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Precious Metal Refining Market - Forecast(2023 - 2028)
Precious Metal Refining Market Overview
The Precious Metal Refining Market size is forecast
to reach US$25.3 billion by 2027 after growing at a CAGR of 6% during the
forecast period 2022-2027. Precious metals are
available in a wide range of product types which include gold, iridium, silver,
platinum, palladium, ruthenium, and others. They
are used for a wide range of applications which include jewelry, watches,
catalysts, automotive, electronics, antimicrobial agents, and other similar
applications. According to recent insights from the Semiconductor Industry
Association, China imported around US$378 billion in semiconductors,
accumulated 35% of the world’s electronic devices, and was responsible for 30%
to 70% of the global PC, TV, and mobile phone exports in 2020. An
increase in demand for precious metals from the automotive and electronic
sectors acts as the major driver for the market. On the other hand, fluctuating
prices of raw materials are likely to obstruct the market and hinder its
growth.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown
has significantly reduced production activities as a result of the country-wise shutdown of production sites, shortage of
labor, and the decline of supply and demand chain all over the world, thus,
affecting the market. Studies show that the outbreak of COVID-19 sharply
declined the production of raw materials in 2020 due to a lack of operations
across multiple countries around the world. However, a slow recovery has been
witnessed across many countries around the world since 2021. For instance, an
increase in work from home and e-learning practices during COVID-19 has
significantly led to high demand for laptops, tablets, and smartphones which
have resulted in the higher production of these electronics. According to the Retailers Association of India (RAI), consumer electronics net sales increased
by 2% in September and 8% in October 2020, in comparison to 2019, owing to the
increasing consumption of electronic devices for remote practices during
COVID-19.
Since precious metals are widely used in the
electronic industry for applications such as electroplating, optical coatings,
electrical insulation of batteries, printed circuits boards, and other similar
electronic components, an increase in production from electronic sectors will
eventually lead to an increase in demand for precious metal refining. This
indicates a slow and steady recovery of the market in the upcoming years.
Report Coverage
The report: “Precious Metal Refining Market – Forecast (2022-2027)”, by
IndustryARC covers an in-depth analysis of the following segments of the Precious Metal Refining Industry.
By Type: Gold, Silver, Platinum, Palladium,
Ruthenium, Rhodium, Iridium, Osmium, Others.
By Application: Jewelry, Watches, Catalysts, Automotive,
Electronics, Antimicrobial Agents, Others.
By Geography: North America (USA, Canada, and
Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia,
Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South
Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of
Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest
of South America), the Rest of the World (the Middle East, and Africa).
Key Takeaways
- Silver segment in Precious Metal Refining Market is expected to see the fastest growth, especially during the forecast period. Its wide range of characteristics and high demand for industrial applications made it stand out in comparison to other types of precious metals in the market.
- Electronic application in Precious Metal Refining Market is expected to see the fastest growth, especially during the forecast period, owing to the increasing demand for precious metals refining for electronic applications such as batteries, printed circuits boards, semiconductors, and other similar applications.
- Asia-Pacific dominated the Precious Metal Refining Market in 2021, owing to the increasing demand for precious metals refining from electronic and automotive sectors of the region.
Figure: Asia-Pacific Precious Metal Refining Market Revenue, 2021-2027 (US$ Billion)
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Precious Metal Refining Market Segment Analysis – By Type
The silver segment held the largest share in
the Precious Metal Refining Market in 2021 and is expected to grow at a CAGR of
6.2% between 2022 and 2027, owing to its increasing demand from industrial
applications due to the properties they hold.
Silver is highly resistant to oxidation and corrosion. It is considered
to be the greatest thermal and electrical conductor of all the metals which
makes it ideal for electrical and electronic applications in comparison to gold, platinum, palladium, ruthenium, and other precious metals. Moreover, it has antimicrobial and non-toxic
qualities which makes it quite beneficial for use in medicine and consumer
products as well. Likewise, it is highly flexible in comparison to other
precious metals which makes it easier to be flattened into sheets, as well as into
thin, flexible wire. All of these properties make it ideal for use in various
industrial applications. In addition to this, silver is readily available, less
expensive, and cost-effective than gold, platinum, and other precious metals
which makes it ideal for use in various industrial applications. Hence, all of
these properties are driving its demand over other types of precious metals,
thus, boosting the market growth.
Precious Metal Refining Market Segment Analysis – By Application
The electronic application held the largest
share in the Precious Metal Refining Market in 2021 and is expected to grow at
a CAGR of 6.5% between 2022 and 2027, due to increasing demand in electronic
applications such as batteries, printed circuits boards, electroplating,
optical coatings, electrical insulation, and other similar applications. In
October 2020, the Semiconductor Industry Association (SIA) stated that global
semiconductor industry sales reached up to US$47.2 billion in August 2021, and
increased by 29.7% in comparison to the total sales of US$36.4 billion in
August 2020. Furthermore, Lenovo Group,
a leading brand in consumer electronics such as laptops, smartphones, desktops,
monitors, and display screens, published the annual report for the fiscal year
that ended in March 2021, which stated that the total revenue of the company
reached up to US$60,742 million in the fiscal year 2020/21, an increase by 20% in
comparison to the fiscal year 2019/20.
According to recent insights published on Growth from Knowledge (GRK) in
September 2021, the global consumer electronics industry obtained a total sales
growth of US$ 42.8 billion during the first quarter of 2021, an increase of 18%
in comparison to 2020. This, in turn, will increase the demand for precious
metals refining required for the production of electronic applications such as
electroplating, optical coatings, electrical insulation, printed circuits
boards, and other similar applications, thus, leading to market growth in the forecast
period.
Precious Metal Refining Market Segment Analysis – By Geography
The Asia Pacific held the largest share in the
Precious Metal Refining Market in 2021 up to 32%. The consumption of Precious
Metal Refining is particularly high in this region due to its increasing demand
from the electronic sectors. For instance, according to a recent study
published in the Economic Times (Telecom) in 2021, electronic manufacturing and
production are valued at around US$ 100 billion in India currently. It further
states that mobile manufacturing in India surpassed INR 90000 crore (US$ 12
trillion) in 2021 as per the statement made by the Indian IT Minister.
Likewise, according to the annual reports published by Samsung during the
fourth quarter of 2020, the total revenue of the consumer electronics division
was valued at KRW 13.6 trillion (US$ 11.3 billion) with an operating profit of
KRW 0.8 trillion (US$ 668 million).
Furthermore, according to the Statistical Handbook of Japan 2021, the production and shipments of electronic equipment reached up to US$52.6 billion during the fourth quarter of 2020 and is expected to increase in the upcoming year. Hence, the accelerating usage of precious metal refining in the electronic industry for applications such as electroplating, optical coatings, electrical insulation of batteries, printed circuits boards, and other similar electronic components is anticipated to drive the market growth in the forecast period.
Precious Metal Refining Market Drivers
An increase in demand from the electronics industry is most likely to increase demand for the product
The demand for precious metal refining has
been increasing rapidly as it is primarily used for applications such as
electroplating, optical coatings, electrical insulation of printed circuits
boards, and batteries in electronic equipment and
devices. According to the Semiconductor Industry Association (SIA), U.S.
semiconductor industry R&D expenditures grew at an annual growth rate of
7.2% from 2000 to 2020. In 2020, total U.S. semiconductor industry investment
in R&D totaled US$ 44 billion. R&D expenditures on the semiconductor
industry alone account for 18.6% of the total expenditure. It further states
that the U.S invested around US$ 142.2 billion on computers, and US$ 53 billion
on consumer electronics such as cell phones, TV and other similar applications.
Furthermore, China’s National IC Fund had invested US$39 billion in July 2021,
among which 69.7% had been allotted for front-end manufacturing with the aim of
increasing China’s share of global semiconductor production. In addition to
this, China has also proclaimed more than 15 local government IC funds worth
US$25 billion along with the National Fund which amounts to US$ 73 billion in
total for funding Chinese electronics and semiconductor companies. In this way, an increase in demand for
electronics products, components, and semiconductors will also increase the
demand for precious metal refining.
An increase in demand from the automotive industry is most likely to increase demand for the product
According to a recent study published by the
German Association of Automotive Industry during the fourth quarter of 2020,
the new registration of motor vehicles reached up to 16,763 units in Europe,
37,467 units in Asia, 3080 units in South America, 17,421 units in North
America, 12,733 units in Western Europe, and 5180 units in other regions
worldwide. Likewise, a recent study published by the International Netherlands
Group (ING) states that the demand for the production and development of Electric
Vehicles has been increasing since the pandemic. It states that the global
sales of new Electric Vehicles have increased by 50% in 2021, and it is expected
to increase by 8% in 2022. It further states that the sales of Electric
Vehicles have increased by 14% in Europe, 9% in China, and 4% in the US. Since precious metal refining is commonly
used in various automobile applications such as engine units, switches,
reflective films & mirrors, fuel cells, batteries and other electronic
components of the automobile, an increase in automobile production is most
likely to drive the growth of the market in the upcoming years.
Precious Metal Refining Market Challenges
Fluctuating prices of raw materials may cause an obstruction to the market growth
The prices of precious metals such as gold, silver, platinum, and others usually vary on a daily basis since they
are traded on the stock exchange. These fluctuations mostly lead to high
manufacturing costs. For instance, the price of gold depicted fluctuations on-trend throughout the year 2020. The price of gold reached up to US$ 656.78/10
grams in 2020 from US$ 475.57/10 grams in 2019. Likewise, the price of silver
reached up to US$
560.25 per kg on 21 June 2019 from US$ 531.90 per kg on 1 June 2019, an
increase of 3.55% in a span of less than a month. Moreover, the price of
platinum generally fluctuates the most among all precious metals. In 2021, the
price of platinum declined from its peak value of US$ 1071 during the year
opening to US$ 950 during the closing of the year, a decline of 11.91%. Furthermore,
in 2020, the price of platinum inclined to US$ 1078.44 during the closing of
the year from US$ 985 during the year opening, an incline of 10.44 %. Hence, fluctuating
prices of precious metals are most likely to confine the market growth.
Precious Metal Refining Industry Outlook
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in this market. Precious Metal Refining
top 10 companies include:
- Umicore
- PX
Group
- Materion
- Sims
Recycling Solutions
- Johnson
Matthey
- Abington
Reldan Metals
- Tanaka
- Dowa
Holdings
- Sino-Platinum
Metals
- Asahi
Holdings
Recent Developments
- In June 2020, the Minister of Mines and Steel Development of Nigeria, launched the commencement of the Dukia Gold & Precious Metals Raw Materials Buying Programme of Nigeria’s first gold and precious metals refining company, Dukia Gold and Precious Metals Refining Company Limited.
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Precious
Metal Catalysts Market – Forecast (2021 - 2026)
Report Code: CMR 84008
Precious
Metal Plating Chemicals Market – Forecast (2021 - 2026)
Report Code: CMR 41062
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