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Companies belonging to the materials sector will be affected directly and indirectly by a number of disruptive opportunities and challenges that will jeopardize their corporate longevity over the coming decades. While described in detail within Quantumrun’s special reports, these disruptive trends can be summarized along the following broad points:
*First off, advances in nanotech and material sciences will result in a range of materials that are stronger, lighter, heat and impact resistant, shapeshifting, among other exotic properties. These new materials will enable significantly novel design and engineering possibilities that will impact a variety of sectors from motor vehicles to aerospace to construction and more.
- The increased consumption of these novel materials will lead to higher profit margins for materials sector companies during the late 2020s and long-term growth prospects well into the 2030s.
- By 2050, the world population will rise above nine billion, over 80 percent of whom will live in cities. Unfortunately, the infrastructure needed to accommodate this influx of urbanites does not currently exist, meaning the 2020s to the 2040s will see an unprecedented growth in urban development projects globally, projects fed by resource extraction and materials companies.
- Automation will significantly reduce the operating costs of mining raw materials, as mining companies will gain access to trucks and drilling machines that are increasingly operated by advanced AI systems. These reduced costs will at first lead to higher profit margins for market leading mining companies, but will shrink once these automation technologies become normalized throughout the mining industry.
- While the rise of renewables will result in less drilling business for hydrocarbons, it will increase mining contracts for materials related renewables, such as lithium for solid-state batteries.
- The growing cultural awareness and acceptance of climate change is accelerating the public’s demand for cleaner energy and resource extraction practices, a trend that will lead to stricter regulations by the late 2020s.
- These broad trends will have far-reaching effects on the materials sector that will influence the sector’s long-term development.To stay informed about these and other trends, as well as the emerging opportunities and threats facing the materials sector, consider investing in Quantumrun Foresight sector forecast reports. Contact us today to learn more.
