AAC Blocks And Panels Market Research, 2031
The global AAC blocks and panels market was valued at $19 billion in 2021, and is projected to reach $34.4 billion by 2031, growing at a CAGR of 6.2% from 2022 to 2031. Autoclaved Aerated Concrete (AAC) is made industrially using fine aggregate or fly ash and cement. Autoclaved Aerated Concrete (AAC) is made industrially using fine aggregate or fly ash and cement. The AAC blocks and panels are light lightweight building materials, and weigh in between 1/6th and 1/3rd that of regular concrete. Furthermore, it is referred to as porous concrete, aircrete, foam concrete, autoclaved cellular concrete, and autoclaved lightweight concrete.
The building industry worldwide is expanding as a result of rising urbanization and population growth. Additionally, the market is expanding as a result of an increase in demand for environmentally friendly products. Construction materials’ demand is anticipated to continue at the quickest growth rate over the forecast period due to their advantages over traditional concrete, including high tensile strength, a high rate of compression, and easy machinability. These AAC blocks have various end-use applications in residential construction, commercial construction, industrial construction, and infrastructural construction.
Sky-rocketing cost of AAC blocks is expected to hinder the market's growth. Also, due to their brittle nature, AAC blocks demand greater caution when handling and transporting than clay red brick. This factor is anticipated to impede market growth in the future.
The industry players are investing a lot of effort in the research and development of smart and unique strategies to sustain their growth in the market. These strategies include product launches, mergers & acquisitions, R&D investment, and product development. AAC blocks and panels market participants are concentrating more on construction projects. Demand for concrete building materials has increased throughout India as a result of the expansion of the construction industry. Demand for residential, commercial, and industrial buildings has increased as a result of the overall increase in construction and infrastructure projects, which has also led to sustained growth in the construction materials sector. This factor anticipated the AAC blocks and panels market opportunity during the forecast period.
The key players profiled in this report include JK Lakshmi Cement Ltd., Xella Group, Biltech Building Elements Limited, UltraTech Cement Ltd., AERCON AAC, Wehrhahn GmbH, AKG Gazbeton, SOLBET, and many others.
The global AAC market is segmented on the basis of product type, end-use, and region. By product type, the market is sub-segmented into blocks, panels, lintels, and others. By end-use, the market is classified into residential construction, commercial construction, industrial construction, and infrastructural construction. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The AAC blocks and panels market is segmented into Product Type and End-Use.
By product type, the blocks sub-segment dominated the market in 2021. The demand for AAC blocks as a product type is increasing majorly due to the rising number of construction activities, worldwide. In addition, the use of AAC blocks as a product type helps to speed up the process in construction, which is dimensionally accurate. These blocks are accessible in wide-ranging sizes and can be customized for special requirements. The AAC blocks occupy a large surface area and have high efficiency. These are predicted to be the major factors affecting the AAC blocks and panels market size during the forecast period.
By end-use, the residential construction sub-segment dominated the global AAC blocks and panel market share in 2021. The growth of this sub-segment can be attributed to the use of AAC for residential construction, industrial construction, and infrastructural construction projects. For instance, AAC is widely used for commercial construction, which creates a scope of growth for the sub-segment during the forecast period. Blocks, panels, and lintels are products used in the construction sector.
By region, Asia-Pacific dominated the global AAC blocks and panels market demand in 2021 and is projected to remain the fastest-growing sub-segment during the forecast period. The AAC blocks demand in countries, namely China and India, which is growing rapidly due to high demand for various services such as education and entertainment, which is creating a major scope for facility construction. Also, the growing population in these countries have increased the demand for residential construction due to which government in these countries have launched various projects aimed at promoting residential building construction. This factor has led to a significant increase in AAC blocks and panels market share in the upcoming years.
Impact of COVID-19 on the Global AAC Blocks and Panels Industry
- COVID-19 has negatively impacted various industries such as the construction sector that has led to a drastic decline in civil sales. As AAC blocks are widely used in the construction business, there was a significant reduction in the AAC blocks and non-reinforced panels demand globally.
- China is the leading producer and exporter of raw materials required for AAC production. However, China being the epicenter of the coronavirus pandemic, its export was affected, leading to a decline in its production.
- Commercial complexes and manufacturing units were shut down, temporarily which result in a reduction in the development rate of the construction industry.
- The economic slowdown has affected the setup of new projects across the world as the majority of government funding was diverted towards the healthcare sector owing to the rapid spread of the COVID-19 virus, impacting the market to the great extent.
Key Benefits For Stakeholders
- The report provides an exclusive and comprehensive analysis of the global AAC blocks and panels market trends along with the AAC blocks and panels market forecast.
- The report elucidates the AAC market opportunity along with key drivers, and restraints of the market. It is a compilation of detailed information, inputs from industry participants and industry experts across the value chain, and quantitative and qualitative assessment by industry analysts.
- Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the market for strategy building.
- The report entailing the AAC blocks and panels market analysis maps the qualitative sway of various industry factors on market segments as well as geographies.
- The data in this report aims at market dynamics, trends, and developments affecting the AAC blocks and panels market growth.
AAC Blocks and Panels Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 34.4 billion |
 Growth Rate | CAGR of 6.2% |
 Forecast period | 2021 - 2031 |
 Report Pages | 305 |
 By Product Type |
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 By End-Use |
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 By Region |
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 Key Market Players | ual industries ltd, JK Lakshmi Cement Ltd, Biltech Building Elements Limited, UltraTech Cement Ltd., Xella Group, Wehrhahn GmbH, h+h uk limited, SOLBET, AKG Gazbeton, AERCON AAC |
Analyst Review
An increase in demand for residential, commercial, and infrastructure construction is the key factor that is projected to drive the growth of the global AAC blocks and panels market. In addition, the implementation of stringent government regulations toward environmental protection, by using the AAC blocks, is expected to fuel the growth of the market during the forecast period. However, high initial investments and environmental concerns associated with AAC blocks are the key factors expected to hamper the market growth during the forecast period. On the contrary, the rapid growth of the construction industry and the rise in urbanization are anticipated to provide remunerative opportunities for key players to maintain the pace of the AAC block and panels market in the upcoming years.
Among the analyzed regions, Asia-Pacific is expected to account for the highest revenue in the market by the end of 2031, followed by, Europe, North America, and LAMEA. Rapid industrialization and urbanization are the key factors responsible for the leading positions of Europe and Asia-Pacific in the global AAC blocks and panels market.
The diverse applications of AAC blocks and panels in construction activities across residential and commercial sectors are the major market drivers. The significant rise in construction activities across the world owing to increasing investments and rising population is estimated to generate excellent growth opportunities in the market.
The major growth strategies adopted by AAC blocks and panels market players are mergers & acquisitions.
Asia-Pacific will provide more business opportunities for the global AAC blocks and panels market in future.
Aercon AAC, CSR Ltd., and JK Laxmi Cement are the leading market players active in the AAC blocks and panels market.
Residential sub-segment of the end user acquired the maximum share of the global AAC blocks and panels market in 2021.
Construction industry and manufacturers are the major customers in the global AAC blocks and panels market.
The report provides an extensive qualitative and quantitative analysis of the current trends and future estimations of the global AAC blocks and panels market from 2021 to 2031 to determine the prevailing opportunities.
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