Global Platinum Market Projected to Grow by USD 1.75 Billion by 2028
The global platinum market is projected to expand by USD 1.75 billion from 2024 to 2028, growing at a compound annual growth rate (CAGR) of 4.36%, according to Technavio. The rising demand for platinum across various industries, particularly in the automotive sector, is a significant driver of this growth.
Platinum is a critical metal primarily used in automotive exhaust systems to neutralize harmful emissions. The automotive industry accounts for over 35% of platinum demand. Environmental concerns and net-zero emission goals are driving market expansion, with diesel vehicles requiring 3-7 grams of platinum and hydrogen fuel cell vehicles using twice that amount. Platinum's efficiency in facilitating chemical reactions in fuel cells, which produce zero emissions, further boosts demand.
The market is experiencing significant trends in hydrogen and fuel cells, driven by their eco-friendly nature. The transition of cars and trucks to hydrogen power and the use of fuel cells for electricity generation are gaining traction. Catalysts, essential for fuel cell efficiency, are seeing increased research and development investment. Additionally, electrification technologies and exhaust heat recovery systems are enhancing efficiency and reducing emissions in various industries, particularly automotive, which is also focusing on more efficient and cost-effective electric vehicles.
The production of platinum is energy-intensive, involving mining, smelting, refining, and chemical processing, which increase manufacturing costs. Rising energy prices further escalate these expenses, potentially leading to higher platinum prices and decreased demand. The complex and costly production process poses a significant challenge for the global platinum market's growth.
Moreover, the market faces challenges in the production and procurement of specific goods and services, such as cells, exhausts, semiconductors, and sensors. The automotive industry, in particular, struggles with sourcing catalytic converters and rare earth materials, alongside supply chain disruptions caused by the pandemic. To address these challenges, companies are adopting innovative strategies like diversifying suppliers, investing in research and development, and implementing agile supply chain management.
Despite these challenges, the market's growth is underpinned by the increasing demand for durable and efficient catalysts and the broader trend towards electrification in various sectors.
