This paper provides a definition and classification of functionally gr
aded materials (FGM). FGM manufacturing processes based on the modific
ation of existing techniques like powder metallurgy are compared to no
n-conventional methods such as sedimentation. The ability of FGM's to
reduce thermal stresses is critically reviewed, and it is demonstrated
that optimum performance can only be achieved if the thermomechanical
property profile is adapted to the geometry and service conditions of
the component. Determination of the thermomechanical property profile
of FGM's will require new techniques with high spatial resolution. Th
e potential of FGM's as high-temperature materials, hard materials, bi
omaterials and electronic materials is described and new applications
in the field of functional materials are proposed.