Advanced Materials and Manufacturing Market Report 2026

The advanced materials and manufacturing market size has grown strongly in recent years. It will grow from $32.28 billion in 2025 to $35.31 billion in 2026 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to growing demand for high performance industrial materials, expansion of aerospace and automotive industries, advancements in material science research, increasing industrial automation adoption, demand for lightweight materials in manufacturing.

The advanced materials and manufacturing market size is expected to see strong growth in the next few years. It will grow to $51.02 billion by 2030 at a compound annual growth rate (CAGR) of 9.6%. The growth in the forecast period can be attributed to rising adoption of additive manufacturing technologies, increasing demand for sustainable and recyclable materials, growth in electric vehicle production, expansion of smart manufacturing facilities, increasing investment in nanotechnology and advanced composites. Major trends in the forecast period include lightweight and high strength material development, advanced composite material adoption, nanomaterials integration in industrial applications, high performance and heat resistant material innovation, material efficiency and waste reduction techniques.

The rising production of electric vehicles is anticipated to drive the growth of the advanced materials and manufacturing market in the coming years. Electric vehicles (EVs) are vehicles powered entirely or partially by electricity rather than traditional internal combustion engines that operate on petrol or diesel. The production of electric vehicles is increasing due to strong government incentives and supportive policies that encourage manufacturers to expand EV manufacturing capacity. Advanced materials and manufacturing contribute to electric vehicles by enabling the development of lighter and stronger components along with efficient production processes that enhance battery performance, extend driving range, and reduce overall vehicle costs. For example, in April 2026, as reported by the British Vehicle Rental & Leasing Association, a UK-based trade association, March 2026 recorded the highest-ever electrified vehicle sales with 196,059 registrations, driven by strong growth in PHEVs (up 46.9%), HEVs (up 7.3%), and BEVs (up 24.2% to 86,120 units). Therefore, the rising production of electric vehicles is driving the growth of the advanced materials and manufacturing market.

Key companies operating in the advanced materials and manufacturing market are increasingly focusing on developing smart and self-healing materials, such as high-performance composite carbon fiber, to enhance durability, reduce maintenance requirements, and improve overall structural performance in advanced applications. High-performance composite carbon fiber refers to advanced carbon fiber used within composite materials to provide exceptional strength, stiffness, and lightweight performance for demanding applications. For example, in March 2024, Hexcel Corporation, a US-based industrial materials company, launched the HexTow IM9 24K carbon fiber, a new intermediate modulus continuous carbon fiber designed for high-performance composite applications. This product features a 24,000-filament tow and delivers significantly improved tensile strength (about 12% higher than its predecessor IM7), along with high stiffness and durability. It is specifically developed to support lightweight, high-strength aerospace structures and enable more efficient, high-rate manufacturing, offering a cost-effective and high-value solution for advanced composite production.

In December 2025, Cambium Biomaterials Inc., a US-based provider of AI-driven materials discovery, development, and advanced biomaterials solutions, acquired SHD Group for an undisclosed amount. With this acquisition, Cambium intends to combine its AI-enabled materials innovation capabilities with SHD’s global manufacturing infrastructure to accelerate product development cycles, expand production capacity, and reinforce its position in high-performance composite materials markets. SHD Group is a UK-based provider of advanced composite prepreg materials, specializing in advanced materials and manufacturing, with a focus on developing and producing high-performance composite prepregs.

Major companies operating in the advanced materials and manufacturing market are BASF SE, Compagnie de Saint-Gobain, Dow Inc., Applied Materials Inc., 3M Company, Merck KGaA, Sumitomo Chemical Co. Ltd., Toray Industries Inc., STMicroelectronics N.V., Evonik Industries AG, DuPont de Nemours Inc., Arkema S.A., Hexcel Corporation, Sila Nanotechnologies Inc., Group14 Technologies Inc., Stanford Advanced Materials Inc., Freeform, Kiutra GmbH, Axelera AI B.V., StoreDot Ltd., Morphle Labs Inc., American Elements, Energy Exploration Technologies Inc., INBRAIN Neuroelectronics S.L., Cellino Biotech Inc., Moleaer Inc., Geltor Inc., Aditya Birla Advanced Materials Ltd., Mighty Buildings Inc., Lilac Solutions Inc.

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

The advanced materials and manufacturing market consists of revenues earned by entities by providing products and solutions such as advanced composites, nanomaterials, high-performance alloys, smart materials, additive manufacturing systems, precision manufacturing tools, automation equipment, and digital manufacturing platforms. The market value includes the value of related goods sold by the manufacturer or included within the solution offering. The advanced materials and manufacturing market also includes sales of raw materials, processing equipment, fabrication systems, and advanced manufacturing software. 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 such as design, prototyping, and process optimization provided 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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