Platinum Market Size, Share & Trends Analysis Report By Source (Primary, Secondary), By Form (Metal, Powder, Alloys), By End Use (Automotive, Jewellery, Chemical, Electronics, Industrial, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global platinum market size was valued at USD 7.72 billion in 2022 and is projected to reach USD 11.95 billion by 2031 at a CAGR of 5.13% from 2023 to 2031. Platinum is a crucial component in catalytic converters used to reduce harmful emissions in vehicles. Stricter emission regulations around the world have led to an increased demand for platinum in catalytic converters.

The rarest of precious metals is platinum. Platinum was discovered in the sixteenth century, much later than gold and silver, and was regarded as useless by Spanish explorers in search of gold. It wasn't until the eighteenth century that platinum was recognised as an element. In 1735, platinum was discovered for the first time in modern times. Platinum is now more prevalent as a result of technological and processing advances. Like the other precious metals, it is used to make electronic equipment and other types of equipment in addition to jewellery.

Platinum is crucial to automotive, jewelry, and industrial applications in the complex and dynamic worldwide platinum market. Platinum production is dominated by South Africa, with Russia and Zimbabwe also contributing. Geopolitics, labor strikes, and environmental laws can interrupt production and prices, affecting the market. Platinum is mostly used in catalytic converters to reduce car emissions, although hydrogen fuel cells for sustainable energy are boosting its demand. However, macroeconomic variables, investor sentiment, and speculative trading can affect platinum prices, causing short-term volatility and long-term increases.

Market Dynamics

Drivers for the Global Platinum Market

• Application In Cars Is Driving The Market

Gold is 30 times more common than platinum, which is a naturally occurring metal that can be found as ore. In the exhaust systems of cars, one of the catalysts is platinum. About 40% of the world's total platinum usage is used in these processes, which aid in removing or neutralising hazardous substances from automobile exhaust. The total mining and recycling-related production for the year 2019 were about 8.1 million ounces.

• Diesel Cars And The Hydrogen Fuel Segment Is Driving The Market

The amount of platinum often found in a diesel car exhaust varies depending on the brand and kind of vehicle and is typically between 3 and 7 grammes. In order to achieve net-zero emissions, the market is anticipated to be driven by rising environmental concerns over carbon dioxide emissions. According to estimates, the increased investments in hydrogen fuel cell vehicles and their successful field tests will balance and boost the platinum demand for autos, which has decreased as a result of consumers' switch from diesel to gasoline and gasoline hybrid vehicles.

Restraints for the Global Platinum Market

• High Cost And The Pandemic Hamper The Market

Platinum prices have been declining since the start of the global pandemic, which is one of the main reasons to put a stop to the growth plan. In March 2020, the commodity's price had fallen from almost USD 32,857.3 per kilogramme in January to about USD 18,904.2. As a result, the expected phase of market growth is likely to be hampered by the collapse in commodity prices and the termination of the expansion project in the U.S.

Opportunities for the Global Platinum Market

• The Need For Green Energy Will Bring In New Opportunities

Compared to internal combustion engines, the amount of platinum used by fuel cell electric vehicles is twice as much. Platinum Market is the most potent and long-lasting catalyst, making it possible for hydrogen to react chemically with oxygen in the air to produce water and energy, which is utilised as a fuel in fuel cell cars. In order to achieve zero emissions, the electric motor uses the electricity created and emits water through the exhaust.

Regional Analysis

With a revenue share of approximately 49%, the Asia Pacific region held the market's top spot in 2021. Because of the presence of automobile manufacturing giants like India, China, and Japan, the area is expected to maintain its top spot over the forecast period. Additionally, the implementation of new regulatory standards like BS-VI in the Indian car industry is probably going to pressure the manufacturers to lower pollutant emissions and improve fuel efficiency. A significant investment commodity demand for the product is another important factor in fostering regional growth.

Over the forecast period, it is expected that the European region will experience the second-highest growth rate. Between 2019 and 2021, the region saw stagnating demand due to geopolitical and Brexit-related uncertainty. Due to the increasing demand for diesel hybrid vehicles, it did, nevertheless, see a favourable trend in 2021. According to figures provided by the European Automobile Manufacturers Association (ACEA), the production of hybrid vehicles increased by about 47.0 % in 2019.

Over the course of the forecast, the North American region is anticipated to hold onto its position as the third-largest regional market. The lowering of commodity prices is a major factor in the regional growth, as are the investment opportunities.

Segmental Analysis

This platinum market share can be segmented on the basis of sources, applications, regions and competitors. More than 80% of the market's total share was held by the primary source segment in 2021, which also led the market. The market has two divisions: primary and secondary, based on the source. In contrast to secondary platinum, which is a product obtained after recycling, primary platinum is a material that is mined. Over the projection period, the primary source segment is probably going to rule the market both in terms of revenue and volume. Russia, Zimbabwe, South Africa, Canada, and the United States are the major primary producers of platinum. In 2018, South Africa produced around 137 tonnes of commodities, followed by Russia (22 tonnes) and Zimbabwe (15 tonnes), according to data from the United States Geological Survey (USGS) released in 2019. The pandemic condition that is still present will probably prevent the suppliers from expanding. It is projected that during the next few years, the secondary source segment will experience the fastest CAGR.

The segment is projected to grow favourably as a result of increased regulatory attention and a focus on recycling precious metals. A prevalent point of application for the product will probably continue to be a catalytic converter. The overall carbon footprint is decreased as a result of these catalytic converters, which lower vehicle pollutant emissions. The aforementioned elements will likely contribute to a significant increase in secondary platinum demand over the projection period. Because of the established policies and standards governing the recycling of platinum group metals, the market is anticipated to experience increasing penetration in the North American and European areas. A quarter of the consumption trend in the aforementioned regions comes from secondary sources, thanks to government initiatives and programmes that promote this trend.

More than 38% of revenue was generated by the automotive sector in 2021, which topped the market. Automotive, jewellery, industrial, and investment are the different industry subsectors based on application. Due to the larger use of commodities in the production of catalytic converters for automobiles, the automotive industry dominates the application market in terms of revenue and volume. Vendors of automobiles have been compelled to improve their fuel efficiency while lowering their overall pollutant output due to mounting regulatory pressure from agencies across the globe. This is expected to continue to be a major factor in the segment's growth during the forecast period.

2019 saw the second-largest proportion go to the jewellery segment. The item is extensively utilised in numerous types of jewellery, including rings, pendants, necklaces, earrings, and others. China, India, and the US are the top three jewellery markets. But given that gold-based jewellery is gaining market share, particularly in nations like China and India, platinum-based products are predicted to develop slowly in this industry.

Over the projected period, it is anticipated that the investment application segment will experience the largest CAGR. Investor attention is now more focused due to the platinum price's continuous decline. Because of the cheap costs, investors are mostly focused on purchasing platinum bars and bullions. Bar-related investments will probably continue to be a significant portion of the aforementioned category's investments over the anticipated time frame.

Over the projected period, it is anticipated that the industrial application category will see the second-fastest CAGR. The segment consists of important industrial sectors like chemical, electrical, glass, pharmaceutical, petroleum, and others. Due to the rising output of fertilisers, the chemical industry is projected to continue to be the segment's primary driver of demand.

Impact of covid-19

Covid-19 had some profound adverse impacts on the global advanced ceramics market.

COVID-19 spread across the world from China, making the whole world stand still and to a complete lockdown situation. Covid-19 is an infectious disease that was caused by a newly discovered coronavirus. During the time, the fatality rate among the population above 40 was also high globally. The disease causes severe illness for people suffering from medical conditions like diabetes, cardiovascular disease, chronic respiratory disease, etc.

Considering the situation during that time, it was declared a pandemic which led to numerous countries, including the major economies like China, the United States, India, and others, implementing lockdowns which adversely affected the global economy.

In the first two quarters of 2020, the economic and industrial operations temporarily halted. Almost every manufacturing unit where advanced ceramics is used, such as electrical and electronics, transportation, industrial, chemical, and other End-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers. The lockdown implemented put a halt to global supply chains. This resulted in repercussions in terms of both production and demand for advanced ceramics.

Market Recovery Timeline and Challenges

With time the lockdowns were uplifted, and relaxation was made to the public. Gradually, the economy picked up the pace and started its operations, bringing the demand in the global advanced ceramics market and increasing among various industries. As the situation improved during the initial months of 2021, the economies also strengthened their fiscal policies and initiated their development process; the end-user industries began their activities, bringing the overall ceramics market back on track.

Recent Developments

April 2022- Impala Platinum Holdings Limited plans to acquire a 100% stake in the South Africa-based platinum manufacturer Royal Bafokeng Platinum. It already owns 35.3% of the shares of Royal Bafokeng Platinum. The 100% acquisition will pave the way for creating one of the biggest platinum metal miners worldwide. It will also help Impala consolidate its market position.

February 2022- Heraeus Holding agreed to form a joint venture with BASF SE to recover precious metals, including platinum, from spent automotive catalysts in China. Under this joint venture, a new company named BASF Heraeus Metal Resource Co. Ltd. will be set up in Pinghu, China.