Functional Ceramics Global Market Report 2025

Functional ceramics are ceramic materials designed with specific properties and functionalities that go beyond their traditional structural characteristics. These ceramics are intentionally engineered to possess unique electrical, magnetic, optical, thermal, or chemical properties, making them well-suited for a range of electrical applications.

The primary categories of functional ceramics include semiconductor ceramics, insulating ceramics, high-temperature superconducting ceramics, dielectric ceramics, piezoelectric ceramics, and other specialized types. Semiconductor ceramics, also known as ceramic semiconductors or semiconductor materials, constitute a class of ceramic materials that demonstrate semiconducting properties. These materials find applications in pottery, tiles, abrasives, sanitary ware, bricks and pipes, and various uses across medical, industrial, building and construction sectors, among others.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp escalation of U.S. tariffs and resulting trade tensions in spring 2025 are significantly affecting the electrical and electronics sector. Key components such as semiconductors, display panels, and rare-earth metals crucial for batteries and motors are now facing heavy duties. Consumer electronics companies are seeing profit margins shrink, as fierce competition makes it difficult to pass on rising costs to consumers. At the same time, industrial electronics firms are experiencing project delays due to shortages of tariff-impacted parts like printed circuit boards. In response, businesses are shifting assembly operations to tariff-exempt nations, building up inventory reserves, and redesigning products to reduce reliance on restricted materials.

The functional ceramics market research report is one of a series of new reports from The Business Research Company that provides functional ceramics market statistics, including functional ceramics industry global market size, regional shares, competitors with functional ceramics market share, detailed functional ceramics market segments, market trends, and opportunities, and any further data you may need to thrive in the functional ceramics industry. This functional ceramics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The functional ceramics market size has grown rapidly in recent years. It will grow from $326.3 billion in 2024 to $381.28 billion in 2025 at a compound annual growth rate (CAGR) of 16.8%. The growth in the historic period can be attributed to market demand, economic factors, regulatory environment, supply chain efficiency, competitive landscape.

The functional ceramics market size is expected to see rapid growth in the next few years. It will grow to $708.05 billion in 2029 at a compound annual growth rate (CAGR) of 16.7%. The growth in the forecast period can be attributed to market expansion opportunities, changing demographics, environmental sustainability, regulatory changes, strategic alliances and partnerships. Major trends in the forecast period include increasing role in environmental monitoring, incorporation in wearable technology, development of piezoelectric ceramics, enhanced thermal management solutions, and integration in aerospace and defense applications.

The forecast of 16.7% growth over the next five years reflects a modest reduction of 0.5% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US through delays in advanced manufacturing, as tariffs raise prices for high-temperature resistant ceramic components sourced from Japan and Germany. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing demand for semiconductors in the electrical and electronic sectors is anticipated to boost the market for functional ceramics in the future. Semiconductors are materials with specific electrical properties that make them suitable for use in various electrical and electronic applications, serving as a foundation for computers and other electronic devices. The structural characteristics of functional ceramics are tailored for specific applications that require diverse attributes, such as electrical, magnetic, or optical properties, which are applicable in fields like automotive, marine transportation, aerospace, and electrical distribution. For example, in August 2024, the Semiconductor Industry Association, a non-profit organization based in the U.S., reported that global semiconductor industry sales reached $149.9 billion in the second quarter of 2024. This represents an 18.3% increase compared to the same quarter in 2023 and a 6.5% rise from the first quarter of 2024. Sales in June 2024 totaled $50.0 billion, reflecting a 1.7% increase from $49.1 billion in May 2024. Thus, the rising demand for semiconductors in the electrical and electronic industries will stimulate the functional ceramics market.

The expanding construction industry is projected to increase the demand for functional ceramics in the future. This sector encompasses activities related to the planning, design, construction, maintenance, and repair of buildings, infrastructure, and industrial facilities. Attic ventilation fans can help lower attic temperatures and eliminate excess moisture, thereby reducing air-conditioning energy costs, extending the lifespan of roofing materials, and minimizing ice damming. Due to their durability, strength, and thermal insulation properties, ceramic products are commonly used in construction. For instance, in September 2024, the Office for National Statistics, a government department in the UK, reported an estimated 1.2% rise in construction output for the three months ending in July 2024. This increase was driven by a 1.6% growth in new work and a 0.8% uptick in repair and maintenance activities. The growth was further supported by increases of 1.7% in May 2024 and 0.5% in June 2024. Therefore, the expanding construction sector is fueling the growth of the functional ceramics market.

The functional ceramic market is witnessing a notable trend of product innovations, with major companies in the sector adopting innovative solutions to maintain their market standing. An illustrative example is TDK Corporation, a Japan-based electronics corporation, which, in September 2023, introduced the CN series of multilayer ceramic capacitors (MLCC) featuring a unique structure. This design innovation incorporates resin layers covering only one side of the board, facilitating the passage of electric current outside the layers and reducing electrical resistance. To meet market demands for high-value capacitances, TDK introduced the CNA series (automotive grade) and CNC series (commercial grade) products. These new MLCCs, available in sizes such as 3216 (3.2 x 1.6 x 1.6 mm - L x W x T) with up to 22 F and 3225 (3.2 x 2.5 x 2.5 mm - L x W x T) with up to 47 F, offer larger capacitances than standard products, contributing to a reduction in the number of parts and overall size.

Key players in the functional ceramics market are forming strategic partnerships to enhance their research and development capabilities, improve their product offerings, gain access to new technologies, and broaden their market presence. Strategic partnerships involve companies utilizing each other's strengths and resources to achieve shared benefits and success. For example, in January 2024, the American Ceramic Society (ACerS), a professional organization based in the U.S., joined forces with the United States Advanced Ceramics Association (USACA), a trade association also located in the U.S., to promote research and development in advanced ceramic materials as well as education and training initiatives within the ceramics industry. Through this collaboration, ACerS and USACA aim to foster research, innovation, and education in advanced ceramic materials, thereby supporting growth and development in the functional ceramics market.

In January 2022, Japan Fine Ceramics Co. Ltd., a subsidiary of JGC Holdings Corporation, a Japan-based functional materials manufacturing company, acquired the ceramics business of Showa Denko Materials Co., Ltd. The acquisition, for an undisclosed amount, is expected to enhance product development feasibility in growth categories, such as semiconductors and next-generation vehicles. This collaboration leverages Showa Denko Materials Co., Ltd.'s capabilities in volume manufacturing and materials with JFC's expertise in non-oxide ceramic materials and processing. Showa Denko Materials Co., Ltd., operating in the ceramics business, including functional ceramics, is a Japan-based company.

Major companies operating in the functional ceramics market include Morgan Advanced Materials, Kyocera Corporation, AGC Ceramics Co Ltd, 3M Company, Dyson Technical Ceramics Limited, NGK Spark Plug Co. Ltd, Mc Danel Advanced Ceramic Technologies, CoorsTek Inc, Rauschert Steinbach Gmbh, Murata Manufacturing Co. Ltd, Semco Ceramics Inc, TDK Electronics AG, Taiyo Yuden Co. Ltd., KEMET Corporation, Vishay Intertechnology Inc., Texas Instruments, Ceradyne Inc., Mantec Technical Ceramics Ltd, International Ceramic Engineering, Elan Technology, Superior Technical Ceramics, C-Mac International LLC, Advanced Ceramics Manufacturing, Precision Ceramics, Ceramaret Ltd, Ceramco Inc., LSP Industrial Ceramics Inc., Ferro-Ceramic Grinding Inc., Insaco Inc., Blasch Precision Ceramics Inc.

Asia-Pacific was the largest region in the functional ceramics market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the functional ceramics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the functional ceramics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The functional ceramics market consists of sales of optoelectronic devices, piezoelectric devices, ceramic membranes, Insulators, superconducting devices, thermal barrier coatings, and biomedical implants. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Functional Ceramics Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on functional ceramics market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for functional ceramics ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The functional ceramics market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

• Markets Covered:1) By Type: Semiconductor Ceramics; Insulating Ceramics; High-temperature Superconducting Ceramic; Dielectric Ceramics; Piezoelectric Ceramics; Other Types
• 2) By Application: Pottery; Tiles; Abrasives; Sanitary Wave; Bricks And Pipes; Other Applications
• 3) By End User: Medical; Industrial; Building And Construction; Other End Users
• Subsegments:
• 1) By Semiconductor Ceramics: Zinc Oxide (ZnO) Ceramics; Titanium Dioxide (TiO2) Ceramics; Tin Oxide (SnO2) Ceramics
• 2) By Insulating Ceramics: Alumina (Al2O3) Ceramics; Silicon Nitride (Si3N4) Ceramics; Zirconia (ZrO2) Ceramics
• 3) By High-Temperature Superconducting Ceramic: Yttrium Barium Copper Oxide (YBCO); Bismuth Strontium Calcium Copper Oxide (BSCCO)
• 4) By Dielectric Ceramics: Barium Titanate (BaTiO3); Strontium Titanate (SrTiO3); Lead Zirconate Titanate (PZT)
• 5) By Piezoelectric Ceramics: Lead Titanate (PbTiO3); Barium Titanate (BaTiO3); Potassium Sodium Niobate (KNN)
• 6) By Other Types: Magnetic Ceramics; Optical Ceramics; Bioceramics
• Companies Mentioned:Morgan Advanced Materials; Kyocera Corporation; AGC Ceramics Co Ltd; 3M Company; Dyson Technical Ceramics Limited; NGK Spark Plug Co. Ltd; Mc Danel Advanced Ceramic Technologies; CoorsTek Inc; Rauschert Steinbach Gmbh; Murata Manufacturing Co. Ltd; Semco Ceramics Inc; TDK Electronics AG; Taiyo Yuden Co. Ltd.; KEMET Corporation; Vishay Intertechnology Inc.; Texas Instruments; Ceradyne Inc.; Mantec Technical Ceramics Ltd; International Ceramic Engineering; Elan Technology; Superior Technical Ceramics; C-Mac International LLC; Advanced Ceramics Manufacturing; Precision Ceramics; Ceramaret Ltd; Ceramco Inc.; LSP Industrial Ceramics Inc.; Ferro-Ceramic Grinding Inc.; Insaco Inc.; Blasch Precision Ceramics Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery Format: PDF, Word and Excel Data Dashboard.