The Smart Materials Market is estimated to be valued at USD 78.27 Bn in 2024 and is expected to reach USD 135.15 Bn by 2031, growing at a compound annual growth rate (CAGR) of 8.12% from 2024 to 2031. The demand of smart materials is expected to increase significantly during the forecast period. Emerging applications of smart materials in products like smart sensors, adaptive structures, and textiles are opening new avenues for growth.

Market Driver - Expansion of the Electronic Industry Driven by Urbanization and Increased Internet Penetration

More and more people are migrating to urban centers in search of better opportunities and infrastructure. As a result, the demand for consumer electronics like smartphones, tablets, laptops, wearables, and other connected devices has surged tremendously. This has fueled higher sales of electronics as people increasingly rely on their devices for communication, entertainment, work, and daily activities.

The development of advanced technology has allowed manufacturers to incorporate more functionalities into compact device designs. As developing countries continue investing in digital infrastructure and societies transition towards internet-mediated operations, electronics consumption patterns are bound to evolve further. This contributes to growth of the smart materials market in emerging economies.

Low-cost devices are also making digitalization more inclusive. This ensures sustained demand growth for consumer as well as industrial electronics. At the same time, more stringent regulations and customer expectations of robust yet eco-friendly products will motivate manufacturers to rely even heavier on smart materials. Their ability to enhance device functionality while reducing raw material usage makes them an ideal choice for the electronics industry.

Market Driver - Growing Adoption of Advanced Medical Applications Leveraging Piezoelectric and Shape Memory Alloys for Diagnostics

The healthcare industry has widely embraced technology to enhance diagnostics, treatment procedures and overall service quality over the past decade. Advancements in materials science research have played a key role here by enabling development of sophisticated medical devices and implants. In particular, smart materials such as piezoelectric materials and shape memory alloys are finding increasing relevance in medical applications due to their inherent beneficial properties.

Piezoelectric sensors that can generate electric potential when subjected to pressure or force have revolutionized ultrasonic medical imaging systems. By facilitating accurate capture of internal tissue vibrations, these sensors have enhanced capabilities of ultrasound diagnostic equipment.

Additionally, increasing focus on personalized medicines tailored as per individual genes and biomarkers will fuel integration of more sophisticated sensors, implants and devices. All these factors are expected to propel use of piezoelectrics and shape memory alloys in medical applications, boosting growth of the smart materials market going forward.

Market Challenge - High Cost of Smart Materials Impacting Adoption in Underdeveloped Regions

One of the major challenges faced in the smart materials market is the high cost of these materials which has a significant impact on adoption in underdeveloped and developing regions. The processing and manufacturing of smart materials involves multi-stage production methods and careful quality checks at each stage to embed the desired functional properties. This complex manufacturing process pushes up the overall costs.

Additionally, most smart materials industries are concentrated in developed economies where the focus is on innovation and cutting-edge R&D. The high capital expenditure required for setting up smart material production facilities also poses challenges for their affordability in cost-sensitive underdeveloped markets.

As a result, applications of smart materials remain limited in developing nations where cost is a major adoption barrier. For the smart materials market to realize its full future growth potential, bringing down production costs through economies of scale and more affordable manufacturing technologies will be crucial.

Market Opportunity - Increasing R&D to Enhance Functionality and Durability in Smart Materials

One key opportunity for the future growth of the smart materials market lies in ramping up research and development activities focused on enhancing functionality and durability. With increasing R&D investments, material scientists and engineers are working to develop advanced materials with improved self-repairing, self-healing and environmental adaptive properties. This includes materials that can change color, optimize energy absorption and generate electricity.

Developing low-cost, mass production techniques for smart nanomaterials through nanotechnology applications presents another significant opportunity. If R&D can successfully enhance the performance characteristics of smart materials, it will catalyze their adoption across various industries including aerospace, defense, automotive, and biomedical. Increased functionality and durability from ongoing innovation will be crucial for unlocking the full potential for smart materials market.

One of the most successful strategies in the smart materials market was intensive R&D. Companies like TDK Corporation and CTS Corporation focused on developing advanced piezoelectric materials for applications like actuators, sensors, transducers etc. TDK invested over $100 million in 2010-12 on piezo R&D which helped them launch innovative piezo products for devices.

Another strategy was strategic acquisitions to gain access to new technologies and applications domains. For example, Laird PLC acquired Heraeus Electro-Nite in 2015 for $58 million to enhance their portfolio of smart temperature control solutions using shape memory alloys. Partnering with OEMs in applications industries is also a key strategy adopted by smaller players like Advanced Cerametrics and Smart Material Corporation.

Insights, By Product Type: Rising Demand from Actuators & Motors Drives Piezoelectric Materials Segment

In terms of product type, piezoelectric materials account for 37.5% share of the smart materials market. This is due to their wide applications in actuators and motors domain. Owing to a unique property known as piezoelectric effect, they are extensively used in the manufacture of actuators and motors which require fast, accurate and noiseless motion.

In the automotive sector, piezoelectric materials are gaining prominence for applications such as fuel injectors, seat positioning systems and more. Their increased use in vehicles helps improve fuel efficiency while meeting stringent emission norms.

In aerospace components too, piezoelectric actuators are replacing traditional hydraulic and mechanical actuators to reduce weight and space. Electronics makers are also utilizing piezoelectric materials' ability to convert vibration into electrical signals for advancing haptic feedback and touchscreen technologies. The expanding scope of piezoelectric materials across industries will continue stimulating growth of this segment in the smart materials market.

Insights, By Application: Surging Uptake in Actuators & Motors Boosts Actuators & Motors Segment

In terms of application, actuators & motors account for 41.3% share of the market owning to the heightened demand from automotive and aerospace sectors in particular. Advantages like compact size, lower power requirement and longer lifespan have made actuators and motors a preferred choice over hydraulic and pneumatic components.

In the auto industry, smart actuators find widespread application in injectors, throttles, suspensions and more to optimize engine performance. Their self-powered operations help improve fuel efficiency of vehicles. Aerospace is another major end-user where actuators are gaining prominence to replace aging hydraulic systems.

Further gains are expected from non-traditional areas like robotics, prosthetics and artificial organs where actuators play a pivotal role. This will continue driving gains within this highly lucrative segment of the smart materials market.

Insights, By End User: Aerospace & Defense Dominates Due to Criticality of Applications

In terms of By End User, Aerospace & Defense contributes the highest share of the market due to the critical nature of applications utilizing smart materials. Being an extremely technology-driven sector, aerospace heavily relies on smart materials for developing advanced aircraft with improved flight control capabilities, lightweight construction, enhanced situational awareness and more.

Key aircraft components such as wings, tails, landing gears extensively deploy shape memory alloys and piezoelectric materials. Defense equipment similarly uses smart materials in applications ranging from missile guidance systems to armored vehicles suspension for high performance, reliability and safety. Even small performance improvements delivered by smart materials translate into significant competitive advantages and cost savings for OEMs. 

• The North American smart materials market has a dominant position due to advanced technologies and regulatory support for R&D.
• China’s rapid urbanization and defense investments are creating high demand for smart materials, especially in electronics and automotive industries.
• The incorporation of shape memory alloys in medical stents has revolutionized cardiovascular treatments by enabling minimally invasive procedures and improving patient recovery times.
• Piezoelectric materials are being utilized in energy harvesting systems, allowing the conversion of mechanical vibrations into electrical energy, thus powering low-energy devices without batteries.
• Application Growth: The sensor segment of the smart materials market is expected to grow significantly owing to the rising demand for smart sensors in automotive and consumer electronics industries.

The major players operating in the smart materials market include Kyocera Corporation, Parker Hannifin Corp (Lord Corporation), Wright Medical Group N.V., CeramTec GmbH, APC International Ltd., CTS Corporation, TDK Corporation, Channell Commercial Corporation, LORD Corporation, Advanced Cerametrics Inc., Allegheny Technologies Incorporated, and Metglas, Inc.

• In September 2024, the ADA Forsyth Institute received a $6.2 million grant from the National Institute of Dental and Craniofacial Research to develop AI-driven smart materials for dental fillings. These next-generation composites aim to replace traditional amalgam fillings by incorporating self-healing and antimicrobial properties, thereby enhancing dental care.
• In June 2024, IIT Bhilai researchers in India developed a smart material for controlled anti-cancer drug delivery, enhancing efficacy and reducing side effects. This innovation aims to enhance treatment efficacy and reduce side effects by enabling precise, targeted, and personalized cancer therapies.
• In April 2024, scientists at Nanyang Technological University (NTU) in Singapore developed a smart, reusable adhesive that surpasses natural adhesives in strength. This adhesive is more than ten times stronger than the adhesion of a gecko's feet. It utilizes shape-memory polymers designed into hair-like fibrils, allowing it to stick and detach easily with heat application.
• In January 2024, Altmin Private Limited, based in Hyderabad, India, announced a commitment of USD 100 million over the next five years to establish a lithium-ion battery material plant. This investment aims to enhance the electric vehicle (EV) supply chain in India.

• By Product Type
  • Piezoelectric Materials
  • Shape Memory Materials
  • Electrostrictive Materials
  • Magnetostrictive Materials
  • Phase Change Materials
  • Electrochromic Materials
  • Others
• By Application
  • Actuators & Motors
  • Transducers
  • Sensors
  • Structural Materials
  • Others
• By End User
  • Aerospace & Defense
    • Aircraft Components
    • Defense Equipment
  • Automotive
    • Sensors
    • Actuators
  • Consumer Electronics
    • Smart Devices
    • Wearables
  • Healthcare
    • Medical Devices
    • Implants
  • Industrial
    • Robotics
    • Machinery
  • Others
    • Construction
    • Energy