Advanced Functional Materials Market Forecasts to 2028 – Global Analysis By Type (Advanced Functional Composites, Advanced Functional Ceramics, Advanced Energy Materials and Other Types), End User (Pharmaceuticals, Healthcare, Automobile, Energy and Other

Advanced Functional Materials Market Forecasts to 2028 – Global Analysis By Type (Advanced Functional Composites, Advanced Functional Ceramics, Advanced Energy Materials and Other Types), End User (Pharmaceuticals, Healthcare, Automobile, Energy and Other End Users), and By Geography

According to Stratistics MRC, the Global Advanced Functional Materials Market is accounted for $107.16 billion in 2022 and is expected to reach $185.74 billion by 2028 growing at a CAGR of 9.6% during the forecast period. Chemistry plays a key role in the study of advanced functional materials and interfaces. In order to provide solutions in industries including energy, healthcare, electronics, and catalysis, it is essential to identify, comprehend, and create these materials. Advanced functional materials are those that not only withstand physical stresses but also serve as a vital part of a system by carrying out a specific function. The main industries using advanced functional materials are the bio-medical and electrical & electronics sectors.

According to the OICA, Asia-Pacific dominated global automobile production recently. China is the largest producer of automobiles globally, with a production volume of 26.08 million automobiles in 2021, which shows an increase of 3% compared with 2020. Therefore, such a positive production scenario helps create demand for an advanced functional market.

Market Dynamics

Driver

Increasing demand in healthcare industry

The health care sectors uses advanced functional materials in the creation of prosthetic and orthotic items, modern materials like composites and nonomaterial’s are rapidly taking the place of more conventional ones like wood, leather, and aluminium. Due to their capacity to be moulded into intricate shapes, innovative functional materials are now being used in diagnostic tools like medical imaging scanners and disposable thermometers. During the projected period, technological advancements in medical and diagnostic equipment are anticipated to drive the worldwide market for advanced functional materials.

Restraint

Lack of expansion capacities

It is anticipated that technical advancement together with a lack of expansion capacity to meet customer demand would restrict the growth of market participants for advanced functional content. Additionally, producing sophisticated functional materials requires a rather expensive manufacturing method as a result, only a few numbers of producers are able to meet production and demand demands.

Opportunity

Extensive uses for advanced functional materials in the electronics industry

The electronics industry uses the advanced functional materials in a variety of ways to create high energy density capacitors, super capacitors, batteries, and other goods. In order to create lightweight and effective cars as well as aircrafts, a number of innovative materials are also employed in the automotive and aerospace sectors which include the advanced functional materials. Thus, all the above factors propel the growth of the market.

Threat

Fluctuating raw material prices

One of the reasons impeding the growth of the market for advanced functional materials is the fluctuating cost of raw materials. Due to the variable global production and consumption situations, the prices of raw resources including crude oil, lightweight metal ores, and sophisticated functional composites are very erratic. Price changes make the market unpredictable and prevent the market for advanced functional materials from expanding. Methylene diphenyl diisocyanate and toluene diisocyanate, the raw ingredients required to make polyurethane, are significantly influenced by the price of crude oil.

Covid-19 Impact

The COVID-19 pandemic had a significant impact on the market for advanced functional materials, which led to the closure of the manufacturing facilities. The consumption of advanced functional materials more particularly, nonmaterial’s and conductive polymers was significantly decreased as a result of this reason, which restrained the market's overall expansion. The electric, electronics, and automotive sectors found increasing demand during the post-COVID-19 period, however, and this led to resurgence.

The advanced functional ceramics segment is expected to be the largest during the forecast period

The advanced functional ceramics segment is estimated to have a lucrative growth due to usage in extreme circumstances, such as significant temperature or pressure fluctuations or corrosion, as opposed to metals and polymers, especially if these conditions occur simultaneously or for an extended length of time. Products made of ceramic are excellent and offer a staggering array of qualities. Many times, ceramic-made goods or joints have resistance levels that are higher than or equivalent to those of hard metals, as well as superior tribological qualities and electrical and thermal insulation capabilities. Ceramic materials improve the performance of your product since they have fewer physical restrictions than other materials. Ceramics increase the lifespan of product by being both corrosion and wear resistant.

The electrical & electronics segment is expected to have the highest CAGR during the forecast period

The electrical & electronics segment is anticipated to witness the highest CAGR growth during the forecast period; due to their role in modern functional ceramics have piezoelectric, magnetic, semiconducting, and conducting qualities that enable its usage in electronics and electrical applications like computers and mobile phones. Advanced functional ceramics are used as transducers, insulators, integrated circuits, and capacitor components thereby enhancing the growth of the market.

Region with highest share

Asia Pacific is projected to hold the highest market share during the forecast period owing to favourable manufacturing environment aids in generating demand for a sophisticated functional market. For the past several years, China has been a significant factor in the rise of air travel worldwide. Over 10% more people travel each year on average. A major factor in this expansion is an increase in passenger traffic brought on by increased air connectivity and growing consumer expenditure. Thus, it is anticipated that rising passenger traffic would increase demand for advanced functional materials.

Region with highest CAGR

Europe is projected to have the highest CAGR over the forecast period, owing to to the expansion of industries like electronics, healthcare, and aerospace & defence in the area. The main markets for cutting-edge functional materials are the UK and Germany. During the projected period, the market for advanced functional materials in Europe is anticipated to grow as a result of rising demand for automotive goods and the existence of several producers of consumer electronics devices. The demand for advanced functional materials in the region has increased as a result of an increase in investments in the aerospace and defence industries.

Key players in the market

Some of the key players profiled in the Advanced Functional Materials Market include CNANO Technologies Ltd., Bayer AG, Applied Materials, Inc., 3M Company, Samsung Electro-Mechanics Co., Ltd, Hexcel Corporation, KYOCERA Corporation, Emeren, Momentive, Sumitomo Chemical Co., Ltd., SHOWA DENKO K.K., Arkema, CeramTec GmbH, Covestro AG and Evonik Industries AG

Key Developments

In June 2023, Bayer Vital launches the “EyeOpener” initiative with experts and patients to this end, Bayer not only contributed its own expertise, but also brought people together who know best about diabetes and the needs of those affected.

In May 2023, Samsung launches the “Blue Elephant (PUCO) Nonviolence Campaign” for a world without youth cyberbullying, the event consisted of various programs, including a signing ceremony for a six-party business agreement, cyberbullying experience booths, an award ceremony for the prevention idea contest, and an exhibition of works.

Types Covered
• Advanced Functional Composites
• Advanced Functional Ceramics
• Advanced Energy Materials
• Conductive Polymers
• Nano-Materials
• Other Types

End Users Covered
• Pharmaceuticals
• Healthcare
• Automobile
• Energy
• Electrical & Electronics
• Chemical
• Manufacturing
• Aerospace
• Building & Construction
• Other End Users

Regions Covered
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities,Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements