According to a new report published by Allied Market Research, titled, “Aerogel Market by Raw Material, Form, and Application:  Opportunity Analysis and Industry Forecast, 2020–2027,” The global aerogel market was valued at $701 million in 2019, and is projected to reach $1,395.5 million by 2027, registering a CAGR of 9.3%.

Aerogel is mesoporous solid foam 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, which make it an ideal insulation material. Moreover, aerogel sponge can be recycled after use, which signifies its eco-friendly nature and cost-effectiveness. Such features allow its usage in many industries, such as oil & gas, aerospace, healthcare, electronics, and building insulation. 

With advancements in materials and newer application areas, the global aerogel market is expected to build more strength with time. On the other hand, high production cost has been a growth concern for the market, due to its lowered price competitiveness. Moreover, volatility of supply & demand in end-use industries such as oil & gas and energy & power generation limits the growth of the aerogel market. However, surge in adoption of aerogel in newer applications is anticipated to provide lucrative opportunities for the market expansion. 

The global aerogel market is segmented into raw material, which includes silica, carbon, aluminum, and others. The other category includes polyurethane, Polyimide aerogel, SEAgel, chalcogel, and CdSe aerogel. In 2019, the silica aerogel segment garnered the highest share of 69% in the global market. This is attributed to aerogels are enhanced heat insulation properties and characteristics such as light weight, chemically inertness, and reusability of silica aerogel. However, the carbon aerogel segment is expected to grow at the highest CAGR of 11.5% during the forecast period, owing to the fact that carbon aerogel is popularly used in electronics industry for its acclaimed uses in electrodes and supercapacitors. Therefore, the growth of electronics industry is anticipated to drive the adoption of carbon aerogel during the forecast period. Alumina and other aerogel collectively accounted for 12% in 2019. 

On the basis of form, the global aerogel market is segmented into blankets, particles/powders, panels, and blocks. Blanket is most commonly used form of aerogel, due to its ease of handling. In case of piping insulations, blankets are convenient to wrap the oil refinery pipes with suitable sheets. Therefore, in 2019, blanket was the largest revenue generator, accounting for a share of 69% in the global aerogel market. Blocks and panel together accounted for around 12.9% of share in the overall aerogel market. Furthermore, the particles/powders segment is projected to grow at the fastest CAGR of 11.0% during the forecast period.

Depending on application, the global aerogel market is segregated into building insulation, oil & gas, aerospace, automotive & thermal management, healthcare, chemical, electronics, acoustic insulation, and others. In 2019, oil & gas was the highest revenue generator, accounting for a market share of 56%. This is attributed to chemical inertness and lower heat conductance of aerogel, which make it a suitable material for pipeline insulation. Around 90% of the aerogel blanket is used as an insulator in oil & gas industries. However, building insulation segment is expected to grow at the CAGR of 11.4% in the global aerogel market. The growth of this segment is primarily attributed by increase in adoption of green infrastructure in developed economies of North America and Europe. Being a suitable solution for thermal insulation, aerogel panel is largely used in industrial, institutional, and domestic buildings. Furthermore, aerospace, healthcare, and electronics segment collectively accounted for 15% share in global aerogel market. 

Region wise, the global aerogel market covers North America, Europe, Asia-Pacific, and LAMEA. North America dominated the market in 2019, accounting for a market share of 39.1%. Moreover, the North America region would continue to consolidate its position throughout the forecast period, owing to rise in consumer awareness toward global warming, which, in turn, boosts the adoption of insulation solutions such as aerogel in industrial and domestic applications such as buildings, oil & gas refineries, and pharmaceuticals. In 2019, Europe and LAMEA region collectively accounted for 34.6% share in global aerogel market. Europe is expected to grow at a faster rate of 10.6% during the forecast period.

Some of the leading manufacturers profiled in this report include Armacell International S.A, Active Aerogels, Aerogel Technologies LLC, Aspen Aerogel Inc., BASF SE, Cabot Corporation, Dow Inc., JIOS Aerogel, Svenska Aerogel AB, and Thermablok Aerogels Limited. These major key players are adopting different strategies such as strategic agreements, new product launches, and business expansions to stay competitive in the global aerogel market.

Key Findings Of The Study

• The Europe aerogel market is projected to grow at a highest CAGR of nearly 10.6%, in terms of revenue, during the forecast period.
• By raw material, the carbon aerogel segment is anticipated to witness the highest growth rate of 11.5%, in terms of revenue, during the forecast period.
• On the basis of form, the particle aerogel segment is estimated to exhibit a CAGR of 11%, in terms of revenue, in the near future.
• Depending on application, the automotive segment registered a growth rate of 13%, in terms of revenue, during the forecast period.

Impact Of Covid-19 On The Global Aerogel Market

• The outbreak of COVID-19 has disrupted the global economy by halting the operations of industries such as the construction and oil & gas. 
• Industries are being kept closed or operated under restricted environments such as less employees and working times. Lockdown was imposed in many countries such as the U.S., China, India, Germany, the UK, Italy, and France
• The global GDP for 2020 is anticipated to come down to that of 2018, due to the social and economic lockdown.
• Such factors are expected to lead to a decline in the construction activities during the forecast period. Moreover, the use of alternatives to aerogel insulation materials to meet financial constraints will hamper the global aerogel market.