Advanced Materials Market Size, Growth, Market Overview, Competitive Analysis, Key Players Industry and Forecast 2024-2032

Advanced Materials Market Valuation – 2024-2031

Rapid technological advances and innovations across numerous industries are driving the demand for the advanced materials market. Advanced materials which include nanomaterials, biomaterials, smart materials, and composites have superior performance qualities such as increased strength, durability, lightweight, and functionality. These materials are crucial for building next-generation products and technologies by enabling the market to surpass a revenue of USD 78.04 Billion valued in 2024 and reach a valuation of around USD 153.16 Billion by 2031.

Another key element driving the increase in demand for sophisticated materials is the growing emphasis on sustainability and energy efficiency. Industries are increasingly looking for materials that can reduce environmental impact, increase energy efficiency, and promote sustainable development by enabling the market to grow at a CAGR of 9.70 % from 2024 to 2031. 

Advanced Materials Market: Definition/ Overview

Advanced materials are engineered substances that have better qualities and performance characteristics than traditional materials. These materials are tailored to specific specifications and are frequently employed in cutting-edge technology and applications. They include nanomaterials, composites, biomaterials, and smart materials. Nanomaterials, for example, are materials with structures at the nanoscale (one billionth of a meter) that have distinct electrical, optical, and mechanical properties.

Because of their better qualities and performance characteristics, advanced materials are transforming many sectors. These materials are crucial in the aerospace and defense industries for producing lightweight, durable, and high-strength components. For example, carbon fiber composites are widely utilized in aircraft and spacecraft to reduce weight while maintaining strength resulting in greater fuel efficiency and performance.

The future application of advanced materials promises substantial transformations across numerous industries owing to their unique features and capabilities. Advanced materials will have a significant impact on the realm of energy. For example, graphene, perovskites, and advanced composites are poised to transform the energy industry.

Will the Increasing Demand in the Aerospace Industry Drive the Advanced Materials Market?

The aerospace industry’s expanding need is a primary driver of the advanced materials market. As airplane makers seek lighter, stronger, and more fuel-efficient designs, innovative materials such as composites, advanced alloys, and nanomaterials become increasingly important. According to the International Air Transport Association (IATA), global air passenger traffic is predicted to double by 2037, to 8.2 billion people per year. This increase in demand needs the manufacturing of more aircraft with Boeing estimating a requirement for 42,730 new commercial aircraft by 2037. The aerospace industry’s effort for sustainability encourages the use of innovative materials that can lower aircraft weight and enhance fuel efficiency.

Furthermore, the space exploration industry is expanding rapidly increasing the demand for sophisticated materials. NASA’s budget for fiscal year 2023 is USD 25.4 Billion, up 3% from the previous year indicating that the agency will continue to spend on space technologies that rely largely on sophisticated materials. The global space economy reached USD 447 Billion in 2020, according to the Space Foundation, and is expected to reach USD 1 Trillion by 2040, according to Morgan Stanley. This expansion will increase the demand for materials that can survive severe conditions in space. Furthermore, the US Department of Defense’s increased focus on hypersonic technology with a budget commitment of USD 4.7 Billion for hypersonic-related research in fiscal year 2023 will further drive the need for innovative materials capable of withstanding harsh conditions.

Will the Limited Availability of Raw Materials Hamper the Advanced Materials Market?

The restricted availability of raw materials presents substantial hurdles for the advanced materials business but it also encourages innovation and sustainable practices. One significant factor is the growing demand for rare earth elements (REEs) in high-tech applications. According to the United States Geological Survey, global rare earth oxide production will reach 280,000 metric tons in 2023, with China accounting for over 70% of this total output. This concentration of supply leads to possible bottlenecks and price instability. For example, the European Commission forecasts that the EU’s demand for rare earth elements is predicted to increase fivefold by 2030 emphasizing the critical need for supply chain diversity and the development of alternative resources.

Another motivator is the movement toward sustainable and recyclable materials. According to the United Nations Environment Programme, worldwide material use is expected to more than double from 79 billion tons in 2011 to 167 billion tons by 2060. This trend is driving research into bio-based alternatives and more efficient recycling methods. For example, the Advanced Manufacturing Office of the United States Department of Energy has invested more than USD 400 Million in programs to develop environmentally friendly manufacturing methods and materials. Furthermore, the European Union’s Circular Economy Action Plan seeks to increase the usage of recycled materials in the EU by 2030, thus alleviating some of the pressure on raw material availability.

Category-Wise Acumens

Will Versatility and Cost-Effectiveness Drive Growth in the Composite Segment?

Polymer Matrix Composites (PMCs) dominate the advanced materials industry due to their broad application across industries and favorable features. PMCs, which are made of a polymer matrix reinforced with fibers like carbon, glass, or aramid, are popular because of their high strength-to-weight ratio, corrosion resistance, and design flexibility. These properties make PMCs particularly attractive in industries including aerospace, automotive, and sports equipment where weight reduction while retaining structural integrity is critical. For example, in the aerospace industry, PMCs are widely utilized in the manufacturing of aircraft components like fuselages, wings, and tail sections because they dramatically reduce overall aircraft weight resulting in improved fuel efficiency and performance.

PMCs’ supremacy is due to their versatility and low cost of creating complicated forms and structures. The simplicity of molding and shaping PMCs allows for increased design flexibility allowing producers to make complicated pieces that would be difficult to create with standard materials. This adaptability is especially useful in the sports equipment market where personalized and ergonomically designed goods are critical for peak performance. PMCs’ cost-effectiveness which stems from lower raw material costs and simpler production procedures than metal and ceramic composites, reinforces their market dominance.

Will the Mechanical Properties and High-Temperature Resistance Drive the Advanced Ceramics Segment?

Non-oxide ceramics are growing as the leading segment owing to their better mechanical qualities and high thermal resistance. Non-oxide ceramics including silicon carbide (SiC), silicon nitride (Si3N4), and boron nitride (BN) have excellent strength, hardness, and endurance making them perfect for demanding applications in a variety of high-performance sectors. These materials can tolerate severe temperatures with little deterioration, and their low thermal expansion coefficients provide dimensional stability under thermal stress. This makes non-oxide ceramics especially desirable in industries such as aircraft, automotive, and industrial manufacturing where components must work dependably in hostile environments.

Non-oxide ceramics are gaining traction in the electronics industry where their superior thermal and electrical qualities are critical. Silicon nitride and boron nitride, for example, are commonly utilized in semiconductor fabrication and advanced electrical equipment. Silicon nitride is an ideal material for electronic substrates and heat sinks due to its high thermal conductivity and electrical insulating qualities which help to regulate heat in high-power electronics while also boosting device performance and lifetime. Boron nitride which has a unique mix of thermal conductivity and electrical insulation is employed in thermal management applications such as heat spreaders and electronic device insulators.

Gain Access into Advanced Materials Market Report Methodology

Country/Region-wise Acumens

Will Demand for Advanced Composites Drive the Market in the North America?

The aerospace and defense sectors dominate the North American advanced materials market, with composites playing an important role in lightweight and high-performance applications. The region’s dominance in these industries significantly drives up demand for advanced composites.The aircraft industry is a significant driver of advanced composites in North America. The Aerospace Industries Association estimates that the U.S. aerospace and military industry will contribute $892 billion to the economy in 2022, accounting for 1.8% of total GDP. The Federal Aviation Administration (FAA) expects the total commercial aircraft fleet to rise from 7,690 in 2021 to 10,555 in 2042, showing a constant growth in demand for lightweight materials. Advanced composites, noted for their high strength-to-weight ratio, are critical to increasing fuel efficiency and lowering emissions.

The drive for efficiency is bolstered by the International Civil Aviation Organization’s goal of achieving carbon-neutral expansion by 2020. In the defense sector, the US Department of Defense’s USD 842 Billion budget request for fiscal year 2024 including a sizable amount dedicated to research and development demonstrates the sustained investment in advanced materials for military uses. The automotive industry also adds to the rising need for sophisticated composites. The US Environmental Protection Agency’s Corporate Average Fuel Economy (CAFE) requirements which seek to attain an industry-wide objective of 49 mpg for passenger cars and light trucks by 2026 are encouraging manufacturers to use lightweight materials.

Will Demand for High-End Automotive Products Drive the Market in the Asia Pacific Region?

The Asia-Pacific region is expected to be the fastest-growing market for advanced materials driven mostly by rising demand for high-end automotive components. This expansion is likely to surpass other regions because of fast industrialization and rising disposable income in China, Japan, and South Korea. The need for high-end automotive products is a major driver of the Asia-Pacific advanced materials industry. This is supported by several important elements and statistics. First, the International Organization of Motor Vehicle Manufacturers (OICA) reports that China alone will generate over 27 million vehicles in 2021, accounting for around 32.5% of global vehicle production. The China Passenger Car Association estimated that the luxury car segment in China will grow by 80% in 2021.

According to the International Energy Agency, China sold half of the world’s electric vehicles in 2021, with 3.3 million units sold. EVs necessitate sophisticated materials for lightweight construction and battery technology which further fuels the market. According to Japan’s “Green Growth Strategy,” the government aims to have all new automobile sales be electric by 2035. This strategy is designed to speed up the adoption of innovative materials in the automotive industry. In addition, the Asia Pacific region is seeing significant investment in advanced material research and development.

Competitive Landscape

The advanced materials market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are focusing on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the advanced materials market include:

• 3M Company
• Momentive Performance Materials, Inc.
• BASF SE
• DowDuPont, Inc.
• Morgan Advanced Materials
• Hanwha Group
• PyroGenesis Canada, Inc.
• Cytech Products, Inc.
• Akzo Nobel N.V.
• Hexcel Corporation

Latest Developments

• In February 2023, Covestro AG announced plans to establish a thermoplastic polyurethanes (TPU) facility in Zhuhai, China. This would be the company’s largest investment in the TPU industry, costing in the low three-digit millions of Euros.
• In February 2023, Covestro AG introduced Makrolon 3638 polycarbonate, an ultra-durable polymer for healthcare and life science applications.

Report Scope

Advanced Materials Market, By Category

Composite:

• Polymer Matrix Composites (PMCs)
• Metal Matrix Composites (MMCs)
• Ceramic Matrix Composites (CMCs)

Functional Films and Coatings:

• Thin Films
• Coatings

Advanced Ceramics:

• Oxide Ceramics
• Non-oxide Ceramics

Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Research Methodology of Market Research:

To know more about the Research Methodology and other aspects of the research study, kindly get in touch with our .

Reasons to Purchase this Report

• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors• Provision of market value (USD Billion) data for each segment and sub-segment• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled• Extensive company profiles comprising of company overview, company insights, product benchmarking and SWOT analysis for the major market players• The current as well as the future market outlook of the industry with respect to recent developments (which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions• Includes an in-depth analysis of the market of various perspectives through Porter’s five forces analysis• Provides insight into the market through Value Chain• Market dynamics scenario, along with growth opportunities of the market in the years to come• 6-month post-sales analyst support

Customization of the Report

• In case of any please connect with our sales team, who will ensure that your requirements are met.