The global Carbon Nanotube (CNT) market size reached USD 876.8 Million in 2021 and is expected to register a significantly rapid revenue CAGR during the forecast period, according to latest analysis by Emergen Research. Increasing investments in research for development of carbon nanotubes for various applications is a key factor expected to drive global carbon nanotube market revenue growth during the forecast period.
Increasing demand for lightweight, fuel-efficient, and low carbon emission vehicles is expected to drive revenue growth of the global carbon nanotube market during the forecast period. A large amount of copper wire is used in Electric Vehicles (EVs), which increases their weight. CNTs are, therefore, emerging as an alternative to copper wire, owing to their low weight and ability to reduce fuel consumption in vehicles, which has encouraged automotive manufacturers to increase the use of CNTs in automobiles. In addition, rapid technological advancements and increasing use of CNTs in aircraft to improve performance are expected to boost revenue growth of the market during the forecast period. The aerospace industry is continuously reducing weight and fuel consumption of aircraft to lower operational costs, which is possible with the application of CNT wires.
Growing concerns regarding the environmental impact of CNTs have prompted governments and regulatory bodies of various countries to implement strict regulatory guidelines, which is expected to hamper market revenue during the forecast period. Nanoscale pollutants that are found in CNTs are non-biodegradable, which makes it difficult to remove them once the environment is contaminated. Nanoparticles, when mixed with air and soil, are often washed off into rivers and lakes, which can cause health-related issues in animals and humans. Nanoparticles can severely damage the kidneys in humans and can also raise blood sugar levels. Such health and safety issues associated with CNTs may limit their adoption and thus, restrict revenue growth of the global market.
The global carbon nanotube market is expected to register a CAGR of 14.9% over the forecast period, and revenue is expected to increase from USD 876.8 Million in 2021 to USD 3,027.4 Million in 2030. Increasing application of CNTs in the defense & aerospace industry and rising demand for lightweight and low carbon-emitting vehicles are factors expected to boost revenue growth of the market during the forecast period.
COVID-19 Impact Analysis:
COVID-19 pandemic has had a major impact on both industrial and financial sectors, as imposition and extension of lockdowns by several countries have resulted in a decline in economic activities, which has impacted global economic growth. The COVID-19 pandemic also hampered revenue growth of the CNT market, as the electronics industry witnessed negative growth due to reduced demand for electronic goods.
China was one of the worst affected countries by COVID-19, and since the country is one of the largest manufacturers and exporters of CNTs in the world, this restricted revenue growth of the global market. Moreover, manufacturing plants are either shut down or opened at reduced capacity, due to restrictions imposed to contain the pandemic, which caused supply chain disruptions across the globe.
However, post lockdown, economic activity has revived slowly, which has resulted in rise in demand in automotive and electronics sectors. Moreover, governments of various countries across the globe have announced economic packages and reforms to help businesses, which has resulted in increase in demand for products across various end-use industries. These factors are expected to boost market revenue growth during the forecast period.
Current Trends and Innovations:
Increasing demand for CNTs for manufacturing lightweight coax cables for aircraft, spacecraft, and missiles is expected to boost revenue growth of the market during the forecast period. Aircraft and spacecraft use large amounts of coaxial cables made from copper, which can weigh them down. Cables made with CNT, on the other hand, can help to reduce weight and improve the performance of aircraft, which in turn, can save operational cost of space vehicles. In addition, CNT helps to transfer heat away from electronics, which can solve the problem of overheating faced in aerospace engineering.
North America is expected to register a steady growth rate over the forecast period, owing to presence of well-established manufacturing industries in the region. Moreover, increasing demand for polymers made with CNT, to improve thermal, electrical, and mechanical properties of various products, is driving revenue growth of the market in North America.