Platinum Group Metals Market

Market Overview

The global platinum group metals market size was valued at USD 14,719.01 million in 2021. It is projected to reach USD 21,761.08 million by 2030, growing at a CAGR of 4.44% during the forecast period (2022-2030). 

The platinum group metals are a group of six elements that are structurally, chemically, and physically related to one another and are composed of platinum, rhodium, palladium, iridium, ruthenium, and osmium. Some of their various applications include oxygen sensors, fuel cells, vehicle catalysts, jewelry, electrical parts, flat-panel computers, medical devices, computer hard drives, razors, spark plugs, and glassmaking. The platinum group metals are exceptional because they are highly pure, have very high melting points, and have exceptional catalytic capabilities. They also have many other characteristics, such as a low melting point, excellent ductility, and resistance to heat, corrosion, and oxidation. Platinum group metals have a high melting point and are more malleable, ductile, and nonreactive than other metals.

Market Dynamics

Global Platinum Group Metals Market Drivers

Increasing Demand for Platinum, Palladium, and Ruthenium from the Electrical and Electronics Industry

The electrical and electronic sector uses a variety of platinum group metals. Computer displays are made from ruthenium and platinum. Numerous electronic gadgets, including laptops, tablets, smartphones, computer monitors, instrument panels, cockpit displays, digital indoor and outdoor signage, and other devices, employ LCD screens. Due to the continually growing demand for mobile phones, portable computers, gaming consoles, and other personal electronic gadgets, the worldwide consumer electronics business has been expanding quickly. Palladium is also a significant participant in electronics; it is utilized in many electronic items, from straightforward consumer goods to sophisticated military systems.

Increasing Vehicle Emission Regulations

The industry has seen significant growth in demand from applications for vehicle catalysts in the past few years. This increase in palladium loadings due to the nationwide adoption of China's five emissions standards for gasoline-powered cars was the leading cause of this gain. By this law, automakers must certify their vehicles to various standards as long as they adhere to fleet average emission limitations that get tighter and tighter every year. The number of cars with catalyst systems that can achieve the SULEV30 (Super Ultra-Low Emission Vehicle) objective by 2025 has already increased. The average loadings on gasoline-powered cars in the United States increased at double-digit rates last year. As a result, it significantly affects the demand for palladium.

Global Platinum Group Metals Market Restraint

High Prices of Platinum Group Metals

The platinum group metals (PGM) price surge is still going strong, with multiple metals setting new records, supported by solid demand projections and constant supply-constrained supply fears. Platinum has the most significant manufacturing costs among precious metals because it is found in the deepest parts of the earth's crust. As a result, platinum is the most expensive metal to extract in primary production. Global direct supplies of platinum group metals decreased by roughly 16% due to pandemic-related disruptions and shutdowns at the converter plant of Anglo-American Platinum. In comparison, secondary reserves decreased by 12% due to lower car scrappage rates.

Global Platinum Group Metals Market Opportunities

Growing Applications of Platinum in Various Sectors

The most crucial application of platinum is considered in the jewelry category, as it represents a significant share of the overall platinum consumption. Catalytic converters to decrease harmful automobile emissions are also a major application. The medical industry's demand for platinum-based anti-cancer drugs is increasing significantly. At the same time, cardiac problems are treated with the help of medical devices, such as the pacemaker, which contains platinum electrodes. Platinum is employed as a catalyst in motor cars, as it regulates the emission of greenhouse gases. Moreover, it contributes to waste reduction, as it is highly durable, strong, and reliable. Furthermore, the high recyclability of PGMs minimizes the load on the environment.

Regional Analysis

The global platinum group metals market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant shareholder in the global platinum group metals market and is expected to grow at a CAGR of 5.60% during the forecast period. China is the most well-known nation in the world for electronics production. The electronics sector saw the fastest rise in products, including smartphones, TVs, wires, cables, portable computer devices, gaming systems, and other personal electronic gadgets. The nation not only meets the domestic need for electronics but also exports electrical products to other countries and is a significant PCB manufacturer globally. Furthermore, the nation's leading chip and semiconductor device producer is Semiconductor Manufacturing International Corporation (SMIC). Electronics product uptake is fueled by technological changes, including the nation's plans to roll out 5G networks and the rise of the Internet of Things (IoT). The need for IoT in the country has increased due to programs like "Digital India" and "Smart City" projects. The government introduced various initiatives, including the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, to encourage the production of electronics in India (SPECS).

North America is expected to grow at a CAGR of 2.92%, generating USD 5,211.21 million during the forecast period. After China, the United States is the second-largest automobile producer in vehicle output. Light-duty hydrogen fuel cell electric vehicles are now being produced by various automakers in the US. They are only available in a few areas with access to hydrogen fuelling stations, such as Southern and Northern California. A few select groups have access to test vehicles and hydrogen refueling facilities. The US OTC industry is anticipated to keep expanding due to an aging population, the self-medication trend among consumers, and the conversion of prescription pharmaceuticals to OTC status. Canada contributes significantly to the production of motor vehicles worldwide, producing around 2 million cars and light trucks annually. However, the nation's automobile industry has declined over the previous two years. About 2,000 companies in Canada are involved in the manufacture of electronics. Due to Canadians' preference for cutting-edge products, the consumer electronics sector in Canada expanded and seized new chances. The country's enhanced network connectivity is fueling this industry's expansion.

Europe is anticipated to grow significantly during the forecast period. The vehicle industry in Germany is the biggest in all of Europe. With 41 assembly and engine production facilities, Germany dominates the European auto industry and produces one-third of the continent's cars. The nation's industrial output in the electric sector makes up 3% of the gross domestic product and 11% of all industrial production (GDP). About 80% of the nation's total industrial output is produced in the manufacturing sector, including food, medicines, light industries, metal processing, and petroleum refining. Companies at the forefront of fuel cell innovation have discovered a variety of chances to expand their technology in the UK during the past year with the assistance of British policymakers.

Some of South America's most significant electronics manufacturing facilities are in Brazil. Numerous major electronics manufacturers, including Samsung, LG, Foxconn, Dell, Multilaser, Positivo, AOC, Lenovo, and the Leadership Group, have extensive production facilities in the nation. Due to the domestic policy framework contradictions, reduced commodity prices, weak external demand, and the devaluation of the peso's value, Argentina has been experiencing sluggish economic growth during the past few years. However, the new liberalization agenda and the trade- and investment-friendly policies are anticipated to boost the Argentine economy in the long term. The Argentine peso's depreciation has hurt the market for electronic equipment, but it is expected to improve throughout the forecast period. The market is expected to grow more slowly than the electronics industry during the forecast period.

Segmental Analysis

The global platinum group metals market is segmented by metal type and application.

By Type Analysis

Based on type, the global platinum group metals market is bifurcated into platinum, palladium, rhodium, iridium, ruthenium, and osmium.

The palladium segment is the highest contributor to the market and is expected to grow at a CAGR of 4.26% during the forecast period. Palladium is employed in catalytic converters more than in any other use, including jewelry and investment. Two main factors influence the consumption of palladium in the automotive sector: the sale of automotive catalysts through purchasing new cars and PGM loadings. Different catalyst formulations and loadings are utilized for other vehicles based on the engine's control, the applicable emissions control legislation, the engine's size, and where it is located inside the car. Palladium is frequently utilized in electronic applications because of its durability and electrical conductivity. Almost every electronic gadget, from simple consumer goods to sophisticated military weaponry, contains components made of palladium. Even though just a tiny amount of metal is included in each component, the sheer number of units created causes a large amount of palladium to be used. Prostate cancer treatment is a good application for carboPalladium-103, a radioactive isotope of palladium.

Platinum is a precious metal with a grayish-white hue widely used in producing jewelry, chemicals, and automotive catalysts. Various industrial uses generate the remainder of the world's market. Platinum is a suitable oxidation catalyst, conductive, and oxidation resistant. It also has a high melting point and temperature stability. Due to its biological compatibility, platinum plays a crucial role in many medical applications and can hinder the formation of malignant cells in specific compounds. When used as an automobile catalyst, platinum significantly lowers greenhouse gas emissions and air pollution. Due to their strength and endurance, platinum-containing products are more dependable and long-lasting than non-PGM metals, significantly reducing waste. Manufacturers of platinum products include Johnson Matthey, W.C. Heraeus, and BASF, while Tiffany & Co. and Tanishq are the two major producers of platinum jewelry. Honeywell International Inc., Sud Chemie AG, Toshiba, and Delphi Technologies are the principal businesses producing platinum catalysts.

By Application Analysis

Based on application, the global platinum group metals market is bifurcated into autocatalysts, electricals and electronics, fuel cells, glass, ceramics, and pigments, jewelry, medical (dental and pharmaceuticals), chemical industry, and other applications.

The autocatalysts segment owns the highest market share and is expected to grow at a CAGR of 0.33% during the forecast period. A ceramic tool in the form of a honeycomb coated in PGMs catalyzes catalytic converters, which start a chemical reaction that transforms hazardous pollutants (platinum, palladium, and rhodium). The process neutralizes the contaminants when the engine heats the metals in the exhaust system between the engine and the muffler. The loss in combined demand for palladium and rhodium, caused by these unusually high drops in output, was kept to about 11% by further increases in the average PGM loadings on gasoline autocatalysts. The little boost in the average global diesel loadings and the minimal amount of additional use of platinum in three-way gasoline vehicle catalysts helped platinum prices. PGM content in catalysts has increased due to the introduction of RDE and the ensuing tightening of conformity factors, which have significantly increased the technical complexity of achieving emissions regulations.

Platinum, which must be at least 85% pure, is the most popular precious metal used in jewelry, accounting for 20% of all PGMs. The remaining 15% comprises other elements like palladium, iridium, ruthenium, copper, and cobalt. Plating made of rhodium is mainly utilized in jewelry for aesthetic and defensive purposes. The secure setting of precious stones and their versatility in various jewelry applications are made possible by their strength, tarnish resistance, and ability to be heated and cooled without hardening and oxidation effects while maintaining their shape. More robust demand is anticipated in this industry because of trends in PGM consumption, which show that palladium is becoming more accepted in China and India and may eventually replace platinum in jewelry. Platinum is widely used throughout Asia and in many other cultures for bridal and other types of jewelry. As consumer wealth has increased, China has become the largest market, accounting for 50% of global platinum jewelry sales.

Recent Developments

• April 2022- Platinum Group Metals Ltd. Announced that the Waterberg Project is planned as a fully mechanized, shallow, decline access palladium, platinum, gold, and rhodium ("4E") mine and is projected to be one of the highest and lowest cost underground platinum group metals ("PGM" or "PGMs") mines globally.
• September 2022- Anglo American Platinum announced the revised 2022 refined production guidance, as their quality assurance processes detected the delivery of sub-standard materials for the Polokwane smelter rebuild.