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Substances or chemicals that are employed as the building block or raw materials in the creation of other compounds or materials are referred to as precursor materials.
To produce goods that are more sophisticated or complex, these materials are changed through various chemical processes.
The production of materials, electronics, chemicals, and the pharmaceuticals all depend heavily on precursor materials.
They frequently serve as the fundamental building blocks for producing a vast array of completed products.
The precursor materials accounted for $XX Billion in 2022 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.
In Ontario, Canada, Umicore intends to build a manufacturing plant for cathode active battery materials (CAM) and their precursor materials (pCAM).
To support its clients in their rapid transition to sustainable electric mobility, Umicore sees this investment as the last step in building a genuinely global industrial footprint with fully integrated regional value chains for battery materials.
The proposed facility, which would be the first of its kind in North America, would combine the production of cathode and precursor materials on an industrial scale, filling a critical gap in Canada’s battery value chain that runs from natural resources to electric mobility.
Umicore is negotiating production contracts in North America with a number of potential clients.
This demonstrates Umicore’s commitment to value creative returns and will serve as the foundation for its investment decision.
In order to provide its customers in the region with secure and circular access to essential battery materials and – in line with its previously announced ambition to establish a regional presence in North America – across the CAM value chain, Umicore will also investigate opportunities for metals refining and battery recycling in North America.
European Carbon Fiber GmbH (“ECF”), a German manufacturer of high-quality “precursor” for large-tow (50K) polyacrylonitrile (PAN) carbon fibers, was acquired by Solvay.
With this acquisition, Solvay is laying the groundwork for leading the adoption of composites in automotive applications, serving a small number of industrial customers, and assisting with the eventual use of large-tow fibers in aircraft.
North America
The North American market, particularly the USA, will be one of the prime markets for (Precursor Materials Market) due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology. The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive.
Europe
The European market, particularly Western Europe, is another prime market for (Precursor Materials Market) due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive. In Western Europe, the margins for (Precursor Materials Market) are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period.
Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe.
There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth of (Precursor Materials Market) in the region.
Asia
Asia will continue to be the global manufacturing hub for (Precursor Materials Market) over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region. There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.
There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region. There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon.
Africa
Africa is expected to see the largest growth in (Precursor Materials Market) over the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand. This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape.
RoW
Latin America and the Oceania region will showcase growth over the forecast period in (Precursor Materials Market). In Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices. There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region.
