Allied Market Research

Autoclaved Aerated Concrete (AAC) Market Expected to Reach $26.9 Billion by 2027


Report Code : A08691

quote Autoclaved aerated concrete (AAC) is a profitable alternative for low-cost construction especially in developing regions. The penetration of traditional walling materials is very high, owing to the lack of awareness regarding the advantages of AAC. quote

Vivek Banik
Senior Research Analyst, Construction and Manufacturing at Allied Market Research

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According to a new report published by Allied Market Research, titled, “Autoclaved Aerated Concrete (AAC) Market by Product Type, End User, and Application: Opportunity Analysis and Industry Forecast, 2020–2027,” the global autoclaved aerated concrete (AAC) market size is expected to reach $26.9 billion in 2027 from $17.1 billion in 2019, growing at a CAGR of 7.2% from 2020 to 2027. In 2019, Asia-Pacific dominated the market, in terms of revenue, accounting for 52.7% share of the global autoclaved aerated concrete (AAC) market.

Autoclaved aerated concrete is also known as autoclaved light-weight concrete, aircrete, foam concrete, autoclaved cellular concrete, or porous concrete and is a light-weight alternative for the construction of walls and other non-load bearing members. AAC is generally available as panels, blocks, and others, which can be used for wall cladding, flooring, roofing, partition walls, and others. This type of concrete mainly constitutes of around 80% air induced by the expansion agent to reduce the density and overall weight of the product.

Europe and Asia-Pacific are the highest contributors in the autoclaved aerated concrete (AAC) market. Countries such as China, Germany, Poland, and the UK hold majority of the global share in production and consumption of AAC, owing to the demand for light weight and high thermal insulation properties of AAC. However, rise in awareness against traditional clay bricks mainly in developing nations such as India, Bangladesh, Mexico, and others is likely to boost the growth of the autoclaved aerated concrete (AAC) market in these countries. Furthermore, the easy availability of wood in low costs mainly in the U.S. and Canada has hindered the demand for AAC in these countries.

According to product type, the blocks segment was the leading contributor in the autoclaved aerated concrete (AAC) market, due to ease of manufacturing of AAC blocks. In the UK alone, around 25.4-million-meter square of aerated blocks were consumed during 2019 whereas the total production reached approximately 27.9-million-meter square during the same period. 

The outbreak of COVID-19 pandemic has negatively affected the autoclaved aerated concrete (AAC) market due to halt in international trade, prolonged lockdown, and ceased manufacturing processes. In addition, the major end-user companies in China, Germany, and the UK are facing financial impacts due to halted production and interrupted supply chains, which is expected to hinder the growth of the autoclaved aerated concrete (AAC) market during 2020.

The global autoclaved aerated concrete (AAC) market is segmented on the basis of product type, end user, application, and region. Depending on product type, the market is classified into blocks, panels, and others. According to end user, it is categorized into residential and non-residential. On the basis of application, it is classified into walls, floors & roofs, and others. 

The global autoclaved aerated concrete (AAC) market is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, and rest of Europe), Asia-Pacific (China, India, Japan, and rest of Asia-Pacific), and LAMEA (Latin America, the Middle East, and Africa). Asia-Pacific is expected to hold the largest market share throughout the study period, and LAMEA is expected to grow at the fastest rate.

Key Findings Of The Study

  • By product type, the blocks segment dominated the autoclaved aerated concrete (AAC) market share in 2019.
  • On the basis of end user, the residential segment led the autoclaved aerated concrete (AAC) market in 2019.
  • Depending on application, the wall segment garnered major share of the autoclaved aerated concrete (AAC) market in 2019.
  • Region wise, Asia-Pacific dominated the market in 2019.
  • LAMEA is expected to witness a high growth rate during the forecast period.  

The major players operating in the autoclaved aerated concrete (AAC) industry include Aercon AAC, AKG Gazbeton, Bauroc AS, Ballarpur Industries Limited (BILT), HIL Limited, CSR Ltd., Forterra plc, H+H International A/S, JK Laxmi Cement Ltd., and Xella International GmbH.   

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quote Autoclaved Aerated Concrete (AAC) Market by Product Type (Blocks, and Others), End User (Residential and Non-residential), and Application (Walls, Floors & Roofs, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027 quote

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