Asia-Pacific Autoclaved Aerated Concrete Market, Competition, Forecast & Opportunities, 2028

The Asia-Pacific autoclaved aerated concrete market is anticipated to register a robust CAGR during the forecast period 2024-2028 owing to rising industrialization & population, growing infrastructure investment by various emerging countries, rising government initiatives as well as government investment in the construction sectors.

Autoclaved aerated concrete (AAC) is a precast, lightweight, and foam concrete building material suitable for producing concrete masonry units like blocks. In addition to cement, water, lime, calcined gypsum, quartz sand, and aluminum powder are other ingredients of AAC. AAC offers durability, insulation, and resistance to mold and fire. AAC materials can be painted or coated with a plaster or stucco mixture to shield them from outside influences. Autoclaved aerated concrete can also be used for both interior and exterior construction.

Rising Infrastructure Developments

Various governments have invested a lot in infrastructure expansion for the improvements in the economy of the countries across the Asia-Pacific Region. Residential infrastructure and smart cities, particularly metropolitan centres, are also being planned and developed to accommodate the anticipated rise in the urban population for the upcoming years. In the Asia-Pacific region, China is one of the emerging countries, when compared to others, in terms of growing infrastructural activities across the region. For instance, China is decided to build high-speed and efficient information infrastructure to enhance data perception, transmission, storage, and computing capabilities across the country. Additionally, state council of China announced that China government decided to expand its railway infrastructure by 19,000 kilometres, out of which 12,000 kilometres for high-speed rail. Also, the country has decided to build 29 new passenger airports across the country. Furthermore, China government removed caps of loans to finance affordable rental housing & offer a housing solution across the country. Therefore, the market for autoclaved aerated concrete in Asia-Pacific is projected to grow due to expanding infrastructure advancements in the upcoming years across the region.

Ease in Application

Autoclaved aerated concrete (AAC) is lighter in weight which can be easier to cut into the required size of the blocks, sheets, and panels as per the market as well as clients demands. The components of AAC facilitate the quicker and easier installation of building structures as compared to the other traditional concrete material, that leads to increase in the construction process. Due to the ease of application, the demand for autoclaved aerated concrete is anticipated to grow during the forecast period.

Rising Government Initiatives

In the Asia-Pacific region, the autoclaved aerated concrete market is expected to grow in the upcoming year owing to rising investment infrastructure sector, rising population, and increasing urbanization, increasing government initiatives among others. There are various initiatives as well that have led the market of AAC in the upcoming years.

For instance,

• Pradhan Mantri Awas Yojna - On June 25, 2015, Pradhan Mantri Awas Yojana - Urban (PMAY-U), a major project of the Indian government, is being carried out by the Ministry of Housing and Urban Affairs (MoHUA). The mission addresses the lack of urban housing among the EWS/LIG and MIG categories, including slum people, by ensuring that every eligible urban household had a pucca home by 2022 when the nation would have celebrated 75 years of independence. Therefore, this initiative is likely to propel the market of autoclaved aerated concrete during the forecast period.
• Affordable Rental Housing Complexes - In India, a variety of housing schemes has been launched by the union government, which may directly impact the market of autoclaved aerated concrete in the upcoming years. For instance, the Ministry of Housing and Urban Affairs (PMAY-U) has introduced Affordable Rental Housing Complexes (ARHCs), a sub-scheme of Pradhan Mantri Awas Yojana - Urban. This makes it easier for urban migrants and the advantaged to find a decent and inexpensive rental accommodation close to their places of employment in the industrial sector.
• Expanding transport infrastructure in China

The high-speed rail system in China has historically been a significant factor in economic growth and a major area of focus for local government investment. The comprehensive plan contains information on enlarging China's roadway, passenger airport, and intercity and high-speed rail networks.

• Environmental infrastructure in China

China's State Council issued a guideline on February 9, 2022, seeking regional administrations and business sectors to quicken the development of urban environmental infrastructure. Environmental infrastructure is type of infrastructure that helps to integrate sewage, trash, solid waste, hazardous waste, medical waste treatment and disposal facilities, as well as the necessary monitoring and supervisory capabilities, into a system.

Rising Investments in the Construction Sector

The rising population, enhanced lifestyle, and modern house requirements among others played an important role in rising investment in the construction sector by the government of the Asia-Pacific region. Various countries like China, India, Australia, and New Zealand among others invested millions of dollars in construction activities. For instance,

• In 2022, Vietnam, one of the ASEAN nations invested a majority of the fund in infrastructure projects that include the construction of hospitals, commercial hotels, and higher education institutions, among others across the country. Also, the country allocated 6% of its GDP to construction sector compared to an average of 2.3 % for the other nations in the region.
• Every eligible urban household received a pucca house in 2022 and the Pradhan Mantri Awas Yojana (PMAY) budget has increased by 280% since 2016-17, going from USD 2515.32 million in the most current 2023-24 budget to USD 9550.8 million in the upcoming years. This is the government's primary housing scheme. There are further initiatives including "Housing for All" and the "Smart Cities Mission" for building environmentally friendly infrastructure all around the country.

Social Welfare Infrastructure in China

• In February 2022, the city of Chengdu in Sichuan province announced that it would invest USD 23.6 billion with the aid of banks to "build, reconstruct, renovate, and revitalise" 300,000 affordable rental homes by 2025, with approximately 60,000 to be finished by the end of 2022.
• Over the anticipated period, the market for autoclaved aerated concrete (ACC) is anticipated to expand, which is anticipated to increase demand for ACC in the upcoming years. The initiatives by the Indian government are projected to support the development and maintenance of reliable infrastructure. For instance, according to a recent World Bank study published in November 2022, India would spend USD 840 billion, or USD 55 billion year, on urban infrastructure over the next 15 years. The nation's fast-growing urban population is responsible for this. In the upcoming years, more people are anticipated to seek homes in rural as well as urban regions. Therefore, the market for ACC is anticipated to boost in the forecast period 2024-2028F.
• In Union Budget 2022-2023 of India-
• The government has allotted USD 130.57 billion to upgrade the infrastructure sector. Thus, this investment provides a significant boost in the autoclaved aerated concrete market for the forecast period.
• The Ministry of Housing and Urban Affairs received approximately USD 9.85 billion from the government to fund infrastructure projects all around the nation.

Therefore, the Asia-Pacific autoclaved aerated concrete market is expected to boost in the forecast period.

Challenges:

Lack of Awareness about the Autoclaved Aerated Concrete

AAC is not a material that is widely used in the construction market due to people not being aware of its advantages. It's not frequently the first alternative picked by builders or clients who intend to construct their houses and workplaces. This is particularly true in underdeveloped countries where fly ash bricks and regular concrete are the two most common construction materials. In addition, many small builders and end users lack knowledge regarding the benefits of autoclaved aerated concrete in the construction sector. Additionally, the bulk of construction workers in less developed countries is not trained to use AAC. The Asia-Pacific autoclaved aerated concrete market is anticipated to see slow growth due to a lack of skilled workforce in AAC and the dominance of traditional building materials across the country.

Market Segmentation

Asia-Pacific autoclaved aerated concrete market is divided into product type, end user, and applications. Based on product type, the market is divided into block, lintel, floor elements, roof panel, wall panel, cladding panel, and others. Based on end user, the market is divided into residential, commercial, industrial, and infrastructure. Based on application, the market is divided into construction materials, road construction, roof insulation, bridge sub-structure, void filling, and others. The market analysis also studies the country segmentation among China, Australia, India, Japan, South Korea, New Zealand, Malaysia, Singapore, Indonesia, and Vietnam.

Market Players

Major market players in the Asia-Pacific autoclaved aerated concrete market are Guangxi Hongfa Heavy Machinery Co. Ltd, Fujian Qunfeng Machinery Co. Ltd, Build mate Projects Pvt Ltd, CSR Limited, Celcrete Cladding Systems NZ Ltd, New Era Block Tile Jsc, JK Lakshmi Cement Ltd, Ambuja Cements Ltd, PT. Broco Pearl Electrical Industry, and HIL Limited.

Report Scope:

In this report, the Asia-Pacific autoclaved aerated concrete market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Asia-Pacific Autoclaved Aerated Concrete Market, By Product Type:

• Block
• Lintel
• Floor Elements
• Roof Panel
• Wall Panel
• Cladding Panel
• Others

Asia-Pacific Autoclaved Aerated Concrete Market, By End User:

• Residential
• Commercial
• Industrial
• Infrastructure

Asia-Pacific Autoclaved Aerated Concrete Market, By Application:

• Construction Materials
• Road Construction
• Roof Insulation
• Bridge Sub-Structure
• Void Filling
• Others

Asia-Pacific Autoclaved Aerated Concrete Market, By Country:

• China
• Australia
• India
• Japan
• South Korea
• New Zealand
• Malaysia
• Singapore
• Indonesia
• Vietnam

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Asia-Pacific autoclaved aerated concrete market.

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