The global autoclaved aerated concrete market size reached USD 22.2 Billion in 2024 and is projected to reach USD 36.4 Billion by 2033. The market is expected to grow at a CAGR of 5.36% during the forecast period from 2025 to 2033. The rising use of AAC in the construction of both interior and exterior structures across commercial and residential sectors is driving growth.
Study Assumption Years
- Base Year: 2024
- Historical Years: 2019-2024
- Forecast Period: 2025-2033
Autoclaved Aerated Concrete Market Key Takeaways
- The global autoclaved aerated concrete market was valued at USD 22.2 Billion in 2024.
- The market is expected to exhibit a CAGR of 5.36% during 2025-2033.
- The forecast period spans from 2025 to 2033.
- The market growth is fueled by increasing demand for lightweight construction materials and the preference for affordable and soundproof housing.
- Asia-Pacific dominates the market due to rapid urbanization and significant infrastructural development.
- Challenges include high initial production cost due to specific tools and procedures.
- Expanding production size and upgrading manufacturing technologies are expected to lower costs and propel the market.
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Market Growth Factors
The autoclaved aerated concrete market is driven by the growing inclination of end users toward AAC, owing to its numerous benefits such as durability, fire resistance, and thermal insulation. Additionally, the rising need for lightweight construction materials supports market growth. The extensive use of AAC in building both interior and exterior structures, especially in commercial and residential sectors, enhances demand.
Rapid urbanization and infrastructure development, particularly in emerging economies, have increased AAC consumption. Government investments in infrastructure and affordable housing have catalyzed AAC adoption due to its cost-effectiveness, lightweight nature, and long-lasting building benefits. For instance, in March 2024, Romanian company DVI Production invested approximately €35 Million to start manufacturing AAC blocks under its brand Fortem.
Growing environmental awareness boosts demand for sustainable construction materials such as AAC, recognized for eco-friendliness, low carbon footprint, and energy-saving properties. The market benefits from green building initiatives and government backing worldwide. Max Group initiated commercial AAC blocks and panels production in April 2024, emphasizing green building materials. Furthermore, the increasing need for disaster-resilient buildings is propelling AAC adoption. In April 2024, STÄRKEN Philippines demonstrated the strength of its AAC wall system under destructive earthquake testing, spotlighting AAC’s resilience against seismic forces.
Market Segmentation
By Type:
- Blocks: Hold the largest market share due to their lightweight, durable nature, excellent thermal insulation, ease of handling, and quick installation, leading to widespread use in residential, commercial, and industrial projects.
- Beams and Lintels
- Cladding Panels
- Roof Panels
- Wall Panels
- Floor Elements
- Others
By Application:
- Construction Materials: Represent the largest market segment. AAC is widely used for walls, floors, and roofs, favored for being lightweight, energy-efficient, and fire-resistant, contributing to sustainable building solutions.
- Road Construction
- Roof Insulation
- Bridge Sub-Structure
- Void Filling
- Others
By End User:
- Residential: Dominates with the largest market share, driven by demand for energy-efficient and cost-effective building materials suitable for sustainable housing in urban areas.
- Non-Residential
By Region:
- North America (United States, Canada)
- Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others): The leading region in market growth, driven by rapid industrial growth, rising investments in construction, and adoption of AAC for various projects due to its lightweight and thermal insulation properties.
- Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America (Brazil, Mexico, Others)
- Middle East and Africa
Regional Insights
Asia-Pacific currently dominates the global autoclaved aerated concrete market. This dominance is attributed to significant industrial growth and increasing investment in the construction sector. These factors are driving AAC adoption in residential, commercial, and industrial projects. The region benefits from AAC’s lightweight nature, thermal insulation, and ease of installation.
Recent Developments & News
- In April 2024, STÄRKEN Philippines conducted a destructive earthquake test demonstrating the robustness and resilience of its AAC wall system against powerful seismic forces.
- Also in April 2024, Max Group began commercial production of environmentally friendly AAC blocks and panels, promoting green building materials as alternatives to traditional clay-based bricks.
- In March 2024, Romanian company DVI Production commenced manufacturing AAC blocks under its brand Fortem at a newly developed factory in Iernut, Mures county, supported by approximately €35 Million investment.
Key Players
- Aercon AAC
- AKG Gazbeton
- Bauroc AS
- Biltech Building Elements Limited
- Buildmate Projects Pvt. Ltd.
- CSR Limited
- Eastland Building Materials Co. Ltd.
- H+H International A/S
- HIL Limited
- JK Lakshmi Cement Ltd.
- UAL Industries Limited
- UltraTech Cement Ltd. (Aditya Birla Group)
- Xella Group
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