Autoclaved Aerated Concrete (AAC) Market
Global Industry Analysis (2017 – 2020) – Growth Trends and Market Forecast (2021 – 2025)
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Green Building Technology Upholds Autoclaved Aerated Concrete Market
Unprecedented industrialisation and urbanisation, rampant infrastructural developments worldwide, rapid expanse of green building technologies, and ascending demand for lightweight construction materials are primarily boosting the demand for autoclaved aerated concrete (AAC) in the building and construction industry. The soaring demand for affordable housing and mounting trend of sound-proof building further support the progress of the global AAC market. With a greater number of building and construction industry participants striving to comply with the global sustainability drive, adoption of sustainable building materials such as autoclaved aerated concrete will witness a measurable spike in future.
According to the World Green Building Trends 2018 report, the percentage of firms expecting to have more than 60% of their projects certified green has grown from 16% in 2016 to 32% in 2018, which is expected to grow to 45% by 2021. This itself is a strong factor fuelling the growth of the global autoclaved aerated concrete market. The unique product flexibility and characteristics allow for high-speed and energy-efficient construction methods - saving on time, labour, finishing effort, and overall building costs. AAC has thus secured its place in the future of sustainable construction, outperforming alternative building materials in natural insulation, fire resistance and eco-friendliness. With expanding interests in buildings resilience today, the prospects for AAC look brighter.
Sustainable Building Materials Gain Ground in Modern Building and Construction
The construction industry, by its very nature, has been a prime user of natural resources. But with growing concerns over climate change and the finite nature of these resources, there is an ever-increasing pressure on construction firms to reduce their environmental impact. In fact, the construction industry accounts for an incredible 37% of worldwide energy usage, and 40% of CO2 emissions. Concrete manufacturing accounts for over 3.2 billion tons of CO2, which will only grow in the foreseeable future as around 6 billion tons of concrete is poured in, every year. With more people choosing resilient building, industry players are also developing innovative green materials to leverage the growing marketplace opportunity. Designers, architects, builders, and producers are constantly investing in R&D.
New environmental regulations set the bar high for desired energy efficiency of existing building materials. Moreover, the sustainable construction does not end at the time of building completion but maintains its positive impact on the environment all though its lifespan. This ongoing process thus demands the building design to incorporate elements that have an ongoing positive influence on the building’s environmental impact. These can include proper insulation to prevent heat loss, solar panels to reduce energy consumption, and building materials with a long lifespan.
Growing Inclination Towards an Eco-friendly Lifestyle Bolsters Autoclaved Aerated Concrete Demand
Eco-friendly lightweight concrete is the technology of the future. Pre-cast concrete has been gathering momentum in industry over the recent past, offering an easy, affordable, and quicker way for the construction of walls and different structures. This form of concrete is not directly poured on the site but rather comes in a pile of pre-cast blocks. AAC is one of the most common forms of pre-cast concrete that allows excellent assemblies. The blocks of AAC have the highest surface texture and lowest dimensional tolerance, which make them ideal for use in both load bearing and non-load bearing applications. AAC makes a significant contribution to sustainable development; the triple bottom line of environmental, social, and economic. An environmentally-friendly and certified green building material that is almost 3X lighter in weight than its brick counterparts, autoclaved aerated concrete is gaining preference among those who are striving to meet greenhouse gas emission standards and maintain circularity.
Large-scale Construction Activities Create Renewed Demand for AAC
The projected global population of 9.7 billion by 2050 is synonymous with exploding urbanisation, swelling transportation network, rampant infrastructural developments, ascending housing needs, critical need for newer energy systems, rising demand for employment, and expanding healthcare infrastructure. All this will continue to attract massive volumes of investments from governments as well as non-governmental bodies, within residential, commercial, and public sectors. Large-scale construction projects that would rise will underpin the multi-dimensional growth of the building and construction industry, thereby pushing the demand for clean and green building materials such as autoclaved aerated concrete. Moreover, the repair, maintenance, and development of new infrastructure will continue to generate the demand in the foreseeable future.
Regulation is driving the take-up of green building in South Asia, South East Asia, MENA, the UK, and the Ireland, whereas client demand remains the key driver in countries like Australia, North America, and Western Europe. Mature AAC markets, viz. Western Europe, Scandinavia, Japan, and Australia, have shifted towards AAC panels (benefitting the positive prospects of using AAC elements).
Key Market Players in AAC Landscape
Some of the most prominent players in the global autoclaved aerated concrete market include H+H UK Ltd, Hebel, Mannok Holdings, Tarmac Building Products Ltd, Xella Group, UAL Industries Ltd., SOLBET, AERCON AAC, Magna, WKB Systems, UltraTech Cement Ltd., AKG Gazbeton, ACICO Group, Eastland Building Materials Co., Ltd, Brickwell, and Biltech Building Elements Limited.