Autoclaved Aerated Concrete (AAC) Market - Snapshot

Autoclaved aerated concrete (AAC), also known as autoclaved cellular concrete (ACC) or autoclaved lightweight concrete (ALC), is an eco-friendly green building material. The raw material used for the production of AAC is fly ash, which is a leftover product of thermal power plants. AAC has various advantages over other building materials. The product offers a unique combination of low weight, rigidity of construction, durability, and cost-effectiveness. AAC facilitates speedy construction. The product offers thermal and acoustic insulation, providing better safety and lower energy cost of heating or cooling. Although AAC has been in existence since 1923, it is only now that the product has started gaining popularity as a sustainable green building material. The product has been extensively used in Europe and Asia.

Autoclaved Aerated Concrete

Rapid Urbanization in Developing Regions

Accelerated urbanization, particularly in developing regions such as Asia Pacific, Latin America, and Africa, is creating the need for new building construction. AAC has been the preferred choice of building material for developers and contractors as it is a lightweight and energy efficient material. For instance, the percentage of urban population in Asia Pacific is likely to increase from 37% in 2000 to 62% by 2020, and this is likely to create need for new construction, thereby propelling the demand for AAC. The primary energy needed to produce a cubic foot of AAC (raw materials, manufacturing, and transport) is relatively low compared to that for alternative masonry building materials.

Energy consumed for the production of AAC is less as compared to that for other building materials. AAC consumes approximately 50% and 20% less energy as compared to concrete and CMUs, respectively. Tiny air pockets and thermal mass of AAC offer thermal insulation that reduces construction costs related to heating and air-conditioning. AAC reduces heating and cooling requirements by up to 30% due to its thermal insulation properties, resulting in continued financial benefits during the life of the construction. Hence, AAC is the most energy- and resource-efficient building material. This is expected to drive the AAC market during the forecast period.

Cost Associated with AAC and Lack of Awareness about AAC

The selling price of AAC blocks is higher than that of traditional clay bricks.  Clay bricks account for a significant market share in building materials and are widely used as a construction material as they are cheaper as compared to AAC blocks. Higher cost of AAC as compared to clay bricks can act as a restraint for the AAC market. AAC is superior compared to other building materials based on various parameters. However, several contractors are not even aware of it, and they continue using other building materials. More precision is required in the application of AAC. For instance, trained masons need to be adjusted to thin mortars as opposed to traditional cement-based mortars. Additionally, the number of AAC production facilities is limited, particularly in North America. This construction material is available in limited areas only.

Low Market Penetration offers Significant Market Opportunity

AAC blocks currently account for only 3% share of the total market for walling materials. This is attributed to the lack of awareness about AAC. Hence, builders, contractors, and construction professionals continue using traditional building materials, which hold significant share of the walling materials market. Currently, the market penetration of AAC is low, but this also presents significant opportunity for the industry to expand and use AAC as an innovative green building solution.

AAC is not a new invention. The product has been in the market since 1923. It has undergone significant development over the years, and it is being used as a green building construction material. AAC has been employed in Europe since 1920. Currently, over 125 AAC manufacturing facilities exist in Europe that produce around 28 million cubic meters of AAC every year. Aerated concrete is used as a building material in around 500,000 homes every year in Europe.

Currently, AAC accounts for more than 60% share of the construction industry in Germany and more than 40% in the U.K..Over the years, the construction sector in China has expanded significantly. China is also a major producer of AAC. The country has undertaken an initiative for green building to protect natural resources, reduce energy usage, and improve air quality. In 2013, China’s State Council launched the Green Building initiative with an eye on constructing 20% of all new buildings by fulfilling specific green building requirements.

 

 

Currently, there exist more than 3,500 AAC manufacturing facilities around the globe, with a significant number of them concentrated in countries such as China, Russia, Poland, Germany, Sweden, and the U.K..

Major companies are undertaking capacity addition projects to cater to increasing local demand for AAC. For instance, Aircrete Group, after commissioning the largest autoclaved aerated concrete (AAC) plant in Latin America in Mexico in 2017, is expected to invest in a new state-of-the-art AAC facility in Argentina. In association with leading local construction and development companies, the company commissioned a US$ 20 Mn AAC block and panel plant with an initial capacity of 120,000 cubic meters in San Lorenzo, Santa Fe, near the city of Rosario, Argentina. Although AAC has existed in India since 1970, it has gained momentum only recently. In 2003, the green building footprint in India was around 20,000 square feet, and now, it has reached one billion square feet. Currently, India has 1,300 registered green building projects in total. All these parameters are indicative of significant expansion of the AAC market, and they also present a significant opportunity for the market to gain further momentum.

Key players profiled in the autoclaved aerated concrete (AAC) market report include Xella Group, H+H International, SOLBET, ACICO, AERCON AAC, UltraTech Cement Ltd., Biltech Building Elements Limited, AKG Gazbeton, Bulidmate, Eastland Building Materials Co., Ltd., Brickwell, and UAL Industries Ltd.

 

Autoclaved Aerated Concrete (AAC) Market - Overview

Autoclaved aerated concrete (AAC), also known as autoclaved cellular concrete (ACC) or autoclaved lightweight concrete (ALC), is an eco-friendly green building material. Autoclaved lightweight concrete (ALC) is a newly adopted lightweight precast building material.

Although the product has been used since 1923, it has garnered immense popularity recently, due to its ability to provide rigid structure, insulation, fire resistance, and economy of construction. AAC has a 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.

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 a shift in trend toward green building. Emerging markets in Asia Pacific and expansion 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 AAC market, accounting for more than 30% share of the total market in 2017.

This report analyzes and forecasts the market for autoclaved aerated concrete (AAC) at global and regional levels. The market has been forecast based on volume (million cubic meters) and revenue (US$ Mn) from 2017 to 2026. The study includes drivers and restraints of the global AAC market. It also covers the impact of these drivers and restraints on the demand for autoclaved aerated concrete during the forecast period. The report also highlights opportunities in the AAC market at a global and regional level.

The report comprises detailed value chain analysis, which provides a comprehensive view of the global autoclaved aerated concrete AAC market. Porter’s five forces model has also been included to help understand the competitive landscape of the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global AAC market by segmenting it in terms of product and end-use. These segments have been analyzed based on present and future trends. Regional segmentation includes the current and forecast demand for autoclaved aerated concrete in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The report also covers demand in individual end-user segments in all regions.

The study includes profiles of major companies operating in the global AAC market. Key players profiled in the report include Xella Group, H+H International, SOLBET, ACICO, AERCON AAC, UltraTech Cement Ltd., Biltech Building Elements Limited, AKG Gazbeton, Bulidmate, Eastland Building Materials Co., Ltd., Brickwell, and UAL Industries Ltd. Market players have been analyzed in terms of attributes such as company overview, financial overview, business strategies, recent developments, and SWOT analysis.

The report provides the market size of the autoclaved aerated concrete market for 2017 and forecast for the next nine years. Size of the global AAC market has been provided in terms of volume and revenue. Market numbers have been estimated based on product and end-use segments. Market size and forecast for each major product and end-use have been provided in terms of global and regional markets.

In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents a bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes search for recent trends; technical writing; Internet sources; and statistical data from government websites, trade associations, and agencies. This has proved to be a highly reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights and recognizing business opportunities.

The report segments the global autoclaved aerated concrete (AAC) market as follows:

Autoclaved Aerated Concrete (AAC) Market: Product Analysis

  • Block
  • Wall Panel
  • Floor Panel
  • Roof Panel
  • Cladding Panel
  • Others

Autoclaved Aerated Concrete (AAC) Market: End-use Analysis

  • Residential
  • Commercial
  • Others

Autoclaved Aerated Concrete (AAC) Market: Regional Analysis

  • North America
    • The U.S.
    • Canada
  • Europe
    • France
    • The U.K.
    • Russia & CIS
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • Egypt
    • South Africa
    • Rest of Middle East & Africa

Key Takeaways

  • The use of AAC as an energy- and cost-efficient building material
  • Advantages of AAC over other traditional building materials
  • Evolution of AAC as a preferred construction material and recent developments by major players
  • Current market penetration of AAC and future opportunities
  • Porter’s Five Forces Analysis to analyze the market from point of view of various stakeholders involved in the value chain
  • Regulatory landscape to understand the various green building initiatives, schemes, and norms prevalent in different countries
  • Pricing analysis of AAC with respect to different products such as blocks and panels
  • Market size of AAC for the year 2017 and forecast till 2026 across different geographies by product and end-use
  • Key product segments of AAC across different regions and forecasted growth
  • Consumption of AAC across various end-use segments such as residential, commercial, and others
  • Size of the ACC market at the regional and country level by product and end-use
  • Regional market footprint analysis of major players with respect to product, application, and annual production capacity

 

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