Silica Aerogel Market

• Growing need from end-user sectors is driving the market growth

The rising need from end-user sectors drives the market CAGR for Silica Aerogel. One of the primary drivers is the vast range of possible uses for aerogels in various industries. Aerogel is the most often used because of its low cost, thermal resistance, and reusable qualities. Several sectors are incorporating silica aerogel into their processes. Another driver of this market is the use of silica aerogel in the construction and development industries. The development of both residential and business structures is rising over time, as is the requirement for silica aerogel, which is fueling the expansion of the silica aerogel industry.

Because the market value of solid silica aerogel is inexpensive, it has a broad use in the oil and gas sector. The growing natural gas and petroleum need will fuel the silica aerogel industry. Aside from the ever-increasing requirement for silica aerogel in the automobile industry, the market is expanding.

Additionally, the market will benefit from increased demand in end-user industries, including oil & gas and energy & electricity. The economic nature of silica aerogel due to its cheap price point and recyclable features will benefit the market and increase market prospects. With the increase in the construction and building industries, the market's demand will rise. The industry's top players will present several possibilities to the market, driving its expansion throughout the projected period.

According to the research, covid-19 was the primary cause of the economy's deterioration in several places. This pandemic had a significant impact on several commercial sectors. Because of the covid-19 epidemic, governments and the private sector suffered financial challenges. Businesses were forced to close due to limitations on social distancing and enforcing lockdowns in numerous nations. As a result, product manufacture has ceased. Labor scarcity was merely one of the key causes of the low output. The aerogel market needed to be improved by all of these concerns. Because building activity had been halted in several nations, demand was low.

Overall, the covid-19 outbreak harmed the silica aerogel business. The industry's main players played a significant part in keeping silica aerogel demand substantial, and the aerogel market is projected to witness good development growth following the post-covid-19 scenario.

For instance, Aerogel has a heat sensitivity rating of R 10 / inch, but plastic foam variants such as XPS have a value of R 5, EPS has a rating of R 4, and P.U. has a rating of R 6. As a result, compared to traditional insulating coatings such as fiberglass and plastic foam, Aerogel delivers a 25% decrease in expenses for a goal value of R 4 or an 18-23% reduction in costs for a desired value of R 12. As a result, all of these variables work together to drive worldwide market expansion.

Thus, it is anticipated that demand for Silica Aerogel will increase throughout the projected timeframe due to the rising need from end-user sectors. Thus, driving the Silica Aerogel market revenue.

The Global Silica Aerogel Market Industry is experiencing a surge in demand for advanced insulation materials across various sectors, including construction and aerospace. Silica aerogel, known for its exceptional thermal resistance, is increasingly being utilized in building applications to enhance energy efficiency. For instance, the integration of silica aerogel in building materials can reduce energy consumption by up to 30 percent. This trend is likely to contribute to the market's projected growth, with an estimated value of 1.01 USD Billion in 2024, indicating a strong shift towards sustainable construction practices.

By region, the research provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Silica Aerogel market will dominate this market during the projected timeframe, owing to enormous growth potential for the Aerogel market in the areas of development of applications, effectiveness, and product innovation. At the same time, demand is driven by its high insulating and low conductivity features, which will boost the market growth in North America.

Furthermore, the major countries studied in the market report are the US, Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Silica Aerogel Market Share by Region 2022 (USD Billion)                           

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

The Europe region’s Silica Aerogel market is expected to grow quickly during the projected timeframe as Governments have implemented measures to expand infrastructure and increase energy efficiency policies, which require all buildings in all nations to cut their energy use by 20%. Further, the German Silica Aerogel market holds the largest market share, and the U.K. Silica Aerogel market is expected to grow and expand significantly in the European region during the projected timeframe.

The Asia-Pacific Silica Aerogel Market accounts for the second-highest market share during the projected timeframe as products are widely used in the automotive, aerospace, construction and building, and oil and gas sectors. Moreover, China’s Silica Aerogel market dominates the market share, and the Indian Silica Aerogel market is expected to expand and grow steadily in the Asia-Pacific region during the projected timeframe.

Leading market players invested heavily in research and Development (R&D) to scale up their manufacturing units and develop technologically advanced solutions, which will help the Silica Aerogel market grow worldwide. Market participants are also undertaking various organic or inorganic strategic approaches to strengthen and expand their  footprint, with significant market developments including new product portfolios, contractual deals, mergers and acquisitions, capital expenditure, higher investments, and strategic alliances with other organizations. Businesses are also coming up with marketing strategies such as digital marketing, social media influencing, and content marketing to increase their scope of profit earnings.

The Silica Aerogel industry must offer cost-effective and sustainable options to survive in a highly fragmented and dynamic market climate.

Manufacturing locally to minimize operational expenses and offer aftermarket services to customers is one of the critical business strategies organizations use in the  Silica Aerogel industry to benefit customers and capture untapped market share and revenue. The Silica Aerogel industry has recently offered significant advantages to the End-user industry. Moreover, more industry participants are utilizing and adopting cutting-edge technology has grown substantially. Major players in the Silica Aerogel market, including BASF SE (Germany), The Dow Chemical Company (U.S.), Cabot Corporation (U.S.), Aspen Aerogels Inc. (U.S.), Aerogel Technologies (U.S.), JIOS Aerogel Corporation (Korea), Svenska Aerogel Holding AB (Sweden), C.F.

Technologies (U.S.), and Ocellus Inc (U.S.) are attempting to expand market share and demand by investing in R&D operations to produce sustainable and affordable solutions.

Svenska Aerogel is a Swedish firm that creates aerogel materials. Quartzite is a nano-porous amorphous silica-based material with many uses, including insulation, filtering, paints, and varnishes. The substance is available in small particles, granulates, pellets, and paste forms. It is incorporated with various colors and varnishes. It can be utilized as an Acoustic and thermal insulation component in industrial, building, and coating goods. The technology developed by the company may be used for molecule filtering, fluid filtering, water or beverage filtering, and other applications. The company also provides customized solutions.

Svenska Aerogel reported in May 2020 that it had received an additional order for Quartzene from Novcoat. The purchase will be used to create an energy-efficient thermal insulating covering.

Armacell provides its clients with creative and safe heat, acoustic, and mechanical options, resulting in long-term value. It concentrates on specialized insulating materials, unique performance foams for technologically advanced ultralight programs, and future aerogel blanket technologies. Armacell reported the release of the ArmaGel HTL aerogel insulating blanket in September 2022. The non-combust aerogel blanket is especially intended for industrial applications that require thermal efficiency, non-combustibility, and preventing corrosion beneath the insulation.