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Autoclaved Aerated Concrete Market Overview
The global autoclaved aerated concrete market is expected to attain a size of $4,005.9 million in 2017 and is forecasted to reach $5,721.4 million by 2023, registering a CAGR of 6.2% during 2018–2023. The major factors driving the market growth are increasing urbanization and industrialization along with growth in infrastructure sector and increasing focus on green and sound proof buildings.
GLOBAL AUTOCLAVED AERATED CONCRETE MARKET, BY APPLICATION, $M (2013-2023)
Autoclaved aerated concrete is a lightweight, precast building material which provides structure, insulation, and fire and mold resistance. These blocks offer ultimate workability, flexibility, and durability to the buildings/structures. Its main ingredients include sand, water, quicklime, cement, and gypsum. The presence of aluminum in the concrete, provides it a distinct porous structure, lightness, and insulation properties.
On the basis of application, the autoclaved aerated concrete market is segmented into construction material, road sub bases, roof insulation, bridge sub-structure, void filling, concrete pipes, and others; ‘others’ include shock and blast mitigation, site reconstruction, anti-corrosion fill, pavement base, and shock absorbing concrete. Of these, construction materials held the largest share in the market, contributing more than 20.0% revenue in 2017. This is attributed to its increasing consumption in the construction sector, owing to its superior properties over other types, such as long-lasting, pest resistant, sound proof, fire resistant, earthquake resistant, moisture resistant, non-toxic, and various others.
Based on end user, the autoclaved aerated concrete market is categorized into residential buildings, commercial buildings, infrastructure, and others; ‘others’ include mining, agriculture, and geotechnical. Of these all, infrastructure is the largest revenue contributor in the market, with more than 40.0% contribution in 2017. This can be ascribed to various factors, such as this concrete reduces the cost of the building construction, increases the quality of the building, and others. Also, it provides various advantages over traditional concrete, such as thermally insulation, easy shaping, high workability, water and mold resistance, and others.
Globally, APAC has been accounting for the highest revenue in the autoclaved aerated concrete market, with a contribution of more than 33.0% in 2017. This is attributed to the rapid urbanization in the region along with the increasing population, which is creating a need of new houses as well as infrastructure in order to meet the increasing demand.
Autoclaved Aerated Concrete Market Dynamics
The major trend witnessed in the autoclaved aerated concrete market is the growing need for disaster-resistant buildings.
The growing need for disaster-resistant buildings is pushing the builders to use such materials during construction, as these can withstand natural disasters including earthquake. The manufacturing process of these blocks gives them commendable strength, maintaining their light weight property and steadiness, which makes them more reliable. These properties make the concrete earthquake resistant and provide a longer life to it. Hence, in order to provide a safe environment by building strong and reliable structures, builders are shifting their preferences from traditional concrete to this concrete, which is identified as the major trend in the autoclaved aerated concrete market.
Increasing urbanization and industrialization along with growth in the infrastructure sector and increasing focus on green and sound proof buildings are the major drivers identified in the autoclaved aerated concrete market.
Globally, growing infrastructural development, increasing industrialisation, and accelerated urbanization have fueled the growth of the autoclaved aerated concrete market. Owing to its properties, namely, light weight, low cost, ability to sustain earthquake and fire, variation in sizes of these blocks is making it increasingly popular in construction industry. Furthermore, these blocks reduce the construction time by 20%, and are available in different sizes, thus reducing the number of joints in wall masonry. Developing countries such as India, China, and Brazil are increasingly focusing on road connectivity, highways, and residential housing, which is expected to elevate the consumption of this concrete.
Additionally, governments of these countries are increasingly focusing on developing infrastructure facilities in rural areas. For instance, the Indian government plans to provide cemented house to every individual by 2022, under the scheme ‘Pradhan Mantri Awas Yojana’.
High initial cost and low availability of this concrete is the major restraint identified in the autoclaved aerated concrete market.
The installation of the capital-intensive manufacturing unit and requirement of large land for the same is the major restraint observed in the market. Also, the per unit production cost of these concrete blocks is higher than other ordinary concrete. It is still not preferred in construction in residential homes due to stiff competition from comparatively cheaper clay bricks. Autoclaved aerated concrete is not widely available in the market due to low awareness among manufacturers and users. There are very few manufacturers in the market, as the setting up of manufacturing facilities requires huge investment at the initial stage. Thus, the high cost associated with this concrete is impeding its adoption by builders.
Autoclaved Aerated Concrete Market Competitive Landscape
Some of the major players operating in the global autoclaved aerated concrete market are Isotech Srl, Xella Group, Cematrix, ACICO Industries Company, Broco Group, Aircrete Europe, SOLBET Capital Group, Laston Italiana S.p.A., and Aerix Industries.