Global Nanocomposites Market Research Report: Forecast (2023-2028)

Market Definition

Nanocomposites are materials that incorporate nanoscale particles, such as nanoparticles or nanofibers, into a matrix of standard material, which can be a polymer, metal, ceramic, etc. This process increases the mechanical strength & improves thermal stability, electrical conductivity, and barrier properties of nanomaterials, making them suitable for various applications in different industries such as automotive, electronics, packaging, aerospace, etc.

Market Insights

The Global Nanocomposites market is projected to grow at a CAGR of around 15.95% during the forecast period, i.e., 2023-28, owing to the unique properties & performance advantages compared to conventional materials. The lightweight & high-performance material made with them is augmenting the suitability of the material in a large number of industries ranging from packaging, automotive, energy, and defense. The continuous growth in these industries across different countries, such as Brazil, Egypt, India, etc., is forming a positive market outlook. Globally, the energy storage sector is witnessing a high rate of development in response to the growth in renewable energy generation. For instance,

• In 2021, according to International Energy Agency, the installed storage capacity across the world is predicted to expand by around 56% to reach over 270GW by 2026.

Their use in the manufacturing of lithium-ion batteries, supercapacitors, fuel cells, etc., is thus creating opportunities for the development of the market worldwide. Additionally, continuous inventions in technology, to come up with novel solutions with enhanced properties to cater to the differing demands of various industries combined with collaborations between research institutions & the government is expanding the market across the globe. However, certain challenges faced by the industry, such as high production costs, regulatory issues, and safety issues related to them, are expected to hinder the market's progression.

Also, sustainable nature, like recycled or bio-based, is making them a prominent choice for improving the number of users in the market. Hence, these would become a crucial component of industries, including automotive, construction, and packaging, where reduction of environmental impact is vital. Further, the emergence of the application of nanocomposites in different areas with technological advancements would build a positive framework for the market in the forthcoming years.

Market Dynamics

Key Driver: Development of the E-commerce Industry to Push the Demand

Advancements in the telecom industry combined with raising digitalization has been leading to the growth of the e-commerce industry worldwide. Governments of different countries have started taking several initiatives, such as setting up 5G infrastructure, digitalization schemes, etc., to create a robust technological & digital infrastructure to facilitate fast economic development in their countries. Thus, e-commerce players have been inflating their market to serve customers from different regions, such as the Middle East & Africa, and Asia-Pacific, creating an increasing demand for the packaging industry. Further, the growing preference of consumers for online shopping instead of the numerous availability of options & convenience is facilitating the development of the e-commerce industry.

High suitability of packaged materials for shipping & transportation purposes, which ensures the safety & quality of products, is enhancing the demand from the packaging industry to improve overall customer experience. Along with this, e-commerce platforms provide customized packaging solutions to meet the demand for different products, such as perishable products, fragile items, etc., further leading to the blossoming of packaged products.

Moreover, the use of online platforms as a branding & marketing tool by various companies is also augmenting the value of packaging among consumers, as good packaging is often associated with high quality. Thus, the development of specialized packaging advertisements, such as branded boxes & sustainable packaging, would accelerate the industry growth, further impacting the market positively in the following years.

Possible Restraint: Environmental & Health Impacts to Hamper the Growth

Nanoparticles utilized in nanocomposites have the potential to accumulate in living creatures, and their toxicological qualities make them hazardous to both humans & the environment. The particles can very easily accumulate in water bodies, sediments, and soil, having adverse effects on aquatic ecosystems. Also, direct skin contact with them can result in skin irritation, sensitization, and other side effects. Further, the lack of standardized regulations, related to them adds up to the possibility of the occurrence of health & environmental hazards due to the non-follow-up of regulatory measures, therefore creating a negative impact on the market.

Key Trend: Emergence of Bio-based Nanocomposites

The move towards sustainability has resulted in an increase in the number of innovations carried out by researchers etc., to come out with an environment-friendly solution to replace petroleum-based materials. The augmented rate of biodegradability, biocompatibility, low density, easy preparation, suitability for modifications, and inexpensiveness related to bio-based solutions are making them more attractive to the key players in the market. For instance:

• In 2022, AIMPLAS, a solution provider for the plastic industry, announced its plan to start producing bio-based nanomaterials for food packaging & agricultural solutions through its reactive extrusion pilot line as a part of the BIOMAC project of the European Union.

Hence, such developments in the industry are impacting the market positively as more & more end-user industries are inclining towards the usage of nanocomposites with sustainability benefits. Further, these innovations would strengthen the industry's hold in the coming years as the world would move towards sustainability.

Market Segmentation

Based on the Type:

• Polymer
• Ceramic
• Metal
• Others

Of these, Polymer Nanocomposites gained high traction in the market, due to the ease involved in the processing of them. This can be done by the usage of a wide number of techniques, such as injection molding, extrusion, etc. The low amount of cost involved in these techniques expanded the adoption of them by manufacturers compared to ceramic & metal-based. Moreover, the wide range of properties, such as thermal stability, electrical conductivity, mechanical strength, and others, is resulting in their utilization in a range of industries, including automotive, biomedical, electronics, etc., therefore fueling the market growth.

Based on End User:

• Packaging             
• Automotive
• Aerospace
• Electronics
• Energy
• Healthcare
• Paints & Coatings
• Others (Marine, Sports, etc.)

Among these, the Packaging sector created a significant demand for nanocomposites owing to the high requirement by different industries such as food & beverages, electronics, pharmaceuticals, etc. Continuous development of these sectors in various regions of the world, especially in Asia-Pacific and the Middle East & Africa, is responsible for the growth of the packaging industry. Additionally, the maturation of the e-commerce sector combined with digitalization is opening new opportunities for the packaging industry.

The novel concept of customized & specialized packaging, which is being used by businesses to attract consumers as they relate it to the quality of the product, is further contributing to the growth of the packaging industry, hence impacting the nanocomposite market positively. Moreover, the rising awareness about hygiene & sanitation is augmenting the need for packaging in the food & beverage industry, which would drive the market in the forecast years.

Regional Projection

Geographically, the market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Among these, the Asia-Pacific acquired a substantial share of the Global Nanocomposites market owing to the large-scale economic development in countries such as India, China, South Korea, etc., which is leading to the development of various industries like construction, automotive, manufacturing, and others. The governments of these countries have been constantly engaged in building industrial hubs, carrying out favorable business policies to lure high amounts of investments & the global multinational corporations in the region.

Consequently, such companies have also been establishing their presence in the region to captivate one of the largest shares of the population of the world present in Asia-Pacific. Further, they are constantly involved in bringing out novel technologies to cater to the varying needs of the immense population. Hence, the high rate of adoption of advanced technologies on account of the wide presence of tech-savvy inhabitants coupled with the continuous development of the industries would accelerate the demand in the Asia-Pacific region.

Recent Developments by the Leading Companies

• 2022: Powdermet Inc. started the expansion of its production capacity by 30,000sq. ft. Under this, the company unveiled its plan to add 6,000sq. ft., for extrusion operation & the creation of a new structure in 24,000sq. ft., for housing expanded magnetic materials & lightweight sheet & foil production.

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