Rhodium Market

Market Overview:

The global rhodium market size reached US$ 2.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 3.2 Billion by 2032, exhibiting a growth rate (CAGR) of 5.46% during 2024-2032. The rising demand for catalytic converters from the automotive industry, growing demand for EVs, their unique catalytic properties, and expanding product application across diverse industries such as electronics, chemical, and jewelry are some of the major factors propelling the market.

Rhodium (Rh) is a metal belonging to the platinum group. It is a rare, silvery-white element that exhibits exceptional resistance to corrosion and a high melting point. As a result, it is primarily used as a catalyst in industrial processes, particularly in the automotive industry for catalytic converters. Owing to its scarcity and unique properties, rhodium holds significant value in the market. As of the present moment, it is experiencing high demand and price surges, making it a vital commodity in various applications and an attractive investment option for many investors and manufacturers.

The market is mainly driven by the flourishing expansion of the automotive industry, wherein rhodium is extensively used in catalytic converters to reduce harmful emissions from vehicles. Concurrent with this, the increasing global awareness of environmental issues and stringent emission regulations are contributing to the surging demand for rhodium in the automotive sector. Moreover, the growing interest in electric vehicles (EVs) has bolstered the employment of catalytic converters in some hybrid and fuel-cell EVs, thus favoring the market growth. Additionally, the metal's unique and valuable properties, such as exceptional resistance to corrosion and high melting point, make it a highly desirable material in various industries, thereby strengthening the market growth. Besides this, the expanding product application in the thriving chemical industry for manufacturing fine chemicals and its role in electronics as a crucial component in electrical contacts is creating a positive outlook for market expansion.

Rhodium Market Trends/Drivers:

Rising demand from the automotive industry

One of the primary factors driving the global rhodium market is the significant demand from the automotive industry, wherein rhodium plays a crucial role as a catalyst in catalytic converters, which are essential components used in internal combustion engines to reduce harmful emissions, especially nitrogen oxides (NOx), carbon monoxide (CO), and hydrocarbons (HC). In addition to this, stringent emission regulations imposed by governments worldwide to mitigate environmental pollution have compelled automotive manufacturers to adopt advanced emission control technologies, thereby increasing the use of rhodium in catalytic converters. As countries strive to meet emission standards and promote cleaner transportation solutions, the demand for rhodium in the automotive sector continues to rise, creating a favorable outlook for market expansion.

The growing popularity of electric vehicles (EVs)

The surging interest in electric vehicles (EVs) also contributes significantly to the global rhodium market. While EVs themselves do not require catalytic converters, certain types, such as hybrid electric vehicles (HEVs) and fuel cell vehicles (FCVs), still incorporate them to manage emissions from internal combustion engines or fuel cells. As a result, the expanding adoption of EVs is propelling the demand for rhodium in these hybrid technologies. Although the primary focus of the EV industry is on battery-electric vehicles (BEVs), the continued use of rhodium in HEVs and FCVs indicates that it remains relevant to the overall growth of the automotive sector and influences the rhodium market growth.

Diverse industrial applications

The unique properties of rhodium make it highly desirable in various industries beyond automotive and EVs. In the chemical industry, rhodium catalysts play a vital role in facilitating important reactions, such as the production of acetic acid and hydroformylation. In addition to this, rhodium is used in the electronics sector as a critical component in electrical contacts due to its low contact resistance and excellent conductivity. Furthermore, the metal finds applications in jewelry, where it is widely used for plating silver and white gold to enhance appearance and prevent tarnishing. As industries continue to explore and adopt advanced technologies that utilize rhodium, its demand in diverse sectors is expected to witness steady growth.

Rhodium Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global rhodium market report, along with forecasts at the global, regional and country levels for 2024-2032. Our report has categorized the market based on source, product type, application, and end use industry.

Breakup by Source:

• Mineral Source/PGM Mining
• Recycling
   

Mineral source/PGM mining dominates the market

The report has provided a detailed breakup and analysis of the market based on the source. This includes mineral source/PGM mining and recycling. According to the report, mineral source/PGM mining represented the largest segment.

The demand for mineral-sourced or PGM-mined rhodium is mainly propelled by the rising interest in various industrial applications beyond the automotive sector. Rhodium's unique properties, such as its exceptional resistance to corrosion and high melting point, make it highly desirable in the chemical industry for producing fine chemicals and in the electronics sector as a vital component in electrical contacts. Concurrent with this, rhodium's catalytic properties extend its applications to processes such as the production of nitric acid and hydrogenation reactions in the chemical sector. As industries continue to explore and adopt advanced technologies that utilize rhodium, the demand for this precious metal from mineral sources or primary production through platinum group metal (PGM) mining is surging, thereby aiding in market expansion.

Breakup by Product Type:

• Alloys
• Metals and Compounds
   

Alloys hold the largest share in the market

A detailed breakup and analysis of the market based on the product type has also been provided in the report. This includes alloys and metals and compounds. According to the report, alloys accounted for the largest market share.

The increasing product demand due to its unique combination of properties, making it highly sought after in various industries, is presenting lucrative opportunities for market expansion. Rhodium alloy offers exceptional hardness, durability, and resistance to wear and tarnish, making it ideal for applications requiring high-performance materials. Besides this, the largescale product utilization across the jewelry sector for plating silver and white gold jewelry to enhance their appearance and prevent tarnishing is acting as another significant growth-inducing driver. Moreover, the electronics industry widely relies on rhodium alloy for electrical contacts due to its low contact resistance and excellent conductivity, which, in turn, is influencing the market growth. As technology advances and industries seek superior materials for their products, the demand for rhodium alloy continues to grow, showcasing its versatility and significance in diverse sectors.

Breakup by Application:

• Catalysis
• Jewelry Making
• Platinum and Palladium Alloying
• Others
   

Catalysis dominate the market

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes catalysis, jewelry making, platinum and palladium alloying, and others. According to the report, catalysis accounted for the largest market share.

The growing use of rhodium in catalysis owing to its exceptional catalytic properties, which make it a highly effective and efficient catalyst in various chemical processes represents one of the prime factors impelling the market growth. Furthermore, rhodium's ability to facilitate chemical reactions by lowering the activation energy and promoting specific pathways makes it a valuable component in catalytic converters for the automotive industry, which is creating a favorable market outlook. In confluence with this, rhodium catalysts find extensive application in industrial processes, such as the production of acetic acid and hydroformylation, due to their ability to drive reactions with high selectivity and yield, thereby propelling the market forward. Moreover, as industries prioritize sustainable and environmentally friendly practices, the demand for rhodium in catalysis remains strong, driving research and innovation to explore its potential in new applications and enhancing its relevance in various chemical and industrial processes.

Breakup by End Use Industry:

• Automotive
• Chemical
• Glass
• Electricals and Electronics
• Others
   

Automotive holds the largest share in the market

A detailed breakup and analysis of the market based on the end use industry has also been provided in the report. This includes automotive, chemical, glass, electricals and electronics, and others. According to the report, automotive accounted for the largest market share.

The adoption of rhodium across the automotive sector is mainly driven by increasingly stringent emission regulations worldwide and the growing emphasis on reducing environmental impact. Rhodium plays a critical role as a catalyst in catalytic converters, effectively converting harmful pollutants from vehicle exhaust gases into less harmful substances. In addition to this, with governments and environmental agencies setting more stringent emission standards to combat air pollution and global warming, automotive manufacturers are compelled to incorporate advanced emission control technologies, leading to higher demand for rhodium. As the industry continues to prioritize cleaner and greener transportation solutions, the adoption of rhodium-based catalytic converters remains pivotal, driving the metal's use and value in the automotive sector.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest rhodium market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America was the largest market for rhodium.

The North America rhodium market is primarily driven by the region's strong automotive industry and increasing focus on emission reduction. Rhodium's critical role in catalytic converters for emission control systems has made it indispensable in the automotive sector. As governments and environmental agencies in North America continue to implement stringent emission regulations, automotive manufacturers are compelled to adopt advanced catalytic converter technologies, leading to higher demand for rhodium. In line with this, the region's growing interest in electric vehicles (EVs) also contributes to the market's driving factors. Apart from this, the growing emphasis on sustainability and clean energy solutions in North America has led to increased exploration of rhodium's applications in other industries, such as chemical manufacturing and electronics, presenting remunerative opportunities for market expansion.

Competitive Landscape:

The global rhodium market features a competitive landscape characterized by a limited number of primary producers and significant demand from diverse industries. South Africa, Russia, and Canada are the major players in rhodium production, accounting for the majority of the world's supply. The competitive landscape is marked by a small number of key players dominating the market. Major mining companies and PGM producers control the primary supply. Moreover, geopolitical factors, environmental regulations, and mining disruptions in these countries impact rhodium availability and price. The automotive industry's growth, particularly in emerging economies, and tightening emissions regulations significantly influence rhodium demand. Additionally, increasing interest in sustainable technologies and green initiatives could further impact the market's dynamics. As a result, the global rhodium market remains highly competitive and sensitive to various economic and regulatory factors.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• American Elements
• Anglo American Platinum Limited
• D.F. Goldsmith Chemical & Metal Corp.
• Impala Platinum Holdings Limited
• J&J Materials Inc.
• Johnson Matthey PLC
• Norilsk Nickel
• Northam Platinum Holdings Limited
• Parekh Industries Ltd.
• Reade International Corp.
• Sharretts Plating Company
• Sibanye-Stillwater

Recent Developments:

• In July 2023, Reade International Corp. announced the launch of a new product, AM TZM Powder, a fully alloyed TZM powder, as a part of its Additive Manufacturing Powder product line.
• In March 2023, SiteOne® Landscape Supply, Inc. announced the acquisition of J&J Materials, a leading wholesale distributor of hardscapes products with five locations in Rhode Island and Southeastern Massachusetts.
• In January 2023, Sibanye-Stillwater’s joint venture partner at the Rhyolite Ridge lithium-boron project in Nevada, USA, received a conditional commitment for a proposed loan from the United States Department of Energy (DOE) to support the development of Rhyolite Ridge.

Rhodium Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the rhodium market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global rhodium market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the rhodium industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.