Global aerogel market size was estimated at USD 352.6 million in 2014 and is likely to witness significant growth over the next seven years owing to its rising demand from various end-use industries including oil & gas, building & construction, automotive, aerospace & marine, and performance coatings. The growth of these end-use industries is expected to further fuel growth over the forecast period.
Increasing focus on infrastructure development in emerging economies will propel expansion over the next seven years as building & construction is the key application. Shifting preference from silicon towards polymer product is expected to fuel growth.
Increasing demand for eco-friendly products has been witnessed over the past few years on account of rising awareness regarding environment protection. Technological advancements have resulted in companies focusing on developing eco-friendly aerogels. For instance, Green Earth Aerogel Technologies has developed carbon-based products using agricultural waste. The new type of product also complies with the regulations implemented by regulatory bodies including REACH making them more favorable to consumers.
Environmental weakening and rising energy costs are anticipated to result in the development of energy-efficient technologies, especially for architecture. Poor insulation results in wastage of approximately 950 BTUs of thermal energy every year in the U.S. and European countries together. The need for energy efficient options to existing technologies has become necessary; as global energy demand is expected to increase by 40% through 2040. Aerogel is a cost-effective and energy-efficient alternative to conventional insulation owing to its low thermal transmittance, which can substantially reduce energy loss and costs.
New product launches along with agreements & partnerships by key players is expected to stimulate market expansion over the projected period. High production cost is a major restraining factor for this market. However, the manufacturers are trying to overcome this by extensive R&D activities. In 2013, a Swedish manufacturer ‘Svenska Aerogel’ developed a new technology which is expected to reduce product prices by 90%.
U.S. aerogel market revenue by end-use, 2012-2022, (USD Million)
Oil & gas was the largest end-use for aerogel in 2014 with a share exceeding 65%. Superior insulation properties and sustainability at extreme temperatures as compared to conventional alternatives such as polyurethane foam, mineral wool, perlite and cellular glass is expected to be the key driving factor for the market in this application.
Aerogel is manufactured in various forms including blankets, panels, blocks, and particles. The product is expected to replace fiberglass wall insulation owing to superior insulating properties and sustainability. In addition, aerogel being water repellent and a strong absorber is used in oil-spill cleaning.
Blankets are used for subsea thermal insulation which provides advantages such as low installation costs, and improved pipeline compression resistance. The market is estimated to generate revenue worth USD 697.1 million by 2022. In addition, it is water repellent making it resistant from corrosion and thermal degradation.
North America aerogel market accounted for over 60% of the global revenue share in 2014. Increasing usage of the product for insulation in construction applications is expected to play a critical role in the growth of the industry. Moreover, automotive, aerospace & marine industries are also projected to drive demand over the forecast period.
Europe is expected to be the fastest-growing region at a CAGR of 32.9% from 2015-2022. Stringent regulations for environment protection and building & construction policies are expected to fuel demand.
North America aerogel market accounted for over 60% of the global revenue share in 2014. Increasing usage of the product for insulation in construction applications is expected to play a critical role in the growth of the industry. Moreover, automotive, aerospace & marine industries are also projected to drive demand over the forecast period.
Europe is expected to be the fastest-growing region at a CAGR of 32.9% from 2015-2022.Stringent regulations for environment protection and building & construction policies are expected to fuel demand.
The global aerogel industry is competitive with major companies involved in continuous product innovation and R&D activities. Key players include Aspen Aerogels Inc., Cabot Corporation, Aerogel Technologies LLC, BASF SE, and Dow Corning Corporation.
The industry is characterized by new product launches, as manufacturers are investing high on R&D activities which are expected to increase their market share over the forecast period. For instance, in 2011, Aspen Aerogels in collaboration with U.S. Energy Department’s Advanced Manufacturing Office developed new aerogel which reduced energy consumption by 25%, following which the company constructed a new manufacturing facility.
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