Nanotechnology now typically refers to any science or tech-engineering projects that relate to or focus on properties or matter having at least one dimension between 1 and 100 nanometers. (One nanometer equals one-billionth of a meter.)

For years, nanotech and its massive implications have promised to change almost every aspect of our lives. The hype that has surrounded this tiny science is finally starting to fulfill its potential, according to a report, titled Nanomaterials State of the Market Q3 2008: Stealth Success, Broad Impact, from technology intelligence firm Lux Research earlier this month. (Registration required)

The market for nanotechnology-based products is expected to reach $3.1 trillion by 2015, up from $147 billion in 2007, according to the new report.

We've heard such promising forecasts before, and the promise has remained largely unfulfilled.

However, nanotech research and development last year hit $13.5 billion — up 14 percent from 2006. Global corporate R&D spending grew 23 percent to reach $6.6 billion, passing government spending for the first time and dwarfing venture capital investments, according to Lux Research's new 135-page report, which is based on data from more than 1,000 primary interviews the firm's analysts conduct with technology developers annually, as well as a new survey of 31 top corporations active in nanotechnology.

Nanotechnology saw its greatest impact last year in the materials and manufacturing sector, with the technology being incorporated in $97 billion worth of products across the value chain, including intermediates such as coatings and composites for automobiles and buildings.

Electronics followed at $35 billion from emerging nanotech applications in fields like displays and batteries, while health care trailed with $15 billion in revenue, driven by pharmaceutical applications.

Among the highlights presented in Lux Research's findings:

• Through 2015 the materials and manufacturing sector will remain the top field for nanotechnology applications, growing 45 percent to reach $1.8 trillion in product revenue.

• The electronics sector will "gain ground through 2015, growing at a 51-percent compound annual growth rate to reach $940 billion," the new data has determined.

• Meanwhile, health care and life sciences are expected to grow at 46 percent annually to reach $31 billion.

The United States leads the way in terms of nanotech's greatest economic impact, with companies having incorporated nanotech into $59 billion in products last year. Europe followed at $47 billion, Asia/Pacific accounted for $31 billion in 2007, with the rest of the world making up for $9.4 billion.

Moreover, Europe's steeper compound annual growth rate of 48 percent will bring it to $1.09 trillion by 2015, meeting the U.S.'s $1.08 trillion; and Asia will remain in third place at $717 billion.

"Nanotech's broadening impact will touch more final product categories over the next four years. Past 2012, however, nanotech's impact will primarily deepen as new nanotech innovations get incorporated into product categories that already make use of existing nanotech enhancements," Michael Holman, research director at Lux Research, said in a statement.

"It's during this later time frame that more disruptive innovations like new types of nano-enabled memory chips will begin to make their presence felt," Holman concluded.

Resources

Nanomaterials State of the Market Q3 2008: Stealth Success, Broad Impact
Lux Research, July 1, 2008

Overhyped Technology Starts to Reach Potential: Nanotech to Impact $3.1 Trillion in Manufactured Goods in 2015
Lux Research, July 22, 2008