While there are various cited differences in the total demand for palladium, it is agreed on throughout the PGM industry that the demand is derived primarily from the automotive sector, which applies the use of palladium in the production of catalytic converters. With stricter automotive emission legislation being enforced globally, and the new use of palladium in diesel catalytic converters that are expected to be in production by 2006, the trend for its use in this application is believed to steadily grow in the future. Global vehicle sales are estimated to be marginally higher in 2005, with the main increase in sales coming from China's emerging auto market. Auto companies have now drawn down their surplus inventories, and are slowly substituting palladium for platinum due to the realized cost efficiencies. In 2004, the demand for palladium within the automotive industry realized an increase of almost 400,000 ounces partially due to the decrease in company stockpiles of the metal.

There is also a growing demand for palladium in the jewellery/retail goods industry. Demand in China alone, increased exponentially from 25,000 ounces in 2003, to reach a new high of 700,000 ounces during 2004. Major brand name international fashion houses have commenced using palladium pieces to accent their handbags and accessories. When visually comparing palladium to platinum, the metals are virtually indistinguishable. Palladium also has a lighter atomic weight than platinum, thus making it more appealing to those who enjoy wearing large pieces but do not want to carry the weight (heavy necklaces and bracelets).