The advanced ceramics market was valued at USD 77,250 million in 2020 and is expected to register a CAGR of over 6.5% during the forecast period.
The market was negatively impacted due to COVID-19 outbreak in 2020. During 2020, the economic and industrial activities came to a temporary halt, almost all manufacturing industries where advanced ceramics find applications, like in electrical and electronics, transportation, industrial, chemical, and other end-user Industries (except medical), reduced their manufacturing capacities due to the lack of workers, prevailing lockdowns, and halt in global supply chains. This has resulted in repercussions in terms of both productions as well as demand for advanced ceramics. The global electronics industry is witnessed an around 62% drop in its sales for the year 2020. However, the condition is expected to gradually recover over the forecast period.
Key Highlights Over the medium term, the major factors driving the market studied are the rise in use as an alternative to metals and plastics and the growing demand in the medical industry.
On the flipside, unfavorable conditions arising due to COVID-19 impact is expected to hinder the growth of the market studied.
The electronic and electrical industry dominated the market and is expected to grow during the forecast period, owing to a wide-range of electrical properties of advanced ceramics, including insulating, semi-conducting, superconducting, piezoelectric, and magnetic properties.
Asia-Pacific dominated the market across the globe with the largest consumption from countries such as China and Japan.
Key Market Trends
Electronic and Electrical Industry to Dominate the Market
A variety of ceramics are used in electrical and electronic applications, ranging from power devices to semiconductor and semiconductor manufacturing, semiconductor equipment, and handling devices.
Alumina has a wide range of applications, ranging from electrical components to semiconductor components, including resistors, capacitors that are used in multi-layer interconnection circuits, hybrid circuits, condensers, and hyper frequency resonators.
In the semiconductor industry, alumina components need to endure severe plasma etching, as well as mold into several multiplex shapes. These alumina materials are the most common and affordable in industrial production.
Silicon carbide is estimated to have one of the largest applications in the electrical and electronics industry in the coming years. Silicon carbide is used in various applications in electric vehicles, high power and high voltage power devices, semiconductors, solar inverters, and LED lights.
Aluminum nitride is used in heat removal applications because of its high thermal conductivity and excellent electrical insulation properties, which make it useful in the field of semiconductors, consumer and household, microelectronics, and computer and communication. It is also used as a heat sink in LED lighting technology and high-power electronics. Similarly, silicon nitride and boron nitride are used in various electrical and electronic applications.
Asia-Pacific is one of the leading manufacturers of electronics in the world. It accounts for more than 70% of the global electronics production, with counties, like South Korea, Japan, and China, involved in the manufacture of various electrical components and supplies to various industries worldwide. Electrical and electronics production in India is expected to increase rapidly due to government initiatives with policies like "Make in India"to make the country self-reliant.
In Europe, the German electronics industry is the largest in the region. The electrical and electronics industry accounted for 11% of the total industrial production in Germany. According to the German Electrical and Electronic Manufacturers’ Association (ZVEI), the global electronics market is expected to rise to EUR 4.6 trillion in 2021.
The growing penetration of smartphones and growing production and sales of smartphones are also estimated to drive the market during the forecast period.
The growing electrical and electronic industry is estimated to boost the demand for advanced ceramics over the forecast period.
Japan to Dominate the Asia-Pacific Market
The Japanese electrical and electronic industry is one of the world’s leading industries.
Japan is a world leader in the production of of computers, gaming stations, cell phones, and various other key computer components. Consumer electronics account for one-third of the Japanese economic output.
The country is specialized in the manufacturing of electronic components and devices, such as passive components, connecting components, electronic boards, electronic circuit jisso boards, transducers, discrete semiconductors, integrated circuits, and liquid crystal devices.
The Japanese aerospace industry manufactures aircraft components for commercial and defense aircraft. The production of commercial aircraft has been increasing over the past couple of years, owing to the increasing cargo demands. Japan focuses on manufacturing the F-35A next-generation fighter jet (components) and other military aircraft and strengthening the foundation of aerospace manufacturing in the country.
The country also plays a central role in the development of aircraft, such as Boeing 767, 777, 777X, and 787, and engines, such as the V2500, Trent1000, GEnx, GE9X, and PW1100G-JM.
Moreover, Japan plans to increase its defense strength to keep China’s increasing air force capability at bay. In March 2020, the country was observed taking the initiative toward military modernization, for which the country has authorized USD 102 million. This budget is planned to be dedicated towards “Japan-led development of a new aircraft with international collaborations”.
The Japanese automotive industry is one of the world’s largest industries. This is due to the investments made in the sector, which helped it grow.
Japan has a rapidly growing aging population, with those aged 65 or over accounted for more than 27.4% of the population. The rapidly aging Japanese population, increasing the number of patients with chronic and lifestyle diseases, and universal health insurance coverage and regulatory measures are driving the Japanese medical devices market.
These growth trends are anticipated to boost the advanced ceramic market in Japan over the forecast period.
The global advanced ceramic market is partially fragmented in nature, with the top five players accounting for a major share (in terms of revenues generated) of the market studied. The major players of the market studied include Kyocera Corporation, Corning Incorporated, Murata Manufacturing Co., CoorsTek, and Morgan Advanced Materials, among others.
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