How Is Green Building Construction Creating Autoclaved Aerated Concrete Demand?


The World Bank states that the global urban population increased from 4.274 billion in 2019 to 4.352 billion in 2020. Furthermore, the Population Division of the United Nations Department of Economic and Social Affairs (UNDESA) estimates that around 68% of the global population will reside in urban areas by 2050. This organization also forecasts that Asia and Africa will observe the largest surge in urban population in the coming years. The expanding urban population base will result in the large-scale construction of housing structures, owing to which there will be a substantial requirement for autoclaved aerated concrete.

Moreover, the rising construction of green and sound-proof buildings is expected to drive the autoclaved aerated concrete market at a CAGR of 6.0% during 2020–2030. According to P&S Intelligence, the market revenue will grow from $4,498.5 million in 2019 to $8,314.9 million by 2030. Construction companies use this concrete in sound-proof buildings because it has superior sound absorption quality, owing to its porous structure. In addition, the non-polluting nature of autoclaved aerated concrete, owing to their non-toxic ingredients and low energy requirements, make them ideal for green buildings.

Autoclaved aerated concrete is used to make blocks, lintels, panels, and tiles. In the upcoming years, autoclaved aerated concrete blocks will be required in large quantities due to their ability to be piled up together with a thin-bed mortar in a running bond. These blocks are ideal for the construction of high-rise buildings, railroad bridges, and pavements as they are easy to install and exhibit high thermal efficiency. Additionally, the low weight, exceptional strength, and environment-friendly nature of these blocks make them ideal for construction activities.

The end user segment of the autoclaved aerated concrete market is categorized into commercial buildings, residential buildings, public infrastructure, such as water treatment systems, bridges, and highway substructure, and others, such as agriculture, geotechnical, and mining. Among these, the public infrastructure category will account for the largest market share throughout the forecast period, owing to the surging focus of governments on developing civil infrastructure. Governments around the world are introducing affordable housing schemes to accommodate the booming population.

In recent years, autoclaved aerated concrete producing companies, such as SOLBET Spolka z o.o., Aircrete Europe B.V., Broco Industries, Masa GmbH, H+H International A/S, ACICO Industries Co. KSCP, Wehrhahn GmbH, Isoltech srl, AERCON AAC, Xella International GmbH, and Fast Build Blocks Pvt. Ltd., have engaged in mergers and acquisitions to meet the needs of the construction, agriculture, and mining industries. For instance, in July 2019, LafargeHolcim Ltd. collaborated with Oresa Romania to acquire Somaco Prefabricated Group, a Romanian concrete manufacturer to offer precast concrete and integrated solutions.

Globally, the Asia-Pacific autoclaved aerated concrete market will generate the highest revenue and exhibit the fastest growth during the forecast years. This will be on account of the booming local real-estate construction industry in the region. Additionally, the mounting investments being made by governments in infrastructure projects, escalating urbanization rate, growing population, and soaring purchasing power of people will also propel the growth of the market in APAC countries in the years to come. As per the World Bank, the urban population of East Asia and the Pacific grew from 1.402 billion in 2019 to 1.428 billion in 2020.

Therefore, the booming urban population and the increasing shift toward green and sound-proof buildings will facilitate the adoption of autoclaved aerated concrete, globally.

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