Global Autoclaved Aerated Concrete Market Grows at a Staggering CAGR of 7.12%

Introduction

Autoclaved aerated concrete is a versatile, lightweight building material because it contains a large number of closed-air pockets and is typically employed in the form of blocks. AAC's benefits include thermal insulation and structural capability, design and construction flexibility, increased durability and dimensional stability, excellent fire resistance, and significant noise reduction, among others. AAC provides thermal and acoustic insulation, which improves safety and reduces heating and cooling energy costs. As AAC can be easily cut into any desired shape, it is virtually possible to build an entire house out of AAC, including the walls, floors, ceilings, floors, and roof.

The global market for autoclaved aerated concrete is primarily driven by the rapidly expanding building and construction industry as a result of a government initiative promoting construction. In India, for instance, the National Housing Bank (NHB) announced the establishment of a low-cost Affordable Housing Fund for the middle class. In addition, AAC has enhanced features such as energy efficiency, acoustic properties, and durability and provides structure, insulation, and fire- and mold resistance simultaneously. This makes them an ideal material choice for builders and developers. In addition, advantages over conventional materials, low logistical costs, and stringent government regulations regarding construction have contributed to market expansion. Increasing construction expenditures and the financial advantages provided by AAC are anticipated to drive market expansion.

Market Dynamics

Rising Urbanization and Cost Savings Drives the Market

Rapid urbanization and rising demand for cost-effective construction are anticipated to propel market growth. As a result of the increase in construction in developing nations, the need for faster construction is growing. The use of autoclaved aerated concrete blocks expedites construction considerably. Autoclaved aerated concrete blocks are larger and have fewer joints than non-autoclaved aerated concrete blocks, making them easier to handle and resulting in quicker completion times. Because autoclaved aerated concrete blocks are significantly lighter than conventional concrete blocks, less steel and concrete are required to hold them in place. AAC blocks reduce steel and concrete reinforcement costs by up to 20%. This is because of its lightweight, which reduces the building's dead load and consequently reduces the need for steel reinforcement by up to 20% compared to red bricks. The cost-saving benefits of autoclaved aerated concrete will increase its adoption in developing countries and government-aided residential projects around the world, thereby significantly contributing to the market's expansion.

Government Programs for Housing Projects gives Opportunity for Exponential Growth

Governments around the world are promoting the use of AAC blocks in the construction of numerous housing projects. Governments promote the use of autoclaved aerated concrete because its blocks are non-toxic, recyclable, reusable, and renewable. AAC Blocks complement project management in terms of construction speed, consistency, and quality, in addition to their inherent advantages. AAC market growth is being driven by key factors such as the Indian government's initiative to use eco-friendly construction materials as part of its mission to achieve net-zero carbon emissions. The 'Housing for All by 2024' initiative of the Indian government, along with projects such as Pradhan Mantri Awas Yojana, Police Housing, Kanya Shiksha Parishar, and others, are significant game-changers for the industry. It is anticipated that demand for autoclaved aerated concrete will increase as regional government projects and the real estate industry expand.

Regional Analysis

Asia Pacific is the most significant shareholder in the global Autoclaved Aerated Concrete market and is expected to grow at a CAGR of XX% during the forecast period. The larger share is associated with China and India's rapid urbanization and expanding real estate sectors. The Indian government is investing USD 1.3 trillion in housing projects to build 60 million new homes under the 'Pradhan-Mantri Awas Yojana- Gramin Program until March 2024. The Chinese government has introduced massive construction plans, including plans to relocate 250 million people into new megacities over the next ten years. According to the National Bureau of Statistics of China, China's residential housing sector has been rapidly expanding in terms of both sales and investments. With the growing consumer electronics and construction industries, demand for AAC is expected to increase in the coming years. The increasing adoption of autoclaved aerated concrete in China's construction sector, the country's industrial growth, the widespread availability of raw materials, and the presence of cheap labor are all expected to propel market growth in the region.

The North American autoclaved aerated concrete market is estimated to expand at a steady pace during the forecast period. Factors contributing to the market's steady growth include an increasing number of manufacturing facilities and a regional preference for sustainable construction. Market participants are employing a variety of strategies to increase revenue opportunities. The presence of some key players in the United States is a result of their rapid profitability. Furthermore, increasing investment in technological developments in AAC manufacturing companies is propelling the AAC market forward.

Europe is expected to witness potential growth in the global autoclaved aerated concrete market owing to the presence of domestic AAC production facilities throughout Europe, including the United Kingdom, Germany, Poland, and Russia. Huge demand from the commercial sector, combined with various business incentives provided by regulatory bodies, has led to market growth in Europe over the forecast period. AAC has numerous benefits in the construction industry, including energy efficiency, sustainability, and cost savings. Over the forecasted period, government policies such as the European Union's (EU) goal of reducing energy demand in building stock by 80% by 2050 are expected to drive the market for autoclaved aerated concrete.

The LAMEA region is expected to have steady growth because of the need for improved infrastructure and commercial development activities in the UAE and Saudi Arabia. The rapid construction activities taking place in the Middle East's oil-rich countries will significantly contribute to the growth of the autoclaved aerated concrete market. Improvements in the economy and rising per capita income will boost construction activity in South America, assisting in the region's market growth.

Key Highlights

• The global autoclaved aerated concrete market was valued at USD 5.03 billion in 2022. It is projected to reach USD 9.34 billion by 2031, growing at a CAGR of 7.12% during the forecast period (2023-2031).
• Based on product, the global autoclaved aerated concrete market is bifurcated into blocks, beams & lintels, cladding panels, wall panels, roof panels, floor elements, and others. The blocks segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period due to its various benefits in construction activities.
• Based on application, the global autoclaved aerated concrete market is bifurcated into residential, commercial, and industrial. The commercial segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period
• Asia Pacific is the most significant shareholder in the global autoclaved Aerated Concrete market and is expected to grow at a CAGR of XX% during the forecast period.

Competitive Players

Competitive Analysis:

The global autoclaved aerated concrete market's major key players are Biltech Building Elements Limited (India), Xella Group (Germany), Bauroc International AS (Estonia), AERCON AAC (USA), H+H International (Denmark), Eastland Building Materials Co (China)., Buildmate (India), UltraTech Cement Ltd. (India), BIGBLOC Construction (India), Brickwell (India) and Hil Ltd (India).

Recent Developments

Market News:

• In June 2022, Xella Group, a leading building material provider from Europe, sold its insulation business URSA to Etex.
• In February 2022, BigBloc Construction decided to expand its manufacturing capacity by installing a Greenfield project of AAC blocks in Maharashtra, India.

Segmentation

Global Autoclaved Aerated Concrete Market: Segmentation

By Product

• Blocks
• Beams & Lintels
• Cladding Panels
• Wall Panels
• Roof Panels
• Floor Elements

By Application

• Residential
• Commercial
• Industrial

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA