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Autoclaved Aerated Concrete Market to Generate Revenue Worth $ 8,314.9 Million by 2030

Published Date:   October 2020

Rising urbanization and industrialization has boosted the demand for autoclaved aerated concrete (AAC) bocks in the global market. This is attributed to their lightweight, superior sound absorption qualities, low cost, and ability to withstand excessive load, as compared to traditional constructional materials. Further, developing nations, such as India, China, Brazil, are increasingly focusing on infrastructural developments, namely, road connectivity, highways, and residential housing, which are driving the demand. Due to these factors, the autoclaved aerated concrete market is expected to generate $8,314.9 million revenue by 2030, advancing at a CAGR of 6.0% during the forecast period.

The global economic disruption due coronavirus outbreak has been significantly observed in the construction industry, with the shortage of labors, materials, and key cost components of construction projects. Autoclaved aerated concrete is one of the most preferred construction materials, owing to its aforementioned attributes. Hence, reduction in the global construction activities has negatively affected the market, owing to the reduction in its demand.

Construction Material to Hold the Largest Revenue Share in the Market Throughout the Forecast Period

On the basis of application, the autoclaved aerated concrete market is classified into construction material, road sub-base, roof insulation, bridge sub-structure, void filling, concrete pipe, and others. Of these, the construction material category dominated the market during the historical period and is expected to lead during the forecast period as well. This is attributable to the high demand for the material from the infrastructure sector for the development of building and non-building structures, owing to its superior properties, such as high-tensile strength, higher degree of compression, and easy machinability.

Further, on the basis of end user, the autoclaved aerated concrete market is categorized into residential building, commercial building, public infrastructure, and others. The residential building is expected to be the fastest-growing category during the forecast period. Compared to the manufacturing process of red bricks, which is highly taxing to the environment, as it consumes fertile land and emits greenhouse gases, autoclaved aerated concrete has a significantly low level of negative impact on the environment. This makes it ideal for residential building construction, globally.

Geographically, the autoclaved aerated concrete market in APAC is expected to witness lucrative growth during the forecast period, as a consequence of high demand for AAC blocks from the construction sector of countries, such as China, India, and Japan. Further, construction activities in the region are increasing, owing to the rising demand for houses, hospitals, schools, and others from the massive population. Moreover, under the One Belt One Road initiative, China plans to emerge as the center of the world trade through the construction of roads, railways, ports, and transportation hubs. It is estimated that total investment incurred under the initiative would exceed more than $1 trillion. The large-scale construction of infrastructure projects would encourage the demand for autoclaved aerated concrete in coming years.

Mergers & Acquisitions is the Strongest Strategic Measure Taken by Players in the Market

Players in the autoclaved aerated concrete market are merging and acquiring other players to enhance their presence in the industry. For instance, in February 2019, SRS Distribution Inc. acquired roofing products and accessories manufacturer, autoclaved aerated concrete Building Materials. Through this acquisition, SRS made strong presence in Knoxville, Greenville, and Charlotte in the U.S.

Similarly, in December 2017, Xella International GmbH signed an agreement to acquire the Macon Group, Romania’s largest autoclaved aerated concrete producer and one of the manufacturers of building materials. With the acquisition, Xella would become one of the key leaders in the Romanian building materials market and main manufacturer of AAC.

Some of the major players operating in the global market are Masa GmbH, Isoltech srl, ACICO Industries Co. KSCP, Xella International GmbH, Broco Industries, SOLBET Spolka z o.o., Aircrete Europe B.V., Fast Build Blocks Pvt. Ltd., Wehrhahn GmbH, AERCON AAC, and H+H International A/S.