The global AAC blocks and panels market revenue was around US$ 20 billion in 2021 and is estimated to reach US$ 34.9 billion by 2031, growing at a compound annual growth rate (CAGR) of 6.2% during the forecast period from 2022 to 2031.

Autoclaved Aerated Concrete (AAC) is produced industrially using cement, fly ash, or fine aggregate. The weight of AAC panels and blocks, which ranges from 1/6 to 1/3 of that of conventional concrete, makes them lightweight building materials. Additionally, it goes by the names porous concrete, autoclaved cellular concrete, aircrete, foam concrete, and autoclaved lightweight concrete.

Factors Influencing Market Growth

AAC Blocks are exceptional and distinctive building materials that provide the highest level of flexibility, durability, and usability. These elements will fuel the market.

The expansion in infrastructure projects and construction has raised the demand for commercial, residential, and industrial buildings, which has also contributed to the industry's long-term growth. This factor is estimated to create lucrative opportunities in the market.

Lack of awareness among consumers regarding AAC block quality can constrain market growth.

Study of the COVID-19 Pandemic

The COVID-19 pandemic had a negative impact on the market. Due to the lockdown enacted by the government and the closure of construction sites, the majority of the migrant and local workers employed at the sites were unable to get to their places of employment. There was a notable decline in the demand for AAC blocks and non-reinforced panels internationally since they are now often employed in construction.

However, the government's large reduction in funding for infrastructure and building projects owing to increased emphasis on boosting the healthcare system had an impact on the sales of AAC blocks and panels. As construction is a volatile enterprise, decreased economic activity is a result of weak demand for industrial, commercial, residential, or renovation projects has impacted the market size.

Regional Insights

Asia-Pacific dominated the market in 2021, and it is anticipated that it will continue to be the fastest-growing sub-segment during the forecast period. The AAC restricts demand in nations like India and China, which are expanding quickly because of increasing demand for a variety of services including entertainment and education. It offers a significant opportunity for facility building. Additionally, these countries' expanding populations have boosted the need for residential construction, which has prompted their governments to start some initiatives to encourage the development of these buildings. These factors drive the market in this region.

Leading Competitors

The leading competitors in the global AAC blocks and panels market are:
UAL INDUSTRIES LTD
JK Lakshmi Cement Ltd
H+H UK LIMITED
Xella Group
Biltech Building Elements Limited
UltraTech Cement Ltd
AERCON Aac
Wehrhahn GmbH
Akg Gazbeton
Solbet
Others
Segmentation Analysis
The global AAC blocks and panels market segmentation focuses on Product Type, End User, and Region.
Segmentation based on Product Type
Blocks
Panels
Lintels
Others
Segmentation based on End User
Residential Construction
Commercial Construction
Industrial Construction
Infrastructure Construction
Segmentation based on Region
North America
The U.S.
Canada
Mexico
Europe
Western Europe
The UK
Germany
France
Italy
Spain
Rest of Western Europe
Eastern Europe
Poland
Russia
Rest of Europe
Asia Pacific
China
India
Japan
Australia & New Zealand
ASEAN
Rest of Asia Pacific

Middle East & Africa (MEA)
UAE
Saudi Arabia
South Africa
Rest of MEA

South America
Brazil
Argentina
Rest of South America