Material Informatics Market: Forecast 2024 - 2031

The material informatics market is poised for substantial growth over the next decade, driven by advancements in data science, machine learning, and computational tools that are transforming the way materials are discovered, designed, and optimized. Material informatics refers to the application of data analytics, machine learning algorithms, and artificial intelligence (AI) in materials science to accelerate the process of developing new materials with enhanced properties and performance. As industries seek more efficient and sustainable materials for use in various applications, the demand for material informatics services and solutions is expected to soar. According to International Market Research (IMR), the global material informatics market was valued at approximately USD 1.9 billion in 2023 and is projected to grow at a robust compound annual growth rate (CAGR) of 22.4%, reaching an estimated USD 7.4 billion by 2031.

Market Overview

Material informatics combines materials science with data science to unlock insights from large datasets of materials properties, enabling faster innovation and more precise material selection for various industrial applications. The integration of computational models, simulation techniques, and AI tools has made it possible to predict material properties before they are physically tested, which is saving both time and cost in product development.

The growing need for advanced materials across industries such as aerospace, automotive, energy, healthcare, and electronics is a major driver of the market. Moreover, the ongoing shift toward sustainable and eco-friendly materials is creating a vast market opportunity for material informatics solutions. The ability to design materials with customized properties, improve performance, and minimize environmental impact is driving investment in material informatics technologies.

Market Drivers

1. Growing Demand for Advanced Materials

The demand for advanced materials with superior properties, such as higher strength, better thermal conductivity, and improved corrosion resistance, is increasing across various industries. Material informatics plays a critical role in identifying, developing, and optimizing these materials. For instance, the aerospace and automotive industries require materials that are not only lightweight but also possess exceptional durability and performance under extreme conditions.

2. Emerging Applications in Healthcare and Electronics

Material informatics is significantly impacting industries such as healthcare and electronics, where the development of specialized materials is crucial for innovations. In healthcare, the field of biomaterials is advancing rapidly, with researchers using material informatics to develop materials for implants, prosthetics, and drug delivery systems. Similarly, in electronics, material informatics is being applied to design next-generation semiconductors, batteries, and other electronic components.

3. Increased Research and Development Investment

In 2023, the global research spending on material science and related disciplines surpassed USD 8 billion, with a projected increase of 2.5% annually. Material informatics is at the center of these investments, as companies and institutions look for ways to accelerate material discovery and development processes. Additionally, private sector investment in AI and data-driven material science is growing rapidly.

4. Sustainability and Environmental Impact

As global sustainability concerns continue to rise, industries are increasingly focusing on materials that reduce environmental impact. The use of material informatics to design sustainable materials and recycling methods has grown substantially, especially in industries such as construction, energy, and packaging. The ability to model material behavior and assess environmental impact in the early stages of product development can lead to more eco-friendly materials with lower carbon footprints.

Market Segmentation

The material informatics market is categorized based on application, end-user industry, deployment type, and region. Each segment is expected to grow at varying rates as different industries embrace material informatics technologies.

By Application

• Materials Discovery: The application of AI and machine learning in materials discovery is one of the largest segments, contributing around 42% of the market in 2023. These tools help researchers identify new materials by analyzing vast datasets of materials properties, accelerating the process of material innovation.
• Materials Design and Optimization: As industries seek to optimize existing materials for improved performance, material informatics tools that simulate material behavior and predict properties are becoming increasingly important. This segment is expected to grow at a CAGR of 23.2%.
• Predictive Maintenance: In industrial settings, predictive maintenance for machinery and equipment is another application driving the market. The ability to predict material wear and degradation is helping reduce maintenance costs and increase operational efficiency. This segment is anticipated to grow by 21% during the forecast period.

By End-User Industry

• Aerospace and Defense: The aerospace industry is a major consumer of material informatics solutions, driven by the need for lightweight yet strong materials for aircraft and spacecraft. The aerospace sector is expected to account for 27% of the market share in 2023, with growth projected to remain strong throughout the forecast period.
• Automotive: The automotive industry is increasingly adopting material informatics to develop new lightweight materials and improve fuel efficiency, safety, and vehicle performance. The automotive segment is projected to grow at a CAGR of 22.6% over the next decade.
• Energy and Utilities: The energy sector, including renewable energy and nuclear power, is another key end-user of material informatics. Material informatics tools are used to design more efficient energy storage materials, as well as optimize materials used in solar panels, batteries, and fuel cells. This market segment is forecasted to see a growth rate of 21.9%.
• Electronics: As the demand for smaller, more powerful electronic devices rises, material informatics is used to design advanced semiconductors, batteries, and flexible electronics. The electronics industry’s market share in material informatics is expected to increase from 19% in 2023 to over 22% by 2031.

By Deployment Type

• Cloud-Based Solutions: Cloud deployment of material informatics solutions is the most popular choice due to its flexibility, scalability, and cost-efficiency. In 2023, cloud-based solutions accounted for approximately 58% of the market, and this share is expected to grow at a rate of 24.1% annually.
• On-Premise Solutions: On-premise deployment is preferred by large enterprises with strict data security requirements. This segment is expected to grow at a slower pace, with a projected CAGR of 18.5%.

By Region

• North America: North America remains the dominant market, contributing approximately 37% of the global market revenue in 2023. The region benefits from significant investment in research and development and a well-established materials science sector.
• Europe: Europe follows closely, with countries like Germany, France, and the UK leading in material research and innovation. The European market is expected to grow at a CAGR of 22.5%.
• Asia-Pacific: The Asia-Pacific region is experiencing rapid growth, driven by technological advancements in countries like China, Japan, and South Korea. The region is expected to grow at a CAGR of 26.3%, the highest among all regions, as countries in this region increasingly invest in material science and AI-based solutions.
• Rest of the World: Latin America, the Middle East, and Africa are emerging markets, with the material informatics market expanding as these regions increase their focus on sustainability and industrialization. This market segment is projected to grow at a CAGR of 20.8%.

Competitive Landscape

The material informatics market is highly competitive, with several key players focusing on enhancing their product offerings, expanding their customer base, and forging strategic partnerships. Prominent companies in the material informatics space include:

• Materials Project
• Thermo Fisher Scientific, Inc.
• Dassault Systèmes
• Corning Inc.
• BASF SE
• Exabyte.io
• Element Materials Technology
• Tata Steel Ltd.

These companies are investing heavily in AI and machine learning technologies to improve their material discovery and optimization platforms. Strategic partnerships between material science companies and AI startups are becoming more common as firms look to accelerate the development of next-generation materials.

Future Outlook

The material informatics market is expected to see strong growth through 2031, with numerous industries benefiting from the ability to design, optimize, and discover advanced materials more quickly and cost-effectively. The increased focus on sustainability, combined with the growing need for innovative materials across sectors like aerospace, automotive, and electronics, will drive continued investment in material informatics solutions.

IMR forecasts that the material informatics market will experience a shift toward more AI-powered solutions, especially in materials design and optimization. The adoption of cloud-based solutions will continue to increase, providing enhanced accessibility and collaboration for research teams worldwide.

In conclusion, the material informatics market represents a dynamic and evolving space that will play a critical role in the future of material development, with substantial growth expected over the forecast period. Companies that leverage the power of AI, machine learning, and advanced computational models will be at the forefront of this transformation, driving innovation across industries.