United States Platinum Market

Market Overview

The United States platinum market witnessed significant growth in the past and is expected to grow at a CAGR of around 4.0% 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.

Market Dynamics

The United States Platinum Market Drivers

Growing Investment Demand for Platinum

Platinum is another precious metal that tends to increase in price when inflation is strong. This makes it a wise investment for those who want to guard their money against inflation. In general, the rising investment demand for platinum in the United States market is anticipated to persist in the years to come. Investors seeking a secure and profitable investment will find the metal to have appealing qualities and to be a haven investment.

The demand for platinum in the Industrial Sector

Electronics, dentistry, and chemical production are just a few industrial uses for platinum. With nearly 20% of the country's total consumption, the industrial sector is the third biggest consumer of platinum.

The United States Platinum Market Restraints

The Environmental Impact of Platinum Mining

The mining of platinum may significantly affect the environment. In addition to contributing to deforestation, the mining process can damage the air and water. Increased regulation of the platinum mining business could result from this environmental impact, raising costs and lowering profitability.

The United States platinum market will likely expand overall in the upcoming years. However, the market's expansion might be constrained by the rising usage of substitute materials, the vagaries of platinum prices, and the negative environmental effects of platinum mining.

The United States Platinum Market Opportunities

The Increasing Demand for Platinum in the Jewellery Industry

Platinum is used in jewelry because of its durability and resistance to tarnishing. With almost 30% of the total demand, the jewelry industry is the second-largest user of platinum in the United States. The rising popularity of platinum jewelry among customers is anticipated to fuel the rising demand for platinum in the jewelry sector.

The Increasing Demand for Platinum in the Industrial Sector

Electronics, dentistry, and chemical production are just a few industrial uses for platinum. With nearly 20% of the country's total consumption, the industrial sector is the third biggest consumer of platinum. The increased use of platinum in several applications is anticipated to fuel the rising demand for platinum in the industrial sector.

Segmental Analysis

The United States Platinum market is segmented based on source and application.

Based on the Source, the United States market is further segmented by Primary and Secondary

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

Based on application, the United States market is further segmented by Jewellery, Automotive, Industrial, and Investment.

Automotive dominated the market and is expected to register a CAGR of 3.2% over the forecast period.

Recent Developments

• March 2023- North American Palladium announced it had agreed to pay USD 3.2 billion to purchase Stillwater Mining Company. The combined company will become the world's biggest primary producer of platinum.
• Feb 2023- Stillwater Mining Company announced that it had raised its 2023 output forecast. In contrast to its earlier forecast of 1 million ounces, the company anticipates producing 1.1 million ounces of platinum, palladium, and rhodium.