Table Of Contents
- Rising focus on green chemistry to open new avenues of growth in the domain
- Integration of automation and associated technologies to bring in numerous investment opportunities
- Innovations like nanotechnology to increase the revenue share of the materials and chemicals domain exponentially
- Increasing preference for the circular economy model to completely transform the materials and chemicals sector
- R&D activities in the field of advanced materials to help the domain flourish immensely
Yerukola Eswara Prasad
Koyel Ghosh
Examining the Top 5 Trends That Are Set to Transform the Materials and Chemicals Domain in Q2 2024
The materials and chemicals domain includes markets and industries of a wide range of products including adhesives, sealants, coatings, paints, advanced materials, cement and other construction materials, glass and ceramics, plastics, polymers, etc. Thus, this domain is directly or indirectly responsible for the manufacturing of most of the retail and household products, thereby constituting a major chunk of the global economy. In the past few years, the rise in disposable incomes due to rapid urbanization is expected to provide a major boost to the materials and chemicals sector in the coming period. Apart from this factor, several trends are emerging in the second quarter of 2024 which are projected to contribute to this domain’s expansion. Allied Market Research has compiled a study of such trends to help businesses formulate strategies accordingly.
Rising focus on green chemistry to open new avenues of growth in the domain
Green chemistry refers to the field of chemical engineering that involves designing chemicals and materials that have minimal or no hazardous substances in them. Furthermore, it also includes the adoption of sustainable manufacturing processes that have minimal environmental impact. Due to the heavy criticism surrounding the high pollution levels of chemical manufacturing industries, these companies are increasingly moving toward bio-renewable chemicals. The bio-renewable chemicals market, which accounted for $2.5 billion in 2021, is expected to garner a revenue of around $7.4 billion by 2031, thereby registering a CAGR of 11.6% in the 2021-2031 timeframe. Along with this, the food packaging, paints & coatings, and other end-use industries are also impacted by the growing preference for green chemistry.
Integration of automation and associated technologies to bring in numerous investment opportunities
Similar to many other economic sectors, the domain of materials and chemicals is set to be transformed by automation and emerging technologies such as the Internet of Things and Artificial Intelligence in the near future. The main motive behind introducing such advanced technologies in this realm is to improve the operational efficiency and precision in the chemical composition of finished goods. The use of IoT in the chemical industry and materials manufacturing sector has enhanced the production capabilities of companies and also reduced the need for human intervention. The technology trends in lubricants are an example of this shift toward automation and are anticipated to provide numerous investment opportunities for businesses in this domain.
Innovations like nanotechnology to increase the revenue share of the materials and chemicals domain exponentially
Nanotechnology is a specialized field of science that deals with the manipulation of matter at the nanoscale level, i.e., 1 to 100 nanometers. Research in the field of chemistry has shown that nanotechnology can prove to be beneficial in manufacturing advanced materials that are stronger yet lighter, durable, and have better chemical properties like reactivity and conductivity. In the past few years, several end-use industries like pharmaceuticals, aerospace & defense, and automotive sectors have witnessed a huge rise in the adoption of nanomaterials like nano silver and nano copper oxide to increase the quality of their products. The increasing integration of nanotechnology in chemical engineering is driving the nanomaterials market to reach an estimated revenue of $62.8 billion by 2031, with a projected CAGR of 14.6% from 2021 to 2031.
Increasing preference for the circular economy model to completely transform the materials and chemicals sector
The circular economy is a popular economic model that involves repairing, recycling, and reusing the same product or service for as long as possible. In recent times, the majority of the multinational companies operating in the materials and chemicals domain have started adopting this model of economy to reduce the environmental impact and bring down the carbon footprint of their operations. For instance, companies like Vetropack Holding Ltd., Verallia SA, Harsco, etc., have invested heavily in the recycled glass industry to develop advanced recycling technologies for manufacturing glass containers, fiberglass, highway beads, etc. The increasing participation of such industry giants in the circular economy model is predicted to augment the growth rate of this domain in the coming period.
R&D activities in the field of advanced materials to help the domain flourish immensely
Advanced materials and composites have become quite popular among various end-use industries. The widespread applicability of these advanced materials is on account of their advantages such as high strength, durable nature, and enhanced thermal properties. One of the biggest users of advanced materials and composites is the aerospace and defense sector, wherein such materials are used to manufacture aircraft and their vital components. Even developers of renewable energy solutions utilize these materials for manufacturing goods like wind turbines, solar panel films, silicon chips, etc. In recent times, the medical device manufacturing industry has also experienced a surge in the adoption of advanced composites for developing advanced polymers, surgical tools, and biocompatible coatings. Thus, the landscape of materials and chemicals has undergone a significant change owing to the introduction of advanced and innovative materials.
To summarize, the growing shift toward green chemistry and the rising adoption of a circular economy signifies the increasing focus on environmental sustainability in the materials and chemicals domain. At the same time, the development of nanomaterials like nano silver and nano copper oxide by chemical manufacturers and their adoption by pharmaceutical and aerospace companies to develop their products is projected to increase the revenue share of this sector in the coming period. Finally, the use of automation and AI-powered technologies by chemical manufacturing companies to improve their operational efficiency and productivity is anticipated to offer lucrative opportunities to the materials and chemicals domain in the years to come.
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