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The cobalt market size is projected to increase by USD 8.01 billion, at a CAGR of 12.73% between 2023 and 2028. The market growth depends on several factors such as the growth of the electric vehicle industry, the increasing mining projects, and the availability of substitutes. Our market report examines historic data from 2018-2022, besides analyzing the current and forecasted market scenario.
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Cobalt is a transition metal with the symbol Co and atomic number 27. It is a lustrous, hard, and silver-blue metal with high-temperature resistance, corrosion resistance, high melting point, and high tensile strength that is found in the Earth's crust. This product is extracted from the Earth's crust in the form of minerals cobaltite, erythrite, and smaltite.
The cobalt surface segment is estimated to witness a significant increase during the forecast period. This is utilized in rechargeable batteries for various consumer electronics devices such as smartphones, laptops, and tablets. The ongoing growth in consumer electronics markets, particularly in emerging economies, contributes to the demand for this globally. Infrastructure projects such as transportation, construction, and urbanization contribute to the demand for these materials. This product is used in high-strength alloys, coatings, and catalysts employed in infrastructure components. Economic development and urbanization fuel infrastructure investments, thereby supporting the demand for this product will increase.
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The cobalt sulfate segment was the largest segment and was valued at USD 4.57 billion in 2018. Further, the strategic relationship with Stellantis N.V. supports sustainable European battery value chain solutions while also validating the potential of Norway's battery metals project portfolio. Therefore, the demand is driven by various factors, including the growth of EVs, renewable energy storage, consumer electronics, industrial applications, and infrastructure development, which will boost this segment of the market during the forecast period.
The batteries and electronics?segment will account for the largest share of this segment.? These products essential in rechargeable batteries like lithium-ion, power portable devices, electric vehicles, and renewable energy systems. Its presence in cathodes—lithium oxide, nickel manganese, and nickel aluminum oxides—ensures durability and high energy density. Lithium-ion batteries offer longer shelf life and thermal stability. These product compounds also find applications in semiconductors, magnetic devices, and data recording, driving the electronics markets. Thus, the growing demand for batteries, semiconductors, and integrated circuits will drive the batteries and electronics segment of the market during the forecast period.
APAC is estimated to contribute 68% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
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APAC, including China, Japan, and South Korea, sees rising EV adoption fueled by government incentives and eco-awareness. The demand for this product surges across industries like aerospace and electronics, driven by rapid industrialization. Investments in renewable energy, like wind and solar, further boost the demand. Indonesia and China invest in domestic mining to secure supply chains. Partnerships like PT Vale Indonesia Tbk and Glencore plc reinforce regional market growth during the forecast period.
The growth of the electric vehicle industry is the key factor driving the market. Increasing awareness among consumers concerning pollution and the implementation of stringent emission and fuel-efficiency norms worldwide are pushing the demand for electric vehicles. Many countries, such as China, India, Norway, France, and the UK, plan to end the production and sale of diesel and gasoline cars in the long run. Further, the electric vehicle count has already reached two million, and it continues to grow. This will lead to an increase in electric vehicle battery production, which, in turn, would spur demand, thereby driving the market during the forecast period.
Increasing cobalt mining projects is the primary trend shaping the market. The development of new mining projects contributes to an increase the supply. As more mines come online and existing operations expand, the market experiences a boost in production volumes. This increased supply can help alleviate concerns about shortages and supply chain constraints, particularly as demand grows in industries such as electric vehicles and renewable energy storage. For instance, the Dominican Republic's Santo Domingo nickel-cobalt project is expected to be operating at full capacity by the end of 2024. Thus, such advancements will drive market growth during the forecast period.
The availability of substitutes for cobalt is a challenge that affects the market. This product plays a key role in various industries. However, the high level of dependence on cobalt is paving the way for future consequences. Consequently, battery makers have undertaken R&D to find substitutes. Furthermore, R and D activities are in place to investigate zinc-air, Li-sulfur, or Li-air battery systems for the next-generation rechargeable batteries. Other potential substitutes for this product in various applications include barium or strontium ferrites, neodymium-iron-boron, and nickel-iron alloy. Thus, such factors may impede the market during the forecast period.
Companies are implementing various market trends and analysis strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market and result of the market analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
BHP Group plc, China Molybdenum Co. Ltd., COBALT CORP., ELECTRA BATTERY MATERIALS CORP., Eramet, European Cobalt Ltd., Freeport McMoRan Inc., Glencore Plc, Jervois Global Ltd., Missouri Cobalt LLC, MMG Ltd., PJSC MMC Norilsk Nickel, Red Rock Resources plc, Sherritt International Corp., Sumitomo Metal Mining Co. Ltd., Umicore SA, Vale SA, Zhejiang Huayou Cobalt Co. Ltd., and Eurasian Resources Group.
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. The market research and growth report focuses on adoption rates in different regions based on penetration. Furthermore, the market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market and forecasting growth strategies.
Global Market Customer Landscape
The cobalt market is intricately tied to various sectors, notably the automobile industry, electronics industry, and oil and gas industry. With its indispensable role in producing high-speed cutting tools and Lithium-ion batteries (LIBs), the demand for this product is further boosted by the rising prominence of Electric vehicle market. The surge in Battery electric vehicles (BEVs) and Plug-in hybrid electric vehicles (PHEVs) has significantly augmented the need for cobalt, particularly in LiCoO2 (LCO) cathode production. As per the Consumer Technology Association and the Bureau of Economic Analysis, the importance of this product in electrical appliances, computer, and electronic products manufacturing remains unparalleled. With its diverse applications across key industries, it continues to be a pivotal resource driving innovation and technological advancement.
Cobalt Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2023 |
Historic period |
2017-2021 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.73% |
Market growth 2024-2028 |
USD 8.01 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
12.23 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 68% |
Key countries |
US, China, Japan, India, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Ambatovy, BHP Group plc, China Molybdenum Co. Ltd., COBALT CORP., ELECTRA BATTERY MATERIALS CORP., Eramet, European Cobalt Ltd., Freeport McMoRan Inc., Glencore Plc, Jervois Global Ltd., Missouri Cobalt LLC, MMG Ltd., PJSC MMC Norilsk Nickel, Red Rock Resources plc, Sherritt International Corp., Sumitomo Metal Mining Co. Ltd., Umicore SA, Vale SA, Zhejiang Huayou Cobalt Co. Ltd., and Eurasian Resources Group. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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