Autoclaved Aerated Concrete (AAC) Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type (Block, Lintel, Panel, Tile, and Others), By Application (Walls, Floors & Roofs, and Others), By End-Use Industry (Residential, Industrial, Commercial, and Other Applications), and Region

Autoclaved Aerated Concrete (AAC) Market size was valued at US$ 17,548.3 Million in 2023 and is poised to grow at a CAGR of 6.9% from 2024-2030. The market refers to the economic system centered on the production, distribution, and consumption of autoclaved aerated concrete, a lightweight and sustainable building material used in construction. AAC is produced through a process that involves mixing fine aggregates, cement, water, and an expanding agent. The mixture is then cured in an autoclave, a pressurized steam chamber, which causes it to expand and form a matrix of air cells within the concrete. The global surge in construction projects is playing a pivotal role in propelling the market forward. AAC, renowned for its lightweight composition and remarkable attributes including thermal insulation, moisture resistance, and fire resistance, finds itself in high demand in various construction projects.

Moreover, the market is significantly driven by the dual advantages of cost-effectiveness and energy efficiency inherent in this innovative construction material. AAC's cost-effectiveness stems from its lightweight nature, which facilitates quicker construction and reduced labor requirements. The larger size of AAC blocks compared to traditional bricks translates to faster installation, accelerating the building process and leading to potential cost savings in terms of labor hours. Moreover, AAC's precision in manufacturing ensures minimal waste during construction, minimizing material expenses. However, AAC production requires specialized equipment and processes which might limit its availability in some regions. This may lead to increased costs associated with transportation and importation, which can act as a potential restraint to the market. Meanwhile, increasing retrofit and renovation projects offer substantial growth prospects for the AAC market. Key manufacturers are developing innovative solution which further contribute to the market growth. For instance, in June 2023, Godrej Construction launched TUFF AAC Blocks that offer environmentally responsible alternatives to traditional brick manufacture.

Autoclaved Aerated Concrete (AAC) Market Key Developments

• In August 2020, the AKFA group of companies decided to launch a plant to produce import-substituting aerated concrete blocks.
• In January 2022, The H+H Group acquired 52.5% of the shares in DOMAPOR GmbH & Co. KG to broaden it product portfolio.