Advanced Functional Materials (AFM) Market Size, Share, and COVID-19 Impact Analysis, by Type (Ceramics, Nanomaterials, Energy Materials, Conductive Polymers, Composites, and Others), by End-user (Electrical and Electronics, Automotive, Healthcare, Aerospace and Defense, Energy and Power, and Others), By Applications (Chemicals, and Electronics) and by Region (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa), Analysis and Forecast 2022 - 2028

Market Perspective

The global Advanced Functional Material Market was valued at USD 112.23 billion in 2021 and is expected to reach USD 206.80 billion by 2028 at a CAGR of 7.6% during the forecast period.

Advanced Functional Materials (AFM) are special types of compounds that exhibit superior properties such as high thermal & chemical stability, flexibility, resistance to corrosion, and high mechanical strength. AFM consists of two or more materials prepared using various manufacturing techniques and is used in the health care, aerospace, automotive, defense, electronics, and marine industries, due to their high stiffness-to-weight ratio, high strength-to-weight ratio, excellent properties at elevated temperatures, and better resistance to wear and corrosion. AFMs are gaining rapid popularity in end-user industry applications over conventionally used functional materials which possess some native functional properties, and not materials with mere load-bearing capabilities.

Reduced carbon footprints and lower energy consumption coupled with high performance are the major factors responsible for the growing demand for AFM. In addition, nanomaterial is the dominating type of material in the AFMs market. The utilization of nanomaterials is rapidly increasing in the nanomedicine sector of the healthcare industry. Nanomedicine is the application of nanotechnology for the treatment, diagnosis, drug delivery, tracking, and control of biological systems.

COVID-19 ANALYSIS  

On January 30, 2020, the International Health Regulations Emergency Committee of the World Health Organization (WHO) declared the Coronavirus disease (COVID-19) outbreak a public health emergency of international concern. The virus has spread to at least 214 countries and territories around the globe. The pandemic caused the closure of manufacturing facilities and disruption in the supply chain. Due to this cause, the consumption of AFM, specifically conductive polymers and nanomaterials was highly reduced, which has constrained the growth of the market globally.

In addition, the production of various consumer goods and other products across the globe came to a halt due to the shortage of labor, raw materials, and other governmental restrictions on the manufacturing process. This is expected to hamper the advanced functional materials market.

LATEST TREND

Increasing Utilization of Nanomaterials in the Aerospace and Defense Industry

Nanotechnology provides various advances for aerospace and defense applications, that include Nano-weaponry, improved electronics, and displays with low power consumption, low-weight composites, and improvements in chemical sensing, biological, and nuclear. Additionally, the utilization of nanotechnology in the defense sector also offers offsetting reductions in military manpower and vehicle performance, and reduced risks to troops on the battlefield.

The aerospace and defense industry is expected to grow significantly in the forecast period due to increasing investments and aircraft orders. According to Boeing, carriers will need more than 7,500 new wide-body airplanes by 2040 to support fleet renewal and long-term passenger and air cargo demand growth, which is propelling the market demand.

DRIVING FACTORS

Increasing utilization in industries as an Alternative to Plastics and Metals  

Increasing utilization of advanced functional materials in various industries as an alternative to plastics and metals due to their exceptional properties, such as high resistance to corrosion, melting, bending, and wear & tear stretching. AFMs good electrical properties, physical stability, chemical inertness, suitability to be used in mass products, and heat resistance, make them a better alternative to plastics and metals. Due to these properties, this material is widely used in electrical & electronics, automotive, healthcare, aerospace & defense, energy & power, and other industries.  

RESTRAINTS

High Costs of Raw Materials May Hinder the Market Growth

Concerns pertaining due to the high costs of raw materials and labor required are the major factors that are declining the market growth of the global advanced functional materials market. Although, composites and ceramics are cost-effective nanomaterials and carbon fiber are considered to be expensive. The advanced functional material is majorly used in the aerospace vertical among other verticals which require the highest performance but are generally avoided in other sectors of the industry due to the high capital and operational costs.

SEGMENTATION

The global advanced functional materials market is segmented by Type, End-user, and Region. Based on the Type, the market is categorized into Ceramics, Nanomaterials, Energy Materials, Conductive Polymers, Composites, and Others. Based on End-user, the market is categorized into Electrical and Electronics, Automotive, Healthcare, Aerospace, and Defence, Energy, and Power, and Others. Based on the region, the market is categorized into North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa.

By Type

Based on the Type, the market is categorized into Ceramics, Nanomaterials, Energy Materials, Conductive Polymers, Composites, and Others. Nanomaterials are expected to dominate market share over the forecast period due to their applications in the manufacturing of electronic devices, specialty chemicals, healthcare devices & drugs, and aerospace components. Increasing demand for lightweight vehicles coupled with fuel economy is expected to drive the AFM market for low carbon emissions applications over the forecast period.

Moreover, Advanced energy materials are utilized in the manufacturing of photovoltaic energy materials, and conductive polymers are used for manufacturing electronic discharge protection devices. Nanomaterials and nanocomposites are being increasingly used for automobile manufacturing which contributes to vehicle weight reduction and delivers economic performance. The growth of the electronics and electrical industry is expected to significantly grow the AFM market for low carbon emissions applications.

REGIONAL INSIGHTS

The Asia-Pacific is the largest market for advanced functional materials due to the presence of major manufacturing industries such as automotive, aerospace, and electrical & electronics in this region. The countries China, India, Japan, and South Korea are estimated to create the majority of demand in the region. China has been a key contributor to global air traffic growth, for the past few years due to better air connectivity and higher spending power. Thus, increasing passenger traffic is expected to boost the demand for aircraft during the forecast period.  

North America is the second-largest market for advanced functional materials due to rising spending on the aerospace and defense sector has increased the advanced functional material demand. The US spends more on its defense sector than any other nation in this region.  

Europe is the third-largest market for advanced functional materials due to rising startups, government initiatives, and rising usage of materials in the various end-user industries. The countries UK, France, Germany, and Italy contribute major revenue to the region.

LIST OF KEY COMPANIES PROFILED:

• BASF SE
• Arkema
• 3M
• Evonik
• Hexcel Corporation
• KYOCERA Corporation
• Sumitomo Chemical Co., Ltd.
• SHOWA DENKO K.K
• DuPont de Nemours, Inc.
• Momentive
• CeramTec GmbH
• Dow Inc. 

KEY INDUSTRY DEVELOPMENTS:

April 2021- Covestro successfully completed the acquisition of the Resins & Functional Materials business (RFM) from the Dutch company Royal DSM. This acquisition substantially expands Covestro’s portfolio of sustainable coating resins, making the Group one of the world’s leading providers in this growth market.

SEGMENTATION

By Type

• Ceramics
• Nanomaterials
• Energy Materials
• Conductive Polymers
• Composites
• Others

By End-User

• Electrical and Electronics
• Automotive
• Healthcare
• Aerospace and Defense
• Energy and Power
• Others

By Applications

• Chemicals
• Electronics

By Region

• North America- U.S., Mexico, Canada
• Europe- UK, France, Germany, Italy, Spain, Rest of Europe
• Asia-Pacific- China, Japan, India, South Korea, Rest of Asia Pacific
• South America- Brazil, Argentina, Colombia, Rest of South America 
• The Middle East and Africa- GCC, South Africa, Rest of the Middle East & Africa