Advanced Materials and Chemicals

Rhodium Market

Global Industry Analysis and Forecast 2024-2031

Pages : 120

Base Year : 2023

Released Year : May 2024

Format :Pdf Ppt Xls

Report ID:KR699

Author : Omkar R.

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Base Year

2023

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Forecast Year

2024-2031

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Historical Years

2019-2022

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Market Value (2023)

USD 4,602.2 Million

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Forecasted Value (2031)

USD 6,784.4 Million

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CAGR (2024 - 2031)

5.16%

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Fastest Growing Region (2024 - 2031)

North America

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Largest Region

Middle East & Africa

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By Product Type

Alloys, Metal, Compounds

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By Application

Catalysis, Chemical Manufacturing, Electrical and Electronics, Jewelry, Others


Rhodium Market Size

The global Rhodium Market size was valued at USD 4,602.2 million in 2023 and is projected to reach USD 6,784.4 million by 2031, growing at a CAGR of 5.16% from 2024 to 2031. Increasing industrial applications, expansion of the chemical manufacturing sector, and development of innovative catalysts are major factors driving the demand for rhodium and aiding market growth.

Stringent emission regulations in major automobile markets, such as Europe, the United States, and China, are propelling the uptake of automotive catalytic converters. These regulations aim to reduce harmful emissions from vehicles and mandate automakers to adopt advanced catalytic converter systems. Rhodium is a key component of catalytic converters that plays a critical role in converting nitrogen oxides (NOx) and carbon monoxide (CO) into less harmful substances. The demand for rhodium is expected to rise as governments tighten emission standards to combat air pollution and mitigate climate change. Notably, rhodium plays a pivotal role in enabling compliance with environmental regulations in the automotive sector and emphasizing the importance of sustainable technologies in addressing global challenges.

Rhodium is a rare transition metal with a silvery-white appearance that belongs to the platinum group of metals. It possesses exceptional properties such as high resistance to corrosion and oxidation that make it valuable in various applications. It is primarily used in catalytic converters for vehicles to reduce emissions of nitrogen oxides (NOx), carbon monoxide (CO), and hydrocarbons (HC). Additionally, rhodium finds applications in chemical manufacturing, electronics, and jewelry. Advancements in catalytic converter technology and the development of new rhodium-based catalysts are fostering the demand for rhodium. Furthermore, regulatory frameworks focused on reducing vehicle emissions are bolstering the adoption of rhodium in catalytic systems, thereby supporting industry expansion.

Analyst’s Review 

Key players in the market aim to secure a sustainable supply chain and invest in research and development to discover innovative applications. Manufacturers are ensuring a stable supply to meet the growing consumer demand and collaborating with mining companies to explore new deposits and improve extraction technologies. Key players are dedicated to developing next-generation rhodium-based catalysts tailored to specific industrial applications. Moreover, key players are focusing on forming strategic partnerships with automotive manufacturers and other key stakeholders to facilitate technology adoption. These strategies are enabling manufacturers to capitalize on emerging opportunities and are poised to boost market growth in the upcoming years.

Rhodium Market Growth Factors

Rising electric vehicle (EV) production is stimulating the demand for rhodium in fuel cell technology. Fuel cells that utilize rhodium as a catalyst are gaining traction as clean energy alternatives to internal combustion engines in transportation. As governments and consumers prioritize decarbonization and sustainable mobility, the demand for fuel cell vehicles is anticipated to surge. Rhodium plays a critical role in fuel cell catalysts that facilitate the electrochemical reaction that converts hydrogen into electricity with minimal impact on the environment. Thus, the growth in EV production is slated to increase the utilization of rhodium in traditional catalytic converters and present new opportunities in fuel cell technology.

However, price volatility and speculative trading create uncertainty for market participants. The limited rhodium supply and fluctuating demand contribute to the price volatility, making it challenging to predict market trends and plan investments. Speculative trading exacerbates price fluctuations, as investors capitalize on short-term opportunities, potentially distorting market dynamics. To overcome this challenge, market participants are practicing hedging and diversification to mitigate the impact of price volatility on their operations. Additionally, key players are fostering transparency and collaboration within the supply chain to enhance market stability. However, industry players are navigating market uncertainties more effectively by addressing price volatility and speculative trading.

Rhodium Market Trends

The rhodium market is witnessing strong growth on account of the growing demand for automotive catalytic converters. Additionally, advancements in clean energy technologies are impelling rhodium's usage in fuel cells and hydrogen production. Supply constraints due to limited production and geopolitical tensions in major producing regions are influencing market dynamics. Moreover, research and development efforts are focused on exploring new applications for rhodium in electronics and medical devices. These trends are driving product demand and innovation while presenting challenges related to supply chain stability and geopolitical risks.

Moreover, the mining industry is observing a shift toward sustainable and ethical sourcing, driven by concerns over environmental impact and labor conditions. This shift is promoting transparency and accountability in the supply chain. Additionally, investments in R&D are driving innovation in rhodium applications for green chemistry and clean energy enhancing sustainability and production efficiency, and fostering market growth. These trends are facilitating responsible resource management, driving technological advancements, and meeting evolving consumer preferences for environmentally friendly products.

Segmentation Analysis

The global rhodium market is segmented based on product type, application, and geography.

By Product Type

Based on product type, the market is segmented into alloys, metal, and compounds. The alloys segment secured the largest revenue share of 69.86% in 2023. This dominance is attributed to the widespread use of rhodium alloys due to their desirable properties, including high corrosion resistance, durability, and aesthetic appeal. Industries rely on rhodium alloys to enhance the performance and longevity of their products, which impells the use of rhodium in alloy applications. Additionally, the alloys segment's dominance underscores the versatility of rhodium in catering to diverse market needs across multiple sectors, highlighting its pivotal role in various industrial processes and consumer products.

By Application

Based on application, the rhodium market is classified into catalysis, chemical manufacturing, electrical and electronics, jewelry, and others. The catalysis segment led the market in 2023, reaching a valuation of USD 3,157.1 million. Rhodium catalysts are critical in facilitating chemical transformations and reducing harmful emissions from vehicles. As governments worldwide implement stricter emission regulations, the demand for catalytic converters equipped with rhodium catalysts is rising. Additionally, the indispensable nature of rhodium in enabling sustainable industrial processes and mitigating environmental pollution is aiding segmental growth.

Rhodium Market Regional Analysis

Based on region, the global rhodium market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Rhodium Market Size & Share, By Region, 2024-2031

Middle East and Africa emerged as the leading market for rhodium in 2023, attaining a valuation of USD 2,979.6 million. The presence of substantial rhodium reserves, particularly in South Africa, is aiding regional market growth. Robust industrial activity in mining, automotive manufacturing, and chemical processing, among other sectors, propels the demand for rhodium-based catalysts and compounds. Additionally, favorable government policies and investment initiatives aimed at promoting economic diversification and industrial development are bolstering regional market growth. With ongoing infrastructure projects and an increasing focus on sustainable development, the region is poised to maintain its leading position in the market in the foreseeable future.

The North America rhodium market is poised to grow at a robust CAGR of 5.20% over the forecast period. The region boasts a mature automotive industry, where stringent emission regulations propel the demand for rhodium-based catalytic converters to reduce vehicle emissions. Additionally, increasing investment in clean energy initiatives, particularly in fuel cell technology, is stimulating the usage of rhodium as a catalyst in the region. Moreover, a strong emphasis on innovation and technological advancements, supported by a favorable regulatory environment, facilitates the development of new applications for rhodium across diverse industries in the region. Furthermore, the region's stable economic conditions and growing consumer awareness regarding environmental sustainability contribute to the adoption of rhodium-based solutions.

Competitive Landscape

The global rhodium market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Rhodium Market

  • Anglo American Platinum Ltd.
  • Impala Platinum Holding Limited (Implats)
  • Norilsk Nickel
  • Sibanye-Stillwater
  • Johnson Matthey
  • Heraeus Holding GmbH
  • Umicore SA
  • Tanaka Holdings Co., Ltd.
  • Sumitomo Metal Mining Co., Ltd.
  • Mitsui Mining and Smelting Co., Ltd.

The Global Rhodium Market is segmented as:

By Product Type

  • Alloys
  • Metal
  • Compounds

By Application

  • Catalysis
  • Chemical Manufacturing
  • Electrical and Electronics
  • Jewelry
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • U.K.
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America
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CUSTOMIZATION OFFERED
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global market is projected to reach USD 6,784.4 million by 2031, growing at a CAGR of 5.16% from 2024 to 2031.
The global market was valued at USD 4,602.2 million in 2023.
Stringent emission regulations and the expansion of the electric vehicle market are driving the increasing demand for rhodium in automotive catalytic converters.
Top manufacturers of rhodium market are Anglo American Platinum Ltd., Impala Platinum Holding Limited (Implats), Norilsk Nickel, Sibanye-Stillwater, Johnson Matthey, Heraeus Holding GmbH, Umicore SA, Tanaka Holdings Co., Ltd., Sumitomo Metal Mining Co., Ltd., Mitsui Mining and Smelting Co., Ltd., and others.
Middle East & Africa is the fastest growing region with the CAGR of 5.68% in the forecasted period (2024-2031) with the market value forecasted to reach at USD 4,573.3 million.
By application, catalysis will hold the maximum share in the rhodium market with the revenue value of USD 4,823.0 million in 2031.
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