Europe Aerogel Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The European aerogel market is projected to register a CAGR of over 6% during the forecast period.

The market growth is majorly attributed to increasing demand from the oil and gas industry. Due to COVID-19, the oil and gas industry was negatively affected, and oil prices plunged. Lockdowns, international travel bans, and less transportation reduced the consumption of oil, and thus, the demand for aerogel decreased. In 2022, the growth of the oil and gas industry reached pre-pandemic levels. With this, the aerogel market recovered from the pandemic and is growing at a significant rate during the forecast period.

Key Highlights

• Over the short term, the adoption of lighter and thinner alternatives to conventional insulations due to their reusability and recyclability properties is expected to stimulate market growth.
• However, the high cost of production is expected to hinder the regional market growth.
• Nevertheless, increasing demand for aerogels from aerospace and electric vehicle supercapacitors industries will act as a growth opportunity for the market.

Europe Aerogel Market Trends

Growing Demand from the Construction Industry

• Aerogels find wide application usage in building insulation. Aerogel blankets or sheets are used to insulate the exterior and interior of the walls. Furthermore, due to its moisture resistance property, it also makes a perfect choice for damp walls.
• The rise in the construction industry is expected to boost the demand for aerogel thermal insulation materials used in new constructions. The increasing demand for new constructions in the United Kingdom, Germany, France, and Italy is expected to drive the regional market.
• In the third quarter of 2021, the United Kingdom announced an investment of USD 333 million and the construction of a 40-story residential tower and a 14-story office building at Albion Street in Central Manchester, with estimated completion by 2024. According to the Office for National Statistics (United Kingdom), annual construction output increased by a record 12.7% in 2021.
• Increased government spending and increasing demand for construction projects are expected to augment the market growth. For instance, the French government sanctioned around USD 3.3 billion for the construction of the Hermitage towers for hosting the 2024 Olympics. The construction of the towers is scheduled to be complete by 2024.
• Also, the German government initiated the construction of the Digital Park Fechenheim on a 10.7 ha area, with a gross floor area of 100,000 square meters in Frankfurt-Fechenheim, Hesse, Germany, with an investment of USD 1,179 million. The construction work started in Q3 2021 and is expected to be complete in Q4 2028.
• Additionally, in Germany, the turnover in building completion work increased by 9.1% in the third quarter of 2021 compared to the third quarter of the previous year, as reported by the Federal Statistical Office (Destatis).
• Overall, the growing construction market across the region is expected to drive the aerogel market during the forecast period.

United Kingdom to Dominate the Market

• The UK aerogel market is experiencing a surge in demand from the electric vehicles, construction, oil and gas, and aerospace industries.
• Properties, such as low density, thermal conductivity, and refractive index, make silica aerogel an ideal material for supercapacitors. In electric vehicles, supercapacitors are used for achieving high power in a short time. Energy from braking is stored in supercapacitors and released for quick acceleration.
• Aerogel blankets are used in deep-sea pipeline insulation in the oil and gas industries. The UK's oil and gas sector is dominated by production from offshore areas, whereas deep water pipelines play a vital role in transferring oil and gas from offshore to onshore refineries. In 2022, the UK Oil & Gas Authority (OCA) announced a production expansion by issuing new North Sea offshore oil & gas licenses.
• The use of silica aerogel in the aerospace industry is rapidly growing due to its exceptional insulation and lightweight characteristics. The UK aerospace industry is the second largest in the world and the largest in the European region. According to the International Trade Administration in 2021, the United Kingdom's civil aerospace turnover totaled approximately USD 32 billion, thus boosting the silica aerogel demand.
• Considering all the above-mentioned factors, the increase in demand for aerogel in the United Kingdom is expected to grow during the forecast period.

Europe Aerogel Market Competitor Analysis

The European aerogel market is partially consolidated in nature. Some of the major players in the market include Aerogel Technologies, BASF SE, Cabot Corporation, Green Earth Aerogel Technologies, Svenska Aerogel AB, Aspen Aerogels Inc., and others.

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