PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1561708
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1561708
Global AAC blocks and panels market is projected to witness a CAGR of 7.58% during the forecast period 2024-2031, growing from USD 22.07 billion in 2023 to USD 39.60 billion in 2031. The market thrives at a decent CAGR, attributed to the adoption of sustainable and affordable construction products, such as autoclaved aerated concrete (AAC) blocks and panels, all across the globe.
The construction industry has flourished over the years with rapidly evolving technology. Whether equipment or construction material, the industry has excelled in adopting the latest measures available. AAC blocks are being recognized and adopted across the globe. It brings a long range of benefits for end-users and construction companies. Early development and adoption of AAC block technology have created a sustainable impact on the market. AAC blocks are known for their distinct characteristics, including low weight, high strength, and great heat insulation properties. These elements make AAC technology appropriate for many different construction uses. Advancements in raw materials and higher focus energy efficiency are anticipated to shape the future trends of the market.
Emerging economies, such as China and India, are adopting AAC technology as sustainable construction material. Companies are experimenting with solid waste to make AAC, making the market landscape more competitive. New companies are setting up their plants across the globe, especially in emerging Asian economies.
For instance, in January 2023, Aircrete Group's Europe and China subsidiaries completed the first AAC plant project for Zhejiang Yuanzhu Housing Industrialization Co. Ltd. (Yuanzhu). The company is a leading building material producer in China. The plant is targeting a production capacity of 500,000 cubic meters per year. The company claims it to be the most advanced AAC production line in China.
Easy and Quick Operability to Expand the Role of AAC Blocks in Construction
A higher range of AAC blocks and panels is expected to fuel market growth. This list includes easy and faster operability, disaster resistance, thermal insulation, energy conservation, and sustainability. With almost half of the weight of traditional bricks, the AAC blocks are more accessible to carry, fit, and install while making any adjustments. From logistics to the construction times, the lightweight AAC blocks and panels shorten both at the same time. Due to their lightweight and porous nature, AAC blocks significantly reduce sound transmission. This makes them a popular choice for constructing studios, hospitals, hotels, and similar buildings where sound insulation is important. Furthermore, the disaster-resistant quality of blocks and panels fuels the market growth.
Buildings are typically engineered to withstand self-weight and gravity, along with horizontal forces generated by earthquakes. Due to the production process, AAC blocks gain high strength, leading to a long-lasting final building while withstanding greater seismic loads when compared to traditional bricks. Hence, they are considered better for a disaster-ready building.
For instance, in June 2023, Starken AAC Sdn Bhd launched an earthquake-resilient AAC wall system. The strong yet light characteristics of AAC improve structural strength and reduce the likelihood of structural collapse in earthquakes.
Long Range of Benefits Catalyze the AAC Blocks and Panels Market Growth
The global AAC blocks and panels market benefits from several long-range factors. AAC blocks and panels are eco-friendly and made from natural and recycled materials. Their production process typically emits less CO2 compared to traditional concrete, aligning with global sustainability trends and stricter environmental regulations. AAC products are known for their excellent thermal insulation properties, which reduce energy consumption for heating and cooling of buildings. This energy efficiency is increasingly important in the context of rising energy costs and the push for greener building practices. While the initial cost of AAC blocks and panels may be higher than conventional materials, their insulation, fire resistance, and lightweight benefits can lead to overall cost savings in construction, including reduced labor costs and shorter construction time. Furthermore, the companies focus on making their production facilities advanced and modernized.
For instance, in May 2023, WKB Systems GmbH, a German manufacturer of AAC, announced the completion of a plant modernization in Poland. To meet all customer needs, experts at WKB Systems designed a tailor-made cutting line capable of processing various sizes of AAC products, including blocks and panels. Its exceptional precision and superior quality distinguish this line.
Higher Affordability and Enhanced Safety to Propel the Residential Segment Growth
Based on end-use, the residential end-use segment holds a decent share of the market. For residential buildings, AAC blocks and panels provide substantial cost savings. Their insulating qualities can minimize long-term energy costs for heating and cooling, while their lightweight design lowers labor and freight costs. Excellent thermal insulation is one of AAC's primary benefits. It boosts energy efficiency and helps maintain pleasant internal temperatures, which are becoming more essential to homeowners trying to lower their utility bills. This quality is especially prized in residential buildings. Better fire resistance is a feature of AAC materials, which is especially important for residential structures. Safety elements are becoming more important to builders and homeowners, and AAC's fire resistance helps satisfy these needs. Companies are introducing AAC walls that allow the residential end-user segment.
For instance, in June 2024, SIAM Cement BigBloc Construction Technologies, a partnership between BigBloc Construction from Gujarat, India, and SCG International from Thailand, started their operations in India by opening its first plant in Kheda, Gujarat for commercial production. To bring advanced walling solutions to the Indian market, the partnership has put in around USD 7.7 million to set up a project capable of producing 2.5 lakh cubic meters annually.
Asia-Pacific Dominates AAC Blocks and Panels Market Share
Asia-Pacific leads the global AAC blocks and panels market share in terms of revenue. Emerging economies, like China and India, are indulging in smart construction. Rapid urbanization and constantly developing construction technology in these countries are expected to fuel regional growth during the forecast period. Furthermore, major companies investing in advanced technology are projected to add value to the market. Substantial funding in infrastructure projects throughout APAC, including roads, bridges, and public structures, increases the need for building materials with advantages such as lightweight, longevity, and thermal insulation. Apart from India, countries with emerging economies, such as Bangladesh and Nepal, are working on their sustainability levels.
For instance, in April 2024, Max Group of Bangladesh launched its AAC blocks and panels factory under its AAC manufacturing unit MAXCRETE. The factory has the capacity to produce 1,000 cubic meters of AAC blocks a day. The MAXCRETE factory marks a major advancement in addressing the increasing need for sustainable construction materials. AAC blocks and panels are celebrated for their exceptional strength, excellent thermal insulation, and environmentally friendly characteristics.
Future Market Scenario (2024 - 2031F)
The increasing emphasis on sustainable and eco-friendly construction materials is expected to drive the demand for AAC blocks and panels.
Innovations in manufacturing technologies and product enhancements are anticipated to thrive during the forecast period.
Rapid urbanization and growing infrastructure projects, particularly in developing regions, are projected to drive the demand for building materials.
Stricter building codes and standards focused on safety, energy efficiency, and sustainability are anticipated to impact the market.
Key Players Landscape and Outlook
Leading players invest heavily in research and development to innovate and improve AAC products. This includes enhancing product strength, insulation properties, and fire resistance. Innovations focus on developing new product applications and improving manufacturing processes to reduce costs. There is a strong emphasis on sustainability and environmental impact. Companies are developing eco-friendly products with lower carbon footprints and better energy efficiency. This aligns with global trends towards green building practices and regulatory requirements. Companies are continuously working to reduce production costs through technological advancements and process improvements. This includes optimizing supply chains and manufacturing techniques to offer competitive pricing while maintaining product quality.
In June 2023, Godrej Group's Godrej & Boyce declared that Godrej Construction, a division of the company, is expanding its market share in Nagpur, India by offering its AAC blocks as a component
of its walling and paving solutions line.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.