The Platinum Market is expected to grow at a CAGR of over 3% during the forecast period.
COVID-19 has negatively impacted the automotive industry both in production and demand. Due to the restrictions by the governments around the world and the lockdown, the production of passenger vehicles fell by 18% and the demand fell by more than 13% in the year 2020. The overall demand for Platinum has fallen by 7% in the year 2020. This, in turn, has affected the platinum market, as it is used in the exhaust systems of the automotive. The relaxation of the lockdowns, and the markets opening is an encouraging sign for the Platinum market.
- Over the long term, stringent environmental regulations to reduce hazardous emissions from automobiles will be driving the market.
- The platinum market growth is expected to increase, during the forecast period, owing to the increasing demand for exhaust systems in the automobile industry.
- Asia-Pacific represents the largest market and is also expected to be the fastest-growing market over the forecast period, owing to the increasing consumption from countries, such as China, India, and Japan.
Key Market Trends
Growing Demand for Exhaust Systems in Automobile Industry
- Platinum is a naturally available metal in the form of ore and is 30 times rarer than gold. Platinum is one of the catalysts present in automobile exhaust systems. They help in eliminating or neutralizing the harmful elements from the car exhausts and accounts for 40% of the world's total platinum consumption. Additionally, the global 2020 production through mining and recycling stood at around 170 metric tons.
- Typically, a diesel automobile exhaust contains about 3-7 grams of platinum and it may vary with the brand and type of vehicle. Growing environmental concerns regarding carbon dioxide emission and obtaining net-zero emissions are expected to drive the market.
- The automotive industry account for 34% of demand for Platinum metal, in other words more than one-third of the platinum manufactured is used for automotives.
- Growing investments in hydrogen fuel cell vehicles and their successful trails are estimated to offset and increase the platinum demand for automobiles, which declined due to the consumer shift from diesel to petrol and petrol hybrid vehicles.
- Fuel cell electric vehicles use double the amount of platinum compared to internal combustion vehicles. In fuel cell vehicles, hydrogen is used as fuel and platinum (being the most effective and durable catalyst) enables the chemical reaction with oxygen in the air that produces water and electricity. Electricity generated is used by the electric motor and water is emitted through exhaust, thereby, achieving zero emissions.
- The aforementioned factors and the growing need to curb emissions, to reduce greenhouse gas impact on the environment, is expected to drive the market studied during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to dominate the market studied during the forecast period, due to an increase in demand from countries, like China and India.
- In countries, like India and China, platinum demand is mainly dominated by the growing demand from the jewelry segment. China accounts for about 50% of the total platinum consumption in the jewelry segment, whereas India’s demand was estimated at 175-kilo ounces, which is around 6% of demand in the jewelry segment. The growing aspirations toward jewelry among current millennials are expected to drive the market.
- According to International Energy Agency, In Japan around 3,633 fuel cell electric vehicles are sold in the year 2019 with around 113 hydrogen refuelling stations, promising the growth for fuel cell electric vehicles, in turn, increasing the demand for Platinum metal.
- Platinum is used as a catalyst in various chemical manufacturing processes. India and China are the largest chemical manufacturers in the world, due to their flexible environmental regulations, unlike Europe, and low labor costs.
- Platinum characteristics, like biocompatibility, high mechanical resistance, and low corrosive properties, make it uniquely suitable for a variety of medical applications. It is used in surgical instrumentation, electro-medical implants, and orthopedics. Platinum-based drugs, like cisplatin, are used in medication to treat various types of cancer.
- The aforementioned factors, coupled with government support, are expected to contribute to the increasing demand for the platinum market in Asia-Pacific, during the forecast period.
The global platinum market is partially consolidated, with players accounting for a marginal share of the market. Few companies in the market studied include Anglo American Platinum Limited, Norilsk Nickel, Northam Platinum Limited, and Sibanye-Stillwater, among others.
- The market estimate (ME) sheet in Excel format
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1.2 Scope of the Study
4.1.1 Stringent Environmental Regulations to Reduce Hazardous Emissions from Automobiles
4.1.2 Increasing Demand from Jewelry
4.2.1 Unfavorable Conditions Arising due to COVID-19 Outbreak
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Intensity of Competitive Rivalry
5.1.1 Exhaust Systems
5.1.3 Chemical Catalysts
5.1.4 Glass Production
5.1.6 Other Applications
5.2 By Geography
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.2.2 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
5.2.4 Rest of the World
220.127.116.11 South America
18.104.22.168 Middle-East and Africa
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Anglo American Platinum Limited
6.4.2 Chimet SpA
6.4.3 Heesung PMTech
6.4.4 Heraeus Holding
6.4.5 Hindustan Platinum
6.4.6 Implats Platinum Limited
6.4.7 Johnson Matthey Plc
6.4.8 NIHON MATERIAL Co.,Ltd.
6.4.9 Norilsk Nickel
6.4.10 Northam Platinum Limited
A selection of companies mentioned in this report includes:
- Anglo American Platinum Limited
- Chimet SpA
- Heesung PMTech
- Heraeus Holding
- Hindustan Platinum
- Implats Platinum Limited
- Johnson Matthey Plc
- NIHON MATERIAL Co.,Ltd.
- Norilsk Nickel
- Northam Platinum Limited