The global Autoclaved Aerated Concrete (AAC) Market size is projected to grow from USD 18.8 billion in 2020 to USD 25.2 billion by 2025, at a CAGR of 6.0%, between 2020 and 2025. AAC block is a building material made of Portland cement, fine aggregates such as fly ash or sand, water, and an expansion agent in an autoclaving process heated under pressure, which results in the production of air voids in the material. This makes it less dense, easy to cut/mold, and offers better insulation.
AAC combines insulation and structural capability in one material for walls, floors, and roofs. This material offers durability, dimensional stability, fire resistance, and are lightweight, which gives high sound reduction for privacy, both from outside noises and from other rooms when used as interior partition walls. These materials are manufactured in blocks, panels, and several other forms for different applications and are a preferred construction material in residential and non-residential buildings.
Based on the element, the blocks segment is projected to be the fastest-growing element in the AAC market during the forecast period. As AAC is manufactured mostly in blocks, the demand for it is more. Additionally, blocks are much easy to cut, shape, and install as per the desired size and requirement, that too at the site itself.
Based on the end-use industry, the residential segment is projected to be the fastest-growing in the AAC market during the forecast period. The demand for multi-story and high-rise residential apartments are continuously increasing, which is fueling the demand for AAC. The eco-friendly, lightweight, durable, fire-resistant, disaster-resistant, and many other excellent properties make this material ideal for use in residential building structures.
The market in APAC is projected to register the highest CAGR, in terms of value, between 2020 and 2025. APAC is the largest AAC market and is expected to witness high growth during the forecast period. The increasing purchasing power, urbanization, and industrialization are the major driving factors of the market. The global AAC market has immense growth opportunities in emerging countries, such as China, Indonesia, India, South Korea, and Brazil. Major players are adopting growth strategies to strengthen their market position and cater to the demand from the building & construction industry.