Precious Metal Plating Market

Market Overview

The global precious metal plating market was size valued at USD 216.03 million in 2022. It is estimated to reach USD 352.77 million by 2031, growing at a CAGR of 5.6% during the forecast period (2023–2031). The surging usage of jewelry products in the fashion industry, coupled with a moderate rise in consumer spending and e-commerce, is likely to drive the market over the short-term period.

Precious Metal Plating is the process of electroplating a base metal with a layer of precious metal, such as gold, silver, platinum, or palladium. The worldwide Precious Metal Plating market is predicted to expand due to rising demand from various applications such as jewelry production, electronics manufacturing, automotive, aerospace, and medical devices.

Precious metal plating is used in jewelry creation to give a durable and appealing finish on less costly metals. Precious metal plating is used in electronics production to provide electrical connections that are extremely conductive and corrosion-resistant. Precious metal plating is used in the automotive and aerospace sectors to provide a protective covering for components exposed to high temperatures, humidity, and corrosion. Precious metal plating is employed in medical devices because of its biocompatibility and corrosion resistance.

Market Dynamics

Global Precious Metal Plating Market Drivers

Increasing Demand for Precious Metal Jewellery Through E-Commerce Platforms

Precious metals are widely used in the jewelry industry for decorative items such as brooches, necklaces, earrings, rings, pendants, clips, tiepins, bracelets, headdresses, cufflinks, and other accessories worn for personal adornment. Due to the global spread of the COVID-19 pandemic, retail sales of jewelry have fallen substantially worldwide, opening up new opportunities for online stores and e-commerce platforms. An increasing number of customers from small towns are now comfortable purchasing jewelry online. The jewelry business has witnessed a slow adoption of digital technologies; however, due to the disruptions caused by the pandemic, more jewelry brands have shifted their business to online platforms. This was made possible primarily by the company's huge investments in online sales channels, a part of its omnichannel strategy.

Thus, the surging usage of jewelry products in the fashion industry, coupled with a moderate rise in consumer spending and e-commerce, is likely to drive the market over the short-term period.

Global Precious Metal Plating Market Restraint

Increasing Demand for Lab-Grown Diamond

Lab-grown diamonds are similar to mined diamonds in terms of their crystal structure, chemical composition, and physical and optical properties. The main distinction between mined and lab-grown diamonds is that the former is harvested from the soil, whilst the latter is manufactured in a cutting-edge laboratory. Some consumers are opting for lab-grown diamond jewelry owing to its low-cost availability. This can reduce the market share of plated jewelry as consumers may opt for lab-grown diamonds in some cases. the major factor that has accelerated the demand for these diamonds over the past few years is the significant reduction in their production cost.

Moreover, lab-grown diamonds are either used to produce gem-quality diamonds for retail jewelry sales or to manufacture industrial diamonds for high-tech applications such as sensors, semiconductors, and medical cutting tools. Lab-grown jewelry diamonds pose a significant challenge to natural diamond jewelry as well as plated jewelry primarily due to their lower cost. However, the threat is less for plated jewelry, as plated jewelry is altogether a different segment. Another reason driving the purchasing of lab-grown diamonds is that they provide consumers with a credible option for diamonds that are devoid of the ethical and environmental difficulties associated with mining. All this illustrates the fact that the lab-grown diamond market is set to witness significant growth over the coming years.

Global Precious Metal Plating Market Opportunities

Industry Opportunities

Chemicals used in precious metal plating, such as rhodium, gold, silver, platinum, and palladium, have a bright future in the market. Furthermore, the rising need for long-lasting, corrosion-resistant coatings in a variety of sectors, including jewelry manufacturing, electronics manufacturing, and automotive, is propelling the Precious Metal Plating market forward. Customized jewelry and innovative medical equipment are additional potential development areas in the industry. Furthermore, rising economies, notably those in Asia Pacific, are likely to considerably contribute to the worldwide Precious Metal Plating market's growth in the future years.

Regional Analysis

Based on region, the global precious metal plating market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global precious metal plating market shareholder and is estimated to grow at a CAGR of 6.2% over the forecast period. Ascending demand for jewelry products in China and India is driving the sales of precious metals in the region. The easy availability of raw materials and cheap labor in the Asia Pacific region has made the Asia Pacific a preferred destination for manufacturing facilities and jewelry manufacturers, who are the primary consumers of precious metals.

Moreover, significant developments in designing technology for customizable jewelry products in the online platforms have helped the market grow substantially. The emergence of the COVID-19 pandemic in 2020 shook the world, having a significant influence on the Asia Pacific precious metal market. Lockdowns in the Asia Pacific area have a direct impact on important end-use sectors. The pandemic's influence on consumer disposable income and feelings impacted demand even further, particularly in discretionary areas such as jewelry and fashion accessories. However, probably most critically, government officials implemented required fiscal and monetary measures in response to COVID-19, which has boosted precious metals prices.

North America is anticipated to exhibit a CAGR of 5.7% over the forecast period. The North American precious metal plating market will likely to grow owing to the increasing demand for innovative jewelry designs from online platforms and increasing consumer spending. Factors such as the presence of major jewelry manufacturers in the region and the growing trend for fashion accessories among the young population are expected to further drive the market across the region. Furthermore, the shift to online shopping during the 2020 pandemic has set a noticeable long-term trend. Thus, the growth in consumer spending has accelerated the demand for precious metals, in turn augmenting the growth of the precious metal plating market over the forecast period.

The European market for precious metal plating witnessed strong growth in 2020 owing to an increase in economic growth and increasing prices of precious metals. Growth in E-commerce platforms for the sale of jewelry is trending the market growth. Major brands and even the minor ones today have their attractive and professional web shops and e-boutiques. Leading jewelry manufacturers are adopting a strategy of successful online sales which involves other factors, such as advanced technology and digital marketing. Factors such as the strong demand for jewelry accessories and an increase in consumer disposable income have contributed to the region's need for precious metal plating.

The Central and South American diamond market is expected to increase moderately over the projected period. This can be linked to a rise in jewelry sales as well as the region's rising middle-class population. The emerging middle-class population is one of the driving factors for the precious plating market as more people in this segment are attracted to a better lifestyle and follow the latest fashion trends. The region is characterized by the presence of around 11,500 retail jewelry stores. In 2015, Panama Diamond Exchange (PDE) was inaugurated in Panama as the first dedicated trading center for jewelry, colored gemstones, and diamonds in Central and South America. Before this center's establishment, CSA companies depended on Europe and the U.S. markets.

However, PDE has enabled various suppliers and consumers to connect and exchange diamonds, jewelry, and gemstones under one roof. Traders in India have shown great interest in this initiative, with Indian jewelry firms such as Kiran Gems and Rosy Blue having purchased office spaces in PDE. 2016 Panama Diamond Exchange changed its name to World Jewellery and Diamond Hub, Panama. However, the establishment of this center will not directly impact the precious metal plating market but can raise awareness about the jewelry industry and will likely to assist in the expansion of the plated jewelry businesses.

In Middle East and Africa, this is mainly attributable to the consumption of plating solutions in the jewelry sector in the Middle East. The growing sales of jewelry in the Middle East are owing to a rise in the number of weddings followed by the increasing preference of young women toward casual daily wear jewelry, which is affordable. The COVID-19 pandemic hit the Middle East and African jewelry and fashion accessories industry hard. Airport closures and lockdowns created a negative impact on demand. Declining purchasing power among consumers further decreased sales, increasing inventory costs in jewelry businesses.

Segmental Analysis

The global precious metal plating market is bifurcated into products and applications.

Based on products, the global precious metal plating market is bifurcated into gold, silver, and platinum group metals (PGM).

The gold segment dominates the global market and will likely to exhibit a CAGR of 5.7% over the forecast period. Gold plating based on gold potassium cyanide formulations was first used in 1840, and since then, the market has witnessed the development of various gold formulations. General classes of gold electroplate used in the plating industry include decorative 24k gold flash, rack, and barrel; decorative gold alloy flash, rack, and barrel; decorative gold alloy heavy, rack; and pure and bright alloy used for refinishing. The decorative properties of gold are better compared to other metal deposits.

Additionally, gold has high chemical resistance and dissolves in the mixture of chromic and hydrochloric acids and aqua regia. Gold plating is done in jewelry applications as the plated surface remains bright and attractive for a long time. Most of the jewelry is plated with 2 to 4 micro inches of gold with a plating time of 5 to 30 seconds. Gold is alloyed with various metals to obtain different color shades and improve the aesthetics of products. For instance, gold and silver alloys are widely used in the plated jewelry industry. These alloys are used to form intermediate coatings, which provide good corrosion resistance.

Based on application, the precious global metal plating market is bifurcated into jewelry and fashion accessories.

The fashion accessories segment owns the global market and will likely to exhibit a CAGR of 7.3% over the forecast period. Fashion accessories or jewelry are largely preferred by the young population, especially by youth and teenagers. These accessories are priced at affordable rates and can also be changed as per the latest trends. These products are durable and worth the price paid by customers. Products such as bracelets, trinkets, chokers, necklaces, and fancy rings are popular among the young generation.

Another factor that is contributing to the demand for fashion accessories is the influence of television shows, movies, fashion bloggers, and influencers influencing the choice of consumers. Artists in television shows adorn fashionable accessories, which influences both young and middle-aged populations to buy these products. The changing outlook of the population toward fashion accessories as a daily wear commodity has boosted the demand for such products. These fashion accessory products are safe to wear compared to authentic jewelry, which makes customers feel safe while wearing these inexpensive products.

Recent Developments

• April 2023- Technic, a precious metal plating firm located in the UK, has announced the debut of a new range of ecologically friendly precious metal plating solutions. The new technologies are intended to lessen the environmental effects of precious metal plating.
• March 2023- Nippon Mektron, a Japanese electronic component manufacturer, revealed intentions to invest USD 100 million in a new precious metal plating factory in China. The factory is announced to open by the end of 2023.