AAC Blocks and Panels Global Market Report 2024

The aac blocks and panels market size has grown strongly in recent years. It will grow from $19.92 billion in 2023 to $21.39 billion in 2024 at a compound annual growth rate (CAGR) of 7.4%. The growth observed in the historical period can be attributed to infrastructure development initiatives, compliance with building codes, innovations and advancements in materials, a focus on fire-resistant materials, and the evolution of the construction industry.

The aac blocks and panels market size is expected to see strong growth in the next few years. It will grow to $28.2 billion in 2028 at a compound annual growth rate (CAGR) of 7.2%. The anticipated growth in the forecast period can be attributed to rapid urbanization and infrastructure projects, government regulations emphasizing energy efficiency, a rising demand for residential housing, and the increasing momentum in commercial construction. Key trends expected in the forecast period encompass architectural design flexibility, government support and incentives, a preference for green buildings, and the adoption of sustainable building practices.

The anticipated growth in construction activities is expected to significantly boost the AAC (Autoclaved Aerated Concrete) blocks and panels market. Construction activities encompass any work related to land, including the creation of land-building infrastructure and structures. The construction of buildings and other infrastructure is likely to drive the demand for AAC blocks, known for their lightweight, load-bearing, high-insulating, and durable characteristics. AAC blocks are particularly advantageous, being three times lighter than traditional red bricks. For example, according to Zippia, a US-based job-recruitment company, there was a 4% increase in construction activities from 2020 to 2021, resulting in the addition of 1,337,800 housing units. Therefore, the surge in construction activities emerges as a key driver propelling the AAC blocks and panels market forward.

The anticipated growth in urbanization is expected to be a significant driver for the AAC (Autoclaved Aerated Concrete) Blocks and Panels market. Urbanization, a process characterized by population migration from rural areas to urban centers, results in the expansion and development of cities and towns. This trend is particularly advantageous for AAC blocks and panels, as it generates increased demand for affordable, energy-efficient, and environmentally friendly housing solutions. The ongoing urbanization and population growth contribute to a shift in builders' preferences towards autoclaved aerated concrete materials over traditional options. AAC blocks and panels offer superior properties, including cost-effectiveness, earthquake and fire resistance, and flexibility in block sizes. For example, the World Bank projects that the global urban population will reach 6 billion people by 2045, representing a 1.5-fold increase from the current levels in 2023. Hence, the rise in urbanization emerges as a driving force for the AAC blocks and panels market.

Product innovations have emerged as a prominent trend gaining traction in the AAC (Autoclaved Aerated Concrete) blocks and panels market. Major companies in this market are actively involved in developing innovative products to fortify their positions. For instance, in November 2021, Holcim Group, a Switzerland-based company specializing in building materials, launched an AAC concrete block adhesive designed for constructing walls. This adhesive is suitable for various types of AAC (autoclaved aerated concrete), bricks, and different cement blocks available in the market. The adhesive aims to securely link blocks together with high adhesive strength, contributing to the construction of more robust walls using fewer materials. The product is formulated using materials such as cement, carefully graded fillers, and a specific polymer. This innovation exemplifies the industry's commitment to advancing construction materials and techniques within the AAC blocks and panels market.

Major companies within the AAC (Autoclaved Aerated Concrete) blocks and panels market are actively engaged in the development of innovative products, integrating advanced technologies such as precision molding. Precision molding, a type of injection molding, is known for producing highly accurate and repeatable parts with superior surface finishes and tightly controlled material properties. For example, in 2021, Ultrapanel Building Technologies introduced a new range of AAC panels known as the Ultrapanel Cladding System. This system is designed to provide a lightweight, easy-to-install, and energy-efficient solution for exterior wall cladding. The innovative features of the Ultrapanel Cladding System include reduced construction time, cost-effectiveness, high thermal insulation properties, and durability. The use of precision molding techniques contributes to the production of panels with superior accuracy and performance, aligning with the industry's commitment to advancing technology and providing high-quality solutions in the AAC blocks and panels market.

In October 2022, HIL Ltd., an India-based building materials company, successfully acquired Fast Build Blocks Pvt Ltd for a transaction valued at USD 370 million. This strategic acquisition significantly broadened HIL Ltd's portfolio within the realm of autoclaved aerated concrete (AAC) blocks, encompassing the entirety of Fast Build Blocks Pvt Ltd's manufacturing, distribution, and sales network. Additionally, HIL Ltd assumed all liabilities associated with the acquired company. Fast Build Blocks Pvt Ltd., also based in India, specializes in the manufacturing of AAC blocks and panels.

Major companies operating in the aac blocks and panels market report are UltraTech Cement Ltd., Ecotrend New Building Materials Development Co. Ltd., CK Birla Group, Tarmac Building Products Limited, Health and Happiness (H&H) International Holdings Ltd., Colonial Sugar Refining Company Limited., Xella International, JK Laxmi Cement, Forterra PLC., UAL Industries Ltd., ACICO Industries Company, Schwenk Building Materials, AKG Gazbeton, BAUROC AS, Magicrete Building Solutions Pvt. Ltd., Hebel, MASA GmbH, Siporex India Pvt Ltd., Biltech Building Elements Ltd., Eco Green Products Pvt Ltd., Wehrhahn GmbH, Buildmate Projects Pvt. Ltd., SOLBET, Aercon AAC, Aircrete Europe, LCC SIP Ltd., AerBlock, Ecolite AAC Blocks, Mepcrete AAC Blocks, Renacon AAC Blocks, Impulse Constrotech Pvt. Ltd., Durox (owned by Tarmac), E-Crete, ECO-CARE Building Products Pvt Ltd., Dr. Fixit (P.I.Dilip Buildcon Ltd.), Brikolite AAC Blocks, Roca India.

Asia-Pacific was the largest region in the AAC blocks and panels market in 2023. The regions covered in the aac blocks and panels market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the aac blocks and panels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary variants of AAC blocks and panels include blocks, panels, lintels, and other specialized types. AAC blocks represent essential units in construction, serving as foundational components crucial to the construction of larger structures. They come in various sizes, ranging from small to medium and large dimensions. These AAC blocks find applications across diverse sectors including residential, commercial, industrial, and infrastructure construction projects.

The AAC blocks and panels market research report is one of a series of new reports that provides AAC blocks and panels market statistics, including AAC blocks and panels industry global market size, regional shares, competitors with AAC blocks and panels market share, detailed AAC blocks and panels market segments, market trends and opportunities, and any further data you may need to thrive in the AAC blocks and panels industry. This AAC blocks and panels market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The AAC blocks and panels market consists of sales of structural floors, wall panels, fly ash blocks, and limestone blocks. Values in this market are factory gate values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.