Palladium Market

The Global Palladium Market was valued at USD 16.5 Billion in 2022 and is projected to reach a value of USD 24 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 5.5% over the forecast period.

Premium Insights

Palladium is a silver-white ductile metal used primarily within the electronic sector. It is used in the form of electrical contacts. Palladium is a rare earth metal that is whitish and part of the six platinum group metals (PGM), including Palladium, iridium, rhodium, osmium, rhodium, and ruthenium. The global Palladium market is expected to increase in demand due to the increasing utilization of catalytic converters within automobiles and the rising number of exchange-traded funds (ETFs). Additionally, rising concerns regarding the environment and increased carbon footprint on a global scale will further add to the expanding market during the forecast period.

According to some studies, the growing demand for Palladium within various chemical manufacturing factories is increasing. Palladium is extremely valuable as they possess highly chemical transformation properties. An expanding oil and gas industry on a global scale is further expected to drive the demand for Palladium in the form of catalytic processes, including hydrogenation, petroleum, and dehydrogenation. Factors such as rising jewelry and photography sensors are expected to drive increased adoption of Palladium. The growing demand for consumer electronics, which employ a high level of electronic connectors, will increase the footprint of the global Palladium market during the forecast period.

The rising number of automobile sales on a global scale is expected to boost the increased market growth. Palladium is used within vehicle exhausts for its catalytic converter properties, which can help convert more than 90% of harmful gases from auto exhaust. These harmful gases, such as carbon monoxide, hydrocarbons, and nitrogen oxide, are converted into less harmful substances, such as carbon dioxide, nitrogen, and water vapor. This ability to convert gases is expected to drive the global Palladium market during the forecast period towards sustainable growth.

Growing electronic products among the global population will contribute to segmental growth during the forecast period. Palladium materials are often used as a substitute for gold for making jewelry. This rare metal is also found in smaller quantities within various consumer electronics such as computers, laptops, and mobile phones. Rising demand for recycling metals will drive the global Palladium market growth.

Economic Insights

There have now been two consecutive quarters of negative growth for the US economy. The US stock market is likewise anticipated to have a challenging year. However, given US investors are preparing for anticipated recessive conditions, market volatility should still be ongoing. The benchmark S&P 500 index was down 19.8% year to date in the last month of 2022 and was on track to post its most significant annual loss since 2008. Since Russia invaded Ukraine, the world has seen increased geopolitical risk. Investors, market participants, and other authorities anticipated that the war would hurt the world economy by pushing inflation. These harsh dire consequences and the uncertainty surrounding potential outcomes are expected to cause turbulence in the global economy.

Top Market Trends

1. Increasing Investment Prospects to Accelerate Market Expansion: Rising investment practices regarding precious metals are expected to drive the global Palladium market. The private sector invests heavily in metals for exchanging and saving purposes, as Palladium is a vital choice for market growth.

2. Preferred Investment for Better Return on Investment: Precious metals are often sought after as a good choice for portfolios within mutual funds for investment purposes. It is considered an excellent choice for providing a good ROI by many companies as they are inclining towards exchange-traded funds in the form of Palladium.

3. Changing Lifestyle of Working-Class Population: An ongoing trend of growing urbanization has led to certain changes within the lifestyle of the global population, especially among the working and middle-class population. Today's generation is inclined towards product design with a trend and off-brand production.

4. Rising Demand from Ornaments: Consumers purchase many ornaments to increase disposable income and per-capita income. Increased demand from the ornament sector is expected to drive the demand for the Palladium market during the forecast period.

Market Segmentation

The global Palladium market can be categorized as Types, Applications, and Region. Based on Types, the market can be segmented across Mineral Sources and Recycling Sources. In addition, in terms of Applications, the market can be further fragmented into Catalyst, Chemical Manufacturing, Electricals & Electronics, Jewelry, and Other Applications. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Types

Mineral Sources to Occupy the Largest Market Share While Recycled Sources Expected to Grow with the Fastest Growing CAGR

Palladium is extremely malleable, has flexibility, and can cause oxidation stability. This makes the metal extremely valuable for certain applications and during various manufacturing activities. Additionally, Palladium is considered to be more than 30 times as valuable as gold and has a lower melting point and density. Furthermore, Palladium has the hallmarks of 500, 950, and 999, indicating the percentage of Palladium within the article over a gram. These factors will contribute to the largest segmental growth of mineral sources. The segment about Recycling Sources is expected to grow with the fastest growing CAGR during the forecast period due to the rising supply gap for Palladium.

Based on Applications

Catalyst segment to Dominate Market Revenue Owing to Rising Transportation Activities

The segment of Catalytic Converters is expected to generate the largest revenue share in terms of volume and value. Factors about increasing transportation activities within the automotive sector in developed and developing economies are expected to contribute to segmental growth. Catalytic converters are used heavily in trucks, cars, and other vehicles to reduce their carbon footprint. Rising government regulations by several government agencies, such as the Environmental Protection Agency (EPA) and the Central Pollution Control Board (CPCB) will propel the growth of catalytic converters during the forecast period. Electricals and electronics will grow with the fastest growing CAGR during the forecast period owing to rising consumption and sales of consumer electronics such as laptops, tablets, televisions, and monitors.

Based on Region

North America to Fuel Largest Revenue Due to Rising Sales of Consumer Electronics

The global Palladium market is expected to garner its largest contributor from the North American Palladium market. Factors such as rising automobile sales and increased consumer electronics consumption are expected to contribute to regional dominance during the forecast period. Palladium is a connector material within consumer electronics and a catalytic converter within the automobile. Palladium is used in a few dental applications to increase the metallic luster and decrease corrosion. Also, it is used as a precious metal within jewelry as a substitute for platinum. During the forecast period, these factors will contribute to the North American Palladium market.

The region of Asia Pacific will grow with the fastest growing CAGR during the forecast period owing to the presence of China, which possesses a huge electronic sector. Additionally, numerous Palladium manufacturers combined with rising demand for consumer electronics within Japan, China, and Taiwan will add to the market growth at an incremental pace.

Competitive Landscape

The global Palladium industry comprises players adopting various strategies to stay at the top of the competitive landscape. These strategies include mergers and acquisitions and constant manufacturing and production techniques developments. Players also focus on increasing their manufacturing facilities to decrease the demand-supply cycle gap.

The key players in the global Palladium market include - Aberdeen International (Canada), Alfa Aesar (U.S.), Anglo-American (U.K.), ARM Platinum (South Africa), BASF (Germany), Evonik (Germany), Glencore (Switzerland), Heraeus (Germany), Impala Platinum (South Africa), Johnson Matthey (U.K.), Lonmin (U.K.), Palladium One Mining (U.S.), Platinum Group Metals (South Africa), Sibanye-Stillwater (South Africa), Umicore (U.S.), Vale (Brazil) among others.

Recent Market Developments

· March 2022: Bokoni Mine was announced to be acquired by the African rainbow to improve its portfolio.

· November 2020: Canada-based Palladium One announced they would begin drilling a 17.5-kilometer hole at their Kaukua South discovery in Finland. The site is estimated to contain more than 11 million tons of optimized-pit contained resources, out of which 1.8 g/tonne Palladium is expected to be recovered.

· November 2020: Canada Palladium Resources announced they were coming with additional analytical results for drilling diamond holes EB-20-32, 33, and EB-20-35 to EB-20-38 on the East Bull Palladium Property. This site lies at a distance of 90 kilometer west of Sudbury, Ontario.

Segmentation of the Global Palladium Market