The Global Autoclaved Concrete Market is expected to grow at a high CAGR of 7.2% during the forecasting period (2022-2029).
Autoclaved concrete is a lightweight, precast, foam concrete building material that is used for the production of concrete masonry units (CMU) like blocks. It is composed of quartz sand, calcined gypsum, lime, cement, water, and aluminum powder.
The market growth is driven by rapid urbanization and industrialization leading to a rising number of construction activities
The market is witnessing the rising focus on environmentally friendly materials due to their non-toxicity, inert, and lightweight which could provide lucrative opportunities to manufacturing. Autoclaved Aerated Concrete (AAC) is one of the eco-friendly and certified green building materials. AAC is porous, non-toxic, reusable, renewable, and recyclable. Autoclaved Aerated Concrete, also known as air Crete, is a lightweight, load-bearing, high insulating, durable building product, which is produced in a wide range of sizes and strengths
Companies are also focusing on developing new manufacturing facilities, and capacity expansion. For instance, in January 2019, Erode-based Renaatus Procon Pvt. Ltd had started a facility at Tirunelveli and is planning to establish a third facility in the next two years. It would have a capacity of 18,000 cubic meters a month. The company had also entered into the collaboration with Maldives Government’s State Trading Organisation for exporting the Renacon AAC blocks.
Lack of awareness about the benefits of autoclaved concrete products and cracking of autoclaved concrete products are some of the major factors restraining the growth of the market.
COVID-19 Impact Analysis
The COVID-19 pandemic has disrupted the global economy and halted the key processes of almost all companies. Therefore, even the global autoclaved concrete market suffered due to it. The disturbances in supply chain management and transportation of goods and services hurt the growth of the market. Many manufacturing and production units were disrupted due to the government enforced lockdowns and curfews across the world which led to losses and wastage of many products. There were very few construction projects taken during the pandemic which negatively affected the market. The pandemic also significantly changed consumer demand and behavior. Consumers refrained from purchasing non-essential products amid the pandemic thereby impacting the sales of autoclaved concrete-related products. The uncertain and unexpected situation caused by the pandemic significantly impacted the market hence, slowing its growth. However, the post-pandemic scene has improved and the global autoclaved concrete market has recovered. The market is set to grow at a high rate.
The global autoclaved concrete market is segmented based on type as block, lintel, panel, tile, and others
Block segment accounts for the highest market share due to the high usage of autoclaved concrete blocks especially in the Asia Pacific region and Europe. The insulating capability of the block and the quick and easy installation of the blocks are driving the growth of this segment. As the material can be routed, sanded, and cut to size on-site, the demand for autoclaved concrete blocks is rising. The size and type of autoclaved concrete can be different as per the country's requirements. The cost of autoclaved concrete blocks is higher in comparison to the other products.
The panel segment is expected to have positive market growth due to the easy availability of autoclaved concrete panels. These panels stood vertically, spanning full-story heights. Autoclaved concrete panels are heavier due to their size and require the use of a crane for placement. These panels are set into a layer of thin-bed mortar and vertical rebar by attaching to dowels extending up from the floor before the adjacent panel is placed.
Further, the market is also classified based on application as residential, industrial, and commercial
The residential segment accounts for the highest market share due to the rising demand for the reconstruction of new and old buildings. Autoclave concrete possesses thermally-insulated, energy-efficient, and environmental-friendly properties, along with being fire-resistant, termite- or pest-resistant, and seismic-resistant. Autoclaved concrete building materials are major materials used in the building & construction industry because of their durability and excellent features.
Commercial segments account for the significant market share owing to the increased demand for autoclaved concrete in office spaces for enhancing the office appearance, control, and maintaining privacy, safety, and security.
By region, the global autoclaved concrete market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East and Africa
Among all of the regions, Asia-Pacific dominates the market due to the rising demand for autoclaved concrete. It is being preferred by the developers for building constructions due to its lightweight and energy efficiency. Asia Pacific region is witnessing rapid urbanization especially in developing countries such as India and China.
According to the United Nation, around 54% of the world’s urban population is living in Asia. It is expected that around 4.9 billion people are living in Asia. Currently, the Chinese government had rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities, over the next ten years. Infrastructure is one of the fasted growing. It is expected that approximately 4.9 billion people are expected to live in these cities by 2025. China is one of the largest Autoclaved Concrete production countries.
Europe has high demand due to the rising consumption of autoclaved concrete. Moreover, growing consumer awareness, changing lifestyle, and consumption are the factors increasing the demand for autoclaved concrete in Germany, and France. Germany is one of the largest autoclaved concrete production countries. There are many old buildings located in Europe that require renovations as these old buildings lead to consuming more energy. The rising adoption of electric vehicles shall have a positive impact on the market.
There is high usage of autoclaved concrete in the automobile industry as it is one of the largest segments. According to the European Automobile Manufacturers Association, Automobile manufacturers operate around 309 vehicle assembly and production plants in 27 countries across Europe. Approximately, 19.2 million cars, vans, trucks, and buses are manufactured every year. Automobiles are increasing the demand for autoclaved concrete in 2028.
The global autoclaved concrete market is witnessing heightened competition as there are several local and international players with competitive prices. Eastland Building Materials Co. Ltd, Eco Green Products Pvt. Ltd, UltraTech Cement Ltd, Forterra Renaatus Procon Pvt. Ltd is the leading market player with a significant market size.
The companies are entering into collaborations, mergers, strategic partnerships, and acquisitions to increase the demand for autoclaved concrete products and their expansion across the globe. For instance, in June 2019, CSR Hebel had completed its new Somersby plant in New South Wales to manufacture Hebel autoclaved concrete blocks and panels. The companies are entering into collaborations, mergers, strategic partnerships, and acquisitions to increase the demand for Autoclaved Concrete and its expansion across the globe.
In October 2019, Romania’s Competition Council had authorized the transaction by which the Romanian subsidiary of LafargeHolcim takes over Somaco Grup Prefabricate, a company that owns six plants with over 750 employees in Romania. Sonoco operates five prefabricated concrete factories as well as a factory for the production of autoclaved cellular concrete. Holcim Romania specializes in the production of cement and concrete. Companies are raising investment for increasing their market presence and penetration across the globe.
Overview: UltraTech Cement Limited is an Indian cement company. It is the largest manufacturer of grey cement, ready mix concrete, and white cement in India. It is the third-largest cement producer in the world, excluding China.
Product Portfolio: UltraTech products include ordinary portland cement, portland blast furnace slag cement, portland pozzalana cement, white cement, ready mix concrete, building products, etc.
Key Developments: In 2018, Ultratech Cement acquired 3B Binani Glassfibre SARL. The acquisition provided the Company access to large reserves of high-quality limestone.
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**The global Autoclaved Concrete report will provide access to approximately 53 market data tables, 44 figures, and 178 pages
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