2016 - 2026
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The autoclaved aerated concrete (AAC) market size was estimated at over USD 4 billion in 2020, and the market is projected to register a CAGR of over 6% during the forecast period (2021-2026).
The market was negatively impacted by COVID-19 in 2020. Amid the global coronavirus lockdown situation, the decline in revenue and increasing project delivery challenges resulted in revenue contraction. Loss of investment plans and termination of planned projects might be experienced in the market after the lockdown and normalization of business operations, further affecting building and construction across the region. At the same time, some country's construction projects were essential, as the construction of hospitals in China and Italy, to cater to the sudden increase in demand for hospitals, thus positively impacting the market growth.
- Over the short term, the increasing construction and redevelopment projects across the world is one of the key factors driving the market studied. On the flip side, the cost of manufacturing an AAC block is higher than normal cement or burnt clay blocks, which is expected to hinder the market growth over the forecast period.
- By product type, blocks are estimated to dominate the AAC market, followed by panels and lintels.
- Autoclaved aerated blocks are used in most of the countries in the Asia-Pacific region. The usage of this type and its size differs, based on the requirement in the country. These blocks are also used in Europe and in a few countries of North America, including the United States.
- The emphasis on using fire-retardant building materials is expected to provide opportunities for the growth of the market in the future.
Scope of the Report
Autoclaved aerated concrete (AAC) is an ultra-light concrete masonry product, weighing as little as one-fifth as much as ordinary concrete due to its distinct cellular structure featuring millions of tiny pockets of trapped air. The market is segmented on the basis of type, application, and geography. By type, the market is segmented into block, lintel, panel, tile, other types. By application, the market is segmented into residential, industrial, commercial, and other applications. The report also covers the market size and forecasts for the autoclaved aerated concrete (AAC) market in 25 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (million cubic meters) and revenue (USD million).
Key Market Trends
Growing Demand from the Construction Industry
- AAC, owing to its thermally-insulated and energy-efficient properties, along with being fire-resistant, termite- or pest-resistant, seismic-resistant, lightweight, sustainable, and quick and easy in application, is used in construction.
- China was noticed promoting and undergoing a process of continuous urbanization, with a target rate of 60% for 2020. The increased living spaces required in the urban areas resulting from urbanization and the desire of middle-class urban residents to improve their living conditions may have a profound effect on the housing market, and thereby increase the residential construction in the country, which in turn will have a positive effect on the geopolymers market in the country.
- The United States has one of the world’s largest construction industries, and it recorded annual revenue of USD 1,306 billion in 2019. The United States is a major industrialized nation that houses multiple industries in heavy-scale, medium-scale, and small-scale categories. The country is known for its booming commercial activities.
- According to a survey conducted by the American Institute of Architects, the commercial construction sector in the United States was expected to increase by 0.9% in 2020 and 1.5% in 2021. Construction activities in the healthcare sector were projected to register a growth rate of 3.5% in 2020 and 3.4% in 2021. The report also indicated the growth of office spaces by 0.5% in 2020 and further by 3% in 2021.
- In 2019, the construction sector accounted for 3.2% of Brazil's GDP. The construction industry registered a weak recovery during 2019, after a continuous decline of year-on-year growth for about 20 quarters. According to the Brazilian Institute of Geography and Statistics, IBGE, even though construction activities were carried out during the early stages of a pandemic outbreak, the construction sector registered a decline of 6.7% quarter-on-quarter in the first quarter of 2020 and a year-on-year contraction of 1% for the same period.
- However, the rising number of construction projects globally is likely to drive the market during the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific holds the major share of the ACC market owing to the high demand from the construction sector of countries like China and India.
- The Chinese government rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities, over the next ten years, despite the efforts to rebalance its economy to a more service-oriented form.
- China's residential property sector has been rapidly growing in terms of both sales and investments, according to the National Bureau of Statistics, China.
- Asia-Pacific has been a thriving market for office spaces in recent years. Demand for office spaces in India has been growing rapidly for many years. About 35 million square feet of office space was absorbed in 2019. The country has been receiving significant interest from foreign investors in the commercial construction industry.
- The growing adoption of sustainability in real-estate sectors in Asia – Pacific coupled with over 23% of office buildings in six major cities, including Shanghai, Beijing, Tokyo, Sydney, Hong Kong, and Singapore achieving green buildings certification in 2018, has stimulated the demand for autoclaved aerated concrete.
- Furthermore, India is likely to witness an investment of around USD 1.3 trillion in housing over the next seven years, during which it is likely to witness the construction of 60 million new homes.
- The rate of availability of affordable housing is expected to rise to around 70% by 2024. The Indian government's ‘Housing for All by 2022’ is also a major game-changer for the industry.
- Such factors are projected to drive the market in Asia-Pacific.
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The autoclaved aerated concrete (AAC) market is highly fragmented in nature. Some of the key players in the market include Xella Group, H+H, ACICO, SOLBET, and Tarmac.
- In August 2019, HIL acquired the Germany-based Parador Holdings GmbH, which manufactures and distributes a wide range of flooring solutions. Parador has manufacturing plants in Coesfeld (Germany) and Gussing (Austria).
- In April 2019, H+H International AS subsidiary, H+H Polska Sp. z o.o., signed an agreement with Grupa Ozarow SA, to acquire 100% shares in its Polish aircrete company, Grupa Prefabet SA, for PLN 60 million. Grupa Prefabet Sp. SA is one of the main aircrete producers in Poland with five production plants.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Growing Demand from the Construction Industry
4.1.2 Increased Emphasis on Green Buildings (LEED Ratings)
4.1.3 Other Drivers
4.2.1 High Initial Cost
4.2.2 Limited Usage in Load Bearing Walls
4.2.3 Impact of COVID-19
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1.5 Other Types
5.2.4 Other Applications
18.104.22.168 South Korea
22.214.171.124 ASEAN Countries
126.96.36.199 Australia & New Zealand
188.8.131.52 Rest of Asia-Pacific
5.3.2 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 NORDIC Countries
126.96.36.199 Czech Republic
188.8.131.52 Rest of Europe
5.3.4 South America
184.108.40.206 Rest of South America
5.3.5 Middle-East and Africa
220.127.116.11 Saudi Arabia
18.104.22.168 South Africa
22.214.171.124 South Africa
126.96.36.199 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis**
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.2 AERCON AAC
6.4.3 AKG Gazbeton
6.4.4 BAUROC AS
6.4.5 Biltech Building Elements Limited
6.4.6 Eastland Building Materials Co. Ltd
6.4.7 Eco Green
6.4.9 HIL Limited
6.4.10 JK Lakshmi Cement Ltd
6.4.11 Renaatus Procon Private Limited
6.4.14 Xella Group
6.4.15 Thomas Armstrong (Concrete Blocks) Ltd
6.4.16 UltraTech Cement Ltd
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Shifting Focus Toward the Usage of Green Chemicals
7.2 Other Opportunities
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Frequently Asked Questions
What is the study period of this market?
The Autoclaved Aerated Concrete (AAC) Market market is studied from 2016 - 2026.
What is the growth rate of Autoclaved Aerated Concrete (AAC) Market?
The Autoclaved Aerated Concrete (AAC) Market is growing at a CAGR of >6% over the next 5 years.
What is Autoclaved Aerated Concrete (AAC) Market size in 2016?
The Autoclaved Aerated Concrete (AAC) Market is valued at 4 Billion USD in 2016.
Which region has highest growth rate in Autoclaved Aerated Concrete (AAC) Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Autoclaved Aerated Concrete (AAC) Market?
Asia Pacific holds highest share in 2020.
Who are the key players in Autoclaved Aerated Concrete (AAC) Market?
- Xella Group
Are the major companies operating in Autoclaved Aerated Concrete (AAC) Market.