Middle East and Africa Platinum Market

Market Overview

The Middle East and Africa platinum market witnessed significant growth in the past and is expected to grow at a CAGR of around 4.3% 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.
• Rest of the Middle East and Africa dominates the market by region.

Market Dynamics

Middle East and Africa Platinum Market Drivers

Increasing Demand for Exhaust Systems in Automobile Industry

In vehicle catalytic converter systems, platinum, a naturally occurring rare metal, is widely used as a catalyst with other platinum group metals. A vehicle's exhaust system, which is an important component, comprises an exhaust manifold, a catalytic converter, an oxygen sensor, a silencer, and exhaust pipes. Together, these parts reduce engine noise, transform harmful pollutants that collect in the combustion chamber into less harmful gases, and create a passageway for those gases to leave the car. The automotive exhaust industry is where platinum is primarily used. The auto sector uses over 40% of the entire amount of platinum produced. Typically, 3–7 grams of platinum are found in diesel car exhaust. Depending on the type and brand, the exact cost may change.

Middle East and Africa Platinum Market Restraints

Political Risk in Newly Platinum Supply

South Africa presently produces over 70% of the world's newly mined platinum after producing up to 75% earlier. Because of this, South Africa's situation is crucial to the supply of platinum. Given that South Africa's political environment, like that of many developing countries, has become more unstable in recent years, the supply of platinum is susceptible to a rather high level of political risk. South Africa's platinum output has been hampered by labor disputes, issues with water and power supplies, and even shifting exchange rates. Forty percent of the world's platinum production was harmed in 2014 when workers at Anglo-American Platinum, Impala Platinum, and Lonmin went on strike. Platinum is expensive.

Middle East and Africa Platinum Market Opportunities

High Adoption in Industrial Applications

Numerous industrial applications increasingly use platinum, and recent technical developments have even increased some of its more conventional uses. Due to improvements in automotive catalyst technology and stricter pollution limitations under the Euro 6 regulations, platinum is now used to lower nitrogen oxide emissions from diesel engines. One incredibly innovative technology is fuel cell electric automobiles, which require more than twice as much platinum as traditional internal combustion engines. Platinum is a biocompatible metal used in pacemakers and equipment for keyhole surgery. Platinum is also increasingly used in electrical applications, such as servers that support cloud storage, servers that require increased storage density, and liquid crystal displays. As of 2018, non-automotive industrial demand accounted for around 23% of the total platinum demand, which is gradually increasing.

Regional Analysis

The Middle East and Africa market is further segmented by country in South Africa, Saudi Arabia, and the Rest of MEA. The rest of MEA dominates the country market and is expected to grow at a CAGR of 4.0% during the forecast period.

The Middle East and Africa market comprises Saudi Arabia, Bahrain, the UAE, Kuwait, Oman, Qatar, South Africa, and the rest of the region. One of the biggest and fastest-growing markets is the United Arab Emirates. The largest jewelry trading center in the world and the presence of mining sites contribute to the growth of the local market. Saudi Arabia is one of the largest retail markets, and significant businesses focus there on expanding and introducing new platinum jewelry, especially in Riyadh and Jeddah. The demand for handcrafted, bespoke platinum and diamond jewelry is fueling industry rise in this area.

With USD 24.5 billion in exports, South Africa was the biggest supplier of platinum worldwide in 2021. The major export destinations for platinum from South Africa are the United States with USD 6.98 billion, Japan with USD 6.06 billion, the United Kingdom with USD 4.34 billion, Germany with USD 1.9 billion, and Hong Kong with USD 1.81 billion.

Segmental Analysis

The Middle East and Africa Platinum market is segmented based on source, application, and country.

Based on the Source, the Middle East and Africa market is further segmented by Primary and Secondary.

The Primary Source dominated the market and is expected to register a CAGR of 3.8% over the forecast period.

Based on application, the Middle East and Africa market is further segmented by Jewelry, Automotive, Industrial, and Investment.

Automotive dominated the market and is expected to register a CAGR of 3.5% over the forecast period.

Recent Developments

• March 2023- Johnson Matthey declared that it had created a brand-new platinum catalyst that can cut car emissions by up to 20%. A new generation of automobiles developed by automakers worldwide is anticipated to use the catalyst.
• April 2023- Amplats declared that it has agreed to supply platinum to a Chinese business for use in electric vehicles. The agreement is anticipated to assist Amplats in supplying the rising demand for platinum from the market for electric vehicles.