Global Nanomaterials Market size is forecast to reach $42 billion by 2025, after growing at a CAGR of 16.40% during 2020-2025. The demand for nanomaterials is increasing from various end use industries such as medical, automotive, chemistry and energy as it is one of the most effective method to make materials stronger, lighter, durable, and reactive. The nanomaterials market is witnessing an increase in its demand due to its exceptional characteristics such as electrical conductivity, flame retardancy, thermal stability, chemical resistance, surface appearance, optical clarity, decreased water & gas permeability and dimensional stability, which is anticipated to drive the nanomaterials market substantially. The new enhanced characteristics and behaviors of nanomaterials are opening new product innovations such as, Russian doll nano-emulsions, biochips, transparent conducting flexible thin films and copy protection materials which are further driving the nanomaterials market during the forecast period.
- Europe dominates the global nanomaterials market, due to the increasing demand of nanomaterials in the region. According to the European Commission (EC), it was projected that nanotechnologies in 2015 was worth more than $1 trillion (€900 billion) and that it will keep growing. The growing nanotechnology sector will propel the global nanomaterials market in Europe.
- According to United States International Trade Commission, the total exports of electronic products grew by $7.9 billion (3 percent) to $268 billion in 2017 in the United States. Since, electronic products are widely using nanomaterials for manufacturing chips, displays, lasers, batteries, lead-free solder and more, it is anticipated that increasing demand of electronic products will further drive the nanomaterials market.
- Carbon based nanomaterials are driving the market growth as they are a viable replacement for Internet of things (IoT) transparent conductors in electronics applications and fabricated transparent conductive films (TCF).
- The adoption of nanomaterials is increasing in the aviation industry as the carbon based nanomaterials such a carbon nanotubes are extensively used to increase and improve the mechanical, electrical and thermal properties of aircraft.
- Due to the COVID-19 Pandemic most of the countries has gone under lockdown, due to which operations of various industries such as automotive and aerospace has been negatively affected, which is hampering the global nanomaterials market growth.
By Type – Segment Analysis
The metal based nanomaterials segment held the largest share in the global nanomaterials market in 2019, owing to its increasing demand for various technological applications in chemical, physical and material science such as sensors, fuel cells, fabrication of microelectronic circuits, catalysts, piezoelectric drive and coating for the surfaces against corrosion. The nano metal oxides are generally prepared using wet chemistry method and are widely used for medical applications and as weaponry in defense sector. Various industries are fabricating gold, silver, platinum, titanium and aluminum as nano metals for varied applications because of its remarkably distorted porosity, crystallinity, morphology, doping, and particle size property, which are anticipated to drive the nano metal based market during the forecast period.
By End Use Industry – Segment Analysis
The electronics and semiconductor segment held the largest share in the nanomaterials market in 2019 and is growing at a CAGR of 16.80%, owing to its extensive application in electronic industries as sensor materials for pressure due to its several characteristics, such as electrical and thermal conductivity, magnetic properties and mechanical strength. Heat dissipation in electronic devices requires interface materials with high thermal conductivity and therefore carbon based nanomaterials have been designed to boost the thermal, electrical and mechanical properties. According to Electronic Industries Association Of India (ELCINA), the total production of electronics sector in India was Rs.3,87,525 crore in 2017-18, compared to Rs.3,17,331 crore in 2016-17, exhibiting a growth of about 22%. The electrical and magnetic properties of nanomaterials enhances the electrical conductivity in ceramics, increases the electric resistance in nano metals thus making it unique to be extensively used in the electronic materials such as sensor fabrication, electromagnetic interference shielding, optoelectronics, superconductivity and memory chips, which is anticipated to drive the nanomaterials demand in the market during the forecast period.
By Geography – Segment Analysis
Europe region held the largest share in the nanomaterials market in 2019, owing to support from the national governments and investment in the respective domestic markets in the region. The rising application of nanomaterials in various end-use industries such as electronics, automotive, and aviation in U.K., Germany and France is the main factor behind the dominance of the Europe nanomaterials market. In 2016, the German government introduced The Action Plan Nanotechnology 2020 inter-departmental support strategy for nanotechnology in the period 2016–2020. It thus follows the objective of enduring to exploit the opportunities and potential of nanotechnology in Germany, without disregarding any potential risks to humans and the environment. For Nano 2017 program the French government announced plans to invest €600 million (£516 million) in a five year nanotechnology R&D program led by French-Italian semiconductor manufacturer STMicroelectronics (ST). Thus, the various investments by the government in the field of nanomaterials in Europe are anticipated to drive the nanomaterials market in the region during the forecast period.
Drivers – Global Nanomaterials Market
- Growing Demand For Nanomaterials From Automobile Sectors
The implementation of nanomaterials is increasing in the automotive industry owing to their superior mechanical properties and light weight. These properties encouraged automotive sector to use nanomaterials for designing and manufacturing of car interiors and exteriors. The nanomaterials are widely used in automobiles to reduce the aluminum engine weight, for better grip and low rolling resistance, in Li-ion batteries to shorten recharge time, increase the tensile strength and to reduce the weight of automobiles. These advantages is increasing the adoption of nanomaterials in the automotive industry, and hence fueling the market growth. Nanomaterials are even used in aerospace applications such as equipment enclosures, aircraft interiors, coatings, cockpit, crew gear, space durable mirrors, nozzles and solar array substrates.
- Growing Demand For Nanomaterials From Healthcare & Life Science Sectors
Nanomaterials are being widely used in medicine and pharmaceuticals for the sensitive detection of key biological molecules, more precise and safer imaging of diseased tissues, and novel forms of therapeutics because of their mechanical, optical, electrical and chemical behaviors. Number of nanomaterials based therapeutic and diagnostic agents have been developed for the treatment of cancer, diabetes, pain, asthma, allergy and infections, because of which nanomaterials market is growing. Researchers at North Carolina State University are developing a method to deliver cardiac stem cells to damaged heart tissue for increasing the amount of stem cells delivered to an injured tissue. Also in 2017, researchers at Worcester Polytechnic Institute developed antibodies attached to carbon nanotubes in chips to detect cancer cells in the blood stream. The researchers claim that this could provide early detection of cancer cells in the bloodstream, which will further drive the nanomaterials market.
Challenges – Global Nanomaterials Market
- Health Hazards From Metal oxide Nanomaterials
The nanomaterials-based sunscreen consists of titania oxide and zinc oxide as UV light absorbing components, which are transparent due to their small size as it provides an effective protection. Organic active agent such as avobenzone, provides full UVA shielding, but can cause skin irritation. There is an increasing concern regarding the use of metal oxide nanomaterials, as upon absorption of UV radiation, they release free radicals, which can damage DNA and may prove to be carcinogenic. Therefore, manufacturers of nanomaterials generally offer the particles with coatings, which cause the free radicals to recombine before entering the skin. However, recent studies on nanomaterials states that when they are applied to the skin they possibly can penetrate much deeper than micro particles, which may complicate the use nanomaterials in cosmetics and can act as a restrain for nanomaterials market.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the nanomaterials market. In 2019, the market of nanomaterials has been consolidated by the top five players accounting for xx% of the share. Major players in the nanomaterials market are Ahlstrom-Munksjö Oyj Corporation, nano Technology Company Limited, Daikin Industries Ltd., E.I. Du Pont De Nemours And Company, Fuso Chemical Co. Ltd., Global Graphene Group, Nanoco Technologies Limited, Nanocyl S.A., Nanointegris Inc., Nanophase Technologies Corporation, Nanosys Inc., Park systems , TDA Research Inc., The Arkema Group and Umicore N.V.
- In March, 2020 Global Graphene Group (G3) announced alliance of Angstron Energy Company (AEC) into Honeycomb Battery Company (HBC), to open a powerful energy storage and battery products company.