Autoclaved Aerated Concrete (AAC) Market: Sales of Blocks Expected to Remain Significantly Larger than Panels and Lintels Combined

Posted on 2019-07-05 by Mark Hub in Internet & Online // 0 Comments

Rockvile, Country, 2019-Jul-05 — /EPR Network/ — Autoclaved aerated concrete (AAC) has gained popularity as one of the most effective and sustainable construction materials worldwide. The unique product characteristics and flexibility of AAC has enabled realization of energy-efficient and high-speed construction methods. Various AAC technologies have been specifically designed for high-quality industrial and residential applications. Speedy construction with AAC panels are gaining paramount traction as cost-effective and resourceful modular construction technique globally. In a bid to impart better governance, public infrastructure development has become top priority in several emerging countries including Mexico, Brazil, India, and China. Expansion of the construction sector across these countries is further bolstered by favorable housing schemes implemented by the governments, which in turn is auguring well for AAC suppliers and manufacturers. Additionally, sustainability, light-weight, and eco-friendly properties of autoclaved aerated concrete have meant that their adoption as construction materials will witness a tremendous rise in the years to come.

AAC materials have emerged as a superior alternative to traditional bricks and concrete blocks. AAC also hold an edge in terms of supply strength and environmental impacts for lower energy consumption and waste recycling. AAC is produced with cement, fine aggregates, and expansion agents, causing the fresh mixture to expand. As compared to conventional concrete AAC sets and hardens faster. Such product attributes are extremely important for modern construction applications. Moreover, AAC blocks can be easily drilled, cut, milled, nailed and grooved to fit specific requirements.

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Key Takeaways from Fact.MR’s Report on Autoclaved Aerated Concrete Market for Forecast Period 2017-2026

In terms of value and volume, Asia-Pacific excluding Japan (APEJ) will remain the largest market for autoclaved aerated concrete, closely followed by North America. Nearly half value share of the market is poised to be held by AAC sales in APEJ and North America collectively. Europe will also latch onto a major market revenue share, and will register a comparatively faster expansion than North America in the market through 2026.
On the basis of product type, sales of blocks are expected to remain significantly larger than that of panels and lintels combined. However, panels and lintels are projected to reflect a parallel sales expansion at a CAGR higher than sales of blocks through 2026.
AAC sales are expected to remain largest for end use in commercial construction and infrastructure construction, and are collectively forecast to close in approximately 90,000 thousand m³ by 2026-end.

Blocks to Remain Leading Revenue Contributing Product in the Market

In terms of value, blocks will continue to endure as leading revenue contributor to the global AAC market, based on product type. Over the years, AAC blocks have maintained their popularity in the construction industry worldwide, serving as a commodity material and satisfying requirements of social, industrial and commercial sectors for cost-effective, flexible and fast construction solution. Panels will also prevail as a remunerative product in the market, with demand primarily driven by their robust adoption for use in the load-bearing structures.

Established Vendors of AAC Entering into M&A to Increase their Market Presence

Although the global market for autoclaved aerated concrete is fragmented with the presence of several vendors, global vendors dominate the market with their huge production facilities and vast market reach. The market is likely to experience an influx of regional vendors on the coattails of industrialization across developing economies. In a bid to sustain in this highly competitive market, established vendors are entering into mergers & acquisitions in a bid to increase their market presence. Meanwhile, small & medium-sized vendors are focusing on developing their innovative capabilities, and competing against one another in terms of customer-centrism, performance, quality, and cost.

Fact.MR’s report identifies key companies that are actively supporting expansion of the global autoclaved aerated concrete (AAC) market, which include UltraTech Cement Ltd., CSR Ltd., Xella Group, JK Lakshmi Cement, ACICO Industries Co. KSC, H+H International AS, UAL Industries Ltd., Solbet Sp Z.O.O., Aircrete Group N.V., Eastland Building Materials Co., Ltd., Aercon Florida Llc, AKG Gazbeton, Biltech Building Elements Limited, Brickwell Infra Private Limited, and Buildmate Projects Pvt. Ltd.

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