Advanced Materials Market Report 2026

The advanced materials market size has grown strongly in recent years. It will grow from $91.27 billion in 2025 to $98.22 billion in 2026 at a compound annual growth rate (CAGR) of 7.6%. The growth in the historic period can be attributed to growth in aerospace and defense manufacturing, increasing industrialization and infrastructure development, rising demand for durable and high-strength materials, expansion of automotive production volumes, technological progress in material science research.

The advanced materials market size is expected to see strong growth in the next few years. It will grow to $134.03 billion in 2030 at a compound annual growth rate (CAGR) of 8.1%. The growth in the forecast period can be attributed to rising adoption of electric vehicles, increasing demand for advanced medical devices, growth in renewable energy and power systems, expanding use of advanced materials in electronics, continued innovation in composite and ceramic technologies. Major trends in the forecast period include rising adoption of lightweight and high-strength materials, increasing demand for high-performance materials in extreme environments, growing use of advanced composites across multiple industries, expansion of customized and application-specific material solutions, increasing focus on material durability and lifecycle performance.

The expanding aerospace and defense industry is anticipated to drive the growth of the advanced materials market in the coming years. This industry encompasses the development, production, and maintenance of aerospace systems, including aircraft, spacecraft, missiles, rockets, and associated components, as well as defense systems and equipment. Advanced materials are utilized within this sector to improve aircraft performance, durability, and overall capabilities. These materials include composites, alloys, and high-strength metals, which help reduce weight, enhance fuel efficiency, and ensure exceptional structural integrity in demanding operational conditions. For example, in September 2024, data from the Aerospace Industries Association (AIA), a U.S.-based trade organization, revealed that the U.S. aerospace and defense industry achieved a significant milestone in 2023, with sales exceeding $955 billion, marking a 7.1% increase compared to the prior year. Therefore, the growth of the aerospace and defense sector is propelling the advancement of the advanced materials market.

Leading companies in the advanced materials market are concentrating on product innovations such as graphene-based corrosion protection technologies to improve material performance and prolong asset lifespan. Graphene-based additives utilize the exceptional strength and barrier characteristics of graphene to enhance coating durability and resistance to extreme environments. For example, in April 2023, Petroliam Nasional Berhad (PETRONAS), a Malaysia-based energy and solutions company, introduced Proshield+, its first corrosion protection technology based on advanced materials. Proshield+ is an innovative paint additive derived from graphene, an ultra-high barrier material. Graphene is a two-dimensional substance composed of a single layer of carbon atoms arranged in a hexagonal structure. It is recognized as one of the strongest and lightest materials known, along with possessing unique properties such as high electrical and thermal conductivity. Proshield+ functions by creating a tortuous pathway within the coating, which restricts corrosive agents from reaching the steel surface.

In February 2023, Mo-Sci LLC, a U.S.-based company specializing in advanced high-tech glass development and manufacturing, acquired the assets of 3M’s Advanced Materials business for an undisclosed sum. With this acquisition, Mo-Sci aimed to enhance its technological expertise and production capacity by incorporating specialized equipment and intellectual property, allowing for accelerated product development, broader market presence, and improved customer support across major sectors such as healthcare, energy, industrial, automotive, and defense. 3M’s Advanced Materials business is a U.S.-based provider of advanced engineered materials and specialized technologies, concentrating on high-performance materials and components for a wide range of industrial and technological uses.

Major companies operating in the advanced materials market report are BASF SE, Dow Inc., 3M Company, Saint-Gobain, Toray Industries Inc., Teijin Limited, Akzo Nobel N.V., Hexcel Corporation, Owens Corning, Morgan Advanced Materials PLC., Momentive Performance Materials Inc., Hitachi Chemical Co. Ltd., Evonik Industries AG, Solvay S.A., Arkema S.A., LANXESS AG, Showa Denko K.K., Nippon Steel Corporation, Alcoa Corporation, PPG Industries Inc.

North America was the largest region in the advanced materials market in 2025. The regions covered in the advanced materials market are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the advanced materials market are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The advanced materials market consists of sales of fluoropolymers, multifunctional materials, nanomaterials, smart textiles, wearables, flexible batteries, biomedical implant devices, and fiber optics. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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