Autoclaved Aerated Concrete to Witness Increased Demand Globally as Focus on Use of Environment Friendly Construction Materials Rises

Autoclaved Aerated Concrete (AAC) is a newly adopted lightweight precast building material. Although the product has been used since 1923, it has garnered immense popularity recently, chiefly owing to its ability to provide rigid structure, insulation, fire-resistance, and economy of construction. AAC has porous structure. It contains pockets of trapped air, which make it lighter than other building materials. The material can be employed for internal as well as external construction due to its high thermal insulation and ease of installation. AAC is used as an eco-friendly green building material in residential, commercial, and other types of construction.

It is manufactured using fly ash, which is an unavoidable waste of thermal power plants and is available in abundance. Also, AAC is an energy-efficient building material and it reduces the total cost of construction. Energy consumed for production of AAC is less as compared to other building materials. AAC consumes approximately 50% less energy than concrete. Tiny air pockets and thermal mass of AAC offer thermal insulation, which reduces construction cost related to heating and air-conditioning. Due to its thermal insulation properties, AAC reduces heating and cooling requirements by up to 30%, resulting in continued financial benefits during the life of the construction.

Transparency Market Research (TMR) projects in one of its recent reports that the global market for autoclaved aerated cement will grow at a promising pace over the next few years. In the report, TMR estimates that the market will exhibit a 7.3% CAGR from 2016 to 2024, rising from a valuation of US$6.11 bn in 2015 to an opportunity of US$11.44 bn by 2024.


In this blog, TMR analysts highlight some of the key trends associated with the global AAC market:

Q. Which region holds the most promise for growth in the future?

A. Currently, Europe leads the global autoclaved aerated concrete (AAC) market, with multiple AAC manufacturing facilities across the region. It is followed by Asia Pacific and Middle East & Africa. Countries in Asia, especially China and India, are inclining toward the use of AAC as a building material, due to shift in trend toward green building. Emerging markets in Asia Pacific and growth of the residential construction industry are some of the factors driving the consumption of autoclaved aerated concrete (AAC) in the region. In terms of revenue, Europe dominated the global market for AAC, accounting for more than 34% share of the total market in 2015, and is also expected to hold a significant share in the global market in the near future. However, the market in Asia Pacific will present the most promising growth opportunities for players in the AAC market owing to the rising number of construction and infrastructure development activities.

Q. Which elements made from AAC garner the most demand?

A. Of the variety of construction elements made from AAC, the segment of blocks presently garners the most demand. The segment held a massive 48% of the overall revenue of the global AAC market in 2015. The segment is expected to remain the top grossing AAC product variety in the next few years as well, accounting for a significant share of the market with a promising 7.8% CAGR from 2016 to 2024. Wall panels made from AAC are also garnering a significant rise in demand in the next few years owing to the excellent combination of thermal and acoustic insulation and the strength that they offer. AAC wall panels are expected to witness promising applications in end-use areas such as industrial, commercial, and large-scale construction. The wall panel segment is projected to exhibit a promising 7.2% CAGR from 2016 to 2024 according to the report, claiming a large share in the global revenue in the near future. 

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