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Autoclaved Aerated Concrete Market to Reach US$ 22.2 Billion by 2035, Expanding at 5.1% CAGR | Fact.MR Report

07-22-2025 09:38 AM CET | Chemicals & Materials

Press release from: Factmr

Autoclaved Aerated Concrete Market to Reach US$ 22.2 Billion

The global autoclaved aerated concrete (AAC) market, valued at USD 13.5 billion in 2025, is projected to reach USD 22.2 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 5.1% over the forecast period. This growth is driven by the increasing demand for sustainable, energy-efficient construction materials and the surge in global infrastructure and urbanization projects. AAC's lightweight, thermal insulation, and fire-resistant properties make it a preferred choice for residential, commercial, and infrastructure applications, aligning with global trends toward green building practices.

The market's expansion is fueled by stringent government regulations promoting eco-friendly materials, rapid urbanization in emerging economies, and technological advancements in AAC production. These factors enhance AAC's appeal as a cost-effective, durable, and environmentally sustainable alternative to traditional construction materials, positioning it as a critical component in modern construction.

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Market Analysis

The autoclaved aerated concrete market is propelled by the global push for sustainable construction, driven by the need to reduce carbon footprints and enhance energy efficiency. AAC's low energy consumption during production and superior thermal insulation align with green building standards, supported by government incentives like Japan's Green Renovation Loans and China's low-carbon building policies. Rapid urbanization in countries such as China, India, and Brazil drives demand for lightweight, cost-effective materials that accelerate construction timelines.

Technological advancements, including automated manufacturing and improved material strength, further enhance AAC's competitiveness. However, high initial investment costs for manufacturing facilities, limited awareness in developing regions, and logistical challenges due to AAC's lightweight nature pose barriers. Additionally, the material's water retention and brittle properties can lead to cracking, impacting its reputation, while competition from traditional materials like cement and clay blocks limits market penetration.

Segment Analysis

The blocks segment dominates the AAC market, widely used in residential and commercial construction due to their lightweight nature, thermal insulation, and ease of installation. AAC blocks reduce construction time and costs while meeting green building standards, particularly in Asia-Pacific and Europe. The wall panels segment is the fastest-growing, driven by the rise in modular and prefabricated construction. Wall panels offer quick installation, structural strength, and superior sound and fire insulation, making them ideal for high-rise buildings and large commercial projects. Residential construction leads by application, fueled by demand for energy-efficient, affordable housing in developing regions, while infrastructure construction is the fastest-growing segment, driven by AAC's seismic resilience and use in public projects like bridges and civic buildings.

Country-wise Insights

In the United States, the AAC market is expanding steadily, driven by the material's energy efficiency and alignment with stringent building codes. The focus on sustainable construction, supported by green building councils and companies like Aercon AAC, fuels demand for AAC panels, particularly in regions with extreme climates where thermal insulation reduces energy costs. Collaborations with local manufacturers enhance market penetration. In the United Kingdom, AAC adoption is supported by strict regulations like the Ambient Air Quality Directive and sustainability programs such as BREEAM. The U.K. market emphasizes energy-efficient materials for residential and commercial construction, though its smaller construction sector compared to the U.S. limits market size.

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Key Players
• Xella Group
• H+H International
• SOLBET
• ACICO
• Isoltech srl
• Broco
• Cematix
• Star Cement Limited
• BirlaNu Limited

Strategic Outlook and Industry Trends

The AAC market is evolving with a focus on sustainability and innovation. Companies are investing in automated production technologies and circular economy strategies to enhance product quality and reduce costs. Recent developments, such as Star Cement's launch of AAC blocks and BirlaNu's expanded production in Chennai in 2025, reflect the industry's commitment to meeting rising demand. The shift toward prefabricated construction, particularly wall panels, is accelerating due to the need for faster project completion and reduced labor costs. Strategic partnerships and facility expansions are key strategies to improve market access and competitiveness. As urbanization and environmental regulations intensify, the AAC market is poised for sustained growth, driven by its alignment with global sustainability goals.

Browse Full Report on: https://www.factmr.com/report/509/autoclaved-aerated-concrete-market

Segmentation of Autoclaved Aerated Concrete Market

By Product Type:
• Blocks
• Wall Panels
• Floor Elements
• Cladding Panels
• Lintels
• Others (Beams & Lintels, Roof Panels)

By Application:
• Residential Construction
• Industrial Construction
• Commercial Construction
• Infrastructure Construction
• Others (Roof Insulation)

By Region:
• North America
• Latin America
• Western Europe
• Eastern Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa

Check out More Related Studies Published by Fact.MR:

Concrete Reinforcing Fiber Market
https://www.factmr.com/report/2385/concrete-reinforcing-fiber-market

Concrete Floor Coatings Market
https://www.factmr.com/report/concrete-floor-coatings-market

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