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GLOBAL NANOTECHNOLOGY MARKET TO REACH $29 BILLION BY 2008
Nanotechnology, i.e., the creation and utilization of materials, devices and systems through the manipulation of matter at scales of less than 100 nanometers, is not an "industry" or a "market" in the same sense as biotechnology for example. Nanotechnology is an enabling technology whose importance chiefly lies in the impact that it will have on established industries and markets. While it appears inevitable that nanotechnology will have a broad and fundamental impact on many sectors of the U.S. economy, various technical, marketing, and other hurdles need to be overcome before nanotechnology fulfills this promise. These challenges and differences of opinion regarding their commercial implications are reflected in the wide divergence among existing estimates of the U.S. and global nanotechnology markets.
According to a soon-to-be-released report from Business Communications Company, Inc. (www.bccresearch.com) RGB-290 Nanotechnology: A Realistic Market Evaluation, the total global demand for nanoscale materials, tools, and devices was estimated at $7.6 billion in 2003 and is expected to grow at an AAGR (average annual growth rate) of 30.6% to reach $28.7 billion in 2008. Comparing nanotechnology to other key emerging technologies, the global nanotechnology market, at about $7 billion in 2002, was roughly comparable in size to the biotechnology sector, but far smaller than the $800 billion global informatics market. However, the nanotechnology market is believed to be growing more than twice as fast as either of the other two.
The nanomaterials segment, which includes several long-established markets such as carbon black rubber filler, catalytic converter materials and silver nanoparticles used in photographic films and papers, presently accounts for over 97.5% of global nanotechnology sales. By 2008, the nanomaterials share of the market will have shrunk to 74.7% of total sales. Nanotools will have increased their share to 4.3% ($1.2 billion), and nanodevices will have established a major presence in the market with a 21% share ($6.0 billion).
Nanoparticles currently account for the largest share of the nanomaterials market. However, the fastest-growing nanomaterials segments are nanotubes (with a projected AAGR of 173% over the next five years) and nanocomposites (76% AAGR).
The projections in this report assume a continuation and expansion of the current economic recovery. Other trends, it is believed, will contribute to the future growth of the nanotechnology sector, including high levels of government support for nanotechnology R&D (estimated at over $2.2 billion in 2002, alone) and growing venture capital investments in nanotechnology companies, which have increased sixfold over the past two years.
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