London, UK — Technavio’s latest chemicals and materials industry report covers the present scenario and growth prospects of the global precious metals market for the period 2016-2020. To calculate the market size, the report considers revenue generated from the sales of precious metals in various industries and for experimental and laboratory use. The report also considers the total quantity of precious metals utilized in various end-use sectors to calculate the market size.
In this report, Technavio’s metals and minerals research experts announce their key market highlights for the global precious metals market. Their findings include:
Precious metals market with steady growth
In 2014, 1.3 billion ounces of precious metals were produced globally and this figure is likely to increase to 1.6 billion ounces by 2019, growing at a CAGR of 4 per cent. The market’s growth during the forecast period will be driven by the increased sales of gold, silver, palladium, and platinum. Europe and the Americas are expected to overtake India and dominate the precious metals market during the forecast cast.
Financial institutions will provide a big boost as they are increasingly investing in precious metals because they are speculative in nature, and can fluctuate either way depending on the bankers’ expectations.
Silver growing rapidly in jewelry segment
The global silver market is growing at fast pace because of the rising demand for photovoltaic devices and jewelry. The demand for silver jewelry is growing at a remarkable growth rate of 9.6 per cent on a year-on-year basis.
“The versatility and cost effectiveness of silver makes it more attractive at both the fashion end of the market and the desire for affordable choice,” said Technavio metals and minerals research expert Amit Sharma. “Silver’s use in jewelry reached a record high in 2013, with 75 per cent of that growth coming from India and China,” he added. Jewelry is currently the second biggest segment of the silver market.
The US, China, India, Japan, and Russia accounted for approximately 60 per cent of the silver consumption in 2014, while Mexico and Peru are the leaders in silver production.
Autocatalyst segment dominating PP market
In terms of volume, the autocatalyst segment accounted for a 66 per cent share of the platinum and palladium market in 2014. The US, China, India, Japan, and Russia accounted for almost 60 per cent of the palladium consumption in 2014.
A large quantity of palladium is used for automobile catalyst converters. An estimated 90 million cars were manufactured in 2014 and each of these cars had to meet various environmental standards in terms of emission, creating demand for palladium. In addition, the palladium recovered from recycling scrapped car will become a large factor in the price equation. As new cars are required to meet various standards, the recovery of metals from these cars may be delayed or even eliminated. These will lead to an increase in fuel economy, improved engine and catalytic technology, both of which will reduce the level of PGM consumption in cars.
More information can be found under technavio.com.
Source: Business Wire