Advanced Material Market Size

Growing adoption in the aerospace industry is driving the market growth

One of the important sectors for the market for advanced materials is the aircraft industry. During the projection period, there will be a significant increase in the demand for these materials from the aerospace industry. The aerospace sector is continuously looking for materials that are both lightweight and robust enough to sustain difficult flight conditions. Demand for innovative materials will be further fueled by the growing usage of carbon fiber composites in the manufacture of airplanes. In order to lighten and strengthen airplanes, the aerospace industry is using carbon fiber composites, which are lightweight materials.

For instance, the Boeing 787 Dreamliner, which made its debut in 2011, is 50% carbon fiber composites by weight, making it substantially lighter and more fuel-efficient than earlier generations of airplanes. The demand for more environmentally friendly, operating-cost-saving, fuel-efficient aircraft that can satisfy increasingly strict environmental requirements is what propels the market. Because of this, it is anticipated that there will be a continued high demand for innovative materials in the aerospace sector in the years to come.

The usage of innovative materials in the automotive sector is being driven by the increasing demand for electric cars (EVs). For instance, lithium ions are used to store and release energy in rechargeable lithium-ion batteries. Due to their high energy density, small size, and speedy recharging, these batteries are being employed in EVs more and more. In addition, they outlast conventional lead-acid batteries and are environmentally beneficial. Furthermore, lightweight materials like composites and aluminum alloys are developed using innovative technologies and employed in electric vehicles.

The car's range can be extended by using these materials to lighten the vehicle and increase energy efficiency. In the body and chassis of EVs, for instance, carbon fiber reinforced polymer (CFRP), a lightweight and high-strength composite material, is utilized to reduce weight and boost performance.

The primary driving forces behind the market for advanced materials are an increase in R&D efforts across numerous countries and a rise in industrialisation on a scale. Demand for advanced materials is being driven by the quick adoption of these materials in the automotive, aerospace, healthcare, and other industries. According to analysts, during the anticipated time, these cutting-edge materials will displace the use of metal and plastic. End consumers are transitioning to the usage of innovative materials as a result of the development of ceramics and composites that have increased strength, resistance to abrasion, and light weight.

The majority of ceramics are used in medical devices, and as the breadth of the healthcare sector expands, so will the demand for ceramics. Thus, driving the advanced material market revenue.

In July 2024, Arvind Ltd, a company renowned for its denim and apparel brands, intends to enhance its advanced materials division by implementing inventive textile applications in sectors including defense, aerospace, and other infrastructure segments. During the fiscal year 2024, all the entities within the advanced material segment were merged into a distinct corporation called Advanced Material Ltd. This consolidation was done with the aim of enhancing concentration and expanding the business. The purpose of the move is to assist them in addressing the necessary actions for expansion in that particular area, as well as seizing new prospects.

This will not only be cost-effective but will also guarantee clear and accurate reporting of their advancements. The division's capacities were increased, and additional divisions, including defense, were incorporated, creating opportunities for future expansion. The increase in Human Protection sales was primarily due to a larger market share in important customer accounts and improved performance in the Middle East region. In FY24, the textile industry experienced a decline, specifically in the company's revenue from garmenting. This can be attributed to reduced demand for denim items and lower realization.

The Global Advanced Material Market Industry is poised for substantial growth, with projections indicating a market value of 69.4 USD Billion in 2024 and an anticipated increase to 138.8 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 6.5% from 2025 to 2035, reflecting the increasing adoption of advanced materials across various sectors. The market dynamics are influenced by factors such as technological advancements, rising environmental regulations, and expanding applications, all contributing to a robust outlook for the industry.

The Global Advanced Material Market Industry is increasingly influenced by stringent environmental regulations aimed at reducing carbon footprints and promoting sustainability. Governments worldwide are implementing policies that encourage the use of eco-friendly materials and processes. For example, regulations mandating the reduction of hazardous substances in manufacturing are driving the adoption of advanced materials that comply with these standards. This shift not only aligns with global sustainability goals but also opens new market opportunities for manufacturers who can innovate responsibly. Consequently, the industry's growth trajectory remains positive as it adapts to these regulatory landscapes.

The Global Advanced Material Market Industry experiences a notable surge in demand for lightweight materials, particularly in the automotive and aerospace sectors. As manufacturers strive to enhance fuel efficiency and reduce emissions, materials such as carbon fiber and aluminum alloys are increasingly favored. For instance, the automotive sector is projected to utilize advanced composites to achieve weight reductions of up to 30 percent in vehicles. This trend is expected to contribute to the market's growth, with the industry valued at 69.4 USD Billion in 2024, indicating a robust shift towards sustainable manufacturing practices.

Technological innovations play a pivotal role in shaping the Global Advanced Material Market Industry. Breakthroughs in nanotechnology and 3D printing are revolutionizing material properties and applications. For example, the development of nanomaterials allows for enhanced strength-to-weight ratios, making them suitable for various applications, including electronics and medical devices. Additionally, advancements in additive manufacturing enable the production of complex geometries that were previously unattainable. These innovations not only expand the range of applications but also drive market growth, with expectations of reaching 138.8 USD Billion by 2035.

The versatility of advanced materials is a significant driver for the Global Advanced Material Market Industry, as they find applications across diverse sectors such as electronics, healthcare, and construction. For instance, advanced ceramics are increasingly utilized in medical implants due to their biocompatibility and durability. Similarly, smart materials are gaining traction in electronics, enabling the development of responsive devices. This broad applicability enhances market potential, as industries seek materials that offer improved performance and functionality. The ongoing expansion of applications is expected to sustain market growth, reinforcing the industry's relevance in a rapidly evolving technological landscape.

Investment in research and development is a critical driver for the Global Advanced Material Market Industry. Governments and private entities are allocating substantial resources to explore new materials and improve existing ones. For instance, initiatives aimed at developing sustainable materials and recycling technologies are gaining traction. This focus on innovation is likely to yield new products that meet evolving consumer demands and regulatory standards. As a result, the industry is projected to grow at a CAGR of 6.5% from 2025 to 2035, reflecting the importance of R&D in maintaining competitive advantage.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American advanced material market area will dominate this market because of the building industry's strong growth and the significant presence of major automakers in nations like the United States and Canada. Additionally, it is anticipated that the presence of businesses that produce equipment for renewable energy sources will boost this industry.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: ADVANCED MATERIAL MARKET SHARE BY REGION 2022 (USD Billion)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe advanced material market accounts for the second-largest market share because of the ease with which mineral resources may be accessed, the rapid uptake of cutting-edge technology, and the growth of investments in the automobile and aerospace industries. The demand for novel materials is also being stimulated by the use of finished items in industries like automotive, electronics, and others. Further, the German advanced material market held the largest market share, and the UK advanced material market was the fastest growing market in the European region

The Asia-Pacific Advanced Material Market is expected to grow at the fastest CAGR from 2023 to 2032 because major economies like China, India, and Japan may contain large producers. Additionally, it is anticipated that product demand for energy applications would increase as consumer knowledge of renewable energy sources increases. Moreover, China’s advanced material market held the largest market share, and the Indian advanced material 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 material 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 material 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 material industry to benefit clients and increase the market sector. In recent years, the advanced material industry has offered some of the most significant advantages to medicine. Major players in the advanced material market are attempting to increase market demand by investing in research and development operations includes 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. and Hexcel Corporation.

Explosives, machinery, trading, and defense products are all produced and offered by Hanwha Corp (Hanwha). Among its machinery items are plant and other machinery products, machine tools, powertrain, solar products, factory automation, and aerospace equipment. The business provides a lifestyle platform via which it runs its luxury hotel operations, as well as the construction and management of commercial complexes. Its products are employed in livestock products, aerospace items, rockets, fuses, grenades, fireworks, and subsea equipment.

A diversified corporation is Morgan Advanced Materials Plc (Morgan). The business develops, produces, and sells technical ceramics, braze alloys, thermal ceramics, fire protection products, seals and bearings, speciality graphite, electrical carbon, molten metal systems, composites, and military systems. It also designs, manufactures, and markets braze alloys. Engineered coatings, ceramic cores, laser products, wax injection goods, extruded products, mass spectrometry components, and zirconia products are a few of the technological ceramics it offers.