Global Nanocomposite Market - 2022-2029

Global Nanocomposite Market - 2022-2029

Market Overview

Nanocomposite market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 15.5% during the forecast period (2022-2029).

Nanocomposite refers to a solid material composed of particles with dimensions less than 100 nanometers (nm). Nanocomposites utilize building blocks of different phases in the nanometer range to build new types of materials. Nanocomposites can be porous, colloidal or polymeric in nature. Ceramic, metal and polymers are the common matrix materials used to produce nanocomposites.

Matrix is the base material in which the nanoparticles are embedded. Nanocomposites have exceptional mechanical and thermal properties. The composition of nanocomposites can be changed to obtain different physical and chemical properties. Nanocomposites are widely used in various industrial applications.

Market Dynamics

The increasing innovations in packaging materials mainly drive the nanocomposite market growth. The high research and development costs of nanocomposites are a key factor in limiting the growth of this market.

Increasing innovations in packaging materials

With the rapid expansion of global trade, logistics, manufacturing and commerce, the demand for packaging has increased exponentially within the last decade. Since various industries use packaging, companies have a strong incentive to develop new technologies to suit the requirements of these industries. The pace of innovation in the packaging industry has increased in recent years, with major new advances in the material.

Companies have utilized nanocomposites to impart strength and improve the mechanical properties of packaging materials. Nanocomposite reinforcement allows end-users to use less material while packaging, saving costs and reducing wastage. It also makes the packaging material impervious to dust, gases and moisture, making them ideal for transporting fresh produce over long distances.

Similarly, the nanocomposite-reinforced packaging material is also used for bulk packaging and transporting industrial explosives and firecrackers. The nanocomposite reinforcement creates an impenetrable barrier and is highly flame retardant, thereby preventing the accidental ignition of the explosives.

The rise of smart packaging in recent years has been a major boon for the food processing industry. Metal nanoparticles are integrated within processed food packaging that exerts antimicrobial activity, thereby keeping the food safe. Nanocomposite sensors are integrated into smart packaging, which senses parameters such as time, temperature, oxygen levels, gas detection and microbial levels. Using these packaging helps extend the shelf life of processed food items. Since all major industries almost universally require packaging materials, the increasing innovations in packaging materials will be a key factor in driving the market growth for nanocomposites.

High research and development costs of nanocomposites

The global nanocomposite industry is an advanced, high-technology industry that heavily relies on innovation and new product development. Companies in this industry innovate new materials, processes and products to generate revenue and drive growth. The scope for innovation is immense, with a diverse range of industries requiring nanocomposites suited to their custom applications.

Skilled personnel possessing advanced chemistry and material science knowledge are needed to carry out research activities. Companies offer lucrative compensation packages to attract top talent. Even after the formulation is completed in the laboratory, it still takes months or years of exhaustive testing and prototyping in real-world conditions to perfect the product.

Furthermore, numerous regulatory approvals are needed before the product is deployed to the market. All these activities incur substantial costs. Between 2020 and 2022, companies have launched nanocomposite products at the higher end of the price range to recoup investment costs. It limits the wider adoption by end-users due to the high price. The high research and development costs of nanocomposites are a key challenge for market growth.

COVID-19 impact analysis

The COVID-19 pandemic began in early 2020 and wreaked havoc on the global nanocomposite market. Nanocomposites are mainly utilized by various manufacturing industries disrupted due to the pandemic. Since many governments put lockdowns and movement restrictions in place, manufacturers had to suspend operations temporarily. It led to a massive decline in demand for nanocomposites from various industries such as electronics and automotive. Packaging, a major end-user of nanocomposites, saw a decline in demand across many domains. However, medical and e-commerce domains saw growth due to changes in consumer habits and the prevailing pandemic situation. Aerospace and defense also remained largely unaffected since defense production is a matter of national security led to the easing of pandemic restrictions for defense manufacturing activities.

Many countries within Asia-Pacific started gradually removing pandemic restrictions by early 2021. Since the region is a major global manufacturing hub, the demand for nanocomposites showed slight improvement. However, total restoration of demand is not expected until early 2022. Due to supply chain constraints and logistical delays caused by the pandemic, manufacturers' essential raw materials and components are currently in short supply. It has hampered the production of various manufactured goods, which has hampered the demand for nanocomposites. Total demand recovery to pre-pandemic levels is not expected to occur before mid-2022.

Despite the ongoing challenges, the global nanocomposites market has a long-term positive outlook. With the rising pace of manufacturing activities, increasing economic growth and growing demand for capital goods, the overall scenario is optimistic for the nanocomposites market. The market will show healthy growth in the coming years.

Segment Analysis

The global nanocomposite market is segmented into type, product, application and region. The nanocomposite market by type is further segmented into packaging, automotive and transportation, electronics and semiconductors, aerospace and defense, energy and others. Packaging materials are undergoing rapid innovation, which is increasing their utility. Adding nanocomposites to packaging materials enhances their thermal, mechanical and electrostatic properties. Since packaging materials are universally used across various industrial verticals, it is leading within this segmentation.

Geographical Analysis

Asia-Pacific is expected to have a leading regional share in the global nanocomposite market. Due to rapid industrialization and sustained high economic growth experienced over the last three decades, the region has emerged as the primary manufacturing hub of the world. Many of the industries utilizing nanocomposites are located in the region.

Asia-Pacific has become a major region for the manufacturing of packaging material. China and India are major manufacturers of packaging materials such as polymers, paper, paperboards and composites. Nanocomposites are used to increase packaging materials' mechanical strength and thermal resistance.

Asia-Pacific is a major producer of electronics, electronic components and semiconductors. Nanocomposite reinforced polymers are used in producing photovoltaic cells, LED panels, printed circuit boards (PCBs), sensors, nanowires, supercapacitors and electromechanical actuators. Nanocomposites are also used for the production of transparent conductive coatings used in the production of various electronic components. China, South Korea and Taiwan have well-developed electronic and semiconductor industries in the region.

Nanocomposites are used in automotive components such as engine covers, timing belt covers, interior trims, fuel lines, headlamp covers and exterior coatings. Asia-Pacific is a major manufacturer of automobiles and automotive components, with China, Japan, India and South Korea having well-developed automotive industries in the region. Asia-Pacific will continue retaining the largest market share in the global nanocomposite market in the coming years.

Competitive Landscape

The global nanocomposite market is competitive since many nanocomposites have emerged in recent years that cater to various industrial applications. Some of the major players contributing to growth in the market are Arkema, NEI Corporation, Unitika Ltd., Avient, NanoSonic, Inc., Nanocyl SA, Powdermet Inc., Showa Denko K.K., Nanophase Technologies Corporation and Minerals Technologies Inc. The major players in the market adopt several growth strategies such as researching and developing new materials, patenting new technologies, joint ventures and collaboration to contribute to the growth of the global industry.

Arkema

Overview: Arkema is a multinational chemicals company specializing in developing and producing specialty chemicals and advanced materials. The company mainly produces high-performance materials, specialty chemicals for industrial applications and bonding and coating solutions. Arkema operates 13 research and development centers based in France, U.S. and China. The company operates 144 manufacturing plants globally, with the vast majority concentrated in Europe, North America and Asia-Pacific. The company was established in 2004 with the demerger and spin-off of oil and gas conglomerate TotalEnergies SE’s chemicals division. Arkema is headquartered in Colombes, Paris, France.

Product Portfolio

Graphistrength is one of Arkema’s recently developed nanocomposite materials. Graphistrength is a multi-layered and multi-walled material consisting of carbon nanotubes to improve composites' mechanical strength. The material can be deployed in a thermoplastic, thermosetting or elastomer polymer matrix. Graphistrength also helps in achieving electrostatic dissipation for materials in which it is added. Graphistrength is generally used for electronic packaging, spray-coated parts, automotive fuel lines, battery components, paper composites and industrial waste carrying pipes. The ideal concentration of Graphistrength in material ranges from 2 to 8%, depending upon the required application.

Key Developments:

• In 2022, Arkema showcased Graphistrength and its other nanocomposite products and solutions at the China International Composites Expo held in Shanghai, China.

Why Purchase the Report?
• Visualize the composition of the nanocomposite market segmentation by the type, product, application and region, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the nanocomposite market by analyzing trends and co-development deals.
• Excel data sheet with thousands of global nanocomposite market-level 4/5 segmentation data points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the critical product of all major market players

The global nanocomposite market report would provide approximately 58 market data tables, 64 figures and 220 pages.

Target Audience 2022
• Nanocomposite manufacturers
• Packaging material manufacturers
• Electronics and electronic components manufacturers
• Automobile and automotive component manufacturers
• Industry Investors/Investment Bankers
• Education & Research Institutes
• Research Professionals