A WORLD IN
TRANSITION
The advanced materials sector is increasingly faced with a rising tide of trade protectionism. These new barriers are adding complexity to international trade while increasing the risks associated with the supply of raw materials and essential components. For example, China requires export licences for gallium and germanium, which are intended for use in electronics and optical fibres. In this context, strategies must be reconsidered when securing supply chains[2].
Furthermore, any withdrawal or significant alteration involving the Canada – United States – Mexico Agreement (CUSMA), set for renewal in 2026, is likely to have substantial implications for the Canadian economy. Almost two thirds of Canadian products are destined for the United States as supply chains remain highly integrated.[2]
Thus, stakeholders remain bound to a geopolitical context that is constantly evolving, making it essential to implement strategies that can maintain their competitiveness.
Global investments in electric vehicles, renewable energy, and smart electricity grids reached US$1.8 trillion in 2023. [12]
These investments provide a considerable boost to research and development (R&D) while increasing the demand for advanced materials which, in turn, generates new commercial opportunities.
In 2023, global demand in the advanced materials market was estimated at US$68.9 billion and is expected to reach US$147 billion by 2032. It is a booming market, with a compound annual growth rate (CAGR) estimated at 8.8% between now and 2032. [1]
STRATEGIES UNDER DEVELOPMENT
With the transition currently underway, several countries have defined their strategies around advanced materials. These include the European Union, the United Kingdom, Sweden, and Ireland, which have developed strategies that typically focus on supporting innovation, strengthening production capacity, and reducing dependence for critical minerals.
Québec has everything it needs to develop its own strategy and position itself globally while transforming its advanced materials sector into a pillar for the energy transition.
Global demand is set to double in 10 years, providing a strong stimulus to growth in the advanced materials market[1] while generating a number of business opportunities for both Canada and Québec.
North America is expected to generate the largest share of revenues by 2032 through its considerable R&D capabilities, its robust manufacturing infrastructure, and its direct access to a large consumer market. The demand for advanced materials will also increase in sectors like aerospace, automotive, electronics, healthcare, and energy, all of which will be driven by innovation, infrastructure investments, and favourable government policies. [1]
Canada stands out for its attractiveness, with direct foreign investment flows that outperformed global averages between 2015 and 2022.[3] Significant investments have also been made in various strategic sectors like automotive, aerospace, and energy in response to an anticipated worldwide growth in revenues between now and 2032[1] and the ability of Canadian companies to specialize and innovate within these areas. In terms of the number of patent families, Canada ranks ninth in the world in the field of advanced materials.
Québec ranks 2nd in Canada for its share of patent families (2,130).[3] Thanks to its world-renowned research centres and dynamic business ecosystem, Québec is equally well positioned to capitalize on growth opportunities through several types of materials. These include metals, alloys, and composites, whose share of revenues is expected to rise between now and 2032.[1]
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