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Sizing nanotechnology’s value chain

In this statement of findings, Lux Research find that private equity firms struggle to quantify their specific revenue opportunities in nanotechnology. This confusion results from the widespread view that nanotechnology is a holistic industry. It isn’t – it’s an essential enabler that will impact all manufactured goods.

1) There is no “nanotechnology market.” There is a nanotechnology value chain, going from nanomaterials (e.g., clay nanoparticles) to nanointermediates (e.g., composite materials made from the clay nanoparticles) to nano-enabled products (e.g., the 2004 Chevrolet Impala, with side body moldings made from the nanocomposite material).

2) Not all nanotechnology is new. Emerging nanotechnology is developing against a backdrop of well-understood, established nanotechnology. Examples of the latter include synthetic zeolites as well as currently shipping microchips with feature sizes under 90nm.

3) Many products incorporating nanotechnology will be only marginally profitable. Most nanomaterials will rapidly become commodities with operating margins capped at the high single digits typical of specialty chemicals. Profits from nanointermediates and nano-enabled products will vary widely, following product category margins.

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Lux Research is the world's premier research and advisory firm focusing on the business and economic impact of nanotechnology and related emerging technologies. Lux Research provides continuous advisory services, customized consulting, and reference studies to corporations, start-ups, financial institutions, and public sector organizations. Our founders and our research staff are the most widely recognized nanotechnology visionaries throughout the world. For more details please visit http://www.luxresearchinc.com