The Global Gold Potassium Cyanide Market is projected to register a CAGR of more than 3% during the forecast period (2021-2026).
The gold potassium cyanide market has been negatively impacted by the COVID-19 pandemic. Due to nationwide lockdowns, strict social distancing measures, disruption in the supply chain, and worldwide shutdown of factories and industries, the electronics market has suffered which in turn affected the growth of gold potassium cyanide (KCN) market. According to World Gold Council, in Q1 2020 Gold used in electronics fell 7% to 59t y-o-y. Manufacturers operating in countries under lockdown have been forced to shut down entire production facilities, while the global impact on employment, income, and general consumption negatively impacted demand for consumer electronics which in turn negatively affected the growth of the gold potassium cyanide market.
- Over the medium term, the factors affecting the growth of the gold potassium cyanide market are increasing applications for the electroplating of gold and the rise in demand for electronic equipment and technological products is a major driver of market growth.
- On the flip side, the fact that GPC is a highly toxic substance, as well as the fluctuation in its price, are major challenges expected to hinder the market growth of gold potassium cyanide during the forecast period. Furthermore, the impact of the COVID-19 pandemic is expected to reduce demand for GPC in the short term period due to a sharp decline in commercial production in various end-user industries.
- Asia Pacific is expected to dominate the global market owing to the growing development of electronic sectors in economies such as China, Japan, and South Korea and, the increasing demand for precious metals such as gold in India and China, which represent a major share of the global demand of gold, are expected to fuel the market expansion in the region.
Key Market Trends
Growing Demand from Electronics and Metal Plating Industries
- Gold potassium cyanide (KCN) is an important gold source used in electrolytic gold plating and electroplating of other metals. KCN also finds its applications in electronic devices because of its excellent properties.
- Gold electroplating is mostly carried out to obtain long-lasting decorative finishes and in some cases to improve electric contact and conductivity. Jewelry, fancy goods such as handbags, optical frames, power compacts, and costumes jewelry pen cases, plumbing fixtures are few applications of gold electroplating. However, due to the COVID-19 pandemic, gold jewelry demand in Q4 2020 fell 13% y-o-y to 515.9t, resulting in a full-year total of 1,411.6t, 34% lower than in 2019 which is expected to affect the market demand for KCN.
- Properties of electroplated coatings of gold are high conductivity, excellent resistance to corrosion, low contact resistance, and remarkable ability to form very good thermocompression bonds.
- Due to these properties, the electronic Industry has a strong relation with KCN. KCN has become a valuable element in the fabrication of microelectronic and electronic devices such as calculators, transistors, and diodes.
- The Revenue of Consumer Electronics segment is anticipated to reach USD 415,897 million in 2021 and is expected to show an annual growth rate (CAGR 2021-2025) of around 4%, resulting in a projected market volume of USD 487,191 million by 2025 which is likely to boost the demand for KCN.
- Larger items such as heat sinks, heater, springs, wires connectors, printed circuits are the common applications for gold potassium cyanide.
- Recently, the outbreak of COVID-19 in all regions is expected to decrease the demand for gold potassium cyanide from the metal and electronic industries in the short term.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific is expected to dominate the global market owing to the highly developed electronic sector in China, Korea, and Japan and the growing demand for precious metals like gold in countries such as India for various reasons.
- Electronic component manufacturing Industries have been consuming KCN for different applications such as flexible printed circuits and printed circuit boards, semiconductors, diodes, and other electronic chips that are used in electronic devices.
- According to the World Gold Council (WGC), China is the largest consumer of gold in 2019. Luxury watches and jewelry segment stands top and is also the fastest growing segment in the consumption of gold. This reason is expected to increase the demand forKCN from the Asia-Pacific region.
- Factors like increasing urbanization, growing connectivity, combined with the usage of advanced technology in the manufacturing of safety technologies and infotainment systems, are boosting the demand for KCN from various electronic devices.
- The Revenue of China in the Consumer Electronics segment is projected to reach USD 162,038 million in 2021 and is expected to show an annual growth rate (CAGR 2021-2025) of around 2%, resulting in a projected market volume of USD 175,670 million by 2025 which in turn is expected to boost the market demand of KCN in the region.
- Growth in aerospace, metal plating industries, and the electronic end-user industries in the Asia-Pacific region are expected to drive the market for gold potassium cyanide through the years to come
- The continuous growth in the medical sector, increasing demand from automobile and aerospace and defense sectors, are expected to drive the market for gold potassium cyanide through the years to come.
The global gold potassium cyanide market is fragmented in nature. Some of the major companies are Alfa Aesar, Thermo Fisher Scientific, Spectrum Chemical Manufacturing Corp, Bangalore Refinery, METALOR Technologies SA, and LEGOR GROUP S.p.A. among others.
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Table of Contents
1.2 Scope of the Study
4.1.1 Increasing Applications for Electroplating of Gold
4.1.2 Growing Demand from the Electronics Industry
4.2.1 High Toxic Nature and Impact of COVID-19 Pandemic
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porters Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Degree of Competition
5.1.1 Low Purity
5.1.2 High Purity
5.2.1 Electroplating of Metals
5.2.2 Decorative Costume Jewellery
5.2.3 Electronic Devices
5.2.5 Other Applications
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.3.2 North America
22.214.171.124 United States
126.96.36.199 United Kingdom
188.8.131.52 Rest of Europe
5.3.4 South America
184.108.40.206 Rest of South America
5.3.5 Middle-East and Africa
220.127.116.11 Saudi Arabia
18.104.22.168 South Africa
22.214.171.124 Rest of Middle-East and Africa
6.2 Market Share Analysis**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Alfa Aesar, Thermo Fisher Scientific
6.4.2 Bangalore Refinery
6.4.3 Innova Corporate
6.4.4 LEGOR GROUP S.p.A.
6.4.5 Mahavir Expochem Ltd
6.4.6 Parekh Industries Ltd.
6.4.7 Prominex Precious Mineral Resources
6.4.8 Spectrum Chemical Manufacturing Corp
6.4.9 METALOR Technologies SA
6.4.10 Umicore Electroplating
A selection of companies mentioned in this report includes:
- Alfa Aesar, Thermo Fisher Scientific
- Bangalore Refinery
- Innova Corporate
- LEGOR GROUP S.p.A.
- Mahavir Expochem Ltd
- Parekh Industries Ltd.
- Prominex Precious Mineral Resources
- Spectrum Chemical Manufacturing Corp
- METALOR Technologies SA
- Umicore Electroplating