Advanced Functional Materials Market Forecasts to 2030 – Global Analysis By Type (Composites, Energy Materials, Nanomaterials, Ceramics, Conductive Polymers and Other Types), End User and By Geography

Advanced Functional Materials Market Forecasts to 2030 – Global Analysis By Type (Composites, Energy Materials, Nanomaterials, Ceramics, Conductive Polymers and Other Types), End User and By Geography

According to Stratistics MRC, the Global Advanced Functional Materials Market is accounted for $119.5 billion in 2023 and is expected to reach $257.6 billion by 2030 growing at a CAGR of 11.5% during the forecast period. Advanced functional materials are premium substances with exceptional qualities like high mechanical strength, corrosion resistance, flexibility, and high thermal & chemical stability. A set of diverse substances, including ceramics, nanomaterials, composites, and conductive polymers, are referred to as advanced functional materials. Advanced functional materials offer a wide range of applications in several end-use industries, including healthcare, electronics, aerospace, automobile, and others, due to their excellent qualities.

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.

Market Dynamics

Driver

Increasing utilization of nanomaterials

The development of nuclear, biological, and chemical detection by nanotechnology is helpful for military and defence applications. Additionally, nanotechnology increases vehicle performance, lowers the number of military personnel needed, and lessens dangers to troops on the battlefield. Increasing investments and aircraft orders are predicted to cause the aerospace and defence sector to expand significantly throughout the forecast period.

Restraint

Lack of expansion capacities

It is anticipated that technical advancement together with a lack of expansion capacity to meet customer demand will restrict the growth of market participants for advanced functional content. Additionally, the manufacturing procedure to create advanced functional materials is somewhat pricey. The cost of advanced functional materials tends to be expensive due to the lack of many manufacturers, which also becomes a major issue restricting the market's growth.

Opportunity

Increasing utilization in industries

Due to their remarkable qualities, such as strong resistance to corrosion and bending, modern functional materials are being used more and more in a variety of industries as a replacement for plastics and metals. They are a better alternative to plastics and metals due to their superior heat resistance, physical stability, chemical inertness, and strong electrical characteristics. These characteristics, together with the material's widespread use in the electrical & electronics, automotive, healthcare, and other industries, are fueling market expansion.

Threat

High price of the end products

Modern production facilities are needed to ensure the quality of advanced functional materials, which low-income nations still cannot afford. Additionally, due to their high cost, the import of such materials for use in other industries is restricted, which raises the final product's price. It is anticipated that the increase will be hampered by the relatively high cost of finished goods that contain cutting-edge functional materials.

Covid-19 Impact

Due to the COVID-19 outbreak, manufacturing facilities have been shut down across the majority of the country. As a result, demand for advanced functional materials has drastically declined, especially conductive polymers and nanomaterials, which has restricted the global market's growth. Additionally, the electric and electronics industries as well as the automobile industries make extensive use of complex functional materials. Production of smartphones and other electronic devices dropped significantly.

The nanomaterials segment is expected to be the largest during the forecast period

The nanomaterials segment is estimated to have a lucrative growth. Due to their thermal conductivity, electrical conductivity, durability, high strength and elasticity, high aspect ratio, field emissions, and high absorbent qualities, nanoparticles, particularly carbon nanomaterials, are widely used in the automotive and aviation industries. Additionally, the market is likely to rise faster due to the expanding use of nanomaterials in the field of nanomedicine in the healthcare sector.

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

The electronics & electrical segment is anticipated to witness the fastest CAGR growth during the forecast period. Nanomaterials, conductive polymers, and sophisticated functional ceramics all make major contributions to this sector. Additionally, it is anticipated that R&D investments in the production of specialised products employing cutting-edge dimensional composites for aerospace and vehicles would open up a new doorway. Expanding the use of novel functional composites made by combining two or more materials preserves the unique qualities that industry players are developing.

Region with Largest share

Asia Pacific is projected to hold the largest market share during the forecast period owing to high demand for these materials in the electronics and automobile sector. The presence of manufacturing-based economies in the area has led to a significant increase in demand for novel functional materials of all kinds. Demand growth is being attributed to by the expansion of end-user industries like aerospace, paints & chemicals, infrastructure, and automotive.

Region with highest CAGR

Europe is projected to have the highest CAGR over the forecast period, owing to rapid growth in the healthcare and manufacturing sector in the developed nations. Due to the expanding demand for automotive products and the presence of several manufacturers of consumer electronics products, it is anticipated that the market for advanced functional materials would expand throughout the forecasted period. Due to rising investments in the aerospace and defence industries, there is a greater need for innovative functional materials in the region.

Key players in the market

Some of the key players profiled in the Advanced Functional Materials Market include Covestro AG, BASF SE, Arkema Group, Applied Nanotech Holdings, Inc, Evonik Industries AG, Bayer AG, Samsung Electro-Mechanics Co.,Ltd., 3M, CNANO Technologies Ltd., Kyocera Corporation, Momentive Performance minerals, DuPont, CeramTec, Hexcel Corporation, Sumitomo Chemical Co. Ltd., Morgan Advanced Materials and Kuraray Co. Ltd.

Key Developments

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.

In November 2022, Covestro Ag has developed a functional material solution for automotive applications. This innovative material can be used in car interiors in order to meet the changing automotive industry demand in the future.

Types Covered
• Composites
• Energy Materials
• Nanomaterials
• Ceramics
• Conductive Polymers
• Other Types

End Users Covered
• Energy and Power
• Healthcare
• Electrical & Electronics
• Automotive
• Aerospace & Defense
• 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 2021, 2022, 2023, 2026, and 2030
- 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