Advanced Materials Market Size to Reach USD 128.06 Bn by 2034

Advanced Materials Market - Global Industry, Analysis, Size, Share, Growth, Trends, and Forecasts 2025-2034

According to market forecasts, the global advanced materials market size accounted for USD 69.45 billion in 2024, grew to USD 73.83 billion in 2025, and is expected to be worth around USD 128.06 billion by 2034, poised to grow at a CAGR of 6.31% between 2025 and 2034.

Last Updated: 04 June 2025 Category: Advanced Materials Insight Code: 5606 Format: PDF / PPT / Excel

Advanced Materials Market Price Trend and Forecast in Top 10 Leading Countries Worldwide

The global advanced materials market size was valued at USD 69.45 billion in 2024 and is expected to reach around USD 128.06 billion by 2034, growing at a CAGR of 6.31% from 2025 to 2034. the growing demand from various industries for advanced materials due to their properties and applications, like strength and lightweighting, drives the growth of the market. 

advanced materials market size

Key Takeaways

  • By region, North America dominated the market in 2024. The growing investment in research and development drives the growth in the region.
  • By region, Asia Pacific is expected to have significant growth in the market in the forecast period. The rising construction and automobile industry in the region, due to developing economies, drives the growth of the market in the region. 
  • By product type, the composites segment dominated the market in 2024. The growth of the segment is driven by the growing demand from various industries due to its lightweight property, which enhances functionality and performance.
  • By product type, the polymer segment is expected to grow significantly in the market during the forecast period. It is also widely used in medical devices by providing durability, flexibility, and biocompatibility of the equipment and products, which drives growth.
  • By application, the automotive segment dominated the market in 2024. The lightweight material demand from the automotive industry to improve the fuel efficiency of vehicles fuels the growth of the market. 
  • By application, the aerospace segment is expected to grow during the forecast period. Advanced materials play a key role in the aerospace industry as they demand lightweight, smart, strong, and durable materials 

Market Overview 

Rising Demand for Durable Materials: Advanced Materials Market to Expand

Advanced materials are the materials that are designed such that they possess novel properties and have novel and enhanced properties and are suitable for advanced applications. These materials have improved mechanical, chemical, and physical properties. They have properties like high strength, flexibility, durability, and conductivity, which make them suitable for application in various industries like automotive, medical devices, aerospace, electricals and electronics, industrial, and power. They are equipped unique properties that cater to specific applications, such as reducing weight, improving performance, increasing efficiency, and durability.

What are the Key Growth Drivers of the Advanced Materials Market? 

The growth of the market is driven by the growing trends and shift towards industrialization, with increasing industrial activities with increasing demand for advanced materials in manufacturing and infrastructure. The rise in investment in research and development in nanotechnology and for enhancing the performance of the materials for development drives the growth of the market. The growing demand from various industries for advanced materials like automotive, electronics, aerospace, and the healthcare sector for their durability, lightweight, high-strength, flexibility, along with focus and alignment with sustainability, drives the growth of the market. Key factor driving growth of the market is the advancement in technology enables innovation and development in various sectors, especially in the renewable energy sector requires advanced materials for efficient energy generation and storage, which further increases growth and expansion of the market.

  • Research and development in advanced materials are key drivers in innovation and economic growth, which helps in the growth.
  • The advanced material uses sustainable technologies, which also help improve properties, which help align with rising environmental concerns.
  • The growing demand from various industries for its properties and performance is a growing trend that helps grow.
  • The growing use in the healthcare industry for medical devices and other implants due to their durability and biocompatibility, which drives the growth. 
  • Advancement in technology through integration of nanotechnology and #3D printing techniques drives the growth of the market.

Report Scope

Report Attributes Details
Market Size in 2025  USD 73.83 Billion
Market Size by 2034  USD 128.06 Billion
Growth Rate from 2025 to 2034 CAGR 6.31%
Base Year of Estimation 2024
Forecast Period 2025 - 2034
High Impact Region North America
Segment Covered By Product Type, By Application, By Region
Key Companies Profiled 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., Hexcel Corporation

Market Opportunity

What is the Key Factor That Creates Opportunity for the Growth of the Market?

The growing demand from various industries creates an opportunity for the growth of the market. The rise in EV usage increases the demand for advanced materials due to their lightweight properties, high performance, and enhanced battery materials increases the growth. This use of advanced materials in energy storage and generation of renewable energy, in energy sector, the need for lightweight and strong materials in aerospace and defence, the use of advanced materials for signal transmission and heat management, and the use of advanced materials for industrial automation in manufacturing processes, and to increase efficiency. These factors and properties create an opportunity for the growth and expansion of the advanced materials market, aligning with sustainability and the environment.

Market Challenge

The Growing Cost, High Production Cost, and Limited Raw Material Availability 

The advanced materials market faces a challenge in the growth of the market is the high cost of raw materials and also limited availability of materials like carbon fiber polymer. Advanced material production requires skilled labourers and high-quality raw materials for the formulation of the product, which adds to the final cost of the product this limiting the growth of the market. Additionally, lack of raw material availability results in fluctuation of prices, which affects the price-sensitive market, which affects the profitability of the final product; this is a challenge in the market. 

Regional Insights

How Did North America Dominate the Advanced Materials Market? 

North America dominated the advanced materials market in 2024. The robust industrial expansion and growth in the region drive the demand for advanced materials due to their properties like high performance, durability, flexibility, efficiency, lightweighting, and strong materials. High strength drives the growth of the market in the region. The growing investment in research and development by government and private organizations in every sector, especially in medical devices and implants, with the rising demand for devices with the rising prevalence of diseases and conditions, fuels the growth of the market in the region. The driving demand for lightweight materials from the aerospace and automotive industries is to enhance the performance and efficiency of the product, and strong advanced manufacturing processes and sectors in the region further fuel the growth and expansion of the market in the region.  

The USA Market is Seeing Growth in the Market With Increasing Innovation.

The USA market has seen significant growth in the advanced materials market, and this is due to heavy investment in research and development in the innovation of materials to enhance their performance, with the rising industrial sector in the country and growing demand for the material. This fuels the growth of the market in the country and also supports the expansion of the market.

Asia Pacific is Witnessing Significant Growth in the Advanced Materials Market Due to the Growing Industries

Asia Pacific is expected to have significant growth in the advanced materials market in the forecast period. The rising construction and automobile industry in the region, due to developing economies, drives the growth of the market in the region. The rising demand for EVs drives demand for advanced materials due to their lightweight properties, which enables the vehicle to enhance its properties and performance. The regions' growing medical sector contributes largely to the growth of the market, as the need for advances and high-performance medical devices and implants grows. Rising environmental concerns in the region due to growing population and activities demand sustainable and environment-friendly materials and products, which further fuels the growth of the market. Additionally, the growing demand from the defense sector for advanced equipment with high performance and strong materials further drives the growth. These applications and demand from various sectors result in further growth and expansion of the market in the region. 

India's Growing Healthcare Sector and Innovation Drive the Growth

India has seen significant growth in the market due to rising demand for advanced materials for medical devices and implants, The country is a growing and emerging sector in the healthcare industry. The increase in investment in research and development of the healthcare specialties in each department fuels the growth of the market and helps in expansion.

  • India shipped out 17,470 materials composite shipments from October 2023 to September 2024 (TTM). These exports were handled by 1,218 Indian exporters to 1,410 buyers, showing a growth rate of 133% over the previous 12 months.(Source : volza)
  • Globally, China, Germany, and Vietnam are the top three exporters of Materials Composite. China is the global leader in Materials Composite exports with 431,059 shipments, followed closely by Germany with 85,638 shipments, and Vietnam in third place with 71,356 shipments.(Source: volza)

Segmental Insights

Product Insights

How Did Composites Segment Dominate the Advanced Materials Market in 2024?

The composites segment dominated the advanced materials market in 2024. Composites are materials that are made with a combination of two or more constituents to have advanced properties, which are usually high-strength fibers with high stiffness, elasticity, temperature stability, and chemical resistance, which increases the demand. The growth of the segment is driven by the growing demand from various industries due to its lightweight property, which enhances functionality and performance. The growing need for lightweight and high-strength composites in aircraft and military equipment fuels the growth. Used in the automotive industry to increase fuel efficiency and reduce weight, composites are widely used for their strength and resistance to environmental factors, driving demand from the construction industry for sustainable housing solutions. Technological advancement like nanotechnology and curing in composites manufacturing further significantly drives the market growth. These factors further help in the growth and expansion of the market. 

The polymer segment is expected to experience significant growth in the advanced materials market during the forecast period. The advanced polymers are high-performance and engineering polymers that are specially designed with superior properties like resistance to heat, chemicals, and radiation, with strength and durability due to their applications in sectors that require the product to withstand extreme conditions and stress and demand performance like aerospace, defence, automotive, and biomedical industry. They are widely used in the medical sector to improve drug delivery and enhance the structural assembly of the drug and tissue engineering. It is also widely used in medical devices by providing durability, flexibility, and biocompatibility of the equipment and products. In the medical sector, advanced polymers are also used in nephrology, surgery, dentistry, oncology, and other specialties due to their functions and applications. These applications and properties further boost the growth and expansion of the market.

Application Insights

What Made the Automotive Segment Dominate the Advanced Materials Market in 2024?

The automotive segment dominated the advanced materials market in 2024. The growing automotive sector in regions demands high-performance and advanced materials, which play a crucial role in improving strength, fuel efficiency, and vehicle performance. The lightweight material demand from the automotive industry to improve the fuel efficiency of vehicles fuels the growth of the market. Advanced material enhances safety by providing a stronger vehicle structure, lightweight materials improve performance, handling, and acceleration of the vehicle. The rising EV adoption demands advanced materials for its manufacturing, for flexible design, innovation, and more aerodynamic vehicles, Also, the product aligns with the environment and contributes to a more sustainable automotive industry, which further boosts the growth of the market and supports expansion of the market.

The aerospace segment is expected to experience significant growth in the advanced materials market during the forecast period. Advanced materials play a key role in the aerospace industry as they demand lightweight, smart, strong, and durable materials for building aircraft and other components to enhance the performance of the product. Light aircraft and spacecraft contribute to a reduction in fuel consumption and lower emissions, which contributes to sustainability amid rising environmental concerns. Cost reduction due to enhanced durability and reduced weight leads to lower maintenance costs, which supports the consumers, which fuels the growth of the market. Advanced materials also contribute to enhancing the structural integrity and improving the safety and shelf life of aircraft and spacecraft. These factors support the growth and expansion of the market.

Recent Developments

  • In May 2024, Morgan Advanced Materials entered into a five-year Memorandum of Understanding (MOU) with Penn State University to work together on the research and development of silicon carbide (SiC) crystal growth. This partnership is part of a multimillion-dollar effort that strengthens both parties' dedication to driving innovation in semiconductor materials.(Source: morganadvancedmaterials.com )
  • In March 2025, the European Commission announced the partnership foe textile and textile and advanced materials under the Horizon Europe programme. The partnership aims to maintain sustainability and green transition with growing environmental concerns. (Source : fibre2fashion.com )

Top Companies List

Advanced Materials Market Companies

Segments Covered in the Report

By Product Type

  • Polymers
  • Metal & Alloys
  • Glasses
  • Composites
  • Ceramics

By Application

  • Medical Devices
  • Automotive
  • Aerospace
  • Electricals & Electronics
  • Industrial
  • Power
  • Others

By Region 

  • North America 
    • U.S.
    • Canada
  • Europe 
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Sweden
    • Denmark
    • Norway
  • Asia Pacific 
    • China
    • Japan
    • India
    • South Korea
    • Thailand
  • Latin America 
    • Brazil
    • Mexico
    • Argentina
  • Middle East and Africa (MEA) 
    • South Africa
    • UAE
    • Saudi Arabia
    • Kuwait
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  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Saurabh Bidwai, a B.Tech Chemical Engineering graduate with 4+ years of experience, specializes in specialty chemicals, commodity chemicals, and engineered materials, offering valuable insights into market trends and emerging opportunities.

Learn more about Saurabh Bidwai

Aditi Shivarkar, with 14+ years in Chem and Materials market research, specializes in Chem and Materials. She ensures accurate, actionable insights, driving Towards Chem and Materials excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

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