Market Scenario 

Aerogel market was valued at US$ 1.41 billion in 2024 and is projected to hit the market valuation of US$ 5.88 billion by 2033 at a CAGR of 17.2% during the forecast period 2025–2033.

The global aerogel market is poised for a phase of unprecedented and transformative growth, underpinned by powerful quantitative indicators. Projections point to a market set to expand by a factor of 3.2 to 4.9 between 2024 and 2035, with even near-term forecasts showing a growth factor of 1.83 in the five years following 2024. This expansion is supported by a diversifying industrial base where silica aerogels, accounting for roughly two-thirds of the volume, are complemented by emerging polymer and carbon variants. While blankets remain the dominant form factor, representing 65 out of every 100 units sold, the rapid adoption of aerogel particles as additives is opening new revenue streams. The competitive landscape, while anchored by industry leaders like Aspen Aerogels and Cabot Corporation, is becoming increasingly dynamic with at least 15 key global players and a host of regional specialists driving innovation and capacity expansion.

The primary engine of explosive growth in the aerogel market is the electric vehicle (EV) sector, where aerogel has become a critical component for thermal management and safety. The market for aerogels in EV batteries multiplied by nearly 20 between 2021 and 2024, with projections showing a further 4-fold increase by 2030. This is not speculative; two of the world's top five EV manufacturers are actively trialing next-generation thermal barriers, and over 110 distinct aerogel products are now specifically designed for EV applications. This demand is reinforced by stringent global regulations, such as Europe’s 2024 EPBD directive mandating zero-emission buildings by 2030, which creates a locked-in, long-term demand pipeline for high-performance insulation. This regulatory push, combined with a growing focus on sustainability—evidenced by the launch of textiles from 100 parts bio-based fibers—cements the market's robust future.

Underpinning this commercial success is a relentless pace of innovation that continuously redefines the material's performance boundaries. Newly developed aerogels exhibit thermal conductivity as low as 0.0143 W/mK and can withstand temperatures from -200°C to over 1000°C. Breakthroughs in the aerogel market like "pomegranate" composites have yielded a 12-fold increase in compressive strength, expanding applications. This innovation is validated through extensive testing, with over 90 pilot projects confirming energy efficiency gains of 12 to 18 measurable units and over 75 experiments demonstrating significant heat loss reduction. This fusion of market pull from sectors like EVs and infrastructure—backed by a $4.2 trillion investment pipeline in Asia-Pacific alone—and the technology push from relentless R&D solidifies the aerogel market's position as a critical enabler of the next generation of technology. 

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 Key Aerogel Market Snapshot

• From Niche to Necessity: The EV sector's adoption of aerogel is evolving from a performance-enhancing option to a mandatory safety and efficiency component, evidenced by the market's 20-fold expansion between 2021 and 2024 and active trials by two of the world's top five EV OEMs.
• The "Pomegranate" Principle: Material science is shattering previous limitations. The development of silica/polyimide composites yielding a 12-fold increase in compressive strength signals a strategic shift for aerogels into semi-structural, load-bearing applications, expanding the addressable market beyond pure insulation.
• Regulatory Lock-In: The European Union's 2024 Energy Performance of Buildings Directive has created a non-negotiable demand pipeline, effectively locking in aerogel adoption for new construction by mandating zero-emission buildings by 2028 and 2030, respectively.
• The Rise of the Additive: While blankets command the majority of the aerogel market (over 65 out of every 100 units), the rapid adoption of aerogel particles as additives in coatings and composites represents a high-growth "stealth" market, embedding aerogel properties into a vast range of existing products.
• Ecosystem Maturity: The supply chain is rapidly maturing beyond a few key producers. The existence of over 80 specialized design centers for EV blanket testing and active collaborations involving 10 or more distinct partners on single projects highlight a deep, interconnected, and innovating ecosystem.
• Performance Quantified and Monetized: The aerogel market has moved beyond qualitative benefits to hard numbers. Consistent, independently verified performance gains—such as a 20 to 25 measurable unit reduction in heat loss—provide the concrete data that engineers and financial stakeholders require for investment and large-scale deployment.

Inside the Aerogel Market's Engine Room: Decoding Manufacturing and Supply Chain

For stakeholders in the dynamic aerogel market, understanding the evolution of its manufacturing core is paramount to gauging future scalability and profitability. The industry is responding to demand with massive capacity expansions, exemplified by Aspen Aerogels' 2024 project to add 320 million square feet of annual production capacity. Critically, this growth is paired with advancements in cost control; a new silane precursor introduced in 2024 has already reduced a core raw material cost by a factor of 1.2 for key buyers. Efficiency gains are accelerating on the plant floor, where advanced supercritical fluid drying has cut the production cycle time for aerogel blankets by a full 4 hours, while the adoption of continuous flow reactors has increased the output of aerogel particles from a single line by a factor of 8. The supply chain is also maturing to enhance resilience. 

In 2024, leading producers in the aerogel market diversified to secure contracts with more than 15 different PVA suppliers, while new facilities are processing over 2,000 metric tons of locally sourced rice husk ash, regionalizing the supply of essential silica. Logistics are being optimized, with new packaging protocols doubling the number of thermal barrier units shipped per container. This maturing landscape is also becoming more accessible, with new modular production skids allowing entrants to establish a 500,000 square foot capacity, while incumbents fulfill high-volume orders for over 8 million individual, precision-cut components for a single EV platform. A key 2024 sustainability milestone saw one manufacturer recapture 300,000 liters of ethanol for reuse, signaling a vital shift towards a more circular and cost-effective production model.

Quantifying the Revolution: Aerogel Performance Metrics Driving Unprecedented Market Adoption

The premium valuation and rapid adoption within the aerogel market are directly substantiated by granular, quantifiable performance metrics that solve critical industry challenges. In the pivotal EV sector, 2024 tests show a 5-millimeter aerogel blanket delaying thermal runaway for a full 14 minutes—exceeding safety benchmarks by a factor of two—while its integration into a 2025 model year EV achieves a direct weight reduction of 12 kilograms. This tangible value extends across sectors. A 2024 industrial case study documented an annual energy savings of 7,884,000 BTUs from a single 100-foot insulated pipe, which saw heat loss fall by 900 BTUs per hour. For cryogenic applications, new aerogel systems tested in 2024 reduced liquid nitrogen boil-off by a factor of 3. 

In extreme environments, a 2025 satellite composite demonstrated near-perfect thermal stability at -270 degrees Celsius, while prototype firefighter jackets in 2024 withstood a 1200°C direct flame for 17 seconds. This performance is creating new design possibilities; a 10-millimeter aerogel plaster increased a historic building's R-value by 6 points without altering its facade, while a commercial oven manufacturer reduced wall thickness by a factor of 4 to gain 1.5 cubic feet of internal space. In advanced electronics, an aerogel TIM lowered a 5G processor's peak temperature by 8 degrees Celsius. Even in offshore energy, a 2024 project documented a net buoyancy increase of 5 kilograms per meter on subsea pipelines, showcasing aerogel's multi-faceted value proposition.

Segmental Analysis 

By Product: Silica Aerogel is Undisputed Material Champion Dominating the Global Market Landscape

Silica aerogels firmly command over 67% of the global aerogel market, holding an unrivalled position thanks to their exceptional physical properties. Their ultra-low thermal conductivity—studies in 2024 report values as low as 0.0216 W m−1 K−1—is the key driver for expanding adoption into high-demand sectors, such as electric vehicle battery insulation, highlighted by a May 2025 product launch designed specifically for this application. The silica aerogel industry’s valuation reached USD 1.05 billion in Q1 2025, with Mordor Intelligence affirming silica grades held 72% market share in 2024.

Continuous innovation pushes silica aerogels’ boundaries. A 2024 study demonstrated silica/polyimide composites with a 12-fold improvement in compressive strength, maintaining thermal integrity. Regulatory support is also boosting demand: the May 2024 recast Energy Performance of Buildings Directive (EPBD) mandates zero-emission new buildings by 2030, significantly increasing the need for high-performance silica aerogel insulation. Manufacturing innovations continue, including a simplified silica aerogel blanket production method patented in February 2024 and a 2024 patent describing carbide aerogels derived from silica structures.

Controlling pore architecture remains central to silica’s unmatched thermal performance, as outlined in a May 2024 review. High-temperature challenges are addressed by doping silica aerogels with SiC opacifiers, reducing radiative thermal conductivity per August 2024 research. This cycle of improvement, combined with proven performance and expanding applications, ensures silica’s foundational role in the aerogel market’s growth and trajectory.

By Form: Flexible and Robust Aerogel Blankets are the Market’s Preferred Form

Blankets dominate the physical form segment of the aerogel market, prized for their durability and ease of installation. Reinforced by a fiber matrix, they easily conform to complex geometries like pipes and vessels, outperforming rigid panels in application speed and versatility. Cryogel® Z blankets, for example, allow installations up to 30% faster on large-bore piping. The electric vehicle battery sector, with products like Aspen Aerogels’ PyroThin, strongly fuels demand for blankets as thermal management barriers.

Labor and time savings are significant. A notable LNG project replaced 1,700 contraction joints using Cryogel® Z blankets, saving roughly eight man-years of labor. To meet surging demand, producers in the global aerogel market are expanding capacity, exemplified by Armacell’s September 2024 announcement of a 1 million square meter aerogel blanket factory in Pune, India. Globally, a 2025 liquid nitrogen pipeline project in Türkiye specified HUATAO aerogel felt blankets, underscoring international confidence.

Electric vehicle batteries are forecasted to account for over 50% of the aerogel market by 2025, with blankets favored for their insulation qualities and flexibility. This industrial demand is reflected in major supply agreements, including Aspen Aerogels’ March 2024 contract with a leading European construction firm. Confirming performance superiority, a July 2024 study validated silica aerogel blankets’ thermal efficiency over traditional materials, ensuring their continued leadership in volume and accessibility within markets.

Powering the Energy Sector: How Oil & Gas Drives Aerogel Market Demand

The oil and gas industry remains the largest aerogel market end-user, projected to capture 64% of the market in 2024. Astute Analytica reaffirmed this sector’s dominant share due to aerogel’s unique capacity to meet harsh environment challenges. Applications focus on subsea pipeline insulation preventing hydrate plugs, corrosion under insulation mitigation in refineries, and superior cryogenic insulation for LNG terminals. Aspen Aerogels’ Pyrogel® and Cryogel® products are widely adopted by leading energy infrastructure firms, with November 2024 reports highlighting robust usage in LNG projects.

Cryogel® Z insulation is specified in nearly 50 major LNG liquefaction and regasification facilities worldwide. An LNG export terminal case study revealed that Cryogel® Z’s 31% faster installation enabled meeting a critical project deadline. Aspen Aerogels secured a $35–40 million Cryogel® Z supply contract for Thailand’s Nong Fab LNG terminal, illustrating the financial magnitude.

Aerogel market’s value transcends insulation; a July 2025 report demonstrated that refinery applications improve thermal management and accelerate production. An April 2024 study explored integration challenges and opportunities. Innovation partnerships, such as October 2024’s Kaefer Energy and Aspen Aerogels collaboration to inspect live cold pipelines, represent significant operational advances. With ongoing LNG infrastructure investments and safety imperatives, the oil and gas sector’s dominant position guarantees sustained aerogel market growth.

By Technology: Supercritical Drying is the Cornerstone Technology Shaping Aerogel Production and Market Viability

Supercritical drying production technology commands over 74% of the aerogel market. Its unique ability to preserve the delicate nanoporous structure during liquid removal is vital to producing high-performance aerogels. A February 2024 editorial in Gels confirmed this as the most critical step for quality aerogels, with patents—like a hydrophobic polyimide aerogel granted November 2024 and porous polyurea networks filed in May 2024—relying on this process.

While supercritical drying remains capital and operation-intensive, ongoing research targets cost-effective alternatives. A 2024 continuous roll-to-roll drying process promises up to 6x lower operating costs, and a 2021 innovation combined high-pressure solvent exchange and supercritical drying in a single device. High-temperature supercritical drying using organic solvents produces superior, partially hydrophobic silica aerogels with minimal shrinkage in the aerogel market.

Alternatives such as ambient pressure drying are explored due to the high costs, but quality remains benchmarked by supercritical drying. Specialized equipment expenses significantly influence aerogel costs, a long-term industry challenge actively addressed in 2024. For high-performance demands—low density, high porosity, and optimal insulation—supercritical drying stays indispensable, underpinning the properties defining premium aerogel segments.

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Regional Analysis 

North America: The Undisputed Leader in Innovation and High-Value Commercialization

North America’s dominance in the global aerogel market with over 47% market share is driven by the United States’ unmatched ability to innovate and commercialize breakthrough technology. The region benefits from robust government support, with at least 15 significant federal and state-level incentive programs active in 2024 promoting advanced insulation adoption. The U.S. Department of Energy alone funded over 40 projects this year to develop next-generation building materials, fueling an intellectual property surge evidenced by more than 30 new aerogel-related patents filed in the first half of 2024. Over 25 active R&D partnerships link top universities with manufacturers, while a 2024 Department of Defense directive mandates aerogel inclusion in at least 10 new tactical equipment designs. This integrated ecosystem ensures sustained innovation alongside steady demand.

The regional aerogel market penetration is validated by major commercial contracts, including a landmark 2024 supply deal where Aspen Aerogels will equip over 1.5 million electric vehicles. Industrial applications also advance, with eight new pilot programs validating aerogel in LNG and district energy sectors. Key collaborations include a 12-partner automotive consortium working to integrate aerogel composites into EV batteries. In building retrofit efforts, North American manufacturers are projected to supply insulation for over 500 buildings by year-end. Looking forward, at least five new U.S.-made aerospace platforms—including eVTOLs—are scheduled to incorporate aerogels in advanced 2025 testing, underscoring the region’s expanding technological frontier.

Asia Pacific: The Global Epicenter of Surging Demand and Manufacturing Power

Asia Pacific drives global aerogel market demand through massive infrastructure projects and formidable manufacturing capacity. China’s 14th Five-Year Plan spurred over 60 large-scale projects in 2024 that require high-performance insulation, while top Chinese EV manufacturers tendered contracts in 2024 to secure thermal barriers for production exceeding 3 million 2025 model-year vehicles. To meet this demand, 12 new aerogel production facilities are under construction across the region. South Korean battery firms approved aerogel materials for more than 20 new battery designs in 2024, and regional shipyards fulfill over 80% of new LNG carrier orders, supporting cryogenic aerogel markets.

Innovation accelerates with over 50 patents for novel aerogel applications filed region-wide in H1 2024. India’s "Make in India" initiative led to three new joint ventures this year, while Japan’s Green Innovation Fund launched five programs targeting sustainable aerogels. The construction sector is expanding rapidly, with more than 200 million square meters of space projected to use advanced insulation by 2025 under new energy codes. This growth is complemented by diversification, as 10+ major Asian electronics manufacturers integrated aerogel films into next-gen 5G base stations and data servers in 2024, securing aerogel’s role in future technologies.

Europe: The Pioneering Force in Regulation and Sustainable Market Creation

Europe’s aerogel market strength derives from its global regulatory leadership, creating lasting demand through policy frameworks. The 2024 recast Energy Performance of Buildings Directive (EPBD) impacts 220 million building units, driving energy efficiency upgrades continent-wide. By 2024, 15 EU member states began revising building codes for higher performance, heightening material demand. Regulatory bodies like the European Chemicals Agency flagged over 20 traditional insulation materials for potential restrictions, spurring innovation. In response, five prominent European chemical firms announced plans to launch bio-based aerogels, while the Clean Steel Partnership identified aerogel as a key technology in eight decarbonization initiatives.

High-value applications and circular economy principles shape Europe's market. Automotive leaders launched 30+ R&D programs in 2024 integrating aerogel thermal barriers. Horizon Europe funded at least 10 projects targeting aerogel circularity. Unique niche markets include over 1,000 historic building retrofits by 2025, where aerogel’s thin profile is crucial. Municipal programs in six major cities mandate maximal insulation efficiency per thickness via “Green District” initiatives. The European Space Agency continues aerogel adoption, shortlisting it for at least four new satellite and probe designs in 2025, cementing its role in extreme-condition applications.

Top 10 Developments in Aerogel Market For 2024 and 2025, Focusing On Expansion, Investment, Mergers, and Funding.

• Aspen Aerogels' Strategic Pivot (February 2025): In a significant strategic shift, Aspen Aerogels canceled its planned "Plant II" manufacturing facility in Georgia, forgoing a potential $670.6 million U.S. government loan. The company will instead focus on expanding its existing Rhode Island plant and substantially increasing capacity through its manufacturing partners in China to meet long-term demand.
• Armacell's Acquisition of AJA (September 2024): Armacell took full ownership of its successful joint venture, Armacell JIOS Aerogels (AJA), by acquiring all shares from its partner, JIOS Aerogel. The move solidifies Armacell's control over AJA's manufacturing facility in South Korea, which has plans for immediate expansion.
• Armacell's India Expansion (2025): To bolster its global supply chain, Armacell is accelerating the launch of its new aerogel blanket production facility in Pune, India. This state-of-the-art plant is expected to come online around mid-2025 with an initial capacity of 1 million square meters per year.
• American Aerogel Corporation's Major Funding Round (September 2024): The company announced a substantial funding transaction to raise $66 million. As of September 2024, it had already secured nearly $54 million from 43 investors, which includes the conversion of notes, to fuel its growth and operations.
• Cabot's Conductive Additive Investment (2024): Cabot Corporation was selected to negotiate a $50 million grant from the U.S. Department of Energy. This funding is designated to support a new manufacturing facility in Michigan focused on conductive additives, including carbon nanotubes, essential for the EV battery market.
• Aspen Aerogels' China Manufacturing Expansion (2024-2025): As part of its new strategy, Aspen Aerogels is heavily leveraging its external manufacturing partner in China. The company plans to increase annual production capacity in China by a value of $200 million by 2026 to serve its EV and Energy Industrial businesses.
• LG Chem's Commercial Production Launch (2024): South Korean chemical giant LG Chem officially started commercial production of its own aerogel products. The company is targeting both the rapidly expanding electric vehicle market and traditional industrial applications.
• JIOS Aerogel's Strategic Refocus (2024): Following the successful sale of its stake in the AJA joint venture to Armacell, JIOS Aerogel is now concentrating its strategic efforts and resources primarily on the high-growth electric vehicle market.
• Cabot Idles German Plant (2024): In a move to optimize its global manufacturing footprint, Cabot Corporation idled one of its aerogel production plants in Germany during 2024, reallocating resources to more competitive facilities and product lines.
• Armacell's Product Launch Tied to New Capacity (April 2025): Coinciding with its capacity expansions, Armacell launched its next-generation ArmaGel® XGC insulation blanket. The product will be manufactured in China and at the new facility in India, directly linking the investment in new plants to the rollout of advanced materials.

Top Companies in the Aerogel Market

• BASF
• Active Aerogels, LDA
• Aerogel Technologies, LLC
• Aspen Aerogels, Inc.
• Cabot Corporation
• Nano Technology Co., Ltd
• JIOS Aerogel Corporation
• Dow
• Nano Technology Co., Ltd
• Enersens
• Other Prominent Players

Market Segmentation Overview

By Product

• Silica
• Polymers
• Carbon
• Others

By Technology

• Supercritical Drying
• Others

By Form

• Blanket
• Particle
• Panel
• Monolith

By End-Use

• Oil & Gas
• Building & Construction
• Automotive, Aerospace & Marine
• Performance Coatings
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Hungary
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East
  • UAE
  • Saudi Arabia
  • Bahrain
  • Kuwait
  • Qatar
  • Rest of Middle East
• Africa
  • Oman
  • Egypt
  • Nigeria
  • South Africa
  • Rest of Africa
• South America
  • Argentina
  • Brazil
  • Rest of South America