Precious Metal Catalysts Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Precious Metal Catalysts Market is segmented By Type (Platinum, Palladium, Rhodium, Iridium), By Application (Automotive, Refinery, Pharmaceuticals, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Precious Metal Catalysts Market Size

Global Precious Metal Catalysts Market reached USD 19.1 billion in 2022 and is expected to reach USD 29.9 billion by 2030 growing at a CAGR of 5.8% during the forecast period 2024-2031. The global precious metal catalysts market has been experiencing steady growth in recent years, which can be attributed to the increasing demand for clean energy sources, stringent environmental regulations and the growing emphasis on sustainable manufacturing processes.

The global precious metal catalysts market is witnessing growth due to increasing environmental concerns, stringent regulations and the demand for sustainable manufacturing processes. 

The U.S. has a significant demand for precious metal catalysts due to its large industrial base and technological advancements. The U.S. petroleum refining sector, one of the largest globally, relies on precious metal catalysts extensively. In 2020, the U.S. was the largest producer of petroleum globally. The U.S. chemical industry is a major consumer of precious metal catalysts. 

According to the American Chemistry Council, the U.S. chemical industry contributed over USD 565 billion to the country's GDP in 2020. The automotive industry in the U.S. plays a crucial role in catalytic converter production and emission control technologies. Therefore, the U.S. was accounting for more than 80.1% of the regional share in 2022.

Market Scope

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Market Dynamics

Growing Research and Development Investment

U.S. government and private organizations allocate substantial funding for R&D in catalyst technologies. For instance, the National Science Foundation (NSF) and the Department of Energy (DOE) provide research grants and funding to support catalyst development.

Private companies in the U.S., including chemical and pharmaceutical giants, invest in R&D activities to enhance their catalyst portfolios. Through R&D activities, advancements in catalyst technology, innovation in materials and processes and the development of new catalyst formulations are achieved. R&D investment facilitates the exploration and understanding of new catalyst carriers and materials, improving their efficiency, selectivity and stability. Researchers focus on optimizing catalyst properties, such as surface area, particle size and composition, to enhance catalytic activity and performance.

For example, R&D efforts have led to the development of platinum-based catalysts with improved activity and durability for fuel cell applications, enabling the growth of the fuel cell industry and further driving the precious metal catalysts market.

Ongoing Technological Advancements in Catalyst Materials

On 16 March 2023, a revolutionary invention in the industry is the FlexMetal catalyst. Midway through 2021, the Umicore research team began the development process and by 2022, they were prepared to commercially release the first FlexMetal catalyst. 

The solution from Umicore not only significantly reduces the quantity of Rh and Pd used, saving OEMs cost on PGM expenses, but it also complies with all upcoming engine pollution requirements (Euro7, China7). Due to its advantages, Umicore's FlexMetal technology was an instant hit and is now widely used in China, Europe, North America and other markets.

After achieving this significant accomplishment, Umicore's AC team is currently working on additional solutions to assist OEMs in adapting to shifting market conditions. For instance, Umicore developed additional solutions that enable the Rh content to be lowered alongside the Pd content due to Rh's high cost, which is even higher than Pd. 

Rh can be conserved up to 20% with this innovative method, which is a part of the FlexMetal product range. Therefore, above stated development drives the growth of the global precious metal catalysts market. 

Higher Cost and Limited Availability of Precious Metals

Precious metals, such as platinum, palladium and rhodium, are essential components of precious metal catalysts and are relatively expensive compared to other metals. The high cost of precious metals poses a significant barrier to widespread adoption, particularly in price-sensitive industries or regions. The cost factor can limit the market growth of precious metal catalysts, as manufacturers and end-users may seek more affordable alternatives.

Manufacturers in the precious metal catalysts market are actively addressing the challenges posed by higher costs and limited availability. Their efforts focus on reducing precious metal usage, exploring recycling technologies, developing alternative catalyst materials and optimizing catalytic processes to ensure sustainable and cost-effective solutions. These developments not only help mitigate the impact of higher costs and limited availability but also contribute to the growth of the global precious metal catalysts market.

Market Segment Analysis

The global precious metal catalysts market is segmented based on type, application and region.

Minimization of CO2 Emissions and Auto-Catalysts for Emission Reduction, Drives Platinum Growth

Platinum catalysts play a crucial role in minimizing CO2 emissions, particularly in the automobile industry. With increasing environmental concerns and regulations, the demand for platinum catalysts for emission control and reduction of pollutants is rising. The need to mitigate the impact of pollutants released by industrial processing units and reduce CO2 emissions drives the market growth for platinum catalysts. Auto-catalysts, which contain platinum group metals, are used in gasoline and diesel engines to reduce emissions.

Platinum-based auto-catalysts have been the most effective technique to combat pollution from vehicles for over three decades. The surge in the sale of diesel automobiles further validates the significant use of platinum in auto catalysts, driving the market growth. Hence, platinum-typetype segment holds the largest global segmental share and is expected to dominate during the forecast period.

Source: DataM Intelligence Analysis (2023)

Market Geographical Share

Robust Growth in China's Industrial Applications

Due to the increased demand for various chemicals on a global scale over the forecast period, this industry's need for precious metal catalysts is anticipated to grow. The majority of international corporations place high importance on China, which is the second-largest pharmaceutical market in the world. 

The pharmaceutical industry has a significant interest in precious metal catalysts because so many crucial catalysts depend on platinum, palladium, ruthenium, rhodium, iridium and osmium.​

The Chinese healthcare sector is growing significantly. As part of Beijing's "Made in China 2025" business plan, President Xi Jinping highlighted his goals for the pharmaceutical industry, including an emphasis on innovation and local R&D. The largest automobile manufacturer in the world is China. 

Therefore, China is playing a crucial role in the expansion of the Asia-Pacific market and Asia-Pacific is expected to hold the largest market share in the global precious metal catalysts market during the forecast period.

Source: DataM Intelligence Analysis (2023)

Market Major Players

The major global players include BASF SE, Evonik Industries AG, Johnson Matthey PLC, Heraeus Group, Clariant Global Ltd, Umicore SA, Alfa Aesar, Shaanxi Kai Da Chemical Engineering Co., Ltd, Catalytic Products Global and Vineeth Precious Catalysts Pvt. Ltd.

COVID-19 Impact on Market

COVID Impact

The pandemic caused a shift in the demand for precious metal catalysts. Various industries that heavily rely on these catalysts, such as automotive, chemical and petroleum refining, experienced significant downturns due to reduced economic activity. This led to a decline in the demand for catalysts used in these sectors.

The demand for and supply chain for precious metal catalysts have been severely affected by COVID-19. Due to government-issued transportation lockdown rules that affect the precious metal catalysts market, the pandemic has had a negative impact on the auto and petrochemical industries, which are the market's primary consumers. 

The outbreak drove numerous nations to go into lockdown, which led individuals to drive less frequently, which decreased demand for the precious metal catalysts used in automotive catalysts, which are used in vehicle exhaust streams.

AI Impact

AI can play a crucial role in accelerating the discovery and development of new catalyst materials and formulations. By utilizing machine learning algorithms and data analysis techniques, researchers can quickly identify potential catalyst candidates, predict their performance and optimize their composition. This can lead to the development of more efficient and cost-effective catalysts, reducing the time and resources required for traditional trial-and-error approaches.

AI can be employed to optimize various manufacturing processes involved in producing precious metal catalysts. By analyzing real-time data from sensors and production systems, AI algorithms can identify process inefficiencies, recommend adjustments and optimize reaction conditions to enhance catalyst synthesis. This can result in improved yield, reduced energy consumption and increased overall productivity.

Russia-Ukraine War Impact

The conflict between Russia and Ukraine has disrupted supply chains in the region, as Russia is one of the major producers in the Europe of precious metals like palladium and platinum, which are crucial components of catalysts. Trade restrictions, border closures and geopolitical tensions have hindered the smooth flow of these metals, leading to supply chain disruptions and affecting the availability of raw materials for catalyst production.

The Russia-Ukraine conflict has contributed to price volatility in the precious metals market, including those used in catalysts. Political tensions, geopolitical uncertainties and the threat of supply disruptions have created fluctuations in prices of metals such as palladium and platinum. These price fluctuations can impact catalyst manufacturers and consumers, making it difficult to plan and budget effectively.

Key Developments

• On 14 February 2022, to recover valuable metals from discarded automotive catalysts, the German companies BASF and Heraeus decided to form a joint venture in Pinghu, China. The new company, BASF Heraeus (China) Metal Resource Co. Ltd., will be owned equally by the two corporations. 

After receiving the necessary approvals, the legal company is expected to be established in the first quarter of this year. According to a joint press statement, construction is anticipated to commence in 2022, followed by operations in 2023.

• In March, 2020, an innovative tri-metal auto catalyst that permits the partial substitution of palladium with platinum was successfully developed by Sibanye-Stillwater, Impala Platinum (Implats) and the chemical company BASF. 

By 1300 GMT, palladium was down 0.8% to USD 2,469 while spot platinum was up 2.5% at USD 883 per ounce. Palladium previously hit a low of USD 2,399. 

• On March 10, 2022, the innovative Tri-Metal Catalyst technology, which BASF has successfully developed and tested, allows for the partial replacement of expensive palladium with less expensive platinum in light-duty petrol vehicles without breaching emissions regulations. 

Adoption of the Tri-Metal Catalyst can lower the price of catalytic converters for automobiles and partially rebalance market demand for PGMs, improving the sustainability of the PGM market.

Why Purchase the Report?

• To visualize the global precious metal catalysts market segmentation based on type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing market trends and co-development. 
• Excel data sheet with numerous data points of precious metal catalysts market level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Precious Metal Catalysts Market Report Would Provide Approximately 53 Tables, 50 Figures and 188 Pages.

Target Audience 2024

• Manufacturers / Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies