Advanced Materials and Power Electronics Market Insights 2025

Overview:

• The Advanced Materials market is experiencing sustained growth fueled by applications in automotive, aerospace, healthcare, and defense, alongside a growing demand for lightweight, high-performance, and sustainable materials.
• Power Electronics are critical for enabling efficient energy conversion across electric vehicles (EVs), renewable energy systems, industrial automation, and consumer electronics.
• Electrification trends globally, driven by sustainability and energy efficiency goals, are reinforcing investment into wide-bandgap materials such as Silicon Carbide (SiC) and Gallium Nitride (GaN).

Market Size & Growth 

• The global Advanced Materials market is projected to grow from US 134.88 billion in 2024 to US 275.41 billion by 2035, at a CAGR of 6.70%.
• The Power Electronics market is expected to expand from US 39.46 billion in 2024 to US 71.58 billion by 2035, with a CAGR of 5.56%.
• In North America alone, the Advanced Materials market was valued at US 161.76 billion in 2023 and is forecast to grow at a 2.2% CAGR through 2030.

Key Growth Drivers

• Surging demand for EVs and energy-efficient industrial equipment is propelling the use of wide-bandgap semiconductors like SiC and GaN.
• Increased focus on renewable energy and grid modernization efforts worldwide is driving innovations in power management and electronic systems.
• Advancements in manufacturing technologies for composites and smart materials are opening new market opportunities across aerospace and healthcare.

M&A Overview

• Consolidation is intensifying among semiconductor firms to secure IP around SiC and GaN technologies, with deal activity focused on access to fabrication and foundry capabilities.
• Materials science companies are increasingly acquiring niche players with specialized expertise in composites and nano-materials to broaden their product portfolios.
• Strategic alliances between energy solution providers and materials developers are accelerating commercialization pathways for advanced materials.

AI’s Role

• AI is being deployed in advanced materials discovery, enabling accelerated design cycles and material property predictions through machine learning models.
• Predictive maintenance powered by AI enhances performance in power electronics-based systems, reducing downtime and extending equipment life.
• AI-driven design optimization is helping manufacturers minimize energy losses and maximize efficiency in power modules and converters.

Competitive Landscape

• Asia-Pacific is projected to dominate the Power Electronics market, accounting for 48.57% of the global share by 2035.
• Major players are expanding regional production hubs to minimize supply chain risks and reduce tariffs, particularly in the U.S., Europe, and Japan.
• Companies leading the adoption of wide-bandgap materials are gaining early-mover advantages in EVs, industrial systems, and renewable energy applications.

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Sources: Roots Analysis: Advanced Materials Market Report (2025), Roots Analysis: Power Electronics Market Report (2025), Cognitive Market Research: North America Advanced Materials Report (2025)

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