Advanced_Materials_Report
22nd January 2025

Identifying growth potential of regional advanced materials sector

New study shows the North East advanced materials electronics industry is projected to contribute nearly £900m to the UK economy over the next five years.

 

A new report launched today provides a comprehensive overview of the advanced materials electronics (AME) sector in the North East of England, highlighting its growth potential and economic significance. Delivered by Urban Foresight on behalf of Business Durham and the Compound Semiconductor Applications Catapult, the report provides an in-depth analysis of the region’s AME landscape. 

Our team used economic analysis and engagement with AME businesses in the region to uncover insights into key technologies, economic activity, growth forecasts, and barriers to development. From this, we are developing a targeted sector growth plan designed to guide investments that will enhance local business productivity, drive innovation, and accelerate growth. 

This work builds on the original semiconductor landscape report Urban Foresight delivered for Business Durham, Collingwood Solutions and the RHEA Group in 2020, which created new and invaluable insights into this sector. 

The findings highlight that the North East is home to a growing and promising AME sector. Advanced materials, which are materials engineered or processed to exhibit superior properties, are key to developing new digital technologies. AME forms the foundation of many digital innovations and is essential across various industries, including defence, space, telecommunications, and healthcare. 

Our research revealed that the AME sector currently sustains 2,798 jobs in the region, a notable increase from 1,800 in 2020. Our forecasts indicate that this number will grow significantly, to over 7,500 jobs within the next 5 years. The sector currently contributes nearly £370million to the region’s Gross Value Added (GVA), and projections indicate this will more than double to nearly £894 million in the same period.  

Our horizon scanning of emerging technologies identified 8 key future technologies.  North East businesses are currently active in, or plan to be active in all of these areas.

Despite its promising growth trajectory, our research also highlighted that the sector faces some challenges. These include skills gaps, funding shortages, and product development hurdles. Initiatives like the North East Advanced Materials Electronics networking programme are addressing these issues and have been instrumental in creating 46% of new jobs in the sector and driving £50.6 million in GVA growth. 

The CSA Catapult’s new office at NETPark in Durham is also fostering the growth of compound semiconductor businesses, positioning the North East as a key player in this high-tech field. 

Emma Clement, Principal Consultant at Urban Foresight said: “We were thrilled to be able to refresh our landscape research from 2020 and produce a new report that demonstrates how investment from the council has directly supported business growth.  

“The main difference between the 2020 report and this new one, however, is the broader definition of AME. This encompasses a wide range of electronics and material technologies. Our research found that the full breadth of technologies, services and markets are served by the region – surely a unique offer in the UK. 

“As a North East business ourselves, we are proud to help showcase these strengths.” 

You can read the full report here. 

This project benefits from our experience in advancing the electronics sector, including driving innovation in bioelectronics materials for healthcare. 

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