Global Precious Metals Market for Automotive Applications Size USD 80.36 Billion By 2031 | CAGR of 7%

Introduction

Precious metals are uncommon, naturally occurring, metallic chemical elements with a high monetary value. Precious metals are chemically less volatile than the majority of other metals. Automakers frequently manufacture catalytic converters, engine control units, printed circuit boards, sensors, and switches using precious metals. Platinum and palladium are used increasingly in the catalytic converters of gasoline-powered cars to reduce harmful emissions. Precious metals for automotive application manufacturers improve the durability and dependability of components like catalytic converters and engine sensors.

Market Dynamics

Increasing Utilization of PGMs in Manufacturing Electric Vehicles Drives the Global Market

Palladium is gaining popularity in electric vehicles due to its metal properties, making it an excellent conductor of electricity. The precious metals for automotive application companies seek to accelerate the creation of PGM-based next-generation battery technology, notably palladium, which is anticipated to boost battery storage by 30%. PGMs include platinum and palladium. This new development has the potential to expand the demand for precious metals in novel applications and electric vehicles by enhancing their endurance and making them economically effective. As a result of these breakthroughs and the exceptional qualities of precious metals, the demand for these metals for manufacturing electric vehicles is increasing.

Vehicle Electrification and Gasoline/Diesel Optimization Creates Tremendous Opportunities

Governments are concentrating on reducing car emissions to combat the deteriorating air quality in urban areas expanding worldwide. In November 2020, the government of the United Kingdom announced a ban on the sale of gasoline and diesel automobiles and vans beginning in 2040. To circumvent these restrictions, automakers concentrate on electrification and developing and marketing various light- and heavy-duty electric cars.

In addition, to counteract the government's initiatives, makers of gasoline and diesel vehicles are working on maximizing efficiency and reducing emissions. Currently, the automotive sector is primarily concerned with the rising cost of fuel and rising pollution levels. Thus, numerous manufacturers of gasoline and diesel engines are researching to optimize engine performance to reduce NOx emissions and improve fuel economy. Platinum and palladium are crucial components of emission-reducing catalytic converters, creating market opportunities for precious metals producers.

Regional Analysis

China is the most significant shareholder in the global precious metals market for automotive applications and is anticipated to grow at a CAGR of 8.8% during the forecast period. China's automotive sector has reached unprecedented heights due to the expanding economy, rising disposable income, and government support. The nation invests substantially in the introduction of unique, revolutionary automobiles. Growth in Chinese automobile sales benefits the demand for platinum group metals, especially palladium. The vast majority of automobiles in China are gasoline-powered, with substantial palladium loads. China's demand for platinum group metals (PGMs) continues to rise, and many of the world's leading precious metals refining businesses aim to develop a precious metals refinery and reprocessing manufacturing plant there. Additionally, the country is a hub for numerous end-use sectors, such as heavy and light commercial vehicles and passenger automobiles, which boost the demand for precious metals for automotive applications.

Asia-Pacific and Japan are projected to expand at a CAGR of 5.9% over the forecast period. The growing demand for light commercial vehicles in the region has increased the need for precious metals in automotive applications. Asia-Pacific and Japan are home to some of the world's top manufacturers, including Nissan, Toyota, Suzuki, etc., actively engaged in increasing vehicle production. These automakers aim to hike the prices of their vehicles because they employ precious metals to create automotive components. Moreover, the rise in the automotive market in this region can be attributed to low-cost labor, the availability of raw materials, government assistance, and the developing economies of countries such as China, India, and Japan, which have led to an increase in automotive production, thereby increasing the demand for precious metals for automotive applications.

Key Highlights

• The global precious metals market for automotive applications was valued at USD 42,713 million in 2022. It is estimated to reach USD 80,365 million by 2031, growing at a CAGR of 7.0% during the forecast period (2023–2031).
• By end-user, the global precious metals market for automotive applications is segmented into light commercial vehicles, heavy commercial vehicles, passenger cars, and electric vehicles. The passenger cars segment is the highest contributor to the market and is expected to grow at a CAGR of 8.11% during the forecast period.
• By metal type, the global precious metals market for automotive applications is divided into palladium, platinum, rhodium, gold, silver, and others. The palladium segment owns the highest market share and is expected to grow at a CAGR of 6.5% during the forecast period.
• By component, the global precious metals market for automotive applications is divided into catalytic converters, engine control units, circuit boards, sensors, switches, windshield defoggers, and others. The catalytic converter segment is the highest contributor to the market and is expected to grow at a CAGR of 6.55% during the forecast period.
• China is the most significant shareholder in the global precious metals market for automotive applications and is anticipated to grow at a CAGR of 8.8% during the forecast period.

Competitive Players

Competitive Players

The key players in the global precious metals market for automotive applications are Heraeus Holding, Anglo American Platinum Limited, Impala Platinum Holdings Limited, Sibnaye-Stillwater, Northam Platinum Limited, Norilsk Nickel, Umicore, Tanaka Holdings Co. Ltd., Johnson Matthey, Sigmund Cohn Corp., First Majestic, Sino-Platinum Metals Co. Ltd., Hecla Mining Company, Fresnillo plc, Newmont Corporation, Royal Bafokeng Platinum, Generation Mining Limited, Desktop Metal, Inc., Nexa, and Freeport-Mcmoran.

Recent Developments

Market News

• In October 2022, Johnson Matthey began fuel cell recycling in China. Located in Zhangjiagang, Jiangsu province, the plant is refining and recycling the platinum group metal content from membrane electrode assemblies (MEA), a vital component of an automotive fuel cell, from Unilia, a provider of fuel cell stack technology.

Segmentation

Global Precious Metals Market for Automotive Applications: Segmentation

By End-User

• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Passenger Cars
• Electric Vehicles

By Metal Type

• Palladium
• Platinum
• Rhodium
• Gold
• Silver
• Others

By Component

• Catalytic Converters
• Engine Control Units
• Circuit Boards
• Sensors
• Switches
• Windshield Defogger
• Others

By Regions

• North America
• Europe
• The U.K.
• China
• Asia-Pacific and Japan
• Rest of the World (RoW)