Advanced Ceramics Market

Market Overview

The global advanced ceramics market size had a value of USD 80,442 million in 2021, which is envisioned to increase at a CAGR of 7% and reach the valuation of USD 147,889 million during the forecast period.

Advanced ceramics are distinguished from conventional ceramics such as brick and porcelain by their better strength, higher operating temperatures, improved toughness, and tailorable properties. These materials can replace metals in applications where reduced density and higher melting points can increase efficacy, productiveness, and speed of operation. 

Advanced ceramics stability, resistance capability, chemical inertness, good electrical properties, and fortune in mass products make them a better choice than metals and plastics. The nature of the bond between ceramic particles helps differentiate advanced ceramics from conventional ceramics.

An attractive aspect of advanced ceramics is their capability to operate at temperatures far above metals. Advanced applications include engine components, cutting tools, valves, bearings, and chemical-process equipment. Electronic applications for ceramics with a low coefficient of thermal expansion and high thermal conductivity include superconductors, substrates, magnets, capacitors, and transducers. The primary attribute driving the market's growth is the increasing demand in the medical industry and alternative usage to metals and plastics.

Market Dynamics

Market Drivers

Use as an Alternative to Metals and Plastics to Aid Growth

These advanced ceramics hold several superior properties to metal-based systems when exercised as an engineering material. These properties make advanced ceramics feasible in the area of performance and cost-effectiveness. These properties include high abrasion resistance, excellent hot strength, chemical inertness, high machining speeds, and dimensional stability.

Their hardness, physical stability, extreme heat resistance, chemical dormancy, superior electrical properties, and suitability in mass-produced products make them one of the most versatile materials.

Advanced ceramics are also used in aerospace, where turbine blades can be applied to resist extreme temperature and high-pressure conditions. Advanced ceramics are considered the best substitute for metals and plastics due to such beneficial properties. Furthermore, these advanced ceramics are lighter in weight than most metals, making them suitable for medical applications and can resist a combination of extreme conditions for a long duration. Thus, promoting demand in the market for the material.

Growing Demand in Healthcare Segment to Support Market Growth

In the healthcare industry, advanced ceramics are used in Insulators for endoscopy devices, cases for neurostimulators, feedthrough insulators, dental implants, and many others. Advanced ceramics are used in medical devices and equipment, like ultrasonic tools, infusion pumps, dialysis machines, and diagnostic equipment.

The ability to fabricate minimal yet complex geometric forms while preserving high heat and chemical resistance makes advanced ceramic technology integral to the medical industry. And hence, increasing demand in the segment.

As the healthcare industry advances, it is expected to drive the market for advanced ceramics.

Market Restraints

High Capital, Brittleness, High Design Specifications to Restrict Market Growth

The production process of advanced ceramics includes specific mechanical and chemical procedures to convert raw materials into powder, malleable solid. These are then moulded by pressing, extruding, or casting. The resultant product obtained is dried and fired to a very high temperature. The firing process results in increased capital investment in the equipment required.

Additionally, it is also difficult to control the dimensional tolerances during processing. Thus making it even more expensive to produce advanced ceramics materials. 

Moreover, the uncertainty in regulative policies about climate change, energy & environment undermines the business due to high-cost and long-term investment. Besides these, the high capital cost involved in the advanced materials market acts as a bottleneck for the growth in the market.

The specific thermal, mechanical, and electrical properties of advanced ceramics differ dramatically from the manufacturing process's operational conditions and process design. This makes the design process highly specific, leading to considerable fluctuations in the final product with minor deviations in the design process, which hamper the demand in the market.

Market Opportunity

Advanced ceramics are applied in many applications, for instance, nano refractories, nano pigments, and nanopowders. These ceramics are used as additives for manufacturing certain parts in turbines.

They are also used in materials like carbon nanotubes to improve their mechanical properties. Advanced ceramics also have applications in nanoelectronics; they are utilized as additives for production.

Nanomaterials have played a crucial role in technological advancements in medicine, electronics, engineering, etc. Innovations in creating and developing robust and reliable production methods have surfaced repeatedly with proper management and measurement at the atomic scale.

With the decrease in production time and cost, the nanomaterials market has the potential for substantial growth, which will likely propel growth in the market in the upcoming days.

In the coming days, newer innovations in the field of microelectronics like quantum computing, modified magnetic semiconductors, and nanocomposite transistors, among others, are envisioned to revolutionize the capabilities and new device concepts in the market of advanced ceramics.

Regional Analysis

Segmentation based on region is done as Europe, North America, Asia-Pacific, South America, Middle East, and Africa.

Asia-Pacific to have a dominating share of USD 78947 million with a CAGR of 7% during the forecast period. 

Among the countries in Asia-Pacific, China has one of the largest economies in terms of GDP. The country witnessed about 6.1% GDP growth in 2019, irrespective of the trade disturbance resulting from the trade war with the United States. China's economic growth rate in 2020 was initially expected to be moderate compared to the previous year. But due to the onset pandemic, China's economic growth contracted considerably in 2020.

The country’s focus on growth for aviation seems set to increment exponentially. High demand for aviation has led to the government's introduction of an airport building program, which includes colossal investment in terminals and runways. This is expected to make advancements in the region's ceramics market. 

North America is expected to have a share of USD 35494 million with a CAGR of 6% during the forecast period. 

The country is home to countries like the United States, Canada, and Mexico, which contribute enormously to the growth in the region.  

The United States is home to the largest aerospace industry worldwide. According to the Federal Aviation Administration, the total commercial aircraft fleet is anticipated to reach 8,270 by 2037 due to the growth in air cargo. Moreover, the United States mainliner carrier fleet is envisioned to grow to 54 aircraft per year due to the existing fleet getting older.

Strong exports of aerospace components to countries like France, China, and Germany, along with exponential consumer spending in the United States, such factors promote the manufacturing activities in the aerospace industry, increasing the demand for advanced ceramics. 

Given the size of the market, the electronics market in the United States is among the largest globally. Owing to innovative technology, an increasing number of research and development centers, and the growing demand from consumers, the advanced ceramics market is expected to cultivate in the United States electronics sector during the forecast period.

Segmental Analysis

By Raw Materials

Based on raw materials, the global advanced ceramics market is segmented as Titanate, Zirconia, Silicon Carbide, Aluminum Nitride, Alumina, Silicon Nitride, Magnesium Silicate, Pyrolytic Boron Nitride, Monolithic Ceramics, Ceramic Matrix Composites, Ceramic Coatings, and others.

Alumina is expected to have the most significant share in the market with USD 57834 million and a CAGR of 7% during the forecast period of 2030. 

All the raw materials are produced by chemical processes to achieve a high chemical purity and obtain the most suitable powders for component fabrication.

Alumina is the most commonly used raw material for advanced ceramics. Alumina is derived from Bauxite ore. Its high dielectric properties provide advantages in electrical products. Alumina proffers corrosion resistance, wear resistance, and high strength. It is generally practised in the manufacture of industrial machine parts. These raw materials are obtained through mining and are supplied to manufacturers in bulk. Furthermore, as these raw materials are produced worldwide in abundance, they are relatively cheap.

By Class Type

Based on class type, the segmentation is done as monolithic ceramics, ceramic matrix composites, and ceramic coatings, which are mainly used by electronics & electrical, transportation, medical, industrial, defence & security, chemical industries, and others.

Monolith ceramics is expected to have a share of USD 115279 million with a CAGR of 7% during the forecast period. 

Continued miniaturization in electronics, innovative surface technologies, trends and developments in the healthcare, neo-ecology, mobility, and communications technology markets, is expected to provide growth scope for advanced ceramics. The material’s hardness, physical stability, extreme heat resistance, chemical inertness, biocompatibility, superior electrical properties, and suitability in mass-produced products make it one of the most versatile materials in the world and open new possibilities for design engineers and developers.

By End-User

Based on end-user, the market is classified as electronics & electrical, transportation, medical, industrial, defence & security, chemical industries, and others.

Electrical and electronics are expected to have the maximum share with USD 64898 million with a CAGR of 7% by 2030. 

Today, advanced ceramics play a crucial role in technologies such as energy and the environment, transportation, life sciences, communication and information technology, and many other wear-related applications.

However, these advanced ceramics product components compete against engineering materials with lower upfront costs, thus increasing the buyers' power to bargain with a more significant number of suppliers.

In many applications, the efficiency and cost-effectiveness of advanced ceramics zoomed up when one or a few critical components were replaced with ceramics, such as low-maintenance silicon nitride roller bearings in wind turbine tidal and chemical power plants.

Impact of covid-19

Covid-19 had some profound adverse impacts on the global advanced ceramics market.

COVID-19 spread across the world from China, making the whole world stand still and to a complete lockdown situation. Covid-19 is an infectious disease that was caused by a newly discovered coronavirus. During the time, the fatality rate among the population above 40 was also high globally. The disease causes severe illness for people suffering from medical conditions like diabetes, cardiovascular disease, chronic respiratory disease, etc.

Considering the situation during that time, it was declared a pandemic which led to numerous countries, including the major economies like China, the United States, India, and others, implementing lockdowns which adversely affected the global economy.

In the first two quarters of 2020, the economic and industrial operations temporarily halted. Almost every manufacturing unit where advanced ceramics is used, such as electrical and electronics, transportation, industrial, chemical, and other End-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers. The lockdown implemented put a halt to global supply chains. This resulted in repercussions in terms of both production and demand for advanced ceramics.

Market Recovery Timeline and Challenges

With time the lockdowns were uplifted, and relaxation was made to the public. Gradually, the economy picked up the pace and started its operations, bringing the demand in the global advanced ceramics market and increasing among various industries. As the situation improved during the initial months of 2021, the economies also strengthened their fiscal policies and initiated their development process; the end-user industries began their activities, bringing the overall ceramics market back on track.

Recent Developments

• 2022, Murata Manufacturing Co. Ltd released an advanced noise filter design support tool that contributes to saving design resources.
• 2022, Murata Manufacturing Co. Ltd announced the availability of the DFE32CAH_RO series of metal power inductors for high power applications.
• 2022, Murata Manufacturing Co. Ltd developed the MHM320 ionizer.
• 2022, Rauschert GmbH started the development of a new generation sodium battery.