The Latin America platinum market witnessed significant growth in the past and is expected to grow at a CAGR of around 5.1% 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.
Governments in Latin America are supporting the development of the platinum mining industry by offering tax breaks, investing in infrastructure, providing research and development support, and offering training and education programs. This support is expected to boost the supply of platinum in the region and meet the growing demand for platinum from the automotive, jewelry, and investment sectors.
Investment in Latin America's platinum mining sector is expanding due to the region's rising demand for metal, government assistance, cheap production costs, political stability, and expansion prospects. This investment is anticipated to expand platinum production in the area, assisting in meeting the rising demand for platinum on the global market.
Compared to other parts of the world, Latin America has a comparatively high cost of manufacturing platinum. The high cost of labor, energy, and environmental compliance are a few reasons.
Platinum is produced in other places outside Latin America. Other nations, including South Africa and Russia, can produce platinum for less money. The cost of platinum in Latin America may decline due to this rivalry.
Latin America's platinum mining sector is still very new. Since the industry is still in its early stages of development, there are still prospects for expansion.
In general, the Latin American platinum market is anticipated to expand steadily over the next few years. Various reasons, such as the rising demand from the automotive, jewelry, electronics, medical, and investment industries, will propel the market's expansion.
The Latin America Platinum market is segmented based on source, application, and country.
Based on the Source, the Latin America market is further segmented by Primary and Secondary.
The Primary Source dominated the market and is expected to register a CAGR of 4.5% over the forecast period.
Based on application, the Latin American market is further segmented by Jewellery, Automotive, Industrial, and Investment.
Automotive dominated the market and is expected to register a CAGR of 4.2% over the forecast period.
The Latin America market is further segmented by country in Brazil, Mexico, and Rest of Latin America. The rest of Latin America dominates the country market and is expected to grow at a CAGR of 3.6% during the forecast period.
The COVID-19 pandemic's effects led to a decline in South American platinum market sales. Along with reducing demand for platinum jewelry, government restrictions, lockdowns, and closures influenced sales. But as more people reported purchasing platinum jewelry from online retail stores, the demand for platinum jewelry in Latin America rose during the second quarter of the epidemic.
Mexico and Brazil are Latin America's two biggest markets for custom jewelry. Fine jewelry accounts for most jewelry sales in the region. Consumers in the market enjoy a variety of platinum jewelry designs. Additionally, consumers' changing lifestyles, which call for constant innovation in diverse patterns and designs, greatly impact the business under investigation. Sales have increased in these regions during the past several years, signaling a surge in the growth of Latin America's jewelry business. To capitalize on these transitions through technological advancement and foreign investment, luxury brands have altered their business strategy. As customer demand for platinum jewelry types changes, industry participants create new designs.
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