by The cobalt oxalate market has witnessed significant growth owing to its wide applications in ceramics, inks, paints, and coatings. Cobalt oxalate is a red crystalline salt that acts as a useful pigment in glazes and ceramic colors. It imparts excellent opacity and brightness to colored materials. Cobalt oxalate also finds usage as an intermediate in the production of cobalt chemicals and salts used across diverse industries.
The global cobalt oxalate market is estimated to be valued at US$ 912.39 Mn in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period of 2024 to 2031.
Key Takeaways
Key players operating in the cobalt oxalate market are BIOVIA, Chemical Computing Group, Agilent Technologies, Schrödinger, PerkinElmer, CambridgeSoft, ChemAxon, Molecular Discovery, OpenEye Scientific Software, and Dassault Systèmes. The key opportunities in the market include growing demand for cobalt oxalate from the ceramic and chemical manufacturing industries. Advancements in material science and development of cobalt-based hybrid pigments and conductive inks also provide opportunities for market growth.
Market drivers
The primary drivers contributing to the Cobalt Oxalate Market Growth include rising usage of cobalt oxalate in producing inks, paints, and coatings. Its bright red color and high opacity make cobalt oxalate suitable for use in ceramic glazes and metal surface coatings. Growing applications in the chemical industry as an intermediate for manufacturing other cobalt chemicals will also augment the market in the coming years. Rapid industrialization and urbanization across developing regions have increased the demand for ceramics, inks, and coatings, thereby propelling the cobalt oxalate market forward.
Current challenges in Cobalt Oxalate Market:
The major challenges faced by the cobalt oxalate market include volatile prices of cobalt and stringent rules and regulations regarding the mining of cobalt. Cobalt is mined as a by-product of copper and nickel and its prices largely depend on the prices of these base metals. Fluctuations in the prices of copper and nickel directly impact the cobalt prices. Additionally, over 50% of the world’s cobalt reserves are located in the Democratic Republic of Congo and mining activities in the country are surrounded by issues related to human rights violations, corruption and political instability. Various governmental and non-governmental organizations are putting pressure on manufacturers to ensure ethical sourcing of cobalt.
SWOT Analysis
Strength: Cobalt oxalate has wide applications across various end-use industries like lithium-ion battery manufacturing, manufacturing of magnetic alloys, etc. due to its unique properties.
Weakness: Volatility in cobalt prices poses challenges in cost management for manufacturers. Stringent rules related to cobalt mining add to operational costs.
Opportunity: Growing demand for lithium-ion batteries from electric vehicles and energy storage systems is spurring opportunities for cobalt oxalate manufacturers. Shift towards renewable energy also creates new avenues.
Threats: Substitutes like lithium iron phosphate are gaining traction in certain battery applications posing competitive threats. Dependency on few nations for cobalt reserves is also a concern.
Geographically, currently North America accounts for the largest share in the global cobalt oxalate market owing to strong presence of lithium-ion battery manufacturers and rapid adoption of electric vehicles in the region. Asia Pacific is anticipated to witness fastest growth during the forecast period supported by massive battery investments and rapidly expanding EV industry in China.
Europe is another major regional market for cobalt oxalate driven by stringent environmental regulations promoting use of clean energy technologies like solar panels and EVs. Countries like Germany, UK, France, Italy are key markets in Europe. Middle East & Africa is dominated by cobalt reserves in Democratic Republic of Congo and is expected to emerge as an attractive regional market going ahead.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
