Nanomaterials Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Nanomaterials Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global nanomaterials market is expected to reach USD 57,608.26 million by 2026, growing at a CAGR of 19.86% during the forecast period (2021-2026). Growing Usage of Nanomaterials in Healthcare Industry and Increasing Usage of Nanomaterials in Water Treatment Applications are expected to drive the demand for nanomaterials in the market.

Key Highlights

• However, Current pandemic situation due to COVID-19 and Higher Costs of Technology is expected to hinder the growth of the market studied.
• Among the product types, nanoparticles are likely to account for the highest market share during the forecast period.
• Asia-Pacific is expected to drive the market growth rate during the forecast period.

Key Market TrendsNanoparticles to Dominate the Market

In the electronics industry, the demand for nanomaterials has been greatly increasing, owing to the major advances in computing and electronics, leading to faster, smaller, and more portable systems that can manage and store larger and larger amounts of information. In the electronics industry, nanoparticle copper suspensions have been developed as a safer, cheaper, and more reliable alternative to the lead-based solder and other hazardous materials commonly used to fuse electronics in the assembly process.

Some of the major applications of nanomaterials in the electronics industry include the use of carbon nanotubes in semiconductor chips, use of a variety of nanomaterials in lighting technologies, including light-emitting diodes or LEDs and organic light-emitting diodes or OLEDs, use of quantum dots in lasers, along with ongoing research into the application of others, the use of nanomaterials in laser technology, a variety of nanomaterials used in lithium-ion batteries, potential use of carbon nanotubes and other nanomaterials in fuel cells and by the solar industry for use in photovoltaics, use of nanomaterials to produce lead-free solder, and the development of solder-free assembly technology. Nanomaterials are also widely used as surface coatings in few electrical goods, as they possess anti-microbial properties.

Flexible electronics have been developed using semiconductor nanomembranes for applications in smartphone and e-reader displays. Other nanomaterials, like graphene and cellulosic nanomaterials, are being used for various types of flexible electronics to enable wearable and tattoo sensors. The versatile properties of carbon nanotubes are increasing their potential use as an anode material or as an additive in lithium-ion (Li-ion) battery systems. The electronics industry is expanding, owing to various reasons, such as increasing population and infrastructural activities, rising living standards and middle-class per capita income, and replacement of conventional lightings. All these factors are expected to increase the demand for nanomaterials in the electronics market.

The electronics manufacturing market in Asia-Pacific is expected to grow rapidly during the upcoming years due to the presence of a large number of OEMs in the region. Low cost, the availability of raw materials, and cheap labor are driving the growth of the sector. The companies in the region provide manufacturing and assembling services to companies in Germany, France, and the United States. Moreover, these companies are rapidly digitizing their business to achieve end-to-end integration of their operation. This is further encouraging the OEMs from Europe and North America to outsource their production to Asia-Pacific. As the electronics industry is continuously making remarkable progress and development, the demand for the market studied is growing rapidly. The production of cellular phones, portable computing devices, gaming systems, and other personal electronic devices is likely to continue to spark the demand for nanomaterials.

United States to Dominate the Global Market

The United States is the world’s largest and most powerful economy in the world. However, the country's economic growth has been slowed in the recent past, with the GDP growth rate dropping from 3% in 2018 to 2.2% in 2019. Additionally, the country's GDP contracted by 4.8% in the first quarter and 31.4% in the second quarter of 2020, indicating the severe impact of the COVID-19 pandemic. Overall, the country’s annual GDP growth dipped to -4.3% in 2020. Therefore, the drastic outbreak of COVID-19 in the country has led to a downfall in economic growth, owing to a fall in consumer spending and business shutdowns. With the coronavirus disease spread across the country, production in various industries and nearly all aspects of the supply chain were negatively affected.

The US electronics market is the largest market in the world in terms of size. Furthermore, it is expected to remain the leading market over the forecast period due to the usage of advanced technology, an increase in the number of R&D centers, and rising demand from the consumers. There is a significant demand for newer and faster electronic products due to the rapid pace of innovation, technological advancement, and R&D activities in the electronics industry. There is a significant increase in the number of manufacturing plants and development centers in the United States, primarily due to developing high-end products. The major demand drivers are expected to be smartwatches, drones, smartphones, laptops, televisions, and vehicle technology. This is expected to boost the demand for the market studied by the electronic industry over the forecast period. However, due to the COVID-19 outbreak, all the industrial activities were halted temporarily, which is further expected to hamper the market's growth during 2020-2021 temporarily. Furthermore, the country is spending huge bucks to prepare the telecommunications infrastructure to roll out the 5G network, which will positively affect the nanomaterials market.

The development of medical technologies has propelled the demand for nanomaterials in this application. The radiographic contrast media containing iodine enhances the visibility of vascular structures and organs during radiographic procedures. The increasing geriatric population and the increasing requirement for medical facilities for the treatment of chronic diseases are expected to support the growth of the pharmaceutical sector and the consumption of nanomaterials for the production of medicines in the country over the forecast period. The healthcare sector in the United States is by far one of the most advanced sectors in the country. The country’s healthcare expenditure stood at USD 3.8 trillion in 2019, an increase of around 4.8% over 2019. For 2020-2027, national healthcare spending is projected to grow at an average of 5.7% and reach approximately USD 6 trillion by 2027. This may increase the consumption of iodine in making drugs. Furthermore, the COVID-19 outbreak is expected to contribute to the projected increase in healthcare spending on personal healthcare, driving the demand in the market in the forthcoming years.

However, the above-mentioned scenario is likely to affect the economy and manufacturing activities due to lockdowns for a longer period due to the COVID-19 pandemic. The outbreak had a negative impact on the market in 2020. The market for nanomaterials is expected to recover and grow in the later part of the forecast period.

Competitive Landscape

The nanomaterials market is highly fragmented. The companies in the market focus on specific type of nanomaterials and also for specific applications. The major players are constantly focusing on R&D for product innovation and capacity expansions, along with collaborations with local or regional distributors and manufacturers. Some of the key players in the market include American Elements, Chengdu Organic Chemicals Co. Ltd (Timesnano), Cabot Corporation, Jiangsu Cnano Technology Co. Ltd, and ACS Material, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

ACS Material
American Elements
Arkema Group
BASF SE
Cabot Corporation
CHASM Advanced Materials Inc.
Chengdu Organic Chemicals Co. Ltd (Timesnano)
Jiangsu Cnano Technology Co. Ltd
LG Chem
Nano
C
Nanocyl SA
Nanophase Technologies Corporation
OCSiAl
Raymor Industries Inc.
SHOWA DENKO K.K.
ZYVEX TECHNOLOGIES

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