The Global AAC Market is Projected to Register a CAGR of 6.0% Between 2020 and 2025

The global autoclaved aerated concrete (AAC) market 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%, between 2020 and 2025. The major driving factors include the increasing urbanization & industrialization, growth in the infrastructure sector, rising demand for lightweight construction materials, growing preferences for low-cost houses, and an ever-increasing focus on green & soundproof buildings are the factors driving the market. However, the cost associated with AAC and the lack of awareness is expected to restrain this market. Focus on construction projects with a high affinity for earthquakes, and low market penetration is expected to offer significant growth opportunities to the AAC manufacturers. A significant challenge faced by the players in this market is the brittle nature of these materials.

The blocks segment is expected to grow at the highest CAGR during the forecast period in the AAC market.
The blocks element is the largest and fastest-growing segment attributed to the increase in demand for AAC blocks in residential as well as non-residential industries. Besides AAC blocks' insulating capability, one of its advantages in construction is its quick and easy installation, because the material can be routed, sanded, and cut to size on site.

The non-residential segment is expected to be the fastest-growing end-use industry during the forecast period in the AAC market, in terms of volume
The two most critical considerations for a well-designed commercial building are aesthetics and functionality.AAC is one of the world's most-produced building materials after concrete.

AAC is manufactured mostly as blocks and panels.Unlike concrete masonry units, AAC blocks are solid, with no molded core holes.

Four inches of AAC has a 4-hour fire rating, making it ideal in commercial buildings for encasing steel columns, surrounding elevator shafts, and for other fire-stopping requirements.

AAC offers highly efficient thermal insulation, optimal fire protection, and masonry with excellent load-bearing abilities.Large-format prefabricated AAC panels are used in large-scale business construction projects, such as logistics centers, warehouses, and production facilities, as well as event centers and sports halls.

AAC is not only used to construct inner leaves of cavity walls and partitioning walls but also internal, external, and firewalls in both load-bearing and non-load bearing designs.

APAC is expected to be the largest AAC market during the forecast period.
APAC was the largest market for AAC in 2019.The large market size in the region is attributed to the growth of the building & construction industry.