Billion-Dollar Breakthrough and Beyond: How the Aerogels Market will Evolve Over the Next Decade
Author: Dr Shababa Selim, Senior Technology Analyst at IDTechEx
Owing to their exceptionally low thermal conductivity, low density, hydrophobicity, fire retardancy, and acoustic insulation, aerogels have historically seen steady growth across LNG, industry, energy infrastructure, and several other markets. However, since 2020, the emergence of aerogels as fire protection material for electric vehicle (EV) batteries has provided a new and rapidly growing opportunity for the aerogel market. According to the latest IDTechEx market report, “Aerogels 2025-2035: Technology, Market, Forecasts“, the adoption in EV thermal barriers has helped drive the aerogels market to exceed US$1 billion in 2025.
IDTechEx's 10-year forecasts for growth in the aerogels market are segmented by application. Source: IDTechEx
EV batteries will be the dominant application for aerogels in the future
Aerogels have experienced significant year-on-year growth in electric vehicle (EV) applications, with market share expanding nearly 20-fold from 2021 to 2024. For instance, Aspen Aerogels, a leading player in the aerogels market, recently reported a 90% increase in year-on-year (YoY) revenue for FY2024, with its EV thermal barrier segment growing 2.8 times since 2023.
Additionally, polymer aerogels, an alternative to more broadly used silica-based aerogels, have started to emerge for ultralightweight applications that require mechanical durability. Development is mostly at the early stages, with only a handful of players in the field driving efforts to scale manufacturing, such as Blueshift and Aerogel Technologies. However, as the technology matures, these materials can have opportunities in future aerospace and aircraft (e.g. eVTOL).
As standards evolve and the EV market continues to grow, there will be an increased focus on thermal runaway propagation prevention, fire protection, and providing longer escape times for vehicle passengers. IDTechEx predicts that this will be the dominant application for aerogels within the forecast period, with significant adoption in China by players such as BYD and CATL, but also globally with adoption from GM, Toyota, and Audi to name a few. The report compares aerogels against other fire protection materials for EV batteries and an analysis of players and partnerships. A comprehensive analysis of other fire protection materials for EV batteries can be found in IDTechEx report “Fire Protection Materials for EV Batteries 2025-2035: Markets, Trends, and Forecasts“.
Expansion in global production capacity to keep up with growing demand
IDTechEx has been monitoring global and regional aerogel manufacturing capacity growth since 2015. This is owing to increasing demand from major sectors in addition to EVs, such as industrial, LNG & Energy, among others. China has become increasingly dominant in this sector, with numerous players rapidly ramping up production over the past few years. According to IDTechEx estimates, China currently accounts for approximately 97% of the global production capacity, with several major expansions planned.
IDTechEx's report “Aerogels 2025-2035: Technology, Market, Forecasts”, includes a comprehensive assessment of key aerogel manufacturers such as Aspen Aerogels, Cabot, IBIH, Nano Tech, Armacell, LG Chem, and several others, covering production capacity, products, production processes, planned expansions, and more.
The market outlook for aerogels
IDTechEx has been studying the aerogel industry for many years with technical experts conducting extensive primary interviews to bring the reader a granular and detailed assessment of this industry.
Historically, the high cost of aerogels compared to incumbent insulation materials has hindered their widespread growth. With increasing global manufacturing capacity, IDTechEx forecasts a boost in adoption across applications requiring high-performance insulation materials, such as EV, industrial, LNG, and Energy. However, unless production costs can be significantly reduced, aerogels may struggle to compete with other insulation materials in applications that prioritize cost efficiency or operate on thinner profit margins.
IDTechEx's report “Aerogels 2025-2035: Technology, Market, Forecasts”, delves into how the industry is addressing the challenge to lower manufacturing costs through process innovations and alternative manufacturing methods. It offers a comprehensive and independent analysis of the global aerogel market, giving detailed ten-year market forecasts segmented by application and material type, including silica-based and polymer aerogels. The report also benchmarks commercially available aerogels across several applications, including thermal barriers for EV batteries, oil & gas, building & construction, and more. Assessment of aerogel applications is also included for other markets such as energy storage, electronic appliances, daylighting & windows, and many more. IDTechEx forecasts the aerogels market to grow 3.2-fold at a CAGR of 12.2% from 2025-2035.
For more information on this report, including downloadable sample pages, please visit www.IDTechEx.com/Aerogels.
For the full portfolio of advanced materials research available from IDTechEx, please visit www.IDTechEx.com/Research/AM.
