The AAC blocks and panels market size has grown strongly in recent years. It will grow from $21.21 billion in 2024 to $22.7 billion in 2025 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to infrastructure development initiatives, building code compliance, material innovations and advancements, focus on fire-resistant materials, construction industry evolution.
The AAC blocks and panels market size is expected to see strong growth in the next few years. It will grow to $30.31 billion in 2029 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to rapid urbanization and infrastructure projects, government regulations on energy efficiency, increasing demand for residential housing, growing commercial construction. Major trends in the forecast period include architectural design flexibility, government support and incentives, preference for green buildings, sustainable building practices.
An uptick in construction activities is anticipated to propel the growth of the AAC blocks and panels market in the coming years. Construction activity encompasses any work related to land, including the building of infrastructure and structures. The development of infrastructure and buildings will lead to a heightened demand for AAC blocks, which are lightweight, load-bearing, high-insulating, and durable, they are three times lighter than traditional red bricks. For example, in July 2023, the Australian Bureau of Statistics, a government agency in Australia, reported an increase in the number of homes under construction, rising from 240,065 in 2022 to 240,813 in the March quarter of 2023. In 2023, there were 103,778 new homes, an increase from 101,240 in 2022. Thus, the rise in construction activities is driving the AAC blocks and panels market.
The anticipated growth in urbanization is expected to be a significant driver for the AAC (Autoclaved Aerated Concrete) Blocks and Panels market. Urbanization, a process characterized by population migration from rural areas to urban centers, results in the expansion and development of cities and towns. This trend is particularly advantageous for AAC blocks and panels, as it generates increased demand for affordable, energy-efficient, and environmentally friendly housing solutions. The ongoing urbanization and population growth contribute to a shift in builders' preferences towards autoclaved aerated concrete materials over traditional options. AAC blocks and panels offer superior properties, including cost-effectiveness, earthquake and fire resistance, and flexibility in block sizes. For example, the World Bank projects that the global urban population will reach 6 billion people by 2045, representing a 1.5-fold increase from the current levels in 2023. Hence, the rise in urbanization emerges as a driving force for the AAC blocks and panels market.
Leading companies in the AAC blocks and panels market are innovating by developing sustainable autoclaved aerated concrete (AAC) blocks to enhance their market position. Sustainable AAC blocks are eco-friendly building materials recognized for their lightweight nature, high thermal insulation, and lower environmental impact, making them a favored choice for sustainable construction projects. For example, in June 2023, Godrej Construction, a company based in India, introduced its TUFF AAC Blocks. These blocks are designed to be cost-effective, durable, and sustainable, incorporating fly ash, a by-product of coal combustion, thus offering an eco-friendly alternative to traditional brick production. Emphasizing lightweight construction, the TUFF AAC Blocks enable faster building processes while providing thermal insulation and fire resistance, aligning with the increasing demand for sustainable construction materials in the real estate industry.
Major players in the AAC (Autoclaved Aerated Concrete) blocks and panels market are concentrating on launching manufacturing plants to gain a competitive advantage. Manufacturing plants are facilities where raw materials are processed and assembled into finished products. For instance, in February 2023, Infra.Market, a construction materials company in India, unveiled new AAC block manufacturing plants aimed at boosting its production capacity. These advanced facilities are designed to produce high-quality AAC blocks that are lightweight, energy-efficient, and provide excellent thermal insulation, aligning with the industry's move towards eco-friendly building practices.
In October 2022, HIL Ltd., an India-based building materials company, successfully acquired Fast Build Blocks Pvt Ltd for a transaction valued at USD 370 million. This strategic acquisition significantly broadened HIL Ltd's portfolio within the realm of autoclaved aerated concrete (AAC) blocks, encompassing the entirety of Fast Build Blocks Pvt Ltd's manufacturing, distribution, and sales network. Additionally, HIL Ltd assumed all liabilities associated with the acquired company. Fast Build Blocks Pvt Ltd., also based in India, specializes in the manufacturing of AAC blocks and panels.
Major companies operating in the AAC blocks and panels market include UltraTech Cement Ltd., Ecotrend New Building Materials Development Co. Ltd., CK Birla Group, Tarmac Building Products Limited, Xella International, JK Laxmi Cement, Forterra PLC., UAL Industries Ltd., ACICO Industries Company, Schwenk Building Materials, AKG Gazbeton, BAUROC AS, Magicrete Building Solutions Pvt. Ltd., Hebel, MASA GmbH, Siporex India Pvt Ltd., Biltech Building Elements Ltd., Eco Green Products Pvt Ltd., Wehrhahn GmbH, Buildmate Projects Pvt. Ltd., SOLBET, Aercon AAC, Aircrete Europe, LCC SIP Ltd., AerBlock, Ecolite AAC Blocks, Mepcrete AAC Blocks, Renacon AAC Blocks, Impulse Constrotech Pvt. Ltd., Durox (owned by Tarmac), E-Crete, ECO-CARE Building Products Pvt Ltd., Brikolite AAC Blocks.
Asia-Pacific was the largest region in the AAC blocks and panels market in 2024. The regions covered in the aac blocks and panels market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the aac blocks and panels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Autoclaved Aerated Concrete (AAC) blocks and panels are created from a fresh mixture containing fine aggregates, cement, and an expansion agent, resulting in a substance that expands akin to rising bread dough. This concrete composition typically comprises an air content of approximately 80%. AAC finds versatile applications in construction materials, being utilized for various structural elements such as walls, floors, and roofs due to its lightweight and insulating properties.
The primary variants of AAC blocks and panels include blocks, panels, lintels, and other specialized types. AAC blocks represent essential units in construction, serving as foundational components crucial to the construction of larger structures. They come in various sizes, ranging from small to medium and large dimensions. These AAC blocks find applications across diverse sectors including residential, commercial, industrial, and infrastructure construction projects.
The AAC blocks and panels market research report is one of a series of new reports that provides AAC blocks and panels market statistics, including AAC blocks and panels industry global market size, regional shares, competitors with AAC blocks and panels market share, detailed AAC blocks and panels market segments, market trends and opportunities, and any further data you may need to thrive in the AAC blocks and panels industry. This AAC blocks and panels market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The AAC blocks and panels market consists of sales of structural floors, wall panels, fly ash blocks, and limestone blocks. Values in this market are factory gate values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
The AAC blocks and panels market size is expected to see strong growth in the next few years. It will grow to $30.31 billion in 2029 at a compound annual growth rate (CAGR) of 7.5%. The growth in the forecast period can be attributed to rapid urbanization and infrastructure projects, government regulations on energy efficiency, increasing demand for residential housing, growing commercial construction. Major trends in the forecast period include architectural design flexibility, government support and incentives, preference for green buildings, sustainable building practices.
An uptick in construction activities is anticipated to propel the growth of the AAC blocks and panels market in the coming years. Construction activity encompasses any work related to land, including the building of infrastructure and structures. The development of infrastructure and buildings will lead to a heightened demand for AAC blocks, which are lightweight, load-bearing, high-insulating, and durable, they are three times lighter than traditional red bricks. For example, in July 2023, the Australian Bureau of Statistics, a government agency in Australia, reported an increase in the number of homes under construction, rising from 240,065 in 2022 to 240,813 in the March quarter of 2023. In 2023, there were 103,778 new homes, an increase from 101,240 in 2022. Thus, the rise in construction activities is driving the AAC blocks and panels market.
The anticipated growth in urbanization is expected to be a significant driver for the AAC (Autoclaved Aerated Concrete) Blocks and Panels market. Urbanization, a process characterized by population migration from rural areas to urban centers, results in the expansion and development of cities and towns. This trend is particularly advantageous for AAC blocks and panels, as it generates increased demand for affordable, energy-efficient, and environmentally friendly housing solutions. The ongoing urbanization and population growth contribute to a shift in builders' preferences towards autoclaved aerated concrete materials over traditional options. AAC blocks and panels offer superior properties, including cost-effectiveness, earthquake and fire resistance, and flexibility in block sizes. For example, the World Bank projects that the global urban population will reach 6 billion people by 2045, representing a 1.5-fold increase from the current levels in 2023. Hence, the rise in urbanization emerges as a driving force for the AAC blocks and panels market.
Leading companies in the AAC blocks and panels market are innovating by developing sustainable autoclaved aerated concrete (AAC) blocks to enhance their market position. Sustainable AAC blocks are eco-friendly building materials recognized for their lightweight nature, high thermal insulation, and lower environmental impact, making them a favored choice for sustainable construction projects. For example, in June 2023, Godrej Construction, a company based in India, introduced its TUFF AAC Blocks. These blocks are designed to be cost-effective, durable, and sustainable, incorporating fly ash, a by-product of coal combustion, thus offering an eco-friendly alternative to traditional brick production. Emphasizing lightweight construction, the TUFF AAC Blocks enable faster building processes while providing thermal insulation and fire resistance, aligning with the increasing demand for sustainable construction materials in the real estate industry.
Major players in the AAC (Autoclaved Aerated Concrete) blocks and panels market are concentrating on launching manufacturing plants to gain a competitive advantage. Manufacturing plants are facilities where raw materials are processed and assembled into finished products. For instance, in February 2023, Infra.Market, a construction materials company in India, unveiled new AAC block manufacturing plants aimed at boosting its production capacity. These advanced facilities are designed to produce high-quality AAC blocks that are lightweight, energy-efficient, and provide excellent thermal insulation, aligning with the industry's move towards eco-friendly building practices.
In October 2022, HIL Ltd., an India-based building materials company, successfully acquired Fast Build Blocks Pvt Ltd for a transaction valued at USD 370 million. This strategic acquisition significantly broadened HIL Ltd's portfolio within the realm of autoclaved aerated concrete (AAC) blocks, encompassing the entirety of Fast Build Blocks Pvt Ltd's manufacturing, distribution, and sales network. Additionally, HIL Ltd assumed all liabilities associated with the acquired company. Fast Build Blocks Pvt Ltd., also based in India, specializes in the manufacturing of AAC blocks and panels.
Major companies operating in the AAC blocks and panels market include UltraTech Cement Ltd., Ecotrend New Building Materials Development Co. Ltd., CK Birla Group, Tarmac Building Products Limited, Xella International, JK Laxmi Cement, Forterra PLC., UAL Industries Ltd., ACICO Industries Company, Schwenk Building Materials, AKG Gazbeton, BAUROC AS, Magicrete Building Solutions Pvt. Ltd., Hebel, MASA GmbH, Siporex India Pvt Ltd., Biltech Building Elements Ltd., Eco Green Products Pvt Ltd., Wehrhahn GmbH, Buildmate Projects Pvt. Ltd., SOLBET, Aercon AAC, Aircrete Europe, LCC SIP Ltd., AerBlock, Ecolite AAC Blocks, Mepcrete AAC Blocks, Renacon AAC Blocks, Impulse Constrotech Pvt. Ltd., Durox (owned by Tarmac), E-Crete, ECO-CARE Building Products Pvt Ltd., Brikolite AAC Blocks.
Asia-Pacific was the largest region in the AAC blocks and panels market in 2024. The regions covered in the aac blocks and panels market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the aac blocks and panels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Autoclaved Aerated Concrete (AAC) blocks and panels are created from a fresh mixture containing fine aggregates, cement, and an expansion agent, resulting in a substance that expands akin to rising bread dough. This concrete composition typically comprises an air content of approximately 80%. AAC finds versatile applications in construction materials, being utilized for various structural elements such as walls, floors, and roofs due to its lightweight and insulating properties.
The primary variants of AAC blocks and panels include blocks, panels, lintels, and other specialized types. AAC blocks represent essential units in construction, serving as foundational components crucial to the construction of larger structures. They come in various sizes, ranging from small to medium and large dimensions. These AAC blocks find applications across diverse sectors including residential, commercial, industrial, and infrastructure construction projects.
The AAC blocks and panels market research report is one of a series of new reports that provides AAC blocks and panels market statistics, including AAC blocks and panels industry global market size, regional shares, competitors with AAC blocks and panels market share, detailed AAC blocks and panels market segments, market trends and opportunities, and any further data you may need to thrive in the AAC blocks and panels industry. This AAC blocks and panels market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The AAC blocks and panels market consists of sales of structural floors, wall panels, fly ash blocks, and limestone blocks. Values in this market are factory gate values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. AAC Blocks and Panels Market Characteristics3. AAC Blocks and Panels Market Trends and Strategies4. AAC Blocks and Panels Market - Macro Economic Scenario Macro Economic Scenario Including the Impact of Interest Rates, Inflation, Geopolitics and Covid and Recovery on the Market32. Global AAC Blocks and Panels Market Competitive Benchmarking and Dashboard33. Key Mergers and Acquisitions in the AAC Blocks and Panels Market34. Recent Developments in the AAC Blocks and Panels Market
5. Global AAC Blocks and Panels Growth Analysis and Strategic Analysis Framework
6. AAC Blocks and Panels Market Segmentation
7. AAC Blocks and Panels Market Regional and Country Analysis
8. Asia-Pacific AAC Blocks and Panels Market
9. China AAC Blocks and Panels Market
10. India AAC Blocks and Panels Market
11. Japan AAC Blocks and Panels Market
12. Australia AAC Blocks and Panels Market
13. Indonesia AAC Blocks and Panels Market
14. South Korea AAC Blocks and Panels Market
15. Western Europe AAC Blocks and Panels Market
16. UK AAC Blocks and Panels Market
17. Germany AAC Blocks and Panels Market
18. France AAC Blocks and Panels Market
19. Italy AAC Blocks and Panels Market
20. Spain AAC Blocks and Panels Market
21. Eastern Europe AAC Blocks and Panels Market
22. Russia AAC Blocks and Panels Market
23. North America AAC Blocks and Panels Market
24. USA AAC Blocks and Panels Market
25. Canada AAC Blocks and Panels Market
26. South America AAC Blocks and Panels Market
27. Brazil AAC Blocks and Panels Market
28. Middle East AAC Blocks and Panels Market
29. Africa AAC Blocks and Panels Market
30. AAC Blocks and Panels Market Competitive Landscape and Company Profiles
31. AAC Blocks and Panels Market Other Major and Innovative Companies
35. AAC Blocks and Panels Market High Potential Countries, Segments and Strategies
36. Appendix
Executive Summary
AAC Blocks and Panels Global Market Report 2025 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on aac blocks and panels market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Description
Where is the largest and fastest growing market for aac blocks and panels? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The aac blocks and panels market global report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
- The market characteristics section of the report defines and explains the market.
- The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
- The forecasts are made after considering the major factors currently impacting the market. These include:
- The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
- Market segmentations break down the market into sub markets.
- The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
- The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
- The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered:
1) By Type: Blocks; Panels; Lintels; Other Types2) By Size: Small; Medium; Large
3) By End-User: Residential Construction; Commercial Construction; Industrial Construction; Infrastructure Construction
Subsegments:
1) By Blocks: Standard AAC Blocks; Lightweight AAC Blocks2) By Panels: Wall Panels; Floor Panels
3) By Lintels: AAC Lintels; Precast Lintels
4) By Other Types: AAC Bricks; AAC Roof Tiles
Key Companies Mentioned: UltraTech Cement Ltd.; Ecotrend New Building Materials Development Co. Ltd.; CK Birla Group; Tarmac Building Products Limited; Xella International
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita.
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery Format: PDF, Word and Excel Data Dashboard.
Companies Mentioned
- UltraTech Cement Ltd.
- Ecotrend New Building Materials Development Co. Ltd.
- CK Birla Group
- Tarmac Building Products Limited
- Xella International
- JK Laxmi Cement
- Forterra PLC.
- UAL Industries Ltd.
- ACICO Industries Company
- Schwenk Building Materials
- AKG Gazbeton
- BAUROC AS
- Magicrete Building Solutions Pvt. Ltd.
- Hebel
- MASA GmbH
- Siporex India Pvt Ltd.
- Biltech Building Elements Ltd.
- Eco Green Products Pvt Ltd.
- Wehrhahn GmbH
- Buildmate Projects Pvt. Ltd.
- SOLBET
- Aercon AAC
- Aircrete Europe
- LCC SIP Ltd.
- AerBlock
- Ecolite AAC Blocks
- Mepcrete AAC Blocks
- Renacon AAC Blocks
- Impulse Constrotech Pvt. Ltd.
- Durox (owned by Tarmac)
- E-Crete
- ECO-CARE Building Products Pvt Ltd.
- Brikolite AAC Blocks
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 175 |
| Published | March 2025 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value ( USD | $ 22.7 Billion |
| Forecasted Market Value ( USD | $ 30.31 Billion |
| Compound Annual Growth Rate | 7.5% |
| Regions Covered | Global |
| No. of Companies Mentioned | 33 |
