Market Overview

The market for autoclaved aerated concrete (AAC) is expected to register a CAGR of over 6% during the forecast period. The increasing construction activity across the world is one of the key factors driving the market studied. On the flip side, the cost of manufacturing an AAC block is higher than normal cement or burnt clay blocks, which is expected to hinder the market growth over the forecast period.

  • By product type, Blocks are estimated to dominate the AAC market followed by panels and Lintels.
  • Autoclaved aerated blocks are used in most of the countries in the Asia-Pacific region. The usage of this type and its size differ, based on the requirement in the country. These blocks are also used in Europe and in a few countries of North America, including the United States.
  • The emphasis on using fire-retardant building materials is expected to provide opportunities for the growth of the market in the future.



Key Market Trends

Residential Sector to Dominate the Market

  • AAC, owing to its thermally-insulated and energy-efficient properties, along with being fire-resistant, termite- or pest-resistant, seismic-resistant, lightweight sustainable, and quick and easy in application, is used in residential construction.
  • Moreover, autoclaved aerated concrete is reusable, recyclable, renewable, and eco-friendly. Along with the increased importance of LEED ratings, AAC is used in residential construction.
  • AAC is majorly used in Europe and Asia-Pacific. Residential construction witnessed a stable growth in Asia-Pacific, with India and China registering significant growth. The ASEAN countries have also gained momentum in residential construction. The market is expected to grow during the forecast period.
  • In Europe, the market for residential construction is stable, while in North America, the market for residential construction is expected to grow during the forecast period, due to the renovation of residential properties. The market for residential construction is growing in Middle East & Africa.
  • Hence, the residential sector is likely to dominate the market during the forecast period.



Asia-Pacific to Dominate the Market

  • Asia-Pacific holds the major share of the ACC market owing to the high demand from the construction sector of countries like China and India.
  • The Chinese government rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities, over the next ten years, despite the efforts to rebalance its economy to a more service-oriented form.
  • China’s residential property sector has been rapidly growing in terms of both sales and investments, according to the National Bureau of Statistics, China.
  • Furthermore, India is likely to witness an investment of around USD 1.3 trillion in housing, over the next seven years, during which the it is likely to witness the construction of 60 million new homes.
  • The rate of availability of affordable housing is expected to rise to around 70%, by 2024. The Indian government’s ’Housing for All by 2022’ is also a major game-changer for the industry.
  • Such factors are projected to drive the market in Asia-Pacific.



Competitive Landscape

The global autoclaved aerated concrete (AAC) market is majorly fragmented, with more than 3,000 manufacturers operating globally. The Xella Group emerged as the leading player in the global market. The key players include The Xella Group, H+H International AS, Forterra Buildings Products Limite, ACICO, and Tarmac, among others
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