Autoclaved Aerated Concrete Market - Forecast(2023 - 2028)

Autoclaved Aerated Concrete Market Overview 

Autoclaved aerated concrete market size is forecast to reach US$21.5 billion by 2027 after growing at a CAGR of 6.5% during 2022-2027. Autoclaved Aerated Concrete products are made up of calcined gypsum, quartz sand, lime, cement, aluminum powder, and water, and are cured in an autoclave under heat and pressure. Autoclaved aerated concrete is environmentally friendly because it produces 30% less solid waste when compared with traditional concrete, owing to this factor its demand is increasing over other concrete types. The non-residential construction activities are increasing as governments are heavily investing in the sector, owing to this the demand for autoclaved aerated concrete is increasing. Moreover, autoclaved aerated concrete's increasing use in floor elements, roof insulation, and more for residential construction is further accelerating the growth of the autoclaved aerated concrete industry. 

COVID-19 Impact 

The COVID-19 crisis in the year 2020 negatively impacted the growth of the market, because the construction activities were halted temporarily, due to the government imposed strict rules and regulations across the world. Major construction projects were halted due to the spread of the Corona Virus, as a result of this, there was a decline in the demand for the autoclaved aerated concrete market. For instance, in March 2020 only the construction of highways, transit infrastructure, bridges, utilities, hospitals or health care facilities, affordable housing, and homeless shelters were allowed in New York rest all construction activities were stopped. However, by 2021, the major construction activities were started, which resulted in the recovery of the losses due to the COVID-19 pandemic. Also, it is anticipated that the COVID-19 crisis will end by mid-2022, this is expected to fuel the growth of the market. 

Report Coverage 

The report: "Autoclaved Aerated Concrete Market–Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Autoclaved Aerated Concrete Industry. 
By Product Type: Blocks, Tiles, Lintels, Panels, Wall Cladding Panels (Interior and Exterior), Roof & Floor Panels, and Others 
By Application: Road Construction, Building Insulation, Bridge Sub-Structure, Building Materials, and Others 
By End-Use Industry: Residential, Non-Residential (Industrial, Commercial (Buildings and Pathways), Institutional (Public and Private)), and Others 
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), Rest of the World (Middle East (Saudi Arabia, UAE, Israel, and Rest of Middle East), and Africa (South Africa, Nigeria, and Rest of Africa)) 

Key Takeaways 

Autoclaved Aerated Concrete Market Segment Analysis – By Product Type 

The blocks segment held the largest share in the autoclaved aerated concrete market in 2021. The autoclaved aerated concrete blocks are widely utilized in the building and construction activities because it offers multiple advantages such as easy workability and design, eco-friendly and sustainable, and lightweight. Also, the use of autoclaved aerated concrete blocks makes the structure earthquake resistant, and because of the increasing construction safety standards across the world, the demand for autoclaved aerated concrete blocks is increasing. Thus, the increasing demand for the autoclaved aerated blocks will propel the market growth during the forecast period. 

Autoclaved Aerated Concrete Market Segment Analysis – By Application 

The building material segment held the largest share in the autoclaved aerated concrete market in 2021 and is growing at a CAGR of 6.1% during 2022-2027. Autoclaved aerated concrete is widely used as a building material in flooring elements, roof insulation, bathroom wall panels, and more in buildings. It enhances thermal efficiency and lowers building heating and cooling loads. Moreover, compared with other types of building materials its workability enables precise cutting, reducing the amount of solid waste generated during use. Thus, due to these benefits of autoclaved aerated concrete building material, the autoclaved aerated concrete market will see growth.  

Autoclaved Aerated Concrete Market Segment Analysis – By End-Use Industry 

The non-residential segment held the largest share in the autoclaved aerated concrete market in 2021 and is growing at a CAGR of 7.8% during 2022-2027. Autoclaved aerated concrete material is widely utilized in non-residential construction such as row houses, apartments, and more because the concrete enhances the strength of the material, and also maintains the lightweight, which makes it an earthquake-resistant concrete material. Moreover, the non-residential construction projects across the world are further accelerating the growth of the market. For instance, the "Trotwood High School" expansion, "Veteran Center Youngstown”, OH construction projects are using autoclaved aerated concrete blocks. Thus, the growing non-residential construction activities across the globe are aiding the autoclaved aerated concrete market growth.   

Autoclaved Aerated Concrete Market Segment Analysis – By Geography 

Asia-Pacific region held the largest share in the autoclaved aerated concrete market in 2021 up to 43.7%, owing to the increasing construction activities in the region. Autoclaved aerated concrete reduces the construction cost because these materials are easy to join and they become hard quickly and are easy to install. Because of these reasons its use is increasing in the region. For instance, according to the Department of Statistics Singapore, in the year 2018, the building and construction of Singapore were valued at US$30.53 billion, and in 2019 it was valued at US$33.5 billion, an increase of 9.7%. Similarly, under the "Housing For All by 2022" scheme by the government of India about 20 million homes will be constructed for the poor which will include both urban and rural areas by 2022 for an estimated US$31 billion. Similarly, the government of India's "Housing For All by 2022" project would build approximately 20 million homes by 2022 for an estimated US$31 billion. Thus, the growing construction activities in the Asia-Pacific region are fueling the autoclaved aerated concrete market growth. 

Autoclaved Aerated Concrete Market Drivers