Market Dynamics The global cadmium market exhibited strong growth in 2021 and is projected to maintain a steady revenue Compound Annual Growth Rate (CAGR) of 4.28% throughout the forecast period. A primary driver of this growth is the increasing utilization of cadmium in the battery industry, particularly in NiCd cells, owing to their rechargeable properties. Moreover, the demand for cadmium is expected to rise in the paintings and coatings sector due to its capacity to produce vibrant yellow and orange hues.
Cadmium, also identified as Cd, is a malleable, pale metal that is primarily obtained as a by-product during the refining of zinc from zinc carbonate ore. This metal, which bears similarities to mercury in terms of having a lower melting point and being resistant to corrosion, is commonly used for coating metals prone to rust, such as iron, due to its ability to prevent corrosion effectively. As a result, the aviation industry utilizes cadmium to coat steel components, thus mitigating rust and fire risks. Cadmium's conductivity makes it a popular choice for anodes in secondary rechargeable NiCd batteries, frequently found in portable chargers and flashlights. Furthermore, cadmium compounds are widely employed in the production of paints and coatings, serving industries such as real estate and construction. Additionally, cadmium is finding new applications in the nuclear sector, where it aids in stabilizing nuclear fission rates, thereby improving reactor control. Its role in non-fossil fuel energy sources further contributes to its market growth.
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Major Factors Driving Revenue Growth of the Global Cadmium Market: The increasing demand for cadmium in batteries, propelled by growth in the electronics and power sectors, is a significant driver of market revenue. Cadmium is a key component in Nickel-Cadmium batteries, offering a viable alternative to lithium batteries due to their high power output and superior energy density of approximately 50-75 Wh/kg. These batteries find extensive use in various portable electronics like emergency lighting, torches, power tools, and cameras, bolstering demand for cadmium. Moreover, the durability of NiCd batteries, capable of providing power for approximately 2,000-2,500 charge cycles, further boosts demand in the electronics sector.
Major Factors Restraining Revenue Growth of the Global Cadmium Market: Cadmium, derived from zinc ores, is highly toxic and poses significant health risks, including respiratory diseases and organ damage upon exposure. Strict regulations regarding permissible exposure levels, such as those set by the U.S. Agency for Toxic Substances and Disease Registry and the World Health Organization, restrain market growth. Concerns over the fatal effects of cadmium exposure, coupled with stringent regulatory measures, limit its adoption and market expansion.
Opportunities for Players in the Global Cadmium Market: The increasing focus on reducing reliance on fossil fuels presents opportunities for cadmium in the nuclear power sector. Cadmium rods are utilized in fission reactors to modulate fission rates and enhance energy production. Government initiatives and investments in nuclear technology development, such as those by the U.S. Office of Nuclear Energy and the Department of Energy, create favorable conditions for market players to capitalize on nuclear energy solutions.
The Asia Pacific Region to Account for the Largest Revenue Share in the Global Cadmium Market: The Asia Pacific region is expected to dominate the global cadmium market, driven by factors such as extensive manufacturing facilities and abundant labor resources. Countries like China, with significant cadmium exports, benefit from substantial zinc ore reserves, supporting cadmium production. Additionally, regions like Siberia and Kazakhstan boast substantial zinc reserves, further bolstering market growth in the Asia Pacific.
The North American Region Continues to Lead in Terms of Revenue CAGR: North America is poised for significant revenue growth, attributed to advancements in nutrition research, robust biotechnology sectors, and well-established manufacturing facilities. Countries like Canada and Mexico possess significant zinc resources, supporting cadmium production. Moreover, the region's focus on the electronics industry contributes to rising cadmium demand, driving market growth.
Major Companies in the Market Include: Mitsui Mining and Smelting Co. Ltd. (Japan) Korea Zinc Co. Ltd. (South Korea) Huludao Zinc Industry Co. Ltd. (China) Yunnan Luoping Zinc & Electricity Co. Ltd. (China) Toho Zinc Co. Ltd. (Japan) Nyrstar N.V. (Belgium) Grupo México (Mexico) Dowa Metals and Mining Co. Ltd. (Japan) Chelyabinsk Zink Plant JSC (Russia) Industrias Penoles S.A. de C.V. (Mexico)
Strategies and Objectives of Major Companies: Mitsui Mining and Smelting Co. Ltd. (Japan) completed the acquisition of the remaining 36.6% stake in MESCO Inc. (Philippines) on 22 March 2022, aiming to enhance its presence in the Philippines market and bolster cadmium production. Energy Vault (Switzerland) announced a strategic partnership with Korea Zinc Co. Ltd. (South Korea) on 5 January 2022, focusing on enhancing energy storage solutions. This collaboration aims to promote renewable energy usage in refinery operations, reducing emissions and improving production processes in the regions involved.
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