,000 per tonne due to shortages, forcing the LME to halt trading and cancel multiple trades. The supply shock has compelled buyers to seek alternative sources of nickel from regions like Indonesia, Philippines, New Caledalonia. However, ramping up production in short time frames remains challenging. Going forward, market players must focus on developing diversified sourcing strategies and long-term supply agreements to reduce heavy reliance on any single region. Strategic reserves of nickel may also need to be established to prevent severe price fluctuations due to geopolitical events.
In terms of value, the Nickel Powder Market in Europe is currently concentrated, accounting for over 30% share. Led by stainless steel production, European nations like Germany, UK, France and Italy have sizable demand. Asia Pacific follows in terms of size, with major consumers in China, Japan and South Korea. Although China dominates global nickel powder production, it also imports significant quantities to fulfill internal demand from its vibrant stainless steel and electric vehicle batteries sectors. The fastest growing Nickel Powder Companies is expected to be North America over the forecast period. Rising automotive and infrastructure construction activities are driving additional nickel powder utilization for specialty steel and battery applications in the US and Canada.
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