The Global Aerogel Market was valued at USD 940.4 Mn in 2020 and is expected to reach USD 2,770.7 Mn by 2027, with a growing CAGR of 16.7% during the forecast period.
Aerogels also referred to as frozen smoke is a diverse class of porous, synthetic, gel-derived ultralight material. They are mainly produced by mixing a polymer along with a solvent to form a gel and then replacing this liquid component of the gel with gas without causing a collapse in the gel structure. Even though aerogels are solid, they are extremely lightweight and have low thermal conductivity, making them an ideal insulation material.
The aerogel market is majorly experiencing traction owing to stringent government regulation about the use of green building materials in the building & construction sector for reducing carbon footprints in the environment. According to Europe Commission, buildings are the largest energy consumer in Europe. They are responsible for nearly 40% of Europe’s energy consumption and 36% for greenhouse gas emissions. Therefore, to improve the energy performance of the building, Europe has established a legislative framework which includes the Energy Performance of Buildings Directive (EPBD) and the Energy Efficiency Directive that aims at achieving high energy efficiency and decarbonized building stock by 2050. Aerogel is an effective insulating agent as it prevents heat from flowing through the material, or by the movement of air and infrared radiation. This new age insulating material helps in saving 30% of energy for households by preventing unnecessary heat gain or loss. Hence, to comply with such guidelines and regulations, builders are increasingly focusing on using high functional insulating materials which are expected to provide lucrative growth opportunities in expanding the aerogel market growth.
Moreover, aerogel is gaining popularity as it offers several benefits over conventional insulating materials. Conventional insulating additive materials that are based on polyolefins, polystyrene, and polyurethanes, provide poor mechanical stability when compared to aerogel. Aerogel holds records for having the lowest bulk density than any other material available. Owing to its high porosity, aerogel has commendable thermal, acoustical, and physical properties that provide it an edge over other conventional insulation materials. In addition, the material provides high-cost effectiveness and has 39 times more insulation than the best fiberglass insulation. These factors collectively are projected to fuel the aerogel market growth in the upcoming years.
The unique insights provided by this report also include the following:
Based on product, the silica aerogel held the largest share in the aerogel industry in the year 2020 owing to high product demand from several end-use industries
Based on the product, the aerogel market is segmented as polymers, silica, carbon, and others. Among these, silica held the largest share in the aerogel industry in the year 2020 and is expected to witness a similar trend during the forecast period. Silica aerogel offers several properties such as low thermal conductivity, low density, low refractive index, low sound speed, and high transparency. Owing to these features offered by the product, the aerogel market has been experiencing high demand from several end-use industries. For instance, silica aerogel is gaining traction from the aerospace industry due to its lightweight nature and extraordinary insulation properties. The product also has wide application in the oil & gas industry for insulation packs in oil and gas subsea pipelines. In the construction industry, it is prominently used in glass units, tensile roofing systems, and architectural panels. Therefore, with such wide application of silica aerogel, the aerogel industry is expected to witness a high growth rate during the forecast period.
Based on end-use industry, the oil & gas end-use industry accounted for the dominant share in the aerogel market due to rising product demand owing to its low-density and excellent heat insulation properties
Based on the end-use industry, the aerogel industry is fragmented into building & construction, oil & gas, performance coatings, automotive, aerospace & marine, other end-use industry. Among these, the oil & gas end-use industry accounted for the dominant share in the aerogel market. The oil & gas industry carries a large amount of unprocessed oil materials using pipes. Aerogel offers properties such as lower heat conductance and chemical inertness, and thus is an ideal choice for pipe protection and insulation. Aerogel blankets are used to enhance the insulation of deep-sea pipes and oil & gas pipelines to reduce the production cost, decrease the amount of steel used in the construction and improve compression resistance of the pipeline. In addition, aerogel helps in acting as a barrier for heat transfer due to its special molecular structure, hence, does not exhibit any tendency of melting down. Owing to these properties offered by aerogel, the aerogel market has been experiencing bolstering demand from the oil & gas industry.
Based on region, the North America region led the aerogel industry across the globe due to rapidly growing end-use industries in the region
Based on region, the aerogel industry is divided into Asia-Pacific, North America, Latin America, the Middle East and Africa, and Europe. Among these, the North American region led the aerogel industry across the globe and is anticipated to show a significant growth trend during the forecast period. This share is majorly attributed to the rapidly growing construction industry along with stringent environmental norms implemented by the US government. Thermal loss by steam distribution systems is a major source of wasted energy in the U.S. industrial sector. Owing to this, in October 2021, The U.S. Department of Energy (DOE) announced a funding of USD 105 million for small businesses to help them deploy clean energy technologies and achieve net-zero carbon emissions by 2050. Such favourable initiatives are expected to boost the aerogel market growth. Further, the rapidly growing, automotive, aerospace & marine along with oil and gas industries, among others, in the region is projected to bring a boom in the aerogel market.
Drivers
Restraints
Opportunities
Note: Challenges along with in-depth market dynamics analysis is mentioned in the report.
The Covid-19 pandemic outbreak has severely influenced the aerogel market on a global level. Due to the pandemic, the oil and gas industry has taken a major hit as the price and demand for crude oil fell. Major economies around the globe have implemented lockdown regulations, and international travel bans, which has led to less transportation and reduced the consumption of oil. This has resulted in decreased demand for fuel, thus less consumption and requirement of aerogel from the oil and gas industry. Moreover, many other major end-use industries, such as automotive and construction that use aerogel, have also been majorly impacted by the pandemic. Many major construction projects in the final or the bidding stages across the globe were cancelled or delayed because of the pandemic. The data released by American Road & Transportation Builder Association shows that infrastructure projects exceeding USD 9.6 billion have been cancelled or delayed due to pandemics. Hence, the pandemic has had a major impact on several major end use aerogel industries, thereby negatively impacting the aerogel market growth.
The report also provides an in-depth analysis of key trends in the Aerogel market
The report also provides an in-depth analysis of recent news developments and investments in the market
The key players operating in the aerogel industry are:
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.
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