AAC Blocks and Panels Market Expected to Reach $34.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “AAC Blocks and Panels Market," The aac blocks and panels market was valued at $19 billion in 2021, and is estimated to reach $34.4 billion by 2031, growing at a CAGR of 6.2% from 2022 to 2031.

Autoclaved aerated concrete (AAC) is a building material that is created in a variety of sizes and strengths and is lightweight, load-bearing, highly insulating, and durable. In comparison to red bricks, AAC blocks are three times lighter. The common ingredients of lime, sand, cement, and water are used to make AAC, along with a small amount of an elevating agent. It is then autoclaved under heat and pressure to give it its special qualities after mixing and molding. It provides superior acoustic and thermal absorption capabilities. Compared to more traditional structural building materials such as concrete, wood, brick, and stone, AAC is more affordable and environmentally friendly. AAC blocks have high strength for compression, size, and shape perfection, with fast output. So, it is anticipated that these factors drive the AAC blocks and panels market growth.

However, some of the disadvantages of AAC blocks and panels include their certain unfavorable properties. AAC blocks and panels are highly expensive, due to which people prefer using alternative building materials such as redbicks. Lack of awareness among people regarding AAC block quality can hamper the AAC blocks and panels market size.

The construction sector in China has shown significant growth as it is a primary manufacturer and supplier of AAC. At present, the civil construction sector has grown by over 147% over the years owing to an increase in residential and commercial construction activities across the globe. The country has undertaken an enterprise for green construction to protect natural resources and improve air quality. AAC Blocks are excellent and unique building materials, which give ultimate durability, flexibility, and good workability. These factors are driving the AAC blocks and panels market share during the forecast period.

The global AAC blocks and panels market is segmented based on product type, end-use industry, and region. By product type, it is classified into blocks, panels, lintels, and others. By end user, it is classified into residential construction, commercial construction, industrial construction, and infrastructural construction. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the AAC blocks and panels market analysis report include MASA GmbH, Aercon AAC, AKG Gazbeton, JK Laxmi Cement, Biltech Building Elements, CSR Ltd., Forterra Plc, H+H International A/S, CK Birla Group, and Xella.

The report offers a comprehensive analysis of the global AAC blocks and panels market trends by thoroughly studying different aspects of the market, including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working toward the growth of the market. The report also sheds light on the present scenario and upcoming trends & developments that are contributing to the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are profiled in the report along with Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and the emergence of substitutes in the market. The complete analysis of AAC blocks and panels market forecast and the factors estimated to boost the demand in the upcoming years.

Impact of Covid-19 on the Global AAC Blocks and Panels Industry

• Sales of AAC blocks and panels are directly proportional to the demand from residential, commercial, industrial, and infrastructural construction activities. However, various sectors, such as construction, residential, and manufacturing sectors, were negatively impacted by the COVID-19 pandemic which has affected the production and demand for AAC blocks and panels due to a disrupted supply chain.
• Due to COVID-19, AAC blocks and panels producing companies ceased their operations owing to import-export restrictions, lockdown imposed across several countries, shortage of labor; the fear of contracting the novel coronavirus led to sluggish demand in the market.
• Social distancing norms, closed borders, and production constraints due to the pandemic across various countries such as China, India, and the U.S. have affected the global market.

Key Findings of the Study

• By product type, the blocks sub-segment emerged as the global leader in 2021 and is further anticipated to be the fastest growing sub-segment during the forecast period. Panels are anticipated to be the second fastest growing sub-segment during the forecast period.
• On the basis of end-use, residential construction as a sub-segment emerged as the global leader in 2021 and is predicted to show the fastest growth in the upcoming years.

• By region, the Asia-Pacific market registered the highest market share in 2021 and is projected to maintain its position during the forecast period.