Autoclaved aerated concrete, also referred AAC, is a precast green building material. It has been in use in global autoclaved aerated concrete market from decades. AAC is extensively used in residential, commercial and industrial construction owing to its lightweight, high-insulating, load-bearing, increased durability and availability in wide range of sizes and strengths. As compared to traditional red bricks AAC blocks are three times lighter and durable making it an ideal material. Chemical reaction owing to aluminum paste, high heat and pressure provide AAC its distinctive features such as lightness, porous structure, and completely different structure over other concrete materials.
Geographically, global autoclaved aerated concrete market is segmented into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.
Emerging economies such as China and India contribute highest share in the Asia Pacific autoclaved aerated concrete market. Rapid urbanization in these regions have resulted in development of smart cities. In India cities like New Delhi, Mumbai and others have been listed in top smart cities for the year 2017 by Smart Cities Index, thereby increasing demand for AAC market for associated constructions in these areas. China is estimated to have a major share of smart cities projects which is followed by India having investments of approx. 203172 crores, according to SMARTNET (Solutions Exchange for Urban Transformation of India). Additionally, government undertaken initiatives promoting construction is one of the major drivers for AAC market. For instance, in India mission initiated under Pradhan Mantri Awas Yojana, “Housing for All “have contributed to propelling market demand. Apart from India, China is thriving developing economy expected to grow rapidly owing to speedy development of urbanization and rapidly growing population.
AAC material was first developed in 1924 in Sweden, Europe. There is huge demand for material in Europe owing to high-awareness about the material. Various business incentive policies offered by legislative bodies and high demand from commercial sector is major factor driving the growth of European autoclaved aerated concrete market. According to European AAC Association, there are more than 100 AAC manufacturing plants on 18 countries which are producing 15 million cubic meters of AAC every year. This amount of AAC material is used in construction as green solution in near about 300,000 homes which boosts the growth of market in Europe region. Continuous development of construction industry and booming green building material concept particularly in Germany contributes large share in European autoclaved aerated concrete market.
Autoclaved aerated concrete market in North America is estimated to grow considerably. This is attributed to factors such as preference to wood-based construction all over the region. Likewise, autoclaved aerated concrete market in MEA is likely to propel during the forecast period and growth of market is attributed to establishment of state council in several regions by the World Green Building Council (WGBC) and various other government supportive activities implemented in the region.
Global autoclaved aerated concrete market is segmented by product type, end-use, and region.
On the basis of product type, market is segmented into blocks, panels, and others. Construction of wall made with AAC blocks is comparatively cost effective over traditional bricks, owing low density of AAC blocks reduces structural load. Moreover, labor required by AAC blocks is significantly less that results in considerable time savings. These factors are expected to drive growth of block segment during the forecast period 2019-2026.
On the account of end-use, autoclaved aerated concrete market is categorized into residential, industrial, commercial and others. The residential segment is expected to witness a significant growth owing to urbanization and the associated need for economical housings are projected to contribute towards the growth.
Global Autoclaved Aerated Concrete Market Segmentation