Global Aerogel Market Research Report: Forecast (2023-2028)

Market Definition

Aerogels are unique materials known for their extremely low density and exceptional thermal insulation properties. They are composed of interconnected nanoparticles, typically made from silica, carbon, or metal oxides, and often referred to as "frozen smoke" or "solid air" due to their translucent appearance & lightweight nature.

Market Insights

The Global Aerogel Market is projected to grow at around 11.3% CAGR during the forecast period, i.e., 2023-28. The growth of the market would be propelled mainly by the burgeoning demand for energy-efficient materials, increasing emphasis on green & sustainable building practices, and significant advancements in manufacturing technologies. Besides, the rapidly expanding end-user industries of aerogel, such as oil & gas, automotive, aerospace, electronics, and healthcare, various government initiatives toward promoting energy efficiency & environmental sustainability, and rigorous R&D on improving the properties of aerogel are other prominent aspects projected to drive the market in the future.

The mounting need for energy conservation & sustainable solutions has created an immense demand for aerogel as it offers excellent thermal insulation properties, which enables energy savings in several applications, including buildings, industrial processes, & transportation. With the ever-increasing focus on minimizing carbon emissions and developing energy-efficient buildings, the demand for aerogel is rising exponentially in the building & construction industry for insulation in walls, roofs, & windows in order to enhance the overall energy efficiency of buildings.

Moreover, the world is witnessing many ongoing advancements in aerogel manufacturing technologies, like improved drying methods and scalable production processes, which are helping in reducing production costs while improving product quality. Furthermore, supportive government policies & incentives for energy-efficient construction & industrial processes, coupled with continuous research on developing cost-effective manufacturing techniques and bringing innovative aerogel materials, are also expected to spur growth in the Global Aerogel Market over the coming years.

Market Dynamics

Key Driver: Mounting Demand for Energy-Efficient & Sustainable Materials across Industries

Aerogel offers exceptional thermal insulation properties and has a lightweight structure & high porosity, which makes it an attractive material for applications that need effective thermal management, such as building insulation, oil & gas pipelines, automotive components, and aerospace insulation. The rising awareness & emphasis on energy conservation and stringent government regulations toward reducing energy consumption are instigating the demand for efficient insulation materials like aerogel, the superior thermal performance of which enables significant energy savings by reducing heat transfer and heating & cooling requirements, thereby driving the Global Aerogel Market.

Growth Restraint: High Production Costs and Limited Manufacturing Capabilities

Aerogel is a highly specialized material that involves complex manufacturing processes and precise control over parameters like temperature & pressure, which results in its relatively higher production cost than other conventional insulation materials. In addition, silica is a key component in aerogel manufacturing, and any fluctuations in its availability or price also affect the overall production & supply of aerogel products. Although aerogel offers excellent thermal insulation properties and finds applications in various industries, its adoption has been limited due to low awareness among end-users, lack of standardization, and the need for customized solutions to fit certain applications. Hence, these aspects are projected to restrain the growth of the Global Aerogel Market during 2023-28.

Market Segmentation

Based on Product:

• Silica
• Polymer
• Carbon
• Others

Of them all, silica aerogel holds the largest share of the Global Aerogel Market, which owes to its excellent thermal insulation properties, lightweight nature, low cost, & high porosity, coupled with its versatility & compatibility with different industries like building & construction, oil & gas, electronics, aerospace, & automotive. These nanostructured materials have high specific surface areas, low density, & reduced dielectric constant and can combine high optical transparency with low thermal conductivity. Their growing use in sensors, laser experiments, imaging devices, waste management, thermal insulation, electronic devices, and catalysts, among others, also contributes to their dominance in the market. Moreover, extensive R&D on these aerogels over the years, which has resulted in their improved manufacturing techniques, cost reductions, & performance enhancements, are projected to continue augmenting their demand worldwide and, in turn, stimulate the overall growth of the aerogel market in the coming years.

Based on End-User:

• Oil & Gas
• Building & Construction
• Automotive, Aerospace, & Marine
• Performance Coatings

Here, the oil & gas sector is projected to acquire a significant market share during 2023-28. It owes to the massive use of aerogel materials for thermal insulation in pipelines, subsea equipment, & refineries. The oil & gas industry transports huge amounts of raw oil through pipes, where aerogels help avoid leaks, and their chemical inertness makes them excellent for pipe insulation & security.

Aerogel blankets are used for improving the insulation of deep-sea pipes and oil & gas pipelines to reduce the production cost, enhance pipeline compression resistance, and reduce the amount of steel used in pipeline construction. Moreover, the hydrophobicity, mechanical strength, & exceptional thermal performance of aerogels also contribute to their extensive use in the oil & gas sector, i.e., spurring growth in the global aerogel market.

Regional Projection:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Of all regions globally, North America currently dominates the Aerogel Market both in terms of production & consumption, and the same trend is likely over the forecast period. It owes to the ever-increasing demand for aerogels from aerospace, building & construction, automotive, and oil & gas industries, coupled with the well-established manufacturing infrastructure and strong research & development activities. Besides, the rising focus on energy efficiency, sustainable construction, & advanced manufacturing techniques, and stringent regulations & energy efficiency standards, particularly in the construction sector, are other prominent aspects fueling the regional market growth.

North America is home to several major companies, which specialize in aerogels, and have a strong market presence, extensive distribution networks, as well as well-established customer relationships. The region also has the leading research institutions & universities that actively conduct R&D in aerogel and bring technological advancements, new applications, and improved manufacturing processes. Moreover, the ever-growing EV penetration, especially in the US & Canada, is also boosting the demand for aerogels in the production of EV batteries. Hence, these aspects are spurring growth in the North America Aerogel Market and creating lucrative prospects for the leading companies operating in the industry.

Recent Developments in the Global Aerogel Market

• On 17 May 2023, Cabot Corporation developed a new ENTERA aerogel particles portfolio with three aerogel products that formulators can incorporate into thermal barrier blankets, pads, sheets, films, foams, & coatings. These particles are thermal insulation additives that provide “ultra-thin” thermal barriers for lithium-ion EV batteries.
• On 23 March 2023, Alkegen began commercial production of its new silicon fiber anode material, SiFAB, at its large-scale manufacturing facility in New Carlisle, Indiana, to meet the growing demand from customers across a wide range of industries, including EVs, renewable energy storage, and consumer electronics.
• On 10 February 2023, Svenska Aerogel reached an important milestone by completing the first of three work packages of a collaboration agreement with a world-leading producer within the process industry to optimize the use of Quartzene[®] in the customer’s product.

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