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The Global AAC Blocks and Panels Market Trend Projected to Grow at a CAGR of 6.2% and Generate a Revenue of $34,361.6 Million by 2031

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The global AAC blocks and panels market size is predicted to be valued at $34,361.6 million by 2031, surging from $19,010 million in 2021, at a noteworthy CAGR of 6.2%.

Impact Analysis of COVID-19 on the AAC Blocks and Panels Market

The COVID-19 pandemic has led to severe disruptions that have affected the demand, supply, import-export, and availability of AAC blocks and panels across end-use industries. Construction sites, manufacturing facilities, and commercial complexes were among the industrial operations temporarily shut down to stop the coronavirus from spreading. This resulted in a decrease in the growth rate of the construction industry, which had a negative COVID-19 impact on AAC blocks and panels market growth. The construction industry was worst hit during the pandemic as the number of construction projects was drastically reduced. This has in turn affected the demand for AAC blocks and panels in the construction sector. Similarly, the building industry continues to be severely impacted by economic uncertainty as the length and severity of the outbreak increase. Construction project cancellations and delays decrease the demand for AAC blocks and panels. All these factors have negatively affected the AAC blocks and panels market growth during the pandemic.

However, several initiatives launched by the government are helping society recover from pandemic. For instance, in April 2020, the Indian government issued a set of instructions for starting new construction projects and resumed work on new construction activities.

Global AAC Blocks and Panels Market Analysis

Autoclaved aerated concrete is referred to as AAC. It is an ultra-light concrete masonry product with several advantages in terms of practicality. Due to its cellular structure, AAC has a variety of extraordinary physical attributes. Due to its unique characteristics, it weighs as less as 1/5th of a regular concrete. AAC Blocks are a special and superior kind of building material that provides exceptional use, flexibility, and durability. AAC provides superior acoustic and thermal absorption capabilities. In comparison to more conventional structural construction materials like concrete, wood, brick, and stone, it has higher economic and environmental performance, is resistant to fire and pests, and is more sustainable. AAC Blocks in the name of concrete are manufactured using the finest grade (Class F) fly ash, gypsum based and other raw materials. These are the major factors anticipated to boost the AAC blocks and panels market share during the analysis timeframe.

AAC blocks and panels can be expensive when used for small load-bearing structures, despite the fact that they are frequently employed in brick masonry of high-rise reinforced  concrete framed buildings. It can be one of the drawbacks of using AAC blocks. Given the high cost of AAC blocks and panels, ordering a smaller quantity for such construction may end up being more expensive than ordering a larger quantity for a larger project. These factors are likely to hinder AAC blocks and panel market size growth in the next few years.

The most common building material utilized in construction is brick. The CO2 emissions from the brick-making process have an impact on the environment. One of the certified green building materials is autoclaved aerated concrete (AAC). AAC is recyclable, renewable, reusable, and porous. Aircrete, also known as autoclaved aerated concrete, is a lightweight, load-bearing, insulating, and long-lasting building material that is available in a variety of sizes. AAC provides fantastic prospects to save construction site expenses while raising the caliber of buildings. It is employed in many building constructions, including residential, commercial buildings, schools, hotels, and hospitals due to its great qualities. Clay bricks, which are not environmentally sustainable, are replaced with AAC. It is aerated and has a 50–60% air content, which makes it light and has poor heat conductivity. The feature of AAC is useful in green housing and preserves fertile areas while providing a disposal method for fly ash. These factor boost the AAC blocks and panels market opportunity during the forecast period.

Global AAC Blocks and Panels Market, Segmentation

The global AAC blocks and panels market analysis is segmented based on product type, end-use, and region.

Product Type:

The product type segment is further classified into blocks, panels, lintels, and others. Among these, the blocks sub-segment is expected to have the largest market share in 2021. Rise in demand for AAC blocks across both the residential and non-residential sectors is likely to drive AAC blocks and panels market size growth in the coming years. Due to material’s ability to be routed and cut to size on site, AAC blocks have several benefits in construction, in addition to their ability to insulate. In addition, AAC blocks are thermally insulated when compared to normal red clay bricks.

End User:

The end use segment is further classified into residential construction, commercial construction, industrial construction, and infrastructural construction. Among these, the residential construction sub-segment is expected to have the largest market share in 2021. This AAC blocks and panels market demand is expanding as a result of rise in demand for environment friendly and sustainable building materials for residential construction. Other important aspects driving the growth of AAC blocks and panels market trend are the expansion of infrastructure, the expansion of the construction industry, and technological developments in the manufacture of AAC blocks and panels.


The AAC blocks and panels market size in Europe is projected to show the fastest growth. The market for AAC blocks and panels in Europe has huge potential. Widespread adoption of numerous construction projects has fueled regional AAC blocks and panels market demand. Players in the European market have seen revenue increases as a result of rise in the adoption of building materials that assist architects and engineers in complying with green rating systems. Architects are increasingly searching for sustainable building materials and supplies that are created and acquired along the whole value chain. These factors are anticipated to increase the demand for AAC blocks and panels market share over the forecasted time period.

Key Players in the Global AAC Blocks and Panels Market

Some of the leading AAC blocks and panels market players are

  1. MASA GmbH
  2. Aercon AAC
  3. AKG Gazbeton
  4. JK Laxmi Cement
  5. Biltech Building Elements
  6. CSR Ltd.
  7. Forterra Plc
  8. H+H International A/S
  9. CK Birla Group
  10. Xella.

In January 2022, Aircrete Europe and Aircrete China completed their first AAC plant project for Zhejiang Yuanzhu Housing Industrialization Co. Ltd., a subsidiary of Dingyuan Group and a major manufacturer of construction materials in China, with the aim of producing 500,000 cubic meter AAC panel production capacity.

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