Market Trends of Aerogel Industry
Surging Application in the Oil and Gas Industry
- In the oil and gas industry, the development of cleaner and more durable aerogel blankets improves insulation for deep-sea pipe-in-pipe oil and gas pipelines by lowering installation costs, making pipelines more resistant to compression, reducing the amount of steel used in pipeline construction, and increasing oil and gas flow and security.
- Oil and gas are important parts of the energy market, and as the world's main fuel source, they have a big impact on the world economy.They make fuel for cars, planes, ships, and other industrial engines so that people and goods can move around.
- Global oil production will amount to 89.9 million barrels per day in 2021, according to BP.
- By 2045, India is expected to need 11 million barrels of oil per day, which is double what it needs now.Moreover, various companies are investing to expand exploration facilities across the country. For instance, in May 2022, ONGC announced plans to invest USD 4 billion from FY22-25 to increase its exploration efforts in India.
- Saudi Arabia has the second-largest proven oil reserves in the world. Saudi Arabia's oil production amounted to some 10.95 million barrels per day in 2021, down from 11.04 in the previous year, according to BP.
- Moreover, in 2021, according to Enerdata, the United States crude oil production (17% of global output) increased by 1.3%. Additionally, Russia became the world's second-largest crude oil producer, surpassing Saudi Arabia's output by around 1.5%.
- Japan's economy, trade, and industry ministry (Meti) sees LPG use in 2026-2027 rising to 13.1 million tons, an increase of 4.3 percent from the 2021-2022 demand estimate of 12.6 million tons.
- Since more and more industries are using silica aerogel, it is expected that the demand for silica aerogel will grow quickly over the next few years.
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United States to Dominate the North America Region
- The United States is expected to continue being the leading country in North America.
- Growing stringent environmental norms by the United States government, growing awareness of eco-friendly products, and extensive research on product and process development to manufacture aerogel are the key factors helping the United States remain in the top position in the market studied. Thermal and acoustic insulation is the major application where aerogel is highly used.
- The United States Department of Energy (DOE) is investing in innovative insulation materials that save energy and money for the industrial sector.
- Furthermore, with the rapidly growing building and construction, oil, and gas industries, among others, the market studied in the United States is expected to rapidly increase over the forecast period.
- The United States has one of the world's largest construction industries. As of January 2023, construction spending in the country was valued at USD 1.82 trillion.
- According to the US Census Bureau, the new home construction output in the United States private sector reached nearly USD 900 billion in 2022. Privately owned housing units authorized by building permits were at a seasonally adjusted annual rate of 1,339 thousand units in January 2023. This is 0.1 percent above the revised December rate of 1,337 thousand units.
- Also, the aerogel can be shaped into monoliths or thin films that can be used for thermal and acoustic insulation, thin-film coatings, reducing vibrations, or anywhere structural foam is used in vehicles right now.
- The United States is the second-largest automotive manufacturer, after China, and it had a production of 9.17 million vehicles in 2021, an increase of 4% from the previous year. In the past five years, the country has witnessed robust growth in automobile production.
- In January 2023, the United States' new vehicle sales of 1,066 thousand units represented a decrease of 17.2% from December 2022 and an increase of 5.8% from one year ago.
- Owing to all these factors, the North American region is expected to dominate the market during the forecast period.
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