Advanced Functional Materials Market Size was valued at USD 108.6 Billion in 2022. The Advanced functional materials industry is projected to grow from USD 116.09 Billion in 2023 to USD 197.9 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.90% during the forecast period (2023 - 2032). Demand for high-performance materials, energy efficiency and sustainability, miniaturization and electronics are the key market drivers enhancing the market growth
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The market for advanced functional materials is expanding mostly due to the demand for high-performance materials. Superior strength, durability, conductivity, thermal stability, and resistance to wear and corrosion are just a few of the extraordinary qualities that define high-performance materials. Many different industries, including aerospace, automotive, electronics, energy, healthcare, and manufacturing, use these materials. Here, we look at how the market for advanced functional materials is being shaped and driven by the rising need for high-performance materials.
Materials that can survive severe environments, high temperatures, abrupt pressure changes, and other extreme circumstances are required for the aerospace and defense industries. For aviation, spacecraft, and military applications, high-performance materials including titanium alloys, carbon-fiber composites, and advanced ceramics are crucial. These materials improve strength and durability while reducing component weight, which boosts performance and fuel economy.
The search for high-performance materials in the automobile sector is motivated by the need for weight reduction, increased fuel efficiency, and increased safety. Modern materials, like high-strength steel alloys and carbon fiber reinforced composites, are employed to lighten automobiles while maintaining structural integrity. As a result, fuel efficiency is increased and emissions are decreased, supporting international efforts to address climate change.
To fulfill the demands of smaller, faster, and more potent devices, the electronics industry is continuously looking for high-performance materials. For instance, modern semiconductors with improved electrical characteristics, such as silicon carbide (SiC) and gallium nitride (GaN), enable the development of electronic components that are more effective and smaller. The development of flexible and wearable electronics, where adaptability, durability, and electrical conductivity are essential, is also made possible by high-performance materials. Thus, driving the advanced functional materials market revenue.
The advanced functional materials market segmentation, based on type, includes ceramics, energy materials, conductive polymers, nanomaterials, composites and others. The nanomaterials segment dominated the market, Nanomaterials can be carefully created and designed to have particular qualities and functions. Nanomaterials may be tailored for a variety of purposes thanks to this tunability, which enables scientists and manufacturers to create materials with desired properties. Nanomaterials can be tailored to fulfill specific needs by changing their electrical conductivity, optical characteristics, or chemical reactivity.
Figure 1: Advanced Functional Materials Market, by Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The advanced functional materials market segmentation, based on end-user industry, includes electrical and electronics, automotive, healthcare, aerospace and defense, energy and power (incl. chemical industry) and others. The electrical and electronics category generated the most income in 2022. The electronics industry is constantly striving to make devices smaller and more compact while increasing their functionality. Advanced materials like semiconductors, nanomaterials, and 2D materials (e.g., graphene) enable the miniaturization and integration of electronic components, leading to smaller and more powerful devices.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Advanced Functional Materials Market dominated this market in 2022 (45.80%). North America is a hub for technological innovation, with Silicon Valley in California being a prominent example. This region drives the development and adoption of advanced materials for a wide range of applications. The development of advanced semiconductor materials like gallium nitride (GaN) for power electronics and silicon carbide (SiC) for automotive applications is driven by companies in North America. Further, the U.S. Advanced functional materials market held the largest market share, and the Canada Advanced functional materials market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: ADVANCED FUNCTIONAL MATERIALS MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Advanced functional materials market accounts for the second-largest market share. Europe is committed to transitioning to cleaner energy sources, such as offshore wind farms, which require advanced materials for turbine blades, subsea cables, and energy storage solutions. Development of advanced materials for wind turbine blades to increase efficiency and durability. Further, the German Advanced functional materials market held the largest market share, and the UK Advanced functional materials market was the fastest growing market in the European region.
The Asia-Pacific Advanced Functional Materials Market is expected to grow at the fastest CAGR from 2023 to 2032. The Asia-Pacific region is a leader in electronics manufacturing, driving the demand for advanced materials in semiconductor manufacturing, display technologies, and consumer electronics. The production of advanced semiconductor materials like silicon wafers and advanced packaging materials in countries like Taiwan and South Korea. Moreover, China’s advanced functional materials market held the largest market share, and the Indian Advanced functional materials market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the advanced functional materials market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, advanced functional materials industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the advanced functional materials industry to benefit clients and increase the market sector. In recent years, the advanced functional materials industry has offered some of the most significant advantages to medicine. Major players in the Advanced functional materials market, including 3M, Arkema, BASF SE, CeramTec GmbH, Covestro AG, Evonik Industries AG, Hexcel Corporation, KYOCERA Corporation, Momentive, SHOWA DENKO K.K., Sumitomo Chemical Co., Ltd., Emeren and others, are attempting to increase market demand by investing in research and development operations.
Arkema SA (Arkema) specializes in the production of innovative materials and specialized chemicals. Adhesives, biobased materials, coatings, composites, health care, and athletic goods are among the industries for which the company offers solutions. The company's products include technical polymers, filtration and adsorption, organic peroxides, thiochemicals, fluorogases, hydrogen peroxide, acrylics, coating resins, photocure resins, and rheology additives. Agriculture, air conditioning, automotive, chemicals, coating, consumer goods, electrical, oil, health, packaging, plastics, pulp, rubber, sports, and water treatment are a few more industries that use the company's products. The company has operations in Asia, the United States, Europe, Canada, and Mexico. France's Colombes is home to Arkema's corporate headquarters.
Covestro AG (Covestro) provides high-tech polymers. In addition to other things, it develops and produces the raw materials for polyurethanes, their derivatives, coatings, speciality adhesives, polycarbonate, and specialty chemicals. Additionally, the business produces and sells byproducts including styrene and chlorine. The company provides its goods to a wide range of industries, including those in the furniture and woodworking industries, as well as those in the automotive, building, apparel, electrical and electronics, cosmetics, health, and chemical industries. It manages research facilities, technical support facilities, and sales offices all over the world. The company has activities across the North and South American continents as well as the Middle East, Africa, Europe, and Asia-Pacific. Covestro's headquarters are in Leverkusen, Germany.
3M
Arkema
BASF SE
Covestro AG
Evonik Industries AG
Hexcel Corporation
KYOCERA Corporation
SHOWA DENKO K.K.
Sumitomo Chemical Co., Ltd.
Emeren
November 2022: The National Thin-Film Cluster Facility (NTCF), an advanced functional materials research facility, was inaugurated in the Physics Department of the University of Oxford. By tackling issues including environmental, industrial, and societal challenges, this center aids in the development of novel advanced functional materials.
November 2022: For use in automotive applications, Covestro Ag has created a useful material solution. To adapt to future demand changes in the automotive sector, this ground-breaking material can be employed in car interiors.
Ceramics
Energy Materials
Conductive Polymers
Nanomaterials
Composites
Others
Electrical and Electronics
Automotive
Healthcare
Aerospace and Defense
Energy and Power (incl. Chemical Industry)
Others
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 108.6 Billion |
| Market Size 2023 | USD 116.09 Billion |
| Market Size 2032 | USD 197.9 Billion |
| Compound Annual Growth Rate (CAGR) | 6.90% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, End-user Industry, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | 3M, Arkema, BASF SE, CeramTec GmbH, Covestro AG, Evonik Industries AG, Hexcel Corporation, KYOCERA Corporation, Momentive, SHOWA DENKO K.K., Sumitomo Chemical Co., Ltd., Emeren. |
| Key Market Opportunities | Renewable Energy. |
| Key Market Dynamics | Increasing demand for energy and power systems. |
Advanced Functional Materials Market Highlights:
Frequently Asked Questions (FAQ) :
The advanced functional materials market size was valued at USD 108.6 Billion in 2022.
The market is projected to grow at a CAGR of 6.90% during the forecast period, 2023-2032.
North America had the largest share in the market
The key players in the market are 3M, Arkema, BASF SE, CeramTec GmbH, Covestro AG, Evonik Industries AG, Hexcel Corporation, KYOCERA Corporation, Momentive, SHOWA DENKO K.K., Sumitomo Chemical Co., Ltd., and Emeren.
The Nanomaterials category dominated the market in 2022.
The Electrical and Electronics had the largest share in the market.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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