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A lot of different things affect the Advanced Functional Materials (AFM) market, which changes all the time and continues to grow. People who have an interest in the market need to understand these factors in order to make smart choices and find their way through the constantly changing world of new materials.
An important factor in the AFM market is how quickly technology is changing. New developments in material science help make new and better useful materials. New technologies, like nanotechnology and smart materials, have a big effect on the need for high-tech materials with many uses.
End-user businesses, such as technology, healthcare, energy, and automobiles, are big buyers of AFM. The market is growing because of more diverse uses in areas like medical gadgets and consumer electronics. Because AFM can be changed to fit the needs of different industries, it is a useful option in many areas.
Government policies and regulatory systems have a big effect on the AFM market. Environmental laws that are very strict often force people to use new materials that are better for the earth and last longer. To encourage even more innovation in the AFM field, the government offers programs and funds for research and development.
The general market for AFM is affected by the state of the world economy. Economic downturns or uncertainty can slow market growth by making people less likely to spend in research and development. Instead, when the economy is stable and growing, businesses are more likely to spend in new materials that make their products work better.
In the AFM market, the cost and supply of raw materials are very important. Geopolitical events, problems in the supply chain, and changes in the market can all affect how much improved useful materials are made and how much they cost. It is very important for market players to keep their supply chains steady and working well.
The Asia-Pacific area had the most demand for high-tech products. In the area, most of the usage came from China.
The OICA says that Asia-Pacific recently made more cars than any other part of the world. The world's largest car producer is China. They made 26.08 million cars in 2021, which is 3% more than the previous year. This kind of good output situation helps make the need for an advanced useful market.
In the past few years, China has been a big reason why plane travel has grown around the world. The number of passengers increasing each year is usually over 10%. Higher buying power and better air connections are the main things that are causing this growth. As a result, more people using planes is likely to increase demand for them.
Boeing says that by 2021, the market for new planes will be worth USD 7.3 trillion, and the world fleet will have grown by 80% compared to 2019 (before the pandemic). In the coming years, this is likely to make it even more important to make better things that are useful.
Indian Brand Equity Foundation believes that by 2030, the aerospace and defense (A&D) market will be worth more than USD 70 billion. This is because more people want modern facilities and help from the government.
From 2022 to 2023, India will spend INR 5,25,166 crore, or USD 67.66 billion, on defense. This is 11.4% more than the previous year. The total funds from the Ministry of Defense (DRDO) went to the Defense Services Estimates (DSE), which is the budget for the three military forces and the Defense Research and Development Organization. It was INR 3,23,053 crore (USD 46.2 billion).
Intense competition between market players drives ongoing efforts to study and create. Businesses that want to get a stronger place in the market often use strategic agreements, mergers, and purchases. AFM market stars often set the pace for new ideas and have an impact on the market's general direction.
The kinds of improved useful materials that people want change based on their changing tastes and needs. New materials are needed because people are paying more attention to how well goods work, how long they last, and how they look. Market players must understand and adapt to buyer trends in order to stay competitive.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 108.6 Billion |
| Market Size Value In 2023 | USD 116.09 Billion |
| Growth Rate | 6.90% (2023-2032) |
Advanced Functional Materials Market Highlights:
Global Advanced Functional Materials Market Overview
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
Advanced Functional Materials Market Trends
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Demand for high-performance materials is driving the market growth
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.
Advanced Functional Materials Market Segment Insights
Advanced Functional Materials Type Insights
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
Advanced Functional Materials End-user Industry Insights
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.
Advanced Functional Materials Regional Insights
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.
Advanced functional materials Key Market Players & Competitive Insights
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.
Key companies in the advanced functional materials market include
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3M
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Arkema
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BASF SE
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Covestro AG
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Evonik Industries AG
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Hexcel Corporation
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KYOCERA Corporation
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SHOWA DENKO K.K.
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Sumitomo Chemical Co., Ltd.
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Emeren
Advanced Functional Materials Industry Developments
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.
Advanced Functional Materials Market Segmentation
Advanced Functional Materials Type Outlook
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Ceramics
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Energy Materials
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Conductive Polymers
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Nanomaterials
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Composites
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Others
Advanced Functional Materials End-user Industry Outlook
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Electrical and Electronics
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Automotive
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Healthcare
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Aerospace and Defense
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Energy and Power (incl. Chemical Industry)
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Others
Advanced Functional Materials Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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