Nano market to recover from failings

London -Nanotechnology will feature in around $3.1trillion worth of products around the world by the year 2015, compared to around $147billion last year, according to industry analysts Lux Research. The upbeat view was presented at the Nanotechnology Knowledge Transfer Network's (NanoKTN) first UK NanoFinance seminar and exhibition, staged 25 Sept at the Institute of Directors in London

However in 2007, some consolidation of the market has appeared with the number and value of global nanotechnology deals falling for the first time, noted Lux. This, it said, indicated that "the very first pioneering nano-companies have struggled to find good business models to grow."

On the other hand, last year saw an increase in "diversification and maturity" in the applications of nanotechnology. For the first time in the nanotechnology market, energy and environment became the area with most investment support, superseding healthcare and life sciences, according to Lux.

The energy and environment sector took over 50% of all deals and investments, despite it having a return on investment considerably less than most other sectors reflecting the general trend towards investment of green technologies, the market study found.

At the NanoKTN event, Michael Holman, research director at Lux described at the current scepticism surrounding the nanotechnology market as both unnecessary and unjustified.

“Because some early overhyped technologies and companies have disappointed, there’s been a nano-backlash among some investors and technologist. The cynicism however, is not justified, given nanotechnology’s strong fundamentals. Investments in nanotechnology continue to grow, particularly from large corporations, he said.

"However, nanotech’s impact has been broad and diverse, rather than concentrated in a few blockbuster products, meaning that companies and investors need to choose their efforts carefully to profit," Holman continued.

Separately, delegates to the event saw Dr Alec Reader, director of the NanoKTN, and Prof Richard Leach, principal research scientist at the National Physical Laboratory, sign a Memorandum of Understanding for a partnership where the NanoKTN and NPL will work together to promote nano-metrology activities. The NanoKTN and NPL will collaborate on joint events and seminars to help disseminate information on the nano-metrology field.

Established by the Technology Strategy Board, the NanoKTN is managed by Centre for Process Innovation Ltd, a technology development and consulting company. The KTN facilitates the transfer of knowledge and experience between industry and research, offering companies dealing in small-scale technology access to information on new processes, patents and funding as well as keeping up-to-date with industry regulation.