FMG market outlook update gives a financial perspective on advanced materials

Advanced materials M&A specialist Future Materials Group (FMG, Cambridge, U.K.) has released the Autumn 2023 issue of its “Market Update for the Advanced Materials Sector,” a half-year review with a focus on tracking investments in emerging advanced materials.

The report is divided into two sections: In the first section, Financial Review, FMG analyzes revenue growth, EBIT margins, settling inventory levels, market valuations of advanced materials companies and M&A activity for the first half of 2023.

The second section, Market Commentary, looks more closely at investment in the advanced material sector across three articles.

The commentary begins by exploring investment trends and areas of research within the advanced materials sector, including composite materials. It notes the long development cycles typical in the sector, contrasting them with the rapid scaling seen in other technology sectors. It goes on to examine the differing focus areas across academic research, startups and venture capital, and large corporate R&D.

Next, the report discusses the impact of recent legislation, such as the U.S. Inflation Reduction Act and the EU’s Green Deal Industrial Plan, on the advanced materials sector. It highlights how these legislative measures are reshaping supply chains, particularly through incentives for clean energy and domestic production.

Finally, the report explores the intersection of M&A and emerging materials by outlining various motivations for M&A in this sector. The article provides examples of strategic M&A activities by major companies and highlights how these acquisitions are aligned with broader corporate strategies.

The report is free and available for download here from FMG’s site.

For related content, see FMG’s spring 2022 report.