Autoclaved Aerated Concrete (AAC) Market Investigation Monitors Prominent Growth Trends Recorded during Forecast Period 2017-2026

With expanding global population leading toward greater housing requirements, a dramatic upsurge has been witnessed in the construction of residential complexes over the past few years. Growth of the construction sector worldwide has fuelled demand for a wide range of construction materials, and autoclaved aerated concrete is no exception. This growth is mainly augmented by robust industrialization and urbanization across emerging countries. With a view to deliver better governance, development of public infrastructure has become a prime agenda in many of these countries.

Affordable housing schemes launched by various governments around the world has also provided an impetus to the construction sector. Factors as such are auguring well for AAC manufacturers and suppliers. Adoption of AAC materials has continued to increase in the construction sector owing to their wide range of applications. AAC is an eco-friendly, lightweight and sustainable construction material, hence hold an edge over several other alternative materials.

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According to a recent report compiled by Fact.MR, the global autoclaved aerated concrete (AAC) market is set to record a value CAGR of 4.8% during the forecast period (2017-2026). Worldwide sales of AAC are estimated to exceed 145,500 thousand m³ by 2026-end.

Market Taxonomy

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.

End use of autoclaved aerated concrete in the commercial construction are likely to rake in the largest revenues by 2026-end. Reinforced AAC has emerged as a vital solution in commercial construction, with rising focus on cost-effective construction that entails demand for less labor-intensive, versatile, and easily installed building systems.

Revenues from AAC sales in Asia-Pacific excluding Japan (APEJ) are envisaged to exhibit an impressive expansion, making this region the largest market for autoclaved aerated concrete during 2017 to 2026. Countries in APEJ are increasingly concentrating on the development of green buildings, with an aim to realize a sustainable future, meanwhile seeking cost-effective yet efficient construction methods. As AAC is relatively affordable and imparts energy efficiency, it is being highly employed for construction activities in the region. APEJ is set to account for over 30% value share of the market by 2026-end.

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.

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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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