China Aerogel Market By Type (Silica, Carbon, Polymer and Others), By Application (Oil & Gas, Construction, Transportation, Performance Coating, Day-lighting & LVHS and Others), By Region, Competition, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 131.32 Million
CAGR (2026-2031)	4.48%
Fastest Growing Segment	Silica
Largest Market	South-Central
Market Size (2031)	USD 170.82 Million

Market Overview

The China Aerogel Market will grow from USD 131.32 Million in 2025 to USD 170.82 Million by 2031 at a 4.48% CAGR. Aerogels are synthetic, highly porous materials produced by replacing the liquid component of a gel with a gas, resulting in a solid characterized by extremely low density and superior thermal insulation properties. The market in China is expanding rapidly, primarily driven by stringent industrial energy efficiency mandates and the critical need for thermal management solutions in the automotive sector. The integration of these materials into battery packs to prevent thermal runaway is a major catalyst for the industry. This demand is substantiated by the robust growth of the electric vehicle sector; according to the China Passenger Car Association, in 2024, retail sales of new energy vehicles in China reached approximately 11 million units. This surge in vehicle production directly correlates with increased procurement of high-performance insulation materials for battery safety systems.

Despite the favorable demand environment, the high cost of manufacturing remains a significant impediment to broader market scalability. The production process involves complex and energy-intensive stages, such as supercritical drying, which necessitates expensive equipment and elevates the final price point far above conventional alternatives like fiberglass or rock wool. This price disparity restricts the adoption of aerogels to high-value applications, thereby limiting their penetration into cost-sensitive sectors such as general construction and residential building insulation where cheaper substitutes dominate.

Key Market Drivers

Rapid Expansion of Electric Vehicle Battery Thermal Management is the primary force propelling the China Aerogel Market. As the electric vehicle (EV) sector surges, the risk of thermal runaway in high-energy-density batteries has necessitated the adoption of superior insulation materials like aerogel pads. These materials offer exceptional thermal resistance in thin profiles, ensuring compliance with China’s rigorous safety standards such as GB 38031-2020, which mandates no fire propagation for five minutes after a cell failure. This critical application is directly supported by the immense scale of the battery industry; according to the China Automotive Battery Innovation Alliance, January 2024, the cumulative production of power batteries in China reached 778.1 GWh in 2023. This massive volume of battery manufacturing creates a sustained, high-volume demand channel for aerogel thermal barriers that far exceeds niche industrial uses.

Scaling of Domestic Manufacturing Capabilities Reducing Material Costs is the second vital driver transforming the market landscape. Historically, the prohibitive cost of aerogel restricted its use, but Chinese manufacturers are aggressively expanding production capacity to achieve economies of scale and lower unit prices. This shift is enabling aerogel to compete with traditional insulation in cost-sensitive projects. Validating this trend of rapid industrial expansion, according to Jiangxi Hungpai New Material, December 2024, in an investor platform statement, the company completed its first phase project with an annual production capacity of 3,000 cubic meters of functional aerogel specifically for new energy applications. Furthermore, the maturation of the upstream chemical ecosystem is evident; according to Sinopec, August 2024, in the 'Energy and Chemical Industry Chain Carbon Footprint Alliance' declaration, the initiative targets establishing accounting standards for 20 key products by 2027, signaling a robust standardized framework for advanced material production.

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Key Market Challenges

The high cost of manufacturing presents a formidable barrier to the expansion of the China Aerogel Market, effectively restricting its adoption to niche, high-value industrial applications. This price disparity stems from complex production requirements, particularly the energy-intensive supercritical drying process which necessitates specialized, capital-heavy infrastructure. Consequently, manufacturers are unable to lower price points sufficiently to compete with established, traditional insulation materials in cost-sensitive sectors such as general construction and residential building. This inability to penetrate the mass market severely caps the total addressable market volume for aerogel products, confining them to performance-critical industries.

The overwhelming dominance of low-cost alternatives in the Chinese market further illustrates this competitive disadvantage. According to the China Industrial Association of Engineering & Eco-friendly Materials, the domestic output of rock wool, a primary conventional substitute, was projected to reach 3.9 million tons in 2024. This massive production scale of traditional materials underscores the significant difficulty aerogel manufacturers face in displacing incumbent products. Until production costs align more closely with these cheaper substitutes, the market will remain heavily reliant on specialized sectors like electric vehicle thermal management, preventing the material from achieving widespread commercial scalability.

Key Market Trends

Emergence of Aerogel-Enhanced Consumer Apparel and Textiles is transforming the personal thermal protection sector, as brands increasingly substitute bulky down fillings with ultra-thin aerogel composites. Domestic sportswear giants are integrating these materials to create winter gear that offers superior warmth with minimal thickness, directly addressing consumer demand for lightweight functionality. This application trend is bolstered by the robust performance of the broader functional fabric sector; according to World Textiles Journal, June 2024, in the 'China's Technical Textile Industry Shows Strong Growth in Early 2024' article, total profits in China's technical textile industry surged by 27.9% year-on-year in the first four months of 2024, reflecting the high value-add of these advanced materials.

Increasing Utilization in Cryogenic LNG Infrastructure is a critical trend driven by the nation's aggressive expansion of natural gas storage and transportation capabilities. Aerogel blankets are becoming the preferred insulation for Liquid Natural Gas (LNG) pipelines and tanks at -163°C due to their hydrophobicity and ability to provide required thermal resistance at a fraction of the thickness of traditional cellular glass. This infrastructure build-out provides a massive addressable market for cryogenic aerogels; according to Offshore Energy, January 2025, in the 'CNOOC earmarks up to $19 billion for oil & gas, offshore wind, solar, and AI-integrated plays' article, the China National Offshore Oil Corporation's capital expenditure for 2024 reached approximately RMB 132 billion, significantly funding the development of these energy storage and logistics networks.

Segmental Insights

The Silica segment is currently the fastest-growing category within the China aerogel market, driven primarily by its extensive application in the electric vehicle sector. This growth is accelerated by the enforcement of rigorous national GB safety standards, which necessitate effective materials to prevent thermal runaway in battery packs for new energy vehicles. Furthermore, the industrial and construction sectors increasingly adopt silica aerogels to comply with government mandates regarding energy conservation and fire resistance. Consequently, the superior thermal insulation capabilities of silica continue to stimulate robust demand across these expanding domestic industries.

Regional Insights

South-Central China maintains a dominant position in the regional aerogel market due to the dense concentration of new energy vehicle manufacturing and petrochemical industries in provinces such as Guangdong. This leadership is reinforced by safety regulations from the Ministry of Industry and Information Technology, which mandate strict thermal propagation standards for power batteries. Consequently, automotive manufacturers in the region prioritize aerogel materials for their superior thermal isolation properties to ensure compliance. The robust industrial infrastructure and high demand for energy-efficient insulation solutions further consolidate South-Central China as the primary hub for market activity.

Recent Developments

• In July 2025, IBIH Advanced Materials inaugurated a new joint international aerogel research and development center in China. This milestone, coinciding with the company's tenth anniversary, involved collaboration with international partners to advance aerogel technologies. The new facility is dedicated to developing thermal management solutions for electric vehicle batteries, a sector where the company has established strong market leadership. This expansion signifies a deepening of international collaboration and a continued commitment to innovation within the aerogel market, positioning the company to drive further advancements in sustainable green mobility solutions and industrial applications.
• In February 2025, Aspen Aerogels announced a strategic initiative to leverage the production capabilities of Chinese manufacturers to optimize its supply chain. During an investor update, the company outlined plans to collaborate with contract manufacturers in China to support its Energy Industrial and electric vehicle businesses. This approach allows the company to capitalize on the rapid production scalability in the Chinese market while managing capital expenditures. The decision highlights the critical role of China's manufacturing infrastructure in the global aerogel supply chain and the company's focus on cost-effective expansion to meet growing international demand.
• In September 2024, Jiangyin Qingfeng Chemical Fiber Co., Ltd. showcased its latest aerogel fiber innovations at the China Sock Industry New Functional Materials Forum. The company introduced new fiber materials characterized by lightweight and heat-insulating properties, designed for applications in clothing, sports equipment, and home textiles. During the event, the company highlighted the successful integration of aerogel fibers into consumer products and expressed a commitment to increasing research and development. This strategic launch aims to achieve breakthroughs in segmented markets and expand the commercial adoption of functional aerogel materials across the textile industry.
• In September 2024, Armacell strengthened its position in the aerogel sector by acquiring the remaining shares of its joint venture, JIOS Aerogels. This strategic move provided the company with full control over significant manufacturing capabilities, including substantial annual powder production capacity. The acquisition was specifically aimed at enhancing the company's footprint in the electric vehicle market, where aerogel is critical for thermal runaway protection. By consolidating this capacity, the company intends to better serve the demand for high-performance insulation in the Asian market, leveraging the established technological capabilities of its subsidiary in aerogel powder production.

Key Market Players

• Cabot China Ltd.
• Aspen Aerogels, Inc.
• Aerogel Technologies, LLC
• Guizhou Aerospace Fenghua Industrial Co. Ltd.
• Jios Aerogel Corporation
• Zhejiang UGOO Technology Co., Ltd.
• Nano Tech Co., Ltd.
• Guangdong Alison Technology Co., Ltd.
• Dow Chemical Co., Ltd.

By Type	By Application	By Region
Silica Carbon Polymer and Others	Oil & Gas Construction Transportation Performance Coating Day-lighting & LVHS and Others	North North-East East North-West South-Central South-West

Report Scope:

In this report, the China Aerogel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• China Aerogel Market, By Type:

• Silica
• Carbon
• Polymer and Others

• China Aerogel Market, By Application:

• Oil & Gas
• Construction
• Transportation
• Performance Coating
• Day-lighting & LVHS and Others

• China Aerogel Market, By Region:

• North
• North-East
• East
• North-West
• South-Central
• South-West