The total aerogel market is valued at USD 800 million as on 2023 and is likely to reach USD 3,125 million by the end of 2030, growing at a CAGR of 25%. Increasing demand of aerogel in various end-user industries such as oil & gas, automotive, and marine & aerospace, is expected to increase the consumption of aerogel in these industries. High insulation properties of aerogel and cheap & abundant availability of the raw material are some of the factors driving the use of aerogel in these end-use industries. Easy installations of aerogel in insulation application, followed by reusable and recyclable properties of aerogel further add value to its end-market. However, high production cost still remains a major challenge for the aerogel industry. Based on the raw material, aerogel market is segmented into carbon, alumina and others. Aerogel market is dominated by silica aerogel, which is used in all major applications, such as oil & gas, building insulation, automotive, aerospace, electronics, and others. Silica aerogel accounted for more than three fourth of market share in the aerogel industry, in 2023. However, the demand of carbon aerogel is expected to register the highest growth due to growing application of carbon aerogel in electronics, semiconductor and super capacitors applications.                                                                                                                                                                                                                                                                     
Oil & gas segment is the largest application of aerogel in 2023, followed by building insulation. Rising demand of advanced insulation materials in the oil & gas application is fueling the growth of the aerogel market globally.
Industry players are adopting various strategies such as new product launch, partnership, and expansion to increase their presence in the competitive market. Some of the major companies active in the industry include Aspen Aerogel Inc., Cabot Corporation, American Aerogel Corporation, Svenska Aerogel AB, BASF SE, Dow Corning Corporation, Airglass AB, JIOS Aerogel, Active Aerogels, and Acoustiblok UK Ltd.

Strong technological set-up has made North America the largest market for aerogel followed by China. Aerogel finds high application in space suits developed by National Aeronautics and Space Administration (NASA) in the United States. Countries like Brazil, Germany, and UK are few other markets for aerogel. Asia-Pacific and Europe is expected to register high growth due to their increasing research activities in innovation and new application areas.