Aerogel Market

Aerogel Market Research, 2032

The global aerogel market was valued at $1.3 billion in 2022, and is projected to reach $7.5 billion by 2032, growing at a CAGR of 19.4% from 2023 to 2032.

Report Key Highlighters:

• The aerogel market study covers 20 countries. The research includes a segment analysis of each country in terms of both value ($million) and volume (kilotons) for the projected period 2023-2032.
• The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions in order to achieve their most ambitious growth objectives.
• Over 3,700 product literatures, annual reports, industry statements, and other comparable materials from major industry participants were reviewed to gain a better understanding of the market.
• The aerogel market is highly fragmented, with several players including Active Aerogels, Aerogel Technologies, LLC., Armacell, Aspen Aerogels, Inc., BASF SE, Cabot Corporation, Dow, Guangdong Alison Hi-Tech Co., Ltd., Svenska Aerogel AB and Thermablok Aerogels Limited. Also tracked key strategies such as acquisitions, product launches, mergers, expansion etc. of the players operating in the aerogel market.

The aerogel blanket form possesses enhanced compression resistance, tensile strength, and vibration resiliency that have high durability and protection from fire. It is also lighter and thinner alternative to conventional insulations.

Aerogel is a mesoporous solid foam, which is derived by replacement of the liquid component of the gel with a gas and is composed of an interconnected nanostructure network with minimum 50% porosity. Though solid, it is extremely porous, lightweight, and possesses low thermal conductivity, making it an ideal insulation material. Aerogel sponge can be recycled after use, thereby signifying its eco-friendly nature and cost-effectiveness.

Thus, owing to such features, aerogel finds its application across various industries such as oil & gas, aerospace, healthcare, electronics, and building insulation. However, high production cost and poor mechanical strength are likely to hinder the growth of the aerogel market. On the contrary, with advancements in materials, the adoption of aerogel is anticipated to increase considerably in applications such as apparel, agriculture, and power generation, thereby augmenting the market growth.

One of the most significant applications of aerogel is in the field of aerospace engineering. Its low density and high insulating properties make it a perfect material for use in spacecraft insulation. It can help to minimize heat loss, prevent freezing of fuel lines, and protect electronics from extreme temperatures. Aerogel has been used in the Mars Exploration Rover mission and the Stardust mission, where it helped to collect samples from the coma of a comet.

Growing demand from the oil & gas industry drives the market growth of the aerogel market during the forecast period.

Aerogel blankets are used in the oil & gas industry to enhance insulation for deep-sea pipe-in-pipe oil & gas pipelines. They can be quickly and easily installed, resulting in cost savings for fabricators & installers and delivering numerous benefits such as longer cool-down times, consistent life-of-field U-values, lower capital costs, and reduced risk. The U.S. gas & oil industry was valued at $110.7 billion in 2020 and the market size of the U.S. oil drilling and gas extraction industry is $463.8 billion. India is the third-largest consumer of oil globally, and the Indian Government has adopted various policies to fulfill the rising demand for oil & gas. It has permitted 100% foreign direct investment in multiple segments of the industry, including petroleum products, natural gas, and refineries, and the foreign direct investment limit for public sector refining projects has been increased to 49%.

Aerogel is also a lighter and thinner alternative to conventional insulations which boosted the market growth of the aerogel market.

Aerogel is extremely light in weight, as more than 99% of its composition is air or gas. For example, one of the lightest conventional insulators, spray foam has density of 8 kg/m3, whereas that of aerogel is as low as 0.001gm/cm3. In addition, aerogels are is primarily used as a heat-resistant coating, due to its higher heat resistance (R value). Moreover, thinner coating of aerogel can provide similar insulation effect as compared to plastic foam and glass.

For example, thermal sensitivity value of aerogel is ~R 10 per inch, whereas that of plastic foam versions such as for XPS ~R 5 per inch, for EPS ~R 4 per inch, and for PU ~R 6 per inch. Hence, as compared to conventional insulation coatings such as fiberglass and plastic foam, aerogel provides ~25% of cost savings for target value of R 4, and in case of target value of R 12, ~18-23% cost is saved. Thus, all these factors collectively drive the growth of the global market.

However, the high cost of production is predicted to hinder the growth of the aerogel market. Expensive production has been a prime limitation for the aerogel market. The complex heating process and supercritical drying process increase the cost of production. A silica aerogel measuring 2.5 cm x 2.5 cm x 1.0 cm costs up to $50, whereas the same amount of extruded polystyrene foam board costs in the range of $7. Hence, in most industries, the practice of conventional insulation technologies are still preferred, which hampers the growth of the market. However, to overcome the impact of this restraint, the cost of production is expected to fall over the period, which is likely to further motivate stakeholders to start adopting aerogel for various purposes.

The report segments the market by type into silica, polymers, carbon, and others. In 2022, the silica segment dominated the global aerogel market, owing to the fact that silica aerogel is used in almost all major applications such as oil & gas, building insulation, automotive, aerospace, and electronics. Further, carbon is the fastest growing segment owing to increase in application of carbon aerogel in electronics, semiconductor, and super capacitors applications. Moreover, graphene (carbon-based) aerogel serves as an ideal raw material for oil absorption application, owing to its low density and hydrophilic attribute.

By form, particle is the fastest growing segment in the global aerogel market in terms of revenue in 2022. Aerogel particles are used in the development of aerogel-based insulative coating used in reducing heat dissipation of steam pipes, boilers, and injection molding systems. The particles may be ultrafine or fine depending on the desired smoothness of the surface. The porous structure of aerogel particles can be used to filter liquids and gases. They are often used in air filters, water treatment systems, and other filtration applications. Aerogel particles can be used as a component in energy storage systems, such as batteries and supercapacitors, due to their high surface area and ability to store energy. 

By type, carbon is the fastest growing segment in the global aerogel market in terms of revenue in 2022. Carbon aerogel is the second most popular type of aerogel, which is highly porous, light in weight, and good electric conductors. It is used in electronics applications for electrode formation and supercapacitors, and its solid part consists of small carbon molecules, nanometers in size, covalently bonded together. It is black in color and similar to activated charcoal.

Based on end use industry, the market is classified into building & construction, oil & gas, automotive, aerospace, performance coatings, and others. In 2022, the oil & gas segment garnered the highest revenue and is expected to experience a substantial growth in the near future. Aerogel insulators are used in the oil & gas industry to protect pipes from unprocessed oil materials. Vendors such as Cabot Technologies, Aspen Aerogel, and Aerogel Technologies offer their products for the industry. Aerogel functions between -200 to +1,600 degree Celsius, reducing the risk of equipment failure and extending the lifespan of pipelines.

Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2022, North America was the highest contributor to the market in 2022, owing to an increase in demand for aerogel for oil & gas and construction applications. However, Europe is anticipated to grow with the highest CAGR during the forecast period.

Competitive intelligence on prominent manufacturers of aerogel provides key insights on the strategies implemented to gain a significant share in the global aerogel market. Top market players in global aerogel MARKET are adopting product launch, partnership, and expansion as their key business strategies to sustain in the competitive market. Some of the leading manufacturers profiled in this report include Active Aerogels, Aerogel Technologies, LLC., Armacell, Aspen Aerogels, Inc., BASF SE, Cabot Corporation, Dow, Guangdong Alison Hi-Tech Co., Ltd., Svenska Aerogel AB and Thermablok Aerogels Limited.

IMPACT OF RUSSIA UKRAINE WAR ON THE AEROGEL MARKET

• Russia and Ukraine are major exporters of cooking oil, wheat, barley, and corn, especially to African and Middle Eastern nations. Also, Russia is a key producer of petroleum and fertilizers. Disturbances to the flow of these goods are causing supply chain and climate challenges, propelling the prices of food and gas as well as causing shortages in places such as Tunisia, Chad, and Sri Lanka.
• Further, the prices of energy have been volatile since mid-2021. The fuel prices in the European Union (EU) have increased due to Russia’s attack on Ukraine. Besides, this has led to problems related to the security of the energy supply. Russia’s decision to discontinue gas deliveries to various EU member states has additionally affected the situation.
• Furthermore, with the Versailles Declaration agreed upon in March 2022, the EU leaders of the 27 member states consented to phase out the EU’s reliance on Russian fossil fuels as soon as possible. Furthermore, in May 2022, the European Council agreed on a ban on nearly 90% of all Russian oil imports by the end of 2022. Taking account of the EU member states’ distinct energy mixes, conditions, and circumstances, EU leaders called for diversifying energy supply sources and routes, increasing the deployment of renewables, enhancing energy efficiency, and enhancing interconnections of gas networks.
• The ban on Russian oil, gas, and diesel imports by European countries had initially caused a steep surge in prices. Nevertheless, moves by European countries to lock in alternative sources have largely relieved those price hikes. Currently, the oil & gas prices have returned to pre-invasion levels, thereby bolstering the aerogel market.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the aerogel market analysis from 2022 to 2032 to identify the prevailing aerogel market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the aerogel market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global aerogel market trends, key players, market segments, application areas, and market growth strategies.

 Aerogel Market Report Highlights