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The global autoclaved aerated concrete (AAC) market stood at $4,005.9 million in 2017, which is expected to reach $5,721.4 million by 2023, demonstrating a CAGR of 6.2% during the forecast period (2018–2023).
Globally, Asia-Pacific (APAC) held the largest revenue share, of over 33%, in 2017 in autoclaved aerated concrete market. This is majorly ascribed to the high-volume investments in the construction sector, along with rise in number of large-scale construction projects in developing nations of the region. For instance, China is investing $2.17 trillion on infrastructure and transportation projects under its 13th five-year plan between 2016 and 2020, which is likely to boost to the demand for AAC in APAC.
Dynamics of Autoclaved Aerated Concrete Market
Key trend observed in the autoclaved aerated concrete market is increasing construction of disaster-resistant structures. Previously constructed buildings in urban and rural areas across several countries lacked sufficient deterrence to any natural calamity. With the bid to tackle damage caused due to natural disasters, developers across the world are shifting toward the construction of disaster-resistant structures, which has led to the development and rapid adoption of AAC, since it is light in weight.
Increasing urbanization and industrialization along with growth in infrastructure sector is one of the major factors driving the growth of the autoclaved aerated concrete market. The superior properties of AAC, such as lightweight, low cost, ability to sustain earthquake and fire, and variation in block sizes, are making it popular in the construction industry. It also reduces the construction time by 20%, as blocks are available in different sizes, which reduce the number of joints in masonry walls. In addition, increase in investments by governments of developing economies in order to improvise infrastructure facilities is expected to further propel the market growth during the forecast period.
The autoclaved aerated concrete market holds immense potential for growth in developing nations, owing to the increasing focus on construction of buildings with high affinity for earthquake and other natural disasters. The construction industry has put a major emphasis on the development of materials that can withstand natural calamities. With the usage of AAC, mass of the building structure gets reduced, which thereby decreases the impact of earthquake on the building.
Segmentation Analysis of Autoclaved Aerated Concrete Market
The construction material application held the largest revenue share, of over 23%, in the autoclaved aerated concrete market in 2017. This category is projected to generate $1,396.4 million by 2023, with a significant CAGR during the forecast period. Construction material offers properties, such as higher tensile strength and higher degree of compression over concrete, owing to which the demand for AAC is expected to increase in coming years.
The residential buildings category is expected to witness the fastest growth during the forecast period, based on end user, on account of large-scale investments by governments of developing nations to provide safe housing facilities. For instance, in 2015, the Indian government launched “Pradhan Mantri Awas Yojana”, which is an initiative to provide affordable housing facility and has a target of building 20 million affordable houses by March 31, 2022.
Geographical Analysis of Autoclaved Aerated Concrete Market
Geographically, APAC accounted for the largest volume share in 2017 in the autoclaved aerated concrete market. This is driven by high demand for advanced concrete materials from the construction sector of countries, such as China, India, and Japan. Rising purchasing power of people, accelerated urbanization, growing population, and government efforts to provide affordable housing are projected to further boost the demand for AAC across the region.
The APAC autoclaved aerated concrete market is expected to demonstrate the fastest growth during the forecast period, owing to the development of smart cities and green buildings, including high-rise commercial and residential buildings. In addition, increasing government investments in infrastructure projects is expected to further accelerate the growth of the regional market.
Competitive Landscape of Autoclaved Aerated Concrete Market
Some of the leading players operating in the global autoclaved aerated concrete market are Masa GmbH, Isoltech Srl, Xella International GmbH, ACICO Industries, Broco Industries, Aircrete Europe B.V., Solbet Sp. z o, Aerix Industries, Fast Build Block Pvt. Ltd, and Wehrhahn GmbH.
Recent Strategic Developments of Major Autoclaved Aerated Concrete Market Players
Several players in the autoclaved aerated concrete market have taken a number of strategic measures in order to gain larger share. For instance, in December 2017, Xella International GmbH signed an agreement to acquire the Macon Group, Romania’s largest AAC producer and one of the manufacturers of building materials. With the acquisition of Macon, Xella became one of the leaders in the Romanian building materials market and main manufacturer of AAC in the country.
Market Size Breakdown by Segment
The Autoclaved Aerated Concrete Market report offers comprehensive market segmentation analysis along with market estimation for the period 2013–2023.
Based on Application
Based on End User
Key Questions Addressed/Answered in the Report