Global Nanomaterials Opportunity and Emerging Trends

Lucintel Brief

Published : December 2014

Table of Contents

• Executive Summary

• Nanomaterials Market Outlook

• Market Trends and Opportunities

• Growth Opportunities in 2014 and Beyond

• Strategic Growth Opportunities

• About Lucintel

2

Executive Summary

3

• Global nanomaterials market was estimated at $2.5 B in 2013, and is likely to grow at a CAGR of

~16% in the next six years to reach $6.1 B in 2019

- Carbon Nano Tubes (CNTs) and nanoclay materials holds major percentage share in the global

nanomaterials market, followed by metal nanopowders and quantum dots

- Graphene market is gaining wider acceptance, and is growing rapidly, driven by better price

performance ratio compare to that of other competing materials

- Major market drivers for healthy growth of the nanomaterials market are new product developments,

patent filings, mergers, collaborations and other alliances

• Major drivers and trends shaping the global nanomaterials market are:

• Government funding to encourage nanotechnology

• Ongoing research & development to identify new and emerging applications and materials

• Collaborations and joint product development between material suppliers, universities and

Government bodies

• Continuous focus on property improvement and part performance will drive the usage of

nanomaterials in future

• Major suppliers having significant contribution in the development of the nanomaterials market are

Clariant, Showa Denko, Arkema, Nanocore, Umicore, and many more

Table of Contents

• Executive Summary

• Nanomaterials Market Outlook

• Market Trends and Opportunities

• Growth Opportunities in 2014 and Beyond

• Strategic Growth Opportunities

• About Lucintel

4

Nanomaterial

Nanomaterials Market Overview

Carbon

Nanotubes Graphenes

Metal

NanopowdersQuantum DotsFullerenesNanoclay

• Excellent

mechanical

properties

• Reduce weight

• Radio

transparency

• Crack/vibration

resistant

• Excellent

thixotropic

agent

• Improve gas &

liquid barrier

properties

• Enhance flame

retardant

• Reduces

weight

• Provide

flexibility

• Good

mechanical

properties

• Improved

chemical

properties

• Resist

deformation

• Automotive

• Plastics

• Pipe & Tank

• Packaging

• Paint & Coating

• Consumer

goods

• Energy

• Sporting Goods

• Aerospace

• Polymer &

Ceramics

• Medical

Be

ne

fits

Ind

us

try

• Computing

Devices

• Medical

• E&E

• Solar Energy

• Energy

• E&E

• Automotive

• Medical/Health

Care

• Sporting Goods

• Energy

• Bio Medical

Devices

• Energy Storage

Devices

• E&E

• Industrial

• Healthcare/

Medical

• Energy

• E&E

• Consumer

Goods

5

• High extinction

co-efficient

• Excellent

optical &

thermal,

electrical and

mechanical

properties

Nanomaterials Value Chain

Nanomaterial:

~$ 2.5 B (2013)

Nano-

Intermediates

Nano-

enabled

Products/

Components

End

Market/OEMs

Nanoclays• Clariant

• Elementis

• Nanocore

CNTs• Showa Denko

• Nanocyl

• Cnano Technologies

• Arkema

• Toray

Nanocomposites• Basell Polyolefins

• BASF

• Dow Automotive

• GE Advanced Materials

• Hyperion Catalysis

• Mitsui Chemicals

• Polykemic

• PolyOne Corp.

Paints/Coatings• BASF

• Akzo Nobel

• PPG Industries

Ceramics & MMC• Honda Motor Co.

• Nissin Kogyo

• NKK

Auto: Tier 1 Suppliers• ArvinMeritor

• Borg-Warner

• Bosch

• Denso Corp.

• Delphi

• Federal Mogul

• Johnson Controls

E&E

Automotive• BMW, Daimler, Fiat, Ford,

GM, Hyundai, Porsche

Aerospace & Defense• Boeing, Airbus, Lockheed

Martin

Sporting Goods• Easton Sports, Yonex,

Wilson

Aero: Tier 1 Suppliers• Spirit AeroSystem

• Triumph Aerospace

6

Fullerenes• Alfa Aesar

• Frontier Carbon

• Jenlaur

Graphene• Ningbo Morsh

Metal Nanomaterial• Umicore

Construction

Medical• GE Health Care, Siemens

E&E• Samsung, Nokia

Current and Potential Applications of Nanomaterials

Meat & Food Packaging

Computers & Electronics

Medicines & Pharmaceuticals

Beer Bottles

Packaging

Conductive Flooring

Pipes

Insulating Materials for Roofs & Thatches

House & Building Siding

Self Cleaning Windows

Construction

Engine, Powertrain & Fuel Systems

Scratch Resistant Exterior Paint and Coatings

Car Interior

LED Lights

Batteries

Transportation

7

Health Care

Consumer Goods

Body implants

Medical devices

Dental filling materials

Others

Anti-foul coatings for marine ships

Industrial equipment to increase strength

Fire resistant clothes

Sensors

Semiconductors

Hard disk storage in computers

Electrical & Electronics

Energy

Home appliances

Sporting goods & toys

Furniture & others

Battery electrodes

Fuel cell membranes

Supercapacitors

Current and Potential Applications of Nanomaterials

Contd..

Aerospace & Defense

Aircraft Structures

Wear Resistant Paints & Coatings

for Defense Vehicles

8

Table of Contents

• Executive Summary

• Nanomaterials Market Outlook

• Market Trends and Opportunities

• Growth Opportunities in 2014 and Beyond

• Strategic Growth Opportunities

• About Lucintel

9

External Forces Shaping the Nanomaterials Industry: Future

Innovations in this Space will Drive the Growth of Nanomaterials

10

Nanomaterials

Industry

SuppliersCustomers

Competitors

WorkforceTechnology

Regulators

Material specialization

Processed raw

materials

Competition from

emerging economies

Consolidation

Non-traditional/new

entrants

Focus/specialization

Skills

Location

Global recession

Political instability

Technical Service

Specialization

Efficiency

Value-added

Marketing

DestabilizersDistributors

R&D and Innovation

to reduce cost

Cost effective

technology

Process improvement

Quality control

Capital

Environmental

& human

safety

regulations

Govt.

subsidies

Global platforms

Technical service

Partnership

Application development

High perceived value

Awareness

10

Global Nanomaterials Market Trend and Forecast ($ B)

2008-2019

Global Nanomaterials Market Trend and Forecast (2008-2019)

6.1

2.5

1.6

$B

7

6

5

4

3

2

1

0

16%

201920132008

10%

Key Insights

11

• Global nanomaterials market was

estimated at $2.5 B in 2013 and is likely

to grow at a CAGR of 16% in next six

years to reach $6.1 B in 2019

- Carbon Nano Tubes (CNTs) holds

major percentage share in Global

nanomaterials market and is expected

to grow at double digit growth in the

next six years

- Increasing awareness, Government

funding, increasing acceptance across

industries and ongoing research and

development to identify newer

applications and new materials are the

major drivers shaping nanomaterials

market

Automotive

Nanomaterials

Market

E&E

Health/

Personal

Care

Energy

Others

(Sporting

Goods, etc.)

Major Drivers• Light weight

• High strength

• Electrical

conductivity

• Diagnostics

• Efficient drug

delivery

• Increase

efficiency

• Efficient

Storage

•Strength to

weight ratio

•Crack & vibration

resistance

Major

Applications

Engine & Powertrain

Tires Paint &

Coating

Racquets Archery

KayaksGolf

FEDs

Nano electronic

Devices

Medicines

Medical Equipment

& Devices

Wind Energy

Solar Energy

Major Drivers, Market Potential and Applications: Global Nanomaterials

Market

12

Table of Contents

• Executive Summary

• Nanomaterials Market Outlook

• Market Trends and Opportunities

• Growth Opportunities in 2014 and Beyond

• Strategic Growth Opportunities

• About Lucintel

13

CA

GR

(2013-2

019

)

Market Size (US$ M)

Health Care Industry is Expected to Gain Market Share and Overtake

E&E Segment in Size Over Next Five Years

14

+

+

–

–

Health care

Energy storage

E&E

Transportation

Construction

+

Key Insights Growth Opportunities for Nanomaterials in

Various Industries

14

• Nanomaterials have great potential in

electrical and electronics applications

because of their extraordinary electrical

conductivity

• Packaging is another important segment,

flourishing mainly in North America and

Western Europe

• Energy segment is also expected to

grow at a double digit growth

Emerging

Trends in Global

Nanomaterials

Market

Lucintel Predicts Five Key Emerging Trends Shaping the Global

Nanomaterials Market

Trend AGrowing demand for high

strength, durable structural

materials

Trend BNew material and product

development

Trend CExisting and emerging

applications driving

nanomaterials market

Trend DGovernment support, R&D

funding and Joint Product

Development

15

Trend A: Continuous Focus on Property Improvement and Part

Performance Will Drive the Usage of Nanomaterials in Future

16

Str

en

gth

(M

pa

) t

o W

eig

ht

(g/c

m3

)

Temperature in 0C

00

100

200

400

1000

500 1000 1500

5000

2000

Future Requirement

Future Requirement

0.0

1.0

2.0

3.0

4.0

5.0

SpecficStrength

SpecificModulus

PriceTemperatureResistance

Density

CMC TiAl Nickel Alloy

Titanium Alloy Steel

0.0

1.0

2.0

3.0

4.0

5.0

SpecficStrength

SpecificModulus

PriceTemperatureResistance

Density

Nano Composites Carbon Composites

Aluminum Alloy

Continuous Focus on Property Improvement and Part Performance will

Drive the Usage of Nanomaterials in Future

Airframe Engine

17

@500 ̊C @500 ̊C

/lb /lb

Contd..

18

The new wingtip fairing is being made for one-tenth of

the cost of the equivalent CFRP component90%

30%

15,220

2,505

147140

1.2

2.7

Strength

(MPa)

Stiffness

(GPa)

Density

(g/cc)

CFRP CNRP

Lockheed Martin Incorporated CNRP into F35 Lightning II Wingtip

Fairings Resulting in Significant Cost & Weight Reduction

Advanced Polymers Engineered for the Extreme (APEX) Technology: A Light-weighting Initiative

Typical CNRP Property Comparison with CFRP

Carbon Nanotube Reinforced Polymer (CNRP) Wing Tip Fairings Benefits over CFRP

Lockheed Martin has identified more than 100 additional parts for potential APEX insertion into the

F-35 to achieve additional cost savings

Upto 30% of light weight as compared to CFRP componentLight-weighting

Cost Saving

• Low cost LED

devices

• Temperature

performance

Unmet Needs Industry Served Benefits Derived

Trend B(i): Increasing Adoption of Nanomaterials to Improve Mechanical

& Chemical Properties of End Parts at Reduced Weight and Prices

19

• Automotive & Mass

Transportation

• Construction &

Infrastructure

• 25% cost reduction of LED

devices

• 43% Component count

reduction

• 24% assembly cost

reduction

Relative

ImportanceApplication

LED Lights

• Nano Ceramic

Aluminum

Nanomaterial

Used

Application Developer: Cambridge Nanotherm

Batteries

• Carbon

Nanotubes

• Carbon

Nanowires

• Environmental

friendly

• Smaller in size

• Low cost

• Transportation

• Energy

• Healthcare

• Defense

• Electronics

• Reduction in toxicity of

electrolyte solution

• Significant reduction in size

of the batteries

• Prevents loss of active

materials during storageApplication Developer: mPhase Technologies

Not Available • Anti-Icing

solution with

improved

resistance to

corrosion

• Wind Energy • Prevents ice formation

• Improves efficiency

• Sustain & improves

corrosion resistance

property of a blade

Application Developer: Gamesa

Blade Paint

Importance to Industry High Low

20

Innovation

Description

Material

Name

Company

Launched

Market

Served

Innovation Attractiveness

Ease of

Integration

Application

Enhancement

Market

Acceptance

Attractive product launches in intermediates

Hybrid

glass/carbon fiber

nanofabric

Not

Available

Carbon

Composite

Technologies

Wind-Energy,

Aerospace,

Armor, Marine

and Automotive

Nano Adaptive

Hybrid Fabric

Fuzzy

Fiber

URDI, Goodrich,

Owens Corning,

Renegade

Materials

Wind-Energy NA

Nanocomposite

PrepregArovex HT Zyvex Sporting Goods

Trend B(ii): Product Launches in Nanomaterial

Degree of Attractiveness High Low

Contd..

Trend C: Applications driving Opportunities in the Automotive, Medical

and Energy Industries

Key Insights

• Nanocomposites exhibits excellent

mechanical properties, dimensional

stability, impact and scratch resistance,

better thermal properties, etc.

• Energy industry can also be benefitted

with the nanotechnology ensuring better

efficiency in energy production and

storage

• Major driver in increasing usage of

nanocomposites in automotive

applications are reduction in vehicle

weight and improved engine efficiency

(ensuring better mileage and emission

reduction)

Engine and Powertrain

Suspension & Braking

System

Wind Energy

Lubricant

LED Lights

Engine Cover

21

Medicines

Medical Equipment &

Devices

Solar Energy

• A $3 million Ohio Third

Frontier award to the

University of Dayton

Research Institute will

help in ramping up the

production of a new

carbon nanomaterial

Trend D (i): Government Support and R&D Funding to Universities, Technology Centers and Material Suppliers

22

• The Massachusetts

Institute of Technology

researchers have

produced carbon fibers

coated with carbon

nanotubes that sustains

the mechanical properties

of the base fibers

• The U.S. Department of

Energy (DOE) Grant to

Georgia Institute of

Technology to develop an

additive manufacturing

technique for fabricating

three-dimensional (3D)

nanoscale structures from

a variety of materials

• The investment agreement

worth $4.3 Million between

DowAksa &

Nanotechnology Center of

Composites to develop

nanocomposites solution

benefiting customers

Trend D(ii): Collaborations and Joint Product Development between Materials Suppliers, Universities and Government Bodies

23

Contd…

Table of Contents

• Executive Summary

• Nanomaterials Market Outlook

• Market Trends and Opportunities

• Growth Opportunities in 2014 and Beyond

• Strategic Growth Opportunities

• About Lucintel

24

Three Growth and Profit Scenarios in Nanomaterials Market

Identify unmet needs in

existing applications

Strategic alliances across

value chain nodes

Scenario 1:

Expand Core Business

Scenario 2:

Growth Segments and

Application Development

Scenario 3:

Emerging Region

Target growing segments

such as automotive, medical

Focus on growing Graphene

market

Develop cost effective

solutions for composites

Growing paint and Coatings,

composites, and E&E market

in Asia will drive the higher

consumption of

nanomaterials

25

Table of Contents

• Executive Summary

• Nanomaterials Market Outlook

• Market Trends and Opportunities

• Growth Opportunities in 2014 and Beyond

• Strategic Growth Opportunities

• About Lucintel

26

About Lucintel

Vision:

• Passion for data, insights, strategy and innovation. Empower companies to take better

decisions

History

• Founded in 1998

• Over 120 analysts / consultants. Global presence

Industry Leadership

• Over 1000 clients from 70 countries – Fortune 500 companies

• Fifteen years of proven management consulting and market research experience

• Panelists and key note speakers at leading conferences

Services:

• Market entry strategy, M & A services, strategic consulting, due diligence, growth

finance,

competitive assessment, and opportunity screening

27