Silica Aerogel Industry Witnessing Surged Demand for Building Insulations

Silica aerogel market has witnessed a significant growth in past few years on the back of rising need for advanced insulation materials in order to reduce the energy consumption in buildings. Until now oil and gas sector is the major end-user industry of the silica aerogel but now construction industry is the fastest growing industry and creating a huge demand for silica aerogel blankets and panels for insulation purposes. The silica aerogel market is majorly fueled by the demand for energy �"efficient solutions in terms of price as well as for declining greenhouse gas emissions. The cost of manufacturing silica aerogel is the major barrier for the high market growth which is likely to decrease in coming years following current technological developments and will be further decreased as the market develops and finds new opportunities.

There are many supporting government policies those are aiding the growth of silica aerogel market. For instance, European Union’s energy-efficiency target is likely to continue beyond 2020 which will encourage the market for the constant demand for thermal insulating solutions such as silica aerogels. Additionally, the government should subsidize insulation and re-insulation of buildings which could help promote the use of aerogels in order to increase the energy efficiency of buildings.

Technological advancement and quality of nano-materials is the key driver of disruptive innovation and growth. Research and development activities in the field of material sciences are giving rise to new advanced materials and posing new growth prospects through the upkeep of new existing industrial and commercial products and processes. Despite the diversity of diverse potential market applications, the use of silica aerogel is still narrow. This is primarily due to high cost and time of production, making them usually inefficient for businesses. Europe and United States positions to gain from the growth produced by companies that can offer silica aerogel products to the market that are cost-effective and can provide competing technologies. In, new groundbreaking companies are starting to deliver new means to manufacture competitively valued aerogel materials, or new aerogel products to battle conventional difficulties in a new innovative way.

Not only developed nations but developing countries are also providing huge potential for the silica aerogel market growth. The Asia Pacific is one of the most opportunistic markets for the silica aerogel market growth as the major countries such as China, Japan, India and South Korea among others are aggressively pursuing an energy-saving solution to reduce their carbon footprints in the environment. On the other hand, huge pools of crude oil and other natural resources in the Middle East and Africa region has augmented the demand for silica aerogel materials in the region. Moreover, green building mandates to reduce energy consumption by South Africa has further opened the vast avenues for silica aerogel market players to establish their markets in the country.