See also:
Material layering is a simple concept of adding multiple BSDFs on top of each other and blending them using a variety of techniques. With the introduction of Substance Painter, almost everyone uses them. What’s important here is that we can also use them on run-time.
Unreal Engine wiki does a great job at explaining its use-cases: https://docs.unrealengine.com/4.27/en-US/RenderingAndGraphics/Materials/LayeredMaterials/
A solid explanation of layered materials can be found here in a talk by YAGER from their work on Cycle: Frontier. Their work was inspired by The Coalition’s work which was in turn inspired by Ready At Dawn’s work.
However, where RAD and The Coalition developed a workflow where a custom tool baked down all the fancy layers into one BSDF during the build process, YAGER does not. This is because they have very lightweight and simple materials and said their target frame was fine without those optimisations.
Layered Materials for Environments | Unreal Fest Europe 2019 | Unreal Engine
The Visual Technology of Gears 5 | Unreal Dev Days 2019 | Unreal Engine
Material Layering Systems in Unreal; What are they? And why you should use them? | #SDC23
Layered materials are a super interesting next step for environment art. We can blend between different materials (on layers) using:
Advantages of layered materials are:
However, most of the drawbacks of using material layers can be mitigated by baking or simplifying the material down. This is basically identical to what Substance Painter or Quixel Mixer does on export.