Global sales of aerogel were reported at USD 1.1 billion in 2020. The market is anticipated to register a year on year growth of 15.2% in the year 2024, thus, leading to a market size of USD 2.4 billion by end of 2025. During the assessment period (2025 to 2035), the market is projected to record a CAGR of 17% and reach USD 11.5 billion by 2035.
Aerogel is a very porous, light material of very low density and with very good thermal insulation properties, obtained by replacing liquid in a gel with gas, giving a solid. Its structure allows it to have the lowest thermal conductivity of any known solid material.
The main applications of aerogel, besides fireproofing and soundproofing, have been thermal insulation in the construction, automotive, and oil and gas industries. With its low density and superior insulation characteristics, it is perfectly suited for applications in which space, weight, and energy efficiency are in short supply.
The growth factors of the aerogel market are attributed to increasing energy-efficient solutions for various industries. With growing regulations for saving energy and increasing demand for lightweight, high-performance materials across industries, there has been an increased demand for aerogels in applications that require excellent insulation, durability, and cost-effectiveness.
Aerogels continued to witness higher demand due to increasing needs for sustainable and energy-efficient solutions.
| Attributes | Key Insights |
|---|---|
| Market Value, 2025 | USD 2.4 billion |
| Market Value, 2035 | USD 11.5 billion |
| Value CAGR (2025 to 2035) | 17% |
The East Asia region is recording a high growth rate in the aerogel market due to the boom in the construction and automotive industries. This is majorly because of increasing demand for energy-efficient materials in both industries.
In construction, especially, the need for superior thermal insulation in buildings and infrastructure is high, especially in high-density urban areas, thus driving the adoption of aerogels.
Apart from that, high-performance and lightweight material demands from the automobile industries for making weight reduction to get better fuel economy; it also promotes the consumption of aerogel.
With growing prominence given to sustainability and conservation of energy in the region, it makes aerogel an attractive choice for industries that seek ways to cut down on energy consumption and, consequently, their environmental footprint.
As such industries grow and demand materials that can deliver on certain performance criteria of low thermal conductivity, lightweight, and durability, East Asia is likely to emerge as a key growth market for aerogels.
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The table below presents the annual growth rates of the global aerogel industry from 2025 to 2035. With a base year of 2024 extending to the current year 2025, the report examines how the sector's growth trajectory evolves from the first half of the year (January to June, H1) to the second half (July to December, H2).
This analysis offers stakeholders insights into the industry's performance over time, highlighting potential developments that may emerge.
These figures indicate the growth of the sector in each half year, between the years 2024 and 2025. The industry is expected to grow at a CAGR of 16.8% in H1-2024. In H2, the growth rate increases.
| Particular | Value CAGR |
|---|---|
| H1 2024 | 16.8% (2024 to 2034) |
| H2 2024 | 17.0% (2024 to 2034) |
| H1 2025 | 16.9% (2025 to 2035) |
| H2 2025 | 17.2% (2025 to 2035) |
Moving into the subsequent period, from H1 2025 to H2 2025, the CAGR is projected to slightly decrease to 16.9% in the first half and relatively increase to 17.2% in the second half. In the first half (H1), the sector saw an increase of 10 BPS while in the second half (H2), there was a slight increase of 20 BPS.
Increasing Demand for Energy-Efficient Solutions in Buildings, Vehicles, and Industrial Applications Promotes Aerogel Market Growth
With the ever-increasing importance of sustainability among the world population, energy efficiency in buildings is what everyone wants to ensure these days.
As a result, due to their great thermal insulation properties, aerogels have been highly applied in different construction projects, hence reducing energy consumption by helping to avoid losses of temperature when it is cold and maintaining cool temperatures during hot weather.
Due to the demand for governments and businesses to reach goals of energy savings and reduce environmental impacts, aerogels continue to be in demand for use as insulation in residential, commercial, and industrial buildings.
Aerogels also help the automotive industry in reducing the weight of vehicles and increasing fuel efficiency. Since manufacturers are concentrating on bringing down emissions and improving energy consumption, aerogels are the perfect solution due to their lightweight and high-performance properties.
With industrial applications, particularly related to the oil and gas sector, such as the insulation of pipes, tanks, and equipment, the applications keep on increasing. Capability for reducing energy loss while maintaining low weight continues to drive the aerogel market for energy-efficient solutions.
Rising Construction Industry Focus on Sustainable Materials and Energy-Efficient Insulation Drives Increased Adoption of Aerogels
As the construction industry is tending towards sustainability, there is an increasing emphasis on the usage of materials that would contribute to energy efficiency and reduce environmental impact.
In this regard, aerogels are a kind of material gaining popularity in green building projects owing to their superior insulation properties. These materials meet the increasing demand for eco-friendly construction practices by improving energy efficiency in buildings.
Because of the excellent thermal insulation and lightness, aerogel contributes to keeping the carbon footprint from structures at low levels, hence being highly in demand within the construction sector, especially among those companies chasing sustainability goals.
Demand keeps on growing with energy-efficient building materials as the cost of energy is increasing, with the sensitization of the environment. Aerogels are a key player in reducing energy use in residential and commercial buildings due to their unparalleled thermal insulation capabilities.
They contribute to comfort in indoor climates, reducing heat loss during winter and gaining less in summer. Considering the energy efficiency of aerogels in buildings, their application will increase manifold and spur further market growth.
Automotive Sector's Focus on Lightweight, High-Performance Materials to Improve Fuel Efficiency Fuels Aerogel Demand
The automotive sector is also one of those exciting fields where this demand for weight reduction finds a methodology to improve fuel efficiency and reduce carbon dioxide emissions.
These aerogels, with their extraordinarily low density combined with high-performance characteristics, thereby help meet these demands. Substitution with heavy-duty materials would make aerogels contribute further to reducing overall vehicle weight to improve fuel economy and lower GHG emissions.
Aerogels are fast becoming a material of choice in automotive applications, especially in insulation for engines, exhaust systems, and interiors, because regulatory pressures for lower emissions keep increasing globally.
Aerogels also find their place in automotive applications because they have superior thermal insulation characteristics. With the trend toward energy-efficient vehicles, heat management becomes of great importance regarding optimal performance and prolonging component life.
Aerogels contribute to decreasing the loss of heat and saving sensitive components from exposure to extreme changes in temperature, which improves a vehicle's operational efficiency. On account of rising demand for advanced material with high value-added features, improving fuel economy and prolonging component life, growth in the automotive aerogel market continues unabated.
High Production Costs and Expensive Manufacturing Process Limit Widespread Adoption of Aerogels across Various Industries
Aerogel manufacturing is a very complicated and expensive process, requiring advanced technology and special equipment. The production of aerogels, due to such precision in maintaining the porous structure and low density of the material, is very costly.
Consequently, high production costs make them unaffordable, especially in price-sensitive markets. For example, in bulk material-intensive industries such as construction, traditional insulation materials remain far more economical, which has prevented the widespread use of aerogels.
Aerogels are normally prepared by supercritical drying or sol-gel processes, which are very energy-intensive and require special facilities. Such manufacturing techniques further increase production time and cost, hence limiting the availability of aerogels for mass production.
Thus, the high cost of producing aerogels limits their applications in industries where budget constraints are important, such as in large-scale construction and automotive industries, which in turn has limited the market penetration of aerogels.
Complex Handling and Installation of Aerogels Hinder Their Practical Use in Large-Scale Projects and Applications
While very light, aerogels are fragile, hence a challenge in handling during transportation and installation. Their brittle nature makes them prone to breaking or cracking under stress, which poses challenges during large-scale construction or industrial applications.
The delicate handling required to prevent damage adds complexity to their use, leading to concerns over their practicality, especially in environments where durability and ease of handling are critical.
Most of the aerogels are fragile and possess a peculiar structure, which generally calls for special installation techniques and expertise. This could imply a more time-consuming and costly installation process, particularly for projects with large areas that demand rapid action.
In any infrastructure, automotive, or aerospace project, where insulation or material using aerogel has to be cut, shaped, and installed in a safe manner, it presents quite an unattractive option for industries seeking quick and inexpensive methods. Thus, the overall growth of the market for aerogels is hampered.
The global aerogel industry recorded a CAGR of 15.2% during the historical period between 2020 and 2024. The growth of aerogel industry was positive as it reached a value of USD 2.1 billion in 2024 from USD 1.1 billion in 2020.
Growing demand from the industry for lightweight and energy-efficient material sustains the growth of the aerogel market. These materials possess superior thermal insulation characteristics, thus are highly sought after in the construction, automotive, and oil and gas industries due to high concerns relating to energy savings and high performance. Aerogels have come to give companies a competitive edge in terms of energy use. It creates environmental and economic benefits.
The various uses of aerogel have widened more as the understanding of its exclusive properties spreads. Aerogels are used in space, construction, and automotive industries for its excellent insulation and thermal management properties.
All these factors contributed to increasing recognition for its versatile properties, higher market penetration, and adoption, thereby providing rapid growth to the market.
The aerogel market is concentrated with key participants accounting for 50-55% of market share. Some technologies are really capital intensive, demanding high expertise and practical usages in order to attain wide acceptance among end customers.
Such firms are leveraging this capability for customized solutions to reinforce their positions within regional high-demand markets of North America, the Middle East, and Asia-Pacific.
These companies are referred as Tier-I players in the assessment. Examples of such players include Aspen Aerogels, Inc., Cabot Corporation, Armacell International S.A., Nano Tech Co., Ltd., and Zhejiang UGOO Technology Co., Ltd.
The second level of players account for 15-30% of the market in total. These companies are regional players and their product offerings are either technology-specific or specification-specific. These players have been termed as Tier-II players in the report. Companies such as Guangdong Alison Technology Co., Ltd., Beerenberg AS, Aerogel Technologies, LLC, are a few examples of this category.
The remaining chunk of the market share is enjoyed by small and niche players, which target particular technologies or localized markets, generally smaller industrial set-ups or captive power generation.
They often try to compete with bigger firms on the basis of flexibility and competitive pricing. Such firms are termed as Tier-III players in this market assessment. Examples include Enersens, IBIH Advanced Materials Co., Ltd. and many few small players.
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The countries that lead in adopting aerogel include United States, China, Germany, India, and Japan, driven by due to industrial growth, insulation demand, and energy efficiency.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| United States | 14.5% |
| China | 16.3% |
| Germany | 13.8% |
| India | 17.2% |
| Japan | 12.5% |
The United States is a country with an advanced aerospace industry that needs such materials to reduce its weight for improvement in fuel economy and overall efficiency. Aerogel, due to its ultra-low weight, is finding immense applications in several aerospace areas such as insulation for spacecraft, various components of satellites, and aircraft.
The demand for aerogel in the aerospace industry is necessitated by the need to achieve the highest levels of performance with minimal weight for efficient fuel and energy consumption in both air and space travel.
As the USA continues with its investments in space exploration and aircraft design, the adoption of aerogel as a lightweight material in components within the aerospace segment is positioned for further growth.
Aerogels have very peculiar thermal insulation properties that make them perfect for use in aerospace, where temperature control is of great concern. In spacecraft, for instance, aerogels are used to protect sensitive equipment from extreme temperature variations during launch, space travel, and re-entry.
Similarly, in commercial and military aviation, aerogels are used to insulate aircraft for performance optimization under a variety of atmospheric conditions. Thus, with the development and growing demand for high-performance insulation solutions as a part of an energy-efficient trend, the demand in the USA could increase, too, driving the overall aerogel market over the forecast period.
India is undergoing rapid urbanization, with more people moving into cities and a significant rise in construction activities. The growth of population and infrastructure in urban areas outlines increased demands for energy-efficient buildings. In this regard, superior thermal insulation materials like aerogels have opened new prospects to maintain optimal indoor temperatures and minimize energy use.
Aerogels find their perfect fit in construction, especially for energy-efficient buildings, due to their light weight and efficiency in thermal insulation. The growth of residential and commercial infrastructure, along with industrial infrastructure growth in India, is directly influencing the adoption of aerogels as a key solution to reduce energy costs and enhance building performance.
In tune with the building industry in India taking a greener turn, there is an increased demand for more eco-friendly building materials that help in increasing energy efficiency and reducing carbon footprints. As the name suggests, aerogel-considered the best thermal insulation material with the lowest environmental impact-becomes more popular.
Consequently, builders now use aerogels to attain sustainability by adding more insulation to buildings, leading to reduced needs for heating or cooling. The increase in green building practices in India's construction industry is expected to fuel the growth of the aerogel market.
Germany's automotive industry is at the forefront of developing advanced, high-performance vehicles, with a strong focus on reducing weight to improve fuel efficiency and performance. Aerogel is one of the most popular lightweight materials, having an excellent strength-to-weight ratio.
This material is used in various vehicle components, including insulators, structural parts, casings of batteries, which will reduce the weight of the whole vehicle without compromising safety and durability.
Aerogels have turned out to be one of the significant materials that contribute to improved fuel economy and reduced energy consumption for the automotive industry, which is moving toward electric vehicles and hybrid models that require judicious use of energy. Among the key reasons for the growth in the German aerogel market, the shift in focus toward lightweight materials is one of the key factors.
The German automotive industry also aims at achieving strict environmental and performance parameters. With the rise in manufacturing car models using ecological technologies and complying with set emissions norms, a series of completely eco-friendly technologies come up-again for enhancement of thermal insulation and noise control: aerogels.
An Aerogel ensures optimal temperature operation conditions, protecting batteries, enhancing the general operating ability, efficiency, and overall service life. Another reason that contributes to the market growth in Germany is that increasing demand for green and high-performance vehicles fuels the adoption of aerogels in the automotive sector.
The section explains the market value of the leading segments in the industry. In terms of product type, the silica aerogel category will likely dominate and generate a share of around 71.4% in 2025.
Based on form, the blanket aerogel segment is projected to hold a share of 42.9% in 2025. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Type | Value Share 2025 |
|---|---|
| Silica Aerogel | 71.4% |
Silica aerogel has the highest consumption rate due to its outstanding thermal insulation properties, light weight, and wide usability in various industries. It is highly porous and possesses low thermal conductivity, which makes it perfect for energy-efficient insulation in building construction, oil and gas pipelines, and industrial equipment.
Most promising for aerospace and automotive applications, it is even more attractive due to its resistance to extreme temperatures without further degradation. Silica aerogel, being nontoxic and environment-friendly, responds to an increasing demand for general & advanced materials, in particular for construction and energy-related sectors.
Due to its flexibility, the implementation has ranged from blanket-like forms to panels that are highly accommodative of most systems; thus, it's driven to more significant acceptance. Silica aerogel is dominating the market because it manages to strike a balance in offering high performance and durability and yet proves highly adaptive.
| Capacity | Value Share 2025 |
|---|---|
| Blanket Aerogel | 42.9% |
The blanket aerogel segment holds a better share in the market due to its flexibility, superior insulation properties, and ease of application. The various advantages offered by the blanket aerogel are high thermal resistance, lightweight, and easy-to-handle nature; this has made these materials highly popular among end-users for their wide usage in construction, oil and gas, aerospace, and automotive industries.
Their flexibility to cover irregular surfaces, like pipes and vessels, allows for efficient insulation in complex environments. In addition, blanket aerogels are very durable and can resist extreme temperatures, which ensures long-lasting performance in harsh industrial and environmental conditions.
These, along with ease of installation and cost-effectiveness for bulk projects, contribute to their dominance. Due to the fact that most industries are shifting focus toward energy efficiency and sustainability, the demand for blanket aerogels is driven by the rising need for superior insulation, which would consume less energy and operational costs.
Competition is immense within the aerogel industry, with established companies competing along with start-ups for market leadership. Major players mainly strategies on innovation and hence invest hugely in research and development for advancing thermal stability, friction reduction, and energy efficiency to meet the rising demand from key sectors such as automotive, aerospace, and energy.
Companies are increasingly forming partnerships and joint ventures to co-develop advanced solutions, expand resource bases, and access emerging markets. Geographic expansion into high-growth regions such as Asia-Pacific and Latin America is a key strategy for sustaining market leadership.
The leading companies have developed their particular solution for aerogel and focus on niche applications like electric vehicles and renewable energy. Focus will be placed on emerging demand, attracting start-ups, increasing competition, and incentivizing continuous innovation.
Industry Updates
On the basis of product type, the market is categorized into Silica Aerogel, Polymer Aerogel, Carbon Aerogel, and Others
On the basis of form, the market is categorized into Monolith Aerogel, Blanket Aerogel, Article Aerogel, and Panel Form Aerogel
On the basis of end use industry, the market is categorized into Oil and Gas, Marine and Aerospace, Performance Coating, Construction, Automotive, and Others
Key regions considered for the study include North America, Latin America, East Asia, South Asia and Pacific, Western Europe, Eastern Europe and Middle East and Africa
The overall market size for Aerogel was USD 2.1 billion in 2024.
The Aerogel Market is expected to reach USD 2.4 billion in 2025.
The demand for aerogel during the forecast period will be driven by increasing energy efficiency needs, insulation demand in construction, and lightweight materials for aerospace and automotive sectors drive aerogel demand.
The Aerogel Market is projected to reach USD 11.5 billion in 2035.
| Estimated Market Size (2024E) | USD 147.1 billion |
|---|---|
| Projected Market Value (2034F) | USD 231.1 billion |
| Value-based CAGR (2024 to 2034) | 4.6% |
| Estimated Market Size (2023E) | USD 501.8 million |
|---|---|
| Projected Market Size (2033F) | USD 1,063.5 million |
| Value-based CAGR (2023 to 2033) | 7.8% |
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