Aerogel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Aerogel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Aerogel Market size is estimated at USD 541.77 million in 2024, and is expected to reach USD 907.58 million by 2029, growing at a CAGR of 10.87% during the forecast period (2024-2029).

The COVID-19 pandemic had a notable impact on the global aerogel market. Initially, demand declined due to disruptions in the construction and manufacturing sectors, which are key consumers of aerogel for insulation purposes. However, the market is expected to recover as construction activities resume, and there is an increased focus on energy-efficient building materials post-pandemic, which is driving demand for aerogel insulation.

Key Highlights

• In the medium term, major factors driving the market studied are the rapidly growing construction industry and a rise in adoption due to their reusability and recyclability.
• On the flip side, the high cost of production is expected to hinder the market.
• A lighter and thinner substitute for conventional insulation is one of the major opportunities for industry growth.
• North America dominates the market globally due to the technological advancements in the region.

Aerogel Market Trends

Surging Application in the Oil and Gas Industry

• In the oil and gas industry, the development of cleaner and more durable aerogel blankets improves insulation for deep-sea pipe-in-pipe oil and gas pipelines by lowering installation costs, making pipelines more resistant to compression, reducing the amount of steel used in pipeline construction, and increasing oil and gas flow and security.
• Oil and gas are important parts of the energy market, and as the world's main fuel source, they have a big impact on the world economy. They make fuel for cars, planes, ships, and other industrial engines so that people and goods can move around.
• According to the US Energy Information Administration, global crude oil production in 2023 increased by 1.76% and was valued at 101.749 million barrels per day.
• By 2045, India is expected to need 11 million barrels of oil per day, which is double what it needs now. Moreover, various companies are investing in expanding exploration facilities across the country. For instance, in May 2022, ONGC announced plans to invest USD 4 billion in FY 2022 and FY 2025 to increase its exploration efforts in India.
• Saudi Arabia has the second-largest oil reserves in the world. According to the Energy Institute, Saudi Arabia's oil production amounted to around 12.14 million barrels per day in 2022, an increase of about 10.8% compared to 2021.
• Moreover, in 2023, according to the US Energy Information Administration, the US crude oil production (about 21.5% of global output) increased by 7.94% and was valued at 21.91 million barrels per day.
• Thus, due to the above-mentioned point, the oil and gas industry is likely to grow significantly, which, in turn, is expected to enhance the demand for the market studied.

United States to Dominate the North American Region

• The United States is expected to continue to be the leading country in North America.
• The growing stringent environmental norms by the United States government, growing awareness of eco-friendly products, and extensive research on product and process development to manufacture aerogel are the key factors helping the United States remain in the top position in the market studied. Aerogel is highly used in thermal and acoustic insulation.
• The US Department of Energy (DOE) is investing in innovative insulation materials that save energy and money in the industrial sector.
• Furthermore, with the rapidly growing building and construction sector and oil and gas industries, among others, the market studied in the United States is expected to increase rapidly over the forecast period.
• The United States has one of the world's largest construction industries. As of January 2023, construction spending in the country was valued at USD 1.82 trillion.
• According to the US Census Bureau, the annual value for construction in the United States accounted for USD 1,978.7 billion in 2023, which is an increase of about 7.03 compared to 2022.
• Also, the aerogel can be shaped into monoliths or thin films that can be used for thermal and acoustic insulation, thin-film coatings, vibration reduction, or anywhere structural foam is currently used in vehicles.
• The United States is the second-largest automotive manufacturer after China. It had a production of 10.06 million vehicles in 2022, an increase of about 10% from the previous year. In the past five years, the country has witnessed robust growth in automobile production.
• Owing to all these factors, the North American region is expected to influence the market during the forecast period.

Aerogel Industry Overview

The aerogel market is fragmented in nature. Some of the major players include (not in any particular order) BASF SE, Cabot Corporation, Svenska Aerogel, Aspen Aerogels Inc., and Green Earth Aerogel Technologies (GEAT).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support