Asia-Pacific Platinum Market

Market Overview

The Asia-Pacific platinum market size witnessed significant growth and is expected to grow at a CAGR of around 5.5% during the forecast period (2023-2031).

Platinum is a dense, precious, ductile, extremely unreactive, silvery-white transition metal primarily used in automotive exhaust systems and jewelry. It is extensively used as a catalyst in automobile catalytic converter systems alongside other platinum group metals. Important vehicle components, exhaust systems consist of an exhaust manifold, a catalytic converter, an oxygen sensor, a muffler, and exhaust pipelines. Together, these components reduce commotion, convert harmful pollutants that accumulate in the engine's combustion chamber into less hazardous gases, and provide an outlet for those gases.

Highlights

• Primary Source dominates the market by source. 
• Automotive Application dominates the market by application.
• China dominates the market by region.

Market Dynamics

Asia-Pacific Platinum Market Drivers:

Automotive Sector

The automobile industry primarily drives the Asia-Pacific platinum market. Platinum is utilized in catalytic converters to cut down on emissions from petrol and diesel engines. The region's rising demand for fuel-efficient vehicles is anticipated to increase platinum demand in the automotive industry.

Jewelry Sector

Another significant market driver for platinum in Asia-Pacific is the jewelry industry. Due to its luster, resistance to tarnishing, and durability, platinum is a preferred metal for jewelry. The region's demand for platinum jewelry is anticipated to be driven by growing consumer preferences for luxury goods and increased disposable income.

Asia-Pacific Platinum Market Restraints:

Volatility in the Price of Platinum

Due to various reasons, including shifts in supply and demand, the state of the economy, and political developments, the price of platinum is erratic and subject to substantial fluctuations. Due to this volatility, businesses may find it challenging to plan, which may also deter investment in the platinum market.

Asia-Pacific Platinum Market Opportunities:

Increasing Demand for Platinum in the Automotive Sector

The automobile industry primarily drives the Asia-Pacific platinum market. Platinum is utilized in catalytic converters to cut down on emissions from petrol and diesel engines. The region's rising demand for fuel-efficient vehicles is anticipated to increase platinum demand in the automotive industry.

Rising demand for Platinum Jewelry

Due to its luster, resistance to tarnishing, and durability, platinum is a preferred metal for jewelry. The region's demand for platinum jewelry is anticipated to be driven by growing consumer preferences for luxury goods and increased disposable income.

Regional Analysis

The Asia-Pacific market is further segmented by country into China, India, Japan, South Korea, Southeast Asia, Rest of Asia Pacific. China dominates the country market and is expected to grow at a CAGR of 5.9% during the forecast period.

With the rising demand from countries like China, India, and Japan, the Asia-Pacific region is expected to dominate the market studied during the forecast period. According to a World Gold Council survey, China's "Gen-Z" dislikes gold jewelry products and prefers diamond and platinum jewelry. This group will make up a large portion of the population. This will increase demand for platinum jewelry, which will impact the market that was examined. As consumer interest in battery-powered cars increases, the Chinese automotive sector is observing a shift in trends. Likewise, the Chinese government anticipates a 20% market share for electric vehicle production by 2025. As a result, it is predicted that this will enhance the nation's usage of low-friction coatings.

Segmental Analysis

The Asia-Pacific platinum market is segmented based on source, application, and country.

Based on the Source, the Asia-Pacific market is further segmented by Primary and Secondary.

The Primary Source dominated the market and is expected to register a CAGR of 4.9% over the forecast period.

Based on application, the Asia-Pacific market is further segmented by Jewellery, Automotive, Industrial, and Investment.

Automotive dominated the market and is expected to register a CAGR of 4.7% over the forecast period.

Recent Developments

• May 2023- Vale SA has announced that it will invest USD 1 billion over the following five years in Mozambique. The money will go towards expanding the business's coal and nickel ventures in Mozambique.
• Feb 2023- Asahi Group Holding Ltd announced that Takashi Isogai was chosen as its next CEO. On April 1, 2023, Isogai will succeed Yukihiro Ito, who is currently CEO. Isogai has almost 20 years of experience with Asahi Group Holdings and has held several executive positions, including president of Asahi Breweries.