Aerogel Market Size, Share & Trends Analysis Report By Product (Silica, Polymers), By End-use (Performance Coatings, Oil & Gas), By Form (Blanket, Panel), By Technology, By Region, And Segment Forecasts, 2020 - 2028

Report Overview

The global aerogel market size was valued at USD 818.9 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 15.1% from 2020 to 2028. The rapid development of the aerogel for high-temperature insulation primarily in the oil & gas industry, due to low thermal conductivity is expected to drive the market over the forecast period. The market witnessed a notable impact due to the global pandemic in 2020. The lockdowns imposed across various regions resulted in a delay of the new construction related to insulation in the oil & gas industry and led to limited growth of the market. However, the product usage in critical application for critical MRO activities was responsible for the market growth in 2020.

The halt in production activities also led to a supply shortage of precursor materials for aerogel production. In addition, the lockdown strategies restricted transportation, thus, creating a global supply chain disruption. These trends also caused a shortfall in the supply of aerogel materials in the end-use industries thereby negatively impacting the market in 2020.

The government in the U.S. is constantly offering subsidies and promoting the use of Electric Vehicles (EVs). In addition, it is encouraging OEMs and part suppliers through various aids for product development and boosting EV production. Thus, the recent development of a product line of aerogel thermal barriers for utilization in lithium-ion batteries in EVs is expected to offer growth opportunities to the market.

Industry participants are exploring thin polymer aerogels for use in shelter applications, such as insulated tents, updating historical structures, and other insulation needs. These are gaining popularity across the interior insulation solutions for building retrofit, thin facade insulation for the renovation of historical monuments, roof balcony, and side balcony constructions.

The market exhibits a highly consolidated structure owing to the presence of a limited set of players majorly located in the North America and Europe regions. The key players in the industry are investing in research and development to reduce the manufacturing cost and ramp up the production capacity to cater to the expected rise in demand in the future.

Product Insights

The silica aerogel product segment led the aerogel market in 2020 accounting for a revenue share of more than 67%. This is attributed to the non-organic structures of these products, which are non-combustible and can bear heat up to 1,400⁰C. Thus, they exhibit excellent heat endurance and thermal insulation properties, which boosts their demand.

Silica aerogel is used for producing aerogel blankets using fibrous reinforcements, which convert inelastic aerogels to tough, stretchy, and aquaphobic materials. These nonflammable blankets made of silica aerogels are expected to be very effective in restricting the spread of fire in residential buildings, factories, and other infrastructures.

Polymer aerogel products are expected to witness the fastest CAGR of 20% during the forecast period on account of their superior chemical and physical properties as compared to their silica counterparts. Polymer aerogels have applications in various end-use industries including defense, electrical & electronics, building and construction, and several others.

Moreover, these products offer an excellent blend of properties that typically combine low thermal conductivity, low energy emission, non-flammability, and low density. These aerogels are developed as panels or thin films either using ambient pressure or supercritical drying methods. A wide variety of polymers are being explored, including polyimides, polyurethanes, polyurea, polyamides, etc., for use in various applications.

Form Insights

The blanket form segment led the market in 2020 with a revenue share of more than 68%. The blanket structure turns the fragile aerogel into a flexible and durable material. These blankets are witnessing high penetration in building applications owing to water repellency and light diffusion properties.

Aerogel blankets can also be integrated with PTF membranes to enhance their thermal insulation performance without the addition of unnecessary weight to the membranes. This, in turn, is expected to further drive product usage in the building & construction industry. In addition, growing product usage in industrial insulation is expected to benefit the industry growth.

The particle form segment is expected to witness a notable CAGR of 16.7% over the forecast years on account of their superior thermal and light diffusion properties. These particles have strong flowability, and therefore are easy to handle and transport. The granules are particularly used for daylighting and aerogel powder as performance additives.

Aerogel particles function as lightweight and super-insulating additives owing to their low thermal conductivity, low density, and highly porous structure. These are incorporated in building materials and paints to improve thermal insulation and provide fire resistance.

Technology Insights

The supercritical drying technology segment led the market and accounted for a revenue share of more than 74% in 2020. Supercritical drying of aerogels is considered the most important step during aerogel production since it preserves their three-dimensional pore structures. This leads to unique properties, such as low density and a large surface area of aerogels.

Supercritical drying, which is defined as the extraction of solvents from pores of aerogels using supercritical fluids, is a popular method for drying wet gels. This technology produces aerogels with large pore volumes and porosities, as well as large surface areas than freeze-drying and ambient pressure drying technologies.

Other technologies are also expected to witness significant growth over the forecast period. The other major aerogel production processes include ambient pressure drying with matrix strengthening technology and freeze-drying. Ambient pressure drying without matrix strengthening technology leads to shrinkage of the material and also loses its porous structure.

Freeze-drying is also one of the major production technologies that can be used to dry wet gels. This process includes freezing of solvents inside pores below their freezing points. This is one of the efficient production techniques and the material produced is called cryogels.

End-use Insights

The oil & gas end-use segment led the market in 2020 with a revenue share of more than 64%. Construction, fabrication, operation of pipelines, and other systems require a versatile insulation material, such as aerogel, that exhibits high porosity, low-density, low dielectric constant, and excellent heat insulation properties.

Aerogel blankets are mostly used to improve the insulation of deep-sea pipes and oil & gas pipelines to reduce the production cost, improve pipeline compression resistance, and reduce the amount of steel used in construction. Moreover, hydrophobicity, mechanical strength, and exceptional thermal performance are additional benefits offered by aerogel insulators.

The performance coatings end-use segment is expected to witness a notable CAGR of more than 16% over the forecast period. Conventional insulating additive materials based on polyurethanes, polyolefins, and polystyrene offer poor mechanical stability, on the other hand, aerogel offers low thermal conductivity and high moisture resistance.

Aerogel has numerous advantages in the coatings industry over several other composite materials owing to its low density and high porosity. It acts as a coupling agent during adhesion, which establishes a strong bond between the aerogel particles and the coating surface. High demand for the product on account of the aforementioned factors is expected to drive the industry growth.

Regional Insights

North America dominated the global market in 2020 with a revenue share of more than 46% and is expected to expand further at a steady CAGR of 14.1% over the forecast period. This trend is attributed to the consolidated structure of the industry along with the high concentration of aerogel manufacturers located in the region, especially in the U.S.

North America exhibits a huge growth potential owing to increasing product innovation and application development. For instance, the rapidly rising production of Electric Vehicles (EVs) and hybrid vehicles in the region is expected to bolster the product demand due to its wide application scope in vehicle batteries.

Europe is expected to witness notable growth from 2020 to 2028. The European Union’s energy efficiency policy mandates all buildings across countries, such as Germany, the U.K., Spain, and Italy, to reduce their energy consumption by 20%, which is the key factor driving the regional market.

Key Companies & Market Share Insights

Growing concerns regarding sustainability owing to the climate changes are making the companies and industries adhere to the strict environmental standards and improvise existing materials and technologies to meet the standard requirements and specifications. Key players are employing various strategies, such as promotion through media and organization of business conventions, to enhance their presence in the market. Several companies are also collaborating with associations to develop applications for specific industries. Companies are also gaining exclusive rights to sell products from major brands. Some prominent players in the global aerogel market include:

• Cabot Corp.

• BASF SE

• Nano Technology Co., Ltd.

• Dow, Inc.

• Enersens

Aerogel Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global aerogel market report on the basis of product, end-use, form, technology, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Silica

  • Polymers

  • Carbon

  • Others

• End-use Outlook (Revenue, USD Million, 2017 - 2028)

  • Oil & Gas

  • Building & Construction

  • Automotive, Aerospace & Marine

  • Performance Coatings

  • Other End-uses

• Form Outlook (Revenue, USD Million, 2017 - 2028)

  • Blanket

  • Particle

  • Panel

  • Monolith

• Technology Outlook (Revenue, USD Million, 2017 - 2028)

  • Supercritical Drying

  • Other Technologies

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa