Autoclaved Aerated Concrete (AAC) Market worth $25.2 billion by 2025 | Key players AKG Gazbeton, Aercon Florida Llc, Solbet Sp Z.O.O., UAL Industries Ltd, Xella Group.

According to recent market research the "Autoclaved Aerated Concrete (AAC) Market by Element (Blocks, Beams & Lintels, Cladding Panels, Wall Panels, Roof Panels, Floor Elements), End-use Industry (Residential, Non-Residential), and Region - Global Forecast to 2025", 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%, during the forecast period. AAC or aircrete is a green precast building material present in the global market for over 70 years and is used extensively in residential and non-residential construction. This eco-friendly building material is made from natural raw materials such as sand (or fly-ash), cement, lime, gypsum, aluminum powder, and water. This mix creates an aerated concrete providing insulation, structure, and fire protection in one lightweight product.

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Blocks for laying in mortar or glue are produced without any reinforcement. They are excellent insulators and help to reduce the cooling or heating cost. These AAC blocks meet all engineering requirements, are lightweight, and can be used for load-bearing and non-load bearing walls. Additionally, they are resistant to earthquakes and fire and are non-combustible. These factors contribute to the growth of the AAC blocks segment.

The high growth of this segment is attributed to the requirement of lightweight and environmentally friendly building materials in residential constructions. AAC building materials have become an integral part of the building & construction industry due to its durability and excellent features. A unique property of AAC is that it contains water in a crystalline form that acts as a heat sink; when heated, this water produces steam that escapes through AAC's porous structure without causing surface spalling. Even when AAC is not used as the structural building system, the material is often used as interior fire-separation partitions in apartments, bungalows, and other multi-family dwellings.

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The APAC AAC industry has been analyzed for China, Japan, India, South Korea, Australia, and Rest of APAC. APAC is an emerging and lucrative market, owing to industrial development and improving economic conditions. This region constitutes approximately 61% of the world's population, resulting in the growth of the building & construction industry and, in turn, the AAC market.
Major players operating in the global AAC market include Buildmate Projects Pvt. Ltd. (India), Biltech Building Elements Limited (India), AKG Gazbeton (Turkey), Aercon Florida Llc (US), Solbet Sp Z.O.O. (Poland), UAL Industries Ltd (India), H+H International A/S (Denmark), JK Lakshmi Cement (India), Xella Group (Germany), CSR Ltd. (Australia), UltraTech Cement Ltd. (India), Quinn Building Products (UK), Bauroc International AS (Estonia), and Wehrhahn GmbH (Germany).

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CSR Limited is an established construction company that has established its market presence in Australia and New Zealand. The company runs under four business segments, namely, Building Products, Property, Aluminum, and Viridian. The company produces lightweight systems (which include AAC), insulation, AFS walling system, enclosed facades, bricks, and roofing. The company primarily operates in Australia and distributes its product to some parts of New Zealand.
• In April 2019, CSR Hebel launched its USD 75 million AAC manufacturing facility, which will allow the company to double its current capacity. The opening of the plant, located in Somersby, NSW, will help the company to serve the growing demand from the Australian housing market.
Established in 1993, BBEL manufactures and markets building materials and has more than 20 years of experience. The company is the largest producer of AAC in India. BBEL holds over 40% market share and has a manufacturing capacity of 1,340,000 cubic meters. Moreover, the company offers concrete material for hospitals, institutional buildings, clubhouses, resorts, hotels, schools, shopping malls, hostels, and residential towers. BBEL serves the public and private sectors in India. AAC is manufactured in about 200 plants in 35 countries and is used extensively in residential, commercial, and industrial buildings.
Currently, BBEL has manufacturing units in Palwal, Haryana; Palghar, Bhigwan; Pune, Maharashtra; Surat, Gujarat; West Bengal; and Tumkur, Karnataka. The company plans to set up six additional plants in the next two years.
• In March 2017, Biltech acquired the AAC blocks manufacturing units of Siporox in Pune and Tumkur. India's rising population, increase in per capita income, improved economic growth, industrialization, and rapid urbanization augmented the growth prospects of blocks and bricks industry. As a result, the company strengthened its AAC block segment through this acquisition.

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