Global Autoclaved Aerated Concrete Market - Growth, Trends and Forecasts 2017 - 2022
Global Autoclaved Aerated Concrete Market - Growth, Trends and Forecasts 2017 - 2022
SYNDICATED REPORT
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1
1. Introduction
2. Executive Summary
3. Market Insights
4. Market Dynamics
8. Competitive Landscape
9. Company Profile
10. Disclaimer
ANALYSIS
Data Corroboration Process
METHODOLOGY Top-down
Value / Supply Chain Validation of Market
Approach
Size
Analysis Analysis
S Consumer Behaviour Bottom-up Approach
Econometric Forecast Modelling + Identification of Analysis
Secondary Research + Expert Exogenous factors
Verification Market Dynamics Segment and
Recent Market Region-wise Market
Inference Developments / Size Forecasting
Market Structure
Competitive Landscaping Analysis
Data Generation Process
(DGP)+Forecasts
• Plant Managers
• Sales Managers
• Company Annual Reports • Surveys • Industry Experts
• Insights from Data and
• Journals • Manager Purchasing and • Consultants
Forecasts, Compiled into
• Government Publications Logistics • Subject Matter Experts
One Report
• In-house Experts
• Company-related Queries
• Revalidation of Numbers from
• Forecasting Model
• Market-related Queries
Secondary Through Primaries
• Monte Carlo Simulation
• Company Financials
• Combination of Top-down and
Bottom-up Approach
Primary Interviews Primary Interviews - Along Value
Chain
CEOs/CFOs
6%
6%
Board Members 32% 35%
31%
Manufacturers
20% Research Heads
Service Providers
Strategic Decision End-users
Makers
11%
Financial Advisors 55%
26%
Blocks
Lintels
• In this report, we have considered the following scope for
the study:
TYPE Panels
• Time line : 2015-2022
Industrial
Application
Commercial
Others
Regional and country-level analysis of the market and forecast of the global autoclaved aerated concrete market
DROs
KEY PLAYERS
COMPETITIVE LANDSCAPE
2. EXECUTIVE SUMMARY
• The global autoclaved aerated concrete (AAC) market is estimated to be valued USD 3,830.64 million, by revenue, in 2017 and is likely to reach USD
5,402.87 million by 2022, at an estimated CAGR of 7.12%, over 2017 to 2022 (henceforth referred to as the forecast period).
• One of the major factors driving the growth of the global AAC market is the use of recycled material for production. Increased emphasis on green buildings
and improved indoor air quality, along with heat control advantages, have hugely attributed to the growth of the market.
• On the flipside, high initial costa and limited load bearing capacity of AAC are expected to hinder the market growth.
• The market has been segmented on the basis of type into, blocks, lintels, panels, tiles and others. By type, blocks accounted for the highest market share in
the global AAC market in 2016.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Type, Global, 2015-2022
3,324.35
3,500.00
2,342.72
2,191.30
2015
2,050.05
3,000.00
USD million
2,500.00 2016
2,000.00 2017
910.84
1,500.00 2022
650.94
610.69
529.80
338.96
574.3
429.75
381.65
359.23
305.69
287.38
1,000.00
208.13
149.65
143.69
270.8
138.5
500.00
0.00
Blocks Lintels Panels Tiles Others
Source: Mordor Intelligence Analysis
• By Application, the market is divided into residential, industrial, commercial, and others. Residential is the leading application among all others applications of
AAC and is expected to record a CAGR of 7.94% over the forecast period
1,600.00 1,565.84
1,164.60
1,105.61
1,086.28
17.37% 1,400.00
1,035.57
1,017.53
1,240.69
973.01
1,200.00
USD million
898.65
846.43
30.24% Residential
799.94
1,000.00 889.68
661.78
23.56% Industrial
624.02
587.75
Commercial 800.00
Others
600.00
28.83%
400.00
200.00
0.00
Residential Industrial Commercial Others
2015 2016 2017 2022
Source: Mordor Intelligence Analysis
• The market has further been segmented by geography into the following regions – Asia-Pacific, North America, Europe, South America, and Middle East &
Africa. In 2016, Europe dominated the global AAC market, followed by Asia-Pacific.
Autoclaved Aerated Concrete Market: in thousand metric ton, by Region, Global, 2015-2022
900.00
797.82
800.00
700.00
619.13
502.41
495.08
481.59
462.71
451.49
600.00
412.82
Thousand Metric Ton
500.00
400.00
300.00
200.00
41.13
38.26
35.84
35.25
33.67
32.19
31.75
30.56
29.44
100.00 40.39 48.29 60.21
0.00
Asia Pacific North America Europe South America MEA
2015 2016 2017 2020
Source: Mordor Intelligence Analysis
• The top five players in the market include, Xella Group, Bauroc International AS, Biltech Building Elements Ltd., and HIL Ltd.
• The major raw materials needed to manufacture autoclaved aerated concrete include sand, fly ash/pond ash, cement, lime, gypsum, and aluminum powder. These
raw materials are then prepared for dosing and mixing to form the perfect mix to make AAC products. After thorough mixing, the slurry containing all the raw
materials is molded for casting, rising and pre-curing, Which is finally demolded and cut into various forms, such as, blocks, panels, and tiles, among others.
• AAC, in its various forms, is used in the construction industry, in the residential, commercial, industrial, and infrastructural segments. The end application of AAC is
usually seen in walls, floors, roofs, facade, and pavements.
• Some of the major manufacturers of AAC include Xella Group, ACICO Industries, Bauroc International, Ultratech, H+H International, and Solbet Group.
Description
• The new entrants in the AAC market need to follow government regulations and • ACC products face competition from clay bricks, timber works, and other types of concrete that
higher initial capital investments. For example, in India, an AAC manufacturing are available in the market since a long time and have an established presence with wider
company has to invest around INR 20 crore for a Chinese technology plant and reach in the construction industry.
machinery, to have an AAC blocks capacity of 100,000 cubic meter, per annum.
• The cost of substitute products is relatively lower, which makes buyer-switching costs relatively
• Furthermore, the ease of distribution depends on the competition and quality of lower.
products.
• However, these substitutes have relatively lower performance in terms of being eco-friendly,
• Switching cost is very high and the profit margin is moderate. and lightweight, among other parameters; making AAC products a better choice for
• Overall, the threat of new entrants is expected to be moderately low through the consumers.
forecast period. • Overall, the threat of substitute products and services is moderate.
• However, the raw materials have minimum pricing strategy and quality of the products served in the limited • However, these substitutes lack, in terms of uniqueness, when compared to
processing. • There are more than 3,000 firms, globally, and the number is • Overall, the bargaining power of the buyers is expected to be moderately
• Hence, the bargaining power is moderate. increasing specifically in Asia-Pacific. high over the forecast period.
4.1 Drivers
4.2 Restraints
4.3 Opportunities
• AAC, owing to its thermal insulation and energy-efficient properties, along with being fire-resistant, termite- or pest-resistant, seismic-resistant and lightweight, is
preferred widely for the construction of green buildings. Since AAC is made up of recyclable material, it does not have any harmful effects on the environment.
• Green buildings, also known as sustainable buildings or green constructions, are built with the objective to reduce the impact of built environment on nature and
human health.
• The term “green building” refers to both, the structure and environmentally friendly & efficient processes used throughout a building’s lifecycle
• The design of green buildings helps strike a balance between sustainable environment and homebuilding. A perfect green building requires close assistance of
architects, engineers, design team, and clients at all stages of the project. The practice of green buildings complements the design concerns of economy, durability,
utility and comfort of a classical building.
• Leadership in Energy & Environmental Design (LEED), is an internationally renowned program for green buildings. LEED certification (for the places we work, play,
learn, live, and worship) ensures healthier environments, lower carbon emissions and lower electricity costs.
• LEED’s global sustainability agenda is aimed at accomplishing high performance in key areas of human and ecological health, based on the triple bottom line. It is
aimed at putting people, planet and profit before anything else. LEED credits are granted by third-party official reviewers. These credits are valid for all kinds of
buildings throughout their lifecycle. The credits are awarded on the basis of several rounds of public comments and in association with the US Green Building
Council’s (USGBC) members and staff.
• The global green building practices are driven by LEED, with almost 79,600 projects in more than 1161 countries and territories, globally, with 1.85 million square
feet of building space being certified every day. According to USGBC estimates, there are almost five million people experiencing a LEED construction every day.
• The market is responding to these environmental benefits and cost savings. According to our analysis, the global green building market increases twofold in every
three years and by 2018, it is estimated that, in 70 countries, almost 60% of all projects will be green (environment-friendly).
Syndicated Report Global Autoclaved Aerated Concrete Market
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4.1 DRIVERS 18
• AAC has many advantages over conventional concrete, like air void within the concrete, leading to good sound insulation, lightweight, better strength to weight
ratio, and low coefficient of thermal expansion.
• The porous structure of the AAC blocks gives it enhanced sound absorption. AAC blocks have Sound Transmission Class (STC) rating of up to 45 decibel (db).
• Moreover, AAC improves the sustainability of the constructed structure, through its ability to absorb and reduce noise. The exceptional sound absorption and
insulation abilities of AAC can be attributed to millions of air cells present, which can diminish sound transmission. These properties of AAC ensures that it can be
primarily used in the construction of walls in hotels, auditorium, studios, hospitals, freeways, etc.
• Significant environmental and material savings can be attained using AAC as it consists of insulation (both, sound and thermal), structural, and fire-resistant
material, all in a single product. The use of AAC will also help reduce CO2 emissions, by decreasing the need for old growth lumber and other trees for conventional
timber frame construction.
• AAC, a precast product, is manufactured by mixing numerous raw materials including cement, silica (either in the form of recycled fly ash, or sand), water, lime,
and an expansion agent - aluminum powder, and finally pouring the mixture into a cast or mold, which consists of a mesh or steel rebar with respect to structurally-
reinforced AAC products like roof panels or lintels.
• Upon adding the aluminum powder and silica to the concrete, it reacts and leads to the formation of millions of miniscule hydrogen bubbles. The volume of the
concrete increases by five times, owing to the hydrogen bubbles. The hydrogen then evaporates, forming a highly closed-cell aerated concrete. The aerated
concrete is then cut into panels or blocks, which are thereafter pressure and steam cured in an autoclave to form AAC.
• The important criteria for determining whether a product meets the requirements of a green product, or can be used in a sustainable manner, depends on the
ability of the product to use recycled raw materials, avoid toxic emissions, and decrease material usage. Raw materials utilized in the manufacturing of AAC
comprise of recycled materials like fly ash (a co-product form power plants using coal) and copper mine tailings. AAC caters to these requirements extremely well,
as it consumes a low volume of raw material as compared to the amount of finished product produced.
• As AAC is made up of 80% air; the final product is five times the volume of the consumed raw materials. Moreover, the raw materials that are used in the
production of AAC are locally sourced as they were abundantly found in many regions. When compared to CMUs and concrete, in terms of embodied energy, AAC
utilizes approximately 20% to 50% less energy.
• The manufacturing process of AAC does not produce any waste or pollutants and the finished product is totally recyclable. The production of AAC also results in a
lightweight, inorganic, strong, and non-toxic product that does not shrink, corrode, and warp, rot, off-gas or depreciate. AAC is assembled with a reduced need for
additional equipment and with minimal waste, owing to its dimensional accuracy and lightweight. AAC is also mold- and termite-resistant, and almost fireproof. This
extreme durability makes the product practically maintenance free, reducing the need for pesticides, repair materials, and chemical treatments, besides decreasing
operating costs.
DRIVER: 4.1.4 IMPROVED INDOOR AIR QUALITY AND HEAT CONTROL ADVANTAGES
• AAC structures have very low air infiltration and are mold-resistant, which leads to improved quality of indoor air than conventional concrete structures and others.
The use of AAC (which has exceptional insulation and structural qualities) also eliminates the need for materials like fiberglass insulation, which may affect the
quality of indoor air.
• AAC results in augmented energy efficiency owing to its exceptional insulation properties, which makes it a sustainable construction product. The thermal efficiency
of AAC can be attributed to three factors:
The use of AAC results in solid wall construction with integrated insulation. Owing to entire wall coverage, thermal bridging is avoided, which is ordinarily
done for conventional stud-framed walls. This leaves cold gaps about every header and stud.
An airtight building envelope is formed, owing to the solid wall assembly of AAC constructions, which helps reduce uncontrolled air changes besides
maintaining desired indoor temperatures, which in turn maximize the HVAC efficiency equipment.
AAC structures have an additional benefit, owing to low thermal conductivity and added value of thermal mass.
The benefits of thermal mass vary for every location and are highest in regions with constant outdoor temperature fluctuations, below and above the
required indoor temperature during a 24-hour period. For instance, an 8” AAC wall has a steady state of R-value (it is a measure of resistance to flow of heat
through the given material thickness) of approximately 8.4, and has “mass enhanced” or an “effective” R-value of about 21.8 in Sacramento.
Hence, AAC is well justified by its ‘green’ title, owing to its ability to consume less raw materials, high energy efficiency, excellent durability, cost-effective
nature (than others), and the ability to be recycled.
• The cost of manufacturing an AAC block is higher than normal cement or burnt clay blocks.
• As compared to burnt clay blocks and other blocks, AAC requires high initial investment owing to the equipment involved in the manufacturing.
• The equipment used in the manufacturing of AAC include raw material separation equipment, slurry mixers, casting equipment, autoclaving equipment, and many
others. The state-of-art technology equipment require high initial investments. Despite low cost of raw materials, the high cost of an AAC block can be attributed to
the high initial costs involved.
• AAC has limited usage when it comes to load bearing walls. This is due to its porous nature.
• AAC blocks are susceptible to moisture absorption in regions with high humidity and high rainfall. So, when these blocks are used on the exterior of buildings, they
may require stucco or cladding to keep the water out.
• When used in load bearings, in particular, AAC blocks will require rebar reinforcement. This need for extra equipment increases the overall cost of construction and
increases the weight of the structure. Owing to this limitation, AAC blocks can only be utilized in the construction of low-rise and mid-rise buildings.
• After the slowdown in construction industry in 2014, Europe has seen significant recovery in 2016. The residential and non-residential construction have both seen
positive growth in 2016 when compared to 2014 and 2015.
• The civil engineering output is expected to witness positive growth of 2% in 2017 and 3.8% in 2018 and 2019.
• The strong growth in Central and Eastern Europe (CEE) countries follows a rather significant drop in 2016. The growth is now driven by a new round of the EU
structural fund, in combination with strong demand for housing.
• In Hungary, new government measures are stimulating new residential construction. The Central and Eastern European (CEE) countries, such as, Poland, Hungary
and Czech Republic, have seen growth in construction. Hungarian construction is forecasted to grow over the 2017-2019, growing by 14.9% per year, on average.
• In Ireland, an expansion in construction by 7.7% on average during 2017-2019 will provide solid growth. Construction activity will also grow strongly during 2017-
2019 in Poland (5.5% on average), Czech Republic (4.3%) and Portugal (4.1%).
• The construction output in Poland, Norway and Sweden in 2016 was around 20% above the pre-crisis level. This will increase strongly in the coming years (5.5%
on average in Poland, 3.9% in Norway and 3.5% in Sweden). The other countries with output above or close to the pre-crisis level are showing average growth
rates of 2% at most, despite of slow growth, European construction industry still has the scope and potential to grow and is likely to expand by more than 2% per
year.
• This positive growth in the European countries will provide significant growth to the AAC market during the forecast period.
• In Asia-Pacific, many developing countries are witnessing growth in the construction industry. India and China are the two developing countries in the region
undergoing major growth.
• The construction industry in these countries is growing and expected to grow further in the next few years. Moreover, in China, while construction growth is
relatively slow, commercial and residential construction segments witness relatively quicker growth.
• In India, the construction sector is booming due to new infrastructural activities and the “Make in India” initiative. The ‘Bharat Mala’ and ‘Sagar Mala’ projects of the
government will also give pace to the construction and infrastructure in the country. Moreover, this sector accounts for the second highest inflow of FDI in the
country, thus, this sector is witnessing growth and will continue to do so in the coming years.
• In India and China, many new commercial and residential constructions projects are upcoming in the next few years, therefore, the usage of AAC is expected to
increase. The ‘One Belt One Road Initiative’ of China will provide huge boost to the demand for AAC in the country.
• Its usage is also increasing infrastructure by municipal authorities, on pavements, gardens, public spots, etc. Many manufacturers in these countries are preferring
blocks, panels, lintels, and tiles, made of AAC, with huge demand in all types of constructions. Moreover, the willingness to use these products is increasing owing
to AAC’s characteristics.
• These future projects will augment the market for AAC in China and India and provide fruitful opportunities to the market.
• AAC is one of the few building materials currently used for construction, with the highest hourly fire resistance ratings per inch.
• AAC becomes the perfect choice for fire protection around steel beams and steel columns and in the construction of stairwells, shaft walls, firewalls and corridors.
• Furthermore, AAC is noncombustible, inorganic, and virtually fireproof. It has a melting point of over 2900 °F (F-Fahrenheit) and has received a four hour UL fire
rating. Thus, the presence of AAC excludes the need for additional materials of fireproofing. Moreover, when exposed to fire, AAC does not emit toxic gases
because it is completely inert.
• These Characteristics of AAC will lead to its quick adoption and provide growth opportunities in the market.
• AAC can withstand harsh weather conditions or extreme changes in climatic conditions. Thus, it can last for longer periods and will not degrade due to normal
changes in climatic conditions.
• Buildings constructed using AAC have performed well in areas with high rate of natural calamities like earthquakes, hurricanes, etc. For example, in the 1995 Kobe,
Japan, earthquake, many buildings that survived mostly undamaged were constructed using AAC. These buildings even acted as fire breakers and were also
immune to fires that began because of the earthquake.
• This ability of AAC structures to withstand natural disasters and fire helps minimize waste, contamination of the surrounding environment, and decrease the need
for repairing materials, besides lowering insurance costs.
5.1.1 Residential
5.1.2 Industrial
5.1.3 Commercial
5.1.4 Others
5. MARKET SEGMENTATION AND ANALYSIS
5.2 By Type
5.2.1 Blocks
5.2.2 Lintels
5.2.3 Panels
5.2.4 Tiles
5.2.5 Others
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Residential Industrial Commercial Others
28.83%
• AAC, owing to its thermally-insulated and energy-efficient properties, along with being fire-resistant, termite- or pest-resistant, seismic-resistant, lightweight
sustainable, and quick and easy in application, is used in residential construction.
• Moreover, autoclaved aerated concrete is reusable, recyclable, renewable, and eco-friendly. Along with the increased importance of LEED ratings, AAC is
used in residential construction.
• It is used for both, internal and external construction, such as, in walls, roofs, floors and cladding panels, etc., in all residential buildings
• AAC is well suited for high-rise buildings and those with high temperature variations because of its lower density, which helps high-rise building use less
concrete and steel for structural members. The major types of AAC are blocks, panels, tiles, etc.
• AAC is majorly used in Europe and Asia-Pacific. Residential construction witnesses a stable growth in Asia-Pacific, with India and China registering
significant growth. The ASEAN countries have also gained momentum in residential construction. The market is expected to grow during the forecast
period.
• In Europe, the market for residential construction is stable, while in North America, the market for residential construction is expected to grow during the
forecast period, due to the renovation of residential properties. The market for residential construction is growing in Middle East & Africa.
• AAC, owing to its acoustic insulation, thermal insulation properties, along with being fire-resistant, seismic-resistant, longevity, quick and easily application, is
used in industrial construction.
• Moreover, it is environmentally friendly, and owing to the increased emphasis on green construction (LEED ratings), it is used in industrial construction.
• In industrial construction, AAC is used to make roofs, floors, walls, etc. It is used in different forms, such as blocks, panels, tiles, etc.
• The industrial construction sector is increasing in Asia-Pacific, especially in developing countries, such as, India, China, etc., due to a rapid pace of
industrialization in these countries. With the ‘Make in India’ initiative by the Indian government, the industrial activities is witnessing growth in the country. China’s
13th five-year plan also focuses on increased industrial activities with high safety and environmental standards. This will also enable growth of the industrial sector
in the country, and in turn, lead to increased demand for AAC in the country.
• The European industrial construction sector is stable but has a potential for growth in the future. In North America, Canada and Mexico are expected to contribute
to the growth. In Canada, Quebec and Nova Scotia posted the largest advances. Higher investment in all types of industrial buildings was responsible for the
increase in Nova Scotia. The Mexican government is planning to create new industrial centers (located in Guerrero, Oaxaca and Chiapas), which will encourage
FDI and help in growth of the AAC market in the country.
5.1.3 COMMERCIAL
• AAC’s properties, such as, thermal insulation, fire resistance, sound absorption, longevity, eco-friendliness, lightweight, etc., have made it a viable option for use
in the commercial construction sector.
• Moreover, AAC’s cellular properties makes it easy to shave, cut, shape accept screws and nails easily, making it ideal for commercial construction, for walls,
roofs, floors, etc. AAC is used in different forms, such as, blocks, panels, tiles, etc.
• The commercial construction sector in Asia-Pacific is increasing with good growth prospects in China, India, Singapore and Vietnam.
• European nations enjoyed a recovery in construction in 2016. However, the forecast predicts a slowdown in growth in 2017, 2018 and 2019. This is mainly due to
the conditions imposed by countries on external financing and weak financial situation of the public authorities.
5.1.4 OTHERS
• The ‘others’ segment includes infrastructure, i.e., roads, bridges, flyovers, etc. The longevity, lightweight and eco-friendly properties of AAC have led to its
adoption in infrastructural activities.
• The increased construction of highways and flyovers in Asia-Pacific and Middle-East & Africa will give rise to demand for AAC blocks and panels. The demand for
over bridges will also give rise to AAC lintels and blocks. The civil engineering output in Europe has witnessed positive growth of 2% in 2017. It is further
expected to increase by 3.8% in 2018 and 2019, with major contribution from Spain and the United Kingdom.
5.2.1 Blocks
5.2.2 Lintels
5.2.4 Tiles
5.2.5 Others
Autoclaved Aerated Concrete Market: In million cubic meter, by Type, Global 2015-2022
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Blocks Lintels Panels Tiles Others
• AAC can be converted into various shapes on the basis of usage. Global Autoclaved Aerated Concrete Market in USD million, by Type.
• By type, the AAC market has been segmented into blocks, lintels,
4.00%
panels, tiles, and others.
8.00%
• In the other types, kerbstones are the major share holder.
• Blocks hold the largest market share, by type. These are available in
special shapes with different thicknesses, according to the usage. Blocks
These are used as essentials in making floors, roofs, and walls in Lintels
residential, industrial, and commercial buildings. 2016 61.00% Panels
Tiles
• Panels is the fastest growing segment, by type. Since these have found Others
usage in roofs and floors in residential, commercial, and industrial
17.00%
buildings.
• Tiles are the second fastest growing type as these have found
increasing usage in college, commercial, and industrial pavements. 10.00%
• AAC’s properties such as thermal insulation, fire resistance, sound absorption, longevity, eco-friendliness, lightweight etc., along with its durability and
dimensional stability make it the best cement-based material for blocks. The other benefits it provides is it is easy to cut, shape, accept nails and is screwed
easily because of its lightweight and cellular properties.
• These blocks are used in making walls, floors, roofs etc. in residential, commercial, industrial construction etc. These construction blocks are available in
different sizes. For instance, a blocks with a height of 8 inches, and a width of 24 inches, its thickness would be in different ranges from 4, 6,8,10, and 12
inches and with weight standard weight of about 33 pounds thus, the size of block determines its use.
• In addition to this, blocks are available with specialty shapes, like the lintel block or U-shaped bond beam is available with different thicknesses of 8, 10 and
12 inches, cored blocks are available for vertical reinforced grout cells, some manufacturers offers groove and tongue blocks to connect to adjacent units
without mortar at vertical edges etc.
• Autoclaved aerated blocks are used most countries in Asia-Pacific region, the usage of the type and size differ on the requirement in the country. These
blocks are also used in Europe and in few countries of North America such as, the United States.
• Moreover, in Europe the European Autoclaved Aerated Concrete Association, that was created in 1988, to promote the usage of autoclaved aerated
concrete across Europe has promoted and approved the usage of AAC blocks.
• In the Middle East and Africa, the usage of autoclave aerated blocks has increased over the years and it is further expected to increase in the coming
years.
• AAC’s properties such as thermal insulation, fire resistance, sound absorption, longevity, eco-friendliness, lightweight, seismic resistant etc. make it ideal
for making lintels.
• Lintels can be used as a load-bearing building component, a combined ornamented structural item, a decorative architectural element etc. It is used over
portals, windows, doors etc.
• Moreover, lintels are used in commercial, residential, industrial construction etc. for different purposes. It is available in various sizes but majorly the
maximum length available is 8 inch with the same height and thickness ranging from 8 to 12 inch. An increased emphasis on green building (LEED ratings)
has led proliferated the use of AAC.
• The usage of autoclaved aerated concrete lintels is more in the Asia-Pacific and Europe. In developing countries such as India, China, the increasing use is
more due to the rapid pace of industrialization and infrastructure in the countries.
• Additionally, the use has picked up in recent years in the United States. In the Middle East where construction sector is dominating over the years its usage
is increasing over the years.
5.2.3 PANELS
• AAC’s properties such as thermal insulation, fire resistance, sound absorption, longevity, eco-friendliness, lightweight etc. make ideal for constructing
panels. In addition to this, it is easy to shave, cut, shape, accept nails and screws due to its cellular properties makes it perfect concrete material for panels
used in construction.
• Panels are used in residential, commercial, industrial construction etc. in walls, roofs and floors according to the requirement. Moreover, autoclaved aerated
concrete made panels are available in various sizes, for instance, panel extend from floor to top of the wall with height up to 20 feet, with thickness of 6, 8,
10, or 12 inches and with width of 24 inches.
• The green building (LEED ratings) is the major driver for the usage of autoclaved aerated concrete in panels, as it is eco-friendly material and that benefits
the environment.
5.2.4 TILES
• AAC’s properties such as thermal insulation, fire resistance, sound absorption, longevity, eco-friendliness, lightweight etc. is ideal for making tiles. Moreover,
other cellular properties make it easy to shave, cut, shape accept screws and nails easily makes it suitable for tiles.
• These autoclaved aerated concrete made tiles are used at gardens, parking, college pavements, commercial pavements, industrial pavements etc. These
tiles are available in various sizes, types, and colors.
• Autoclaved aerated concrete is used in making kerbs because of characteristics such as thermal insulation, fire resistance, longevity, lightweight etc.,
• Moreover, as it can be easily cut, shaped, accept screws, and nails easily, thus they are used in kerbs. Kerbs are made up of kerbstones, which are made
up of autoclaved aerated concrete.
• These kerbstones are used to make pavements, racing track kerbs etc. These kerbstones are available in different sizes, shapes, and colors. The usage of
kerbs has increased over the years across the globe.
Autoclaved Aerated Concrete Market : Revenue in USD million, by Region, Global, 2015-2022
Autoclaved Aerated Concrete Market: Volume In million cubic meter, by Region, Global, 2015-2022
6.1.3 China
6.1 ASIA-PACIFIC
6.1.4 India
6.1.5 Japan
Autoclaved Aerated Concrete Market: Revenue in USD million, by Country, Asia-Pacific, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meter , by Country, Asia-Pacific, 2015-2022
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, ASEAN Countries, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meter, by Application, ASEAN Countries, 2015-2022
• The Indonesian economy is growing with a GDP growth rate of 5% in 2017, which is expected to increase slightly to 5.3% in 2018. The growth potential in Indonesian
market is huge and the government’s economic reforms have supplemented the growth environment. The construction sector in Indonesia has a huge demand with
more infrastructure spending and population growth.
• In Indonesia, the middle-class segment has grown considerably which has increased the lifestyle trends, new housing, and with them, the construction activity in the
country. The government has planned to invest USD 30 billion in year 2017, an increase of 8 billion from 2016, in the construction sector. These investments will add
value to the market of autoclaved aerated concrete products in the country.
• Thailand has an emerging economy with the GDP growth rate estimated at 3.5% in 2017, while it is expected to increase slightly to 3.6% in 2018. The construction
industry too is expected to grow at moderate rate with government’s plan for investing USD 25 billion in infrastructure development for the year 2017 and 75 billion in
infrastructure development plan till 2021. This includes the infrastructure of airport, ports, railways, etc. which is important for tourism activity in the country. AAC is
used to construct dividers, roadblocks and other amenities due to its quick and easy installation. The use of AAC in these projects is expected to drive the market in
the forecast period.
• The Thai government plans to modernize the nation, under which it is inviting foreign investment for seven projects in rails, roads, ports and airports. These seven
projects along with five smaller ones are expected to be approved by Public-Private Partnership(PPP) committee this year. These infrastructure activities will increase
the market for autoclaved aerated cement products in the country during forecast period.
• Malaysia has an emerging economy with the GDP growth rate estimated at 4.5% in 2017 after a strong start to the year while it is expected to increase to 4.6% in
2018. Economic reforms by the United Malays National Organization (UNMO) have supported the growth and investment in different sectors which also includes the
construction sector. Malaysian construction sector is increasing at a healthy rate with large potential market in railways sector, roads & bridges, buildings, etc. The
use of AAC in the Malaysian infrastructure sector is expected to increase highly during the forecast period.
• The Vietnam’s residential and non-residential segment is increasing at an estimated CAGR of 6.5% in the forecast period 2017-2022. The Philippines has a higher
growth rate in the construction industry, with 7.4% in 2016 and expected to be 8.8% in 2017. This growth in this region is due to consumer awareness and high
demand. The government’s Pag-IBIG Fund or Home Development Mutual Fund financing scheme is providing support to lower and middle-income level households
for new houses. The public private partnership (PPP) has also supported for continued growth of construction activities.
• The income level has risen, and the adaption of new technologies and government policies supporting the economy to urbanize underprivileged rural areas have
driven the market of buildings construction, which are further expected to drive the market of autoclaved aerated cement products in these countries.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, Australia and New Zealand, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meter, by Application, Australia and New Zealand, 2015-2022
• Australia & New Zealand have an emerging economy with the growth rate of GDP at 2.8% and 3.9% respectively. It is expected that the GDP growth rate of Australia
will slightly decrease to 2.7% in 2017 while that of New Zealand is expected to grow at 2.6% in 2017.
• The Australian construction industry had slowed down in 2016 while the government has announced few infrastructural development investments such as
• Upgrading Victorian roads and rails with reallocating USD 1.5 billion fund for East-West Link
• Sydney Metro rail project, with USD 1.7 billion by federal funding
• Major water infrastructure development for dams, and other projects with USD 2 billion concessional loan
• Forrest field Airport Link will be provided USD 490 million, Perth Freight Link will be provided USD 261 million, and Western Sydney airport will be provided
USD 115 million for continuing work.
• Residential constructions too are expected to increase during the forecast period. The autoclaved aerated concrete market in Australia is over 20 years old and it is
further expected to increase at a moderate rate in the forecast period.
• In New Zealand, especially within Auckland, it is expected that residents will increases by 400,000 over next 30 years. The construction industry in the country is
growing moderately and even though inflation has provided downsides, but the building construction remains firm. The market for autoclaved aerated concrete in
New Zealand is expected to reflect the growth in the construction sector and increase at a moderate rate during the forecast period.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, China, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meter, by Application, China, 2015-2022
• China is an emerging economy and is the largest in terms of purchasing power parity and the second-largest economy in terms of nominal GDP. In 2017, its GDP is
expected to grow at 6.5%, while in 2018, it is expected to grow slower with 6.3%. So far, the Chinese government policies have been in line with the proposed
objectives to implement economic reforms. China’s geographic location provides easy access to industrial goods markets in the neighboring countries, as well as,
globally other countries, making it a major access point for manufacturers and suppliers.
• 2016 was the first year of China’s 13th five year plan. It was an important year for the country’s engineering, procurement and construction (EPC) industry as it
ventured into new business models domestically and internationally. The construction sector had slowed down after 2013 but it is still a major contributor to the GDP
of China. In 2016, China’s construction industry developed rapidly achieving 17% growth over the past year, a contrast to the slow down of other traditional industries
in China. This strong growth was because of two reasons:
1. China’s central government’s push for infrastructure investment as a means to sustain economic growth
2. Local government’s relaxations of real estate regulations, purchase criteria and credit availability which boosted domestic construction
• On the international stage, China’s leading construction enterprises have been ranked ahead of other global players. Engineering News Record (ENR), one of the
industry’s leading publications, ranked China’s construction companies as the top four “Global Contractors” over the last three consecutive years.
• The labor cost has increased but the construction activity is expected to grow at about 3.8% in the forecast period. The demand for autoclaved aerated concrete
products is expected to grow with China’s One Belt, One Road initiative. This plan focuses on green development and urbanization with infrastructure development
of airport, roads, 30,000 km of high speed rail covering which will cover more than 80 cities. These infrastructural projects will be the major drivers of the AAC market
in the country.
• Rapid growth in the construction sector of China over the past year is an indication of the potential for the AAC market in this country. The market is expected to
grow at a high rate in this forecast period.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, India, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meter, by Application, India, 2015-2022
• India has a growing economy and potential market opportunities. Its GDP is expected to grow by 7.3% in 2017 and further growth is expected after 2017. Despite
unfavorable global economic issues, the robust urban consumption and the increase in public investment have guided the growth in the Indian economy.
• Construction sector is a key contributor to the Indian economy accounting for 8% of the GDP and employing 35 million people. It is growing at a high rate with new
urbanization projects and construction activities. Construction sector is a key priority for the government. USD 375.4 billion are expected to be invested for
infrastructural development over three years starting from July 2016.
• Moreover, 100% FDI in construction sector and introduction of the Goods and Services Tax (GST) are expected to ease tax-related complexities in the construction
sector and result in the growth of construction activity. Some of the main priorities for the government are Delhi- Mumbai industrial corridor, Navi Mumbai International
Airport and Mumbai-Ahmedabad bullet train network, where the use of AAC in expected to grow considerably.
• In order to increase efficiency and competitiveness in transportation infrastructure, multi modal logistics and transport network are expected to be implemented by the
government. To this effect, USD 36.2 billion has been allocated to transportation sector. The housing sector has also witnessed growth with institutional housing credit
growing to 19.5% in 2015-16 from 16.8% in 2014-15. There is still an urban housing shortage of 19 million units and the major demand is from lower income and
weaker section groups. Some of the regions in North India face unstable climates and the use of AAC in these regions is expected to grow with projects like Housing
for All by 2022 and smart cities.
• India’s construction market is registering signs of growth. The Housing and Infrastructure sectors would be key development drivers in the near future, buoyed by
Government support. In 2018, the market would be driven by increased public and private investment in transport and urban infrastructure. The market for autoclaved
aerated concrete product is still under growth stage in the nation but with many construction activities, government initiatives and increasing consumer awareness
about the product, the market for autoclaved aerated concrete is expected to grow at a high rate during the forecast period.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, Japan, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meter, by Application, Japan, 2015-2022
• The economy in Japan is growing from low to a moderate rate. The earthquake that hit Kumamoto, the manufacturing hub of Japan, in mid 2016 has
affected its economy to slowdown a little. GDP is expected to grow at 0.9% in 2017 while in 2018, it is expected to be a stable economy with 0.8% growth
rate.
• The Japanese construction sector remains positive. It is a stable, advanced market that is strongly receptive to the high quality building products. Japan’s
population, has high disposable incomes, a commitment to energy efficiency and resource conservation, and a strong interest in new technologies. The
Japanese market includes dense urban centers and extensive existing buildings in need of renovation, and seismic resilience of buildings is a long-
standing requirement in Japan. The construction industry is expected to grow at 1.2% annually with civil engineering works showing slightly higher rate of
expansion than buildings.
• Japan’s wooden housing market is the largest in the world outside the United States, and the residential housing sector accounts for an estimated 40% of
wood use in Japan. Housing and other buildings consume 30% of the total energy in the country. With significant increase in energy consumption by
housing sector compared to other sectors like transportation and industrial, the Japanese government has embarked on a roadmap to roll out a series of
building energy efficiency policies and programs. The use of AAC is expected to be an integral part in these policies because of its low carbon footprint
value.
• The AAC market will benefit from increasing demand, triggered by a rebound in residential construction and projects related to the 2020 Tokyo Olympics.
Also, there are some other major long-term projects such as Maglev railway and upgrades to highway networks etc., which will also increase the market
for autoclaved aerated concrete in the country. Moreover, Mori Building Co. had unveiled the plan for transforming Tokyo’s Toranomon area into
international business hub with about JPY 400 billion investment plan. Overall the market for autoclaved aerated concrete product is expected to increase
at a high rate during the forecast period.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, South Korea, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meter, by Application, South Korea, 2015-2022
• The economy of South Korea has slowed down due to two reasons, outbreak of Middle East Respiratory Syndrome (MERS) in 2015, and slow demand from China and
other Asian countries, and higher household debt, which has directly affected the growth rate of all industries. So, in the forecast period the economic growth is
expected to be at a rate of 2.6% - 2.8%.
• The Construction sector will grow at a rate of 1.3% in 2017 and moderately during the forecast period. The AAC demand is expected to be driven by works related to
the hosting of the 2018 Winter Olympic Games in Pyeongchang, Gangwon province, in which government has planned to invest USD 10.8 billion to construct new
stadiums and related infrastructure including residential hotels and others . The government has also increased the permits in construction for residential, institutional,
and industrial buildings which will further drive the growth for autoclaved aerated concrete products during the forecast period.
• However, weak growth in residential sector will undermine the long term development of South Korea’s overall construction industry and will also decrease the demand
for AAC in the housing sector. The autoclaved aerated concrete market in South Korea is expected to increase at a high rate.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, Rest of Asia-Pacific, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meter, by Application, Rest of Asia-Pacific, 2015-2022
• Rest of the Asia-Pacific is expected to increase at an estimated CAGR of 9.72% in forecast period. The rest of Asia-Pacific includes countries such
as Bangladesh, Sri Lanka, Bhutan, Afghanistan, Pakistan etc. is growing at a moderately high rate in the region. The major countries consuming
autoclaved aerated concrete are Bangladesh, Bhutan, Sri Lanka etc., in the rest of Asia-Pacific, as there are major manufacturers of autoclaved
aerated concrete in these countries. In addition to this, the industrial construction is increasing at high CAGR in these countries, which is followed
by commercial construction, and residential construction in the forecast period. Hence, the autoclaved aerated concrete market has a huge
potential for growth in the forecast period.
6.2.1 Canada
6.2.2 Mexico
6.2 NORTH AMERICA
6.2.3 United States
Autoclaved Aerated Concrete: Revenue in USD million, by Country, North America, 2015-2022
Autoclaved Aerated Concrete: Volume in million cubic meters, by Country, North America, 2015-2022
Autoclaved Aerated Concrete: Volume in million cubic meters, by Application, Canada, 2015-2022
• Canada is a hi-tech industrial country. It is a developed country in North America, with a GDP of USD 1,529 billion in 2016 and GDP growth rate projected at 1.4%
for 2017.
• The important driver of the overall Canadian economy is the construction sector, which also serves as an accurate measurement of how strong or weak the national
economy is, at any given time. Canada is identified as one of the world’s largest markets for commercial, residential, and infrastructural development.
• Finance Minister Jim Flaherty and the federal government maintain that there will be a continuance of support for infrastructure and construction, under the
Economic Action Plan 2012. The Community Infrastructure Improvement Fund (CIIF) provides USD 150 million for the repair and improvement of community
infrastructure facilities across the country. Many provinces are also helping to shore up a number of the country’s key economic sectors, including FedDev Ontario,
which is delivering funds of about USD 50 million over two years. In addition, 6,500 projects were bolstered through Infrastructure Canada, to build and repair
thousands of kilometers of expressways and highways across the country.
• After a slight decrease in the growth of the construction sector in 2015 from the 2014 levels, the growth levels witnessed an upward trend in 2016. They are
expected to maintain this positive trend during the forecast period.
• The government is planning to invest on public & renewable energy infrastructure, Affordable Housing Initiative (AHI), Made in Canada, and New Building Canada
Plan (NBCP), among others, which is expected to support the country’s growth in the future. The Government of Canada has announced investment plans of about
USD 120 billion, for such projects.
• Residential construction and other domestic infrastructure are expected to gain more focus during the forecast period. These developments in infrastructure and
construction activities are expected to drive the demand for autoclaved aerated products at a high pace over the forecast period.
Autoclaved Aerated Concrete: Volume in million cubic meters, by Application, Mexico, 2015-2022
• The GDP of Mexico was USD 1.046 trillion in 2016 and is expected to record a moderately low growth rate in 2017. The country has become the second largest
export market and the third largest source of imports for the united States. Mexico has a free trade agreement with 46 countries with around 90% of the
commodities in the free agreement, which is very beneficial for almost all the sectors and economy of the country.
• The Mexican construction industry represents the fourth-largest value-added activity in the country. Ranked behind manufacturing, commerce, and real estate
services, it constitutes roughly 8% of the GDP.
• The construction industry has been facing problems post the US elections of 2016. The United States adopting a protectionist stand in trading relations has led
the investors reconsidering their plans for operations in Mexico, decreasing the investment on the country’s construction industry. Peso (MXN) has been
devaluated to a record low value against the US dollar (USD). As a consequence, the increased inflation has contributed to a rise in the prices of construction
materials and equipment.
• The Mexican government has made cuts in the budget and increased taxes to retain the revenue. The government is relying on the best financial vehicles, like
the corporate sector, to attract private capital for investment at a great scale.
• Despite the federal cuts, the construction industry has grown by 2% in 2016. This is mainly because of continued investment in commercial and residential
building projects by the private sector.
• The growth in construction activity is expected to remain stagnant in the coming years but with a slight upward shift, which is expected to greatly impact the
demand for autoclaved aerated concrete products.
Autoclaved Aerated Concrete: Revenue in USD million, by Application, United States, 2015-2022
Autoclaved Aerated Concrete: Volume in million cubic meters, by Application, United States, 2015-2022
• The United States is the world’s largest economy in nominal terms. It has the most advanced technologies and the most powerful economy in the world, with a GDP
of about USD 18.57 trillion in 2016. The country is estimated to record a growth rate of 1.9% in 2017.
• The US construction industry slowed down to 2.6% in 2016, from 4.5% in 2015. An increase of 2% is expected in 2017. The slow-down is expected to slightly affect
the demand for autoclaved aerated concrete products. These products are beneficial in applications, cost effective, and eco-friendly. Owing to these properties and
as a substitute to other construction materials, the products are expected to witness increased demand.
• The construction of both single and multi-family residents and commercial buildings has gained momentum in the country, with the non-residential construction
activities expected to grow at around 5% in 2017. The US housing construction sector is also poised for growth, albeit at a slower pace than the previous years.
• The US construction industry has a huge potential for growth, if the new administration invests heavily on several infrastructural activities, with banks lending a
helping hand. There has been an increase in the buying activities of the country, after the Federal Reserve has increased the interest rate in December 2016. The
construction industry’s payments take place on an average between 30 – 60 days, to avoid late payments. For two years, payments in the construction sector have
been good and late payments have been levelled off. The construction sector’s insolvencies have been decreasing, but the small businesses in this sector are still
facing risk of bankruptcy.
• The use of autoclaved aerated concrete products in the United States began 20 years ago, much after the usage started in Europe and other Asian countries, due
to higher initial capital expenditure required for domestic autoclaved aerated concrete facility and the major residential buildings using timber-frame construction.
The United States has witnessed a constant increase in the use of autoclaved aerated concrete products during the recent years. Moreover, these products are
certified as environmentally-sustainable materials.
• The market for autoclaved aerated concrete products is expected to grow at a moderate rate during the forecast period.
Autoclaved Aerated Concrete: Revenue in USD million, by Application, Rest of North America, 2015-2022
Autoclaved Aerated Concrete: Volume in million cubic meters, by Application, Rest of North America, 2015-2022
• Rest of North America includes emerging countries, such as Cuba, Jamaica, and Dominican Republic. The region is expected to grow over the forecast period. The
consumption of autoclaves aerated concrete is less in these countries. Construction activities in the region are less and the governments are trying to boost the
same.
• Cuba is prioritizing construction among all other sectors, with the aim of attracting foreign investment and acquiring new construction technologies and systems,
which will stimulate the development of this sphere in the country. The most important driving factor in Cuba is the housing sector.
• Dominican Republic has displayed a remarkable growth in construction sector, with the Dominican Republic Central Bank providing the investment in construction
activities of several mega-projects, including the several highways infrastructure systems, elevation of several major avenues in Santo Domingo, second Metro line
of Santo Domingo, the construction of 10,000 new classrooms, low-income housing projects across the country, and other infrastructure improvements. Also there
has been an increase in US government goods, as there are no tariffs or low tariff rates, with the country being a member of CAFTA – DR (Dominican Republic –
Central America FTA).
• The Jamaican government has initiated major reforms in the housing segment, to drive the economic growth. To expand the construction sector, several major
projects, such as, North-South leg of the highway, the Blue Mountain Renewable project, etc., have been completed. There has been an expansion in the
importation of construction materials.
• A major restraint affecting the construction sector’s growth in these countries is their lesser population, which has resulted in lesser infrastructure development;
consequently having a slowing impact on the expected growth of the autoclave aerated concrete market over the forecast period.
• However, the usage of autoclaved aerated concrete in renovation or reconstruction of existing residential and industrial structures will positively impact the demand
for AAC in these countries.
6.3.1 France
6.3.2 Germany
6.3.3 Italy
6.3.6 Greece
6.3.7 Turkey
6.3.8 Spain
Autoclaved Aerated Concrete Market: Revenue in USD million, by Country, Europe, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meters, by Country, Europe, 2015-2022
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, France, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meters, by Application, France, 2015-2022
• The French economy is estimated to record a GDP growth rate of 1.2% in 2017 and is anticipated to remain at the same level in 2018. France is the third largest
economy in Europe. France spends 2.6% of its GDP on research & development. The level of productivity has increased and the household consumption has
increased by approximately 0.5%. The public investment has also increased in businesses, supporting the growth of the country’s economy.
• France is the second largest country in the European construction segment. In the previous years, the French construction industry witnessed a decline. However,
from 2016 onward, it witnessed a volumetric growth of 1.9%, according to the French Builders Association FFB (Fédération Française du Bâtiment). The recovery is
driven by new residential and commercial construction activities. The country’s construction activity is expected to increase by 3.4% in 2017. This growth will be
propelled by tax exemptions and low interest rates. The infrastructure sector is expected to garner an additional investment of EUR 500 million over the forecast
period. The AAC is a popular product in France, due to its insulation properties. The demand for AAC is expected to increase further, with the recovering construction
market.
• However, due to eight years of decline, the construction industry still faces challenges. Household purchase power remains restricted, due to low public building
activities. Competition is high and profitability is low. Banks are unwilling to give short-term credit despite the current upturn. Although the rebound in the construction
sector is encouraging, the industry is still cautious. Overall, the French AAC sector is expected to grow at a moderate pace over the forecast period.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, Germany, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meters, by Application, Germany, 2015-2022
• The German economy is the largest economy in Europe and the fifth largest by GDP, in the world. The German economy recorded a GDP growth rate of 1.9% in
2016. The country is estimated to witness a GDP growth rate of 1.7% in 2017 and a similar growth rate of 1.6% in 2018. The German construction sector accounts
for about 3.3% of the nation’s GDP.
• The future for the German construction industry is bright, fuelled by booming housing sector, which registered a growth of 9% in 2016. The sector has witnessed an
increase in productivity and employment, driven primarily by investments. Germany has been the largest consumer of AAC in Europe in the past few years and the
demand is expected to increase further, owing to the growing residential construction in the country.
• The main driver of construction in the country continues to be the residential segment. This segment is expected to grow by 7% in 2017. The demand for housing
remains strong, with the industry expecting 300000 new building units, with the demand estimated at 350000 building units per year. Non-residential construction is
expected to witness moderate growth, driven by the construction of industries. This segment is expected to grow by 3% in 2017. The German infrastructure
segment is expected to garner an additional investment of EUR 500 million in 2017, in response to the deteriorating infrastructure. This segment is expected to
grow by 3.5% in 2017. Rebounding infrastructure and a strong residential sector are the main drivers for the AAC sector in the country
• However, the German construction sector is still facing some challenges. Delay of payments by the public sector and lack of adequate skills in the workforce pose a
threat to the growth rate of the industry. Overall, the German AAC sector is expected to grow at a healthy rate during the forecast period.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, Italy, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meters, by Application, Italy, 2015-2022
• The Italian economy is the fourth largest in Europe and has grown by 0.9% in terms of GDP in 2016, and is estimated to remain the same in 2017 and at 1.1% in
2018. Italy was ranked the eighth largest exporter in the world in 2015. The construction industry of the country is growing at a slow pace, with a struggling residential
construction segment. However, The Italian construction industry is expected to grow, after the continuous decline since 2008. The growth of the industry is expected
to be at 2.2% in 2017 and 1.8% in 2018.
• New residential construction is predicted to continue its negative trend in terms of investments, although at a slower pace than previous years, registering a 1.4%
decline in 2017. Private non-residential construction market will also experience a growth of 0.3% in investments in 2017. Maintenance and renovation of the existing
buildings accounted for 37% of the total investments in the construction sector in 2016. Investment in this area is predicted to increase over the forecast period,
registering an increment of 1.4% in 2017.
• The civil engineering sector is set to be the main driver of the revival of the construction industry over the coming years. Investments in public infrastructure are
predicted to grow by 1.9% in 2017, supported by the Budget Law 2017. The year 2017 will also witness the release of the previously planned resources of the ‘Unlock
Italy’ Decree for the financing of public infrastructure. At the EU level, the EFSI-backed investments under the ‘Investment Plan for Europe’ will also contribute to the
re-launch of infrastructural investments in Italy. Recovering infrastructure of the country will aid the growth of the Italian AAC segment.
• Italian construction companies have been focusing on exports and are turning towards foreign markets, due to reduced domestic activity. Reappearance of favorable
conditions will be crucial to the revival of the construction sector. Overall, the market for autoclaved aerated concrete products is expected to grow at a moderate pace
during the forecast period.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, Nordic Countries, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meters, by Application, Nordic Countries, 2015-2022
• The NORDIC countries in Europe include Denmark, Finland, Iceland, Norway, Sweden, Greenland, Faroe and Island, among others. These countries are
developing and are expected to grow during the forecast period. However, the recent instability in the wake of Brexit is likely to impact the industrial development of
these countries.
• Construction is one of the main industries in the NORDIC countries. The autoclaved aerated concrete was first discovered in Sweden in 1920s. The Swedish
construction industry witnessed positive growth rate in the recent past. Among the residential, commercial, and industrial sectors, the residential sector holds a
major contribution of the construction industry. It accounts for approximately half of the construction industry. The industrial sector also holds a significant portion of
the construction sector. The autoclaved aerated concrete products are being adopted by consumers in Sweden ever since the time of discovery of these products
and is one of the major consumers of these products.
• Denmark is another major country in the region. Rising population and urbanization led to the growth of the construction industry in this country, which is majorly
contributed by the residential building sector. Commercial buildings are also growing and are expected to contribute significantly during the forecast period. These
factors are anticipated to result in an increased use of AAC in the country’s residential and commercial construction activities.
• Weak economic conditions in the countries, such as Norway and Finland in the recent past, due to uncertain economic developments in the Eurozone, are
expected to affect the construction industry in these countries. The demand for autoclaved aerated concrete products is mainly in residential and commercial
buildings, because of their environmental-friendly nature. The market in these countries is fragmented and still growing, with specific demands by consumers. The
overall demand for autoclaved aerated concrete products in Nordic countries is moderate, since the market is already matured and depends on the upcoming
construction projects during the forecast period.
Autoclaved Aerated Concrete Market: Revenue in USD million, by Application, United Kingdom, 2015-2022
Autoclaved Aerated Concrete Market: Volume in million cubic meters, by Application, United Kingdom, 2015-2022
• The economy of United Kingdom has witnessed a stagnation, with the voting of Brexit. The GDP growth rate of the United Kingdom was 1.8% in 2016, which is
expected to slightly decrease in the future. The UK construction sector is a major contributor to its economy and is ranked as the sixth largest construction sector in
the world. It employs around 10% of the country’s population. The industry is highly fragmented, with more than 280,000 businesses operating in the country.
• The construction industry is currently at its highest growth level in the last 18 months, with public and private house building accounting for the strongest part over
the past year. House building was the main driver behind construction growth again and grew at the fastest rate since 2016. Work on civil engineering projects also
picked up at a robust pace, while commercial construction increased only slightly. The construction industry is growing at a moderate pace and residential
construction is slowly increasing. The rest of the construction industry has picked up pace post 2016 and is expected to recover during the forecast period. United
Kingdom being a cold weather country, AAC was already a major product in the construction sector of the country. With rising construction activities in the country,
AAC’s importance in the residential and commercial sector is set to grow.
• The country’s construction industry is a highly prioritized one for the government. The government has promised to build 1000000 homes by 2020. In 2016, the
government updated the Government Construction Pipeline announcing its plans for projects worth GBP 163 billion, including large projects such as HS2, the new
North South High Speed Rail, as well as the affordable homes program. Furthermore, the total investments from 2017 to 2021 in the construction sector are
expected to be worth GBP 300 billion. These government initiatives further encourage the AAC market in the country.
• From a mergers and acquisitions perspective, infrastructure is the most attractive segment in the country. Interest in this segment is driven by China, to develop
presence in areas, such as nuclear power generation, road, and rail. House building and general constructing continue to attracting interest, particularly from China.
In the United Kingdom, large contractors have been through a period of divestment. They have consequently experienced a small performance increase. However,
the depreciation of the currency after Brexit has also affected the market and is expected to witness a decline in the near future. Looking ahead, the construction
industry may face a period of volatility and structural change, as the UK negotiates its exit from the European Union.
• Autoclaved aerated concrete products have been in the United Kingdom for several years and its market is directly dependent on the construction of new buildings,
commercial buildings, industrial application, and moreover, residential apartments. The demand for autoclaved aerated concrete products is expected to increase
with growing demand in the household sector. The demand for autoclaved aerated concrete is expected to increase at a moderate pace during the forecast period.
• Rest of Europe is expected to grow at an estimated CAGR of 4.09% over the forecast period.
• Rest of Europe includes countries, such as, Turkey, Spain, Russia, Czech Republic, Poland, etc. and the usage of autoclaved aerated concrete in the region has
been in practice for several years, owing to its benefits.
• The commercial construction segment is poised to register a high growth rate in the region. Furthermore, the industrial construction in a few countries is increasing
at a moderate rate. The residential construction sector is expected to grow at a moderate rate, due to decreasing housing demand in these countries as the
population is less and economy is growing at slow pace. The rest of European autoclaved aerated concrete sector is expected to grow at a moderate pace, owing to
these factors.
6.4.1 Argentina
6.4.3 Colombia
• The Argentine economy has been highly volatile in nature, since the past few years. The economy has slowed down and the GDP growth rate of the
economy is projected to increase at 0.7% for 2017, with economic reforms, increasing public investments, and consumption levels.
• The deteriorated macroeconomic environment has affected the country’s performance. The decrease in economic activity is mainly owing to declining rate
of private consumption, high inflation rate, devaluation of Argentine currency against the United States Dollar, decline in trade surplus despite the country’s
strong control of imports and, limited access to financing. The industrial output in Argentina witnessed a slight slowdown in the recent times.
• The construction sector in Argentina has witnessed a rapid downfall in the beginning of 2016, owing to the fiscal deficit in 2015, thus causing non-
payments to workers and higher inflation, resulting in less private developments. The government’s efforts to support growth in the industry involves
providing affordable housing to the country's low income population and increasing the production of renewable energy to drive investment in energy and
infrastructure projects. The Argentine President, Mauricio Macri, has announced investment of USD 25 billion to restrain the existing deficiencies in the
transportation sector (rail, road, airports, and sewage systems) between 2016 and 2026.
• The onset of 2017 witnessed a slight increase in the construction industry, with increase in government fiscal activities. On April 3, 2017, the Argentine
government announced the agreement with unions and banks to lower labor costs in the construction sector to attract investments. The agreement
involves banks promising loans with lower interest rates and concessions like lowering income taxes for labor unions. The government is working to
provide impetus to private construction, after the construction for public works projects have already taken off.
• During the forecast period, the sector is expected to recover from the downfall, owing to the government’s endeavors in enhancing growth of the
construction Industry. However, the growth is expected to be lower. The Argentine autoclaved aerated concrete market is expected to grow at a moderate
rate during the forecast period.
• Brazil has been witnessing a volatile economy since the past few years, with the GDP decreasing by 0.4% in 2016 .
• The political instability and high inflation, low prices of export of goods, and depressed confidence levels have caused the Brazilian economy to contract. The
economy is expected to grow during the forecast period, until there are reforms and corrections in the country’s political system. However, the Brazilian government
is investing heavily in the R&D sector, with public universities and research institutes carrying out similar activities.
• As of 2015, the construction sector in Brazil had a deteriorating rate, with the inflation rate being higher and the currency being depreciated. The residential market
segment is the largest in the construction sector of the country, with about 30% market share.
• The government is striving to establish political and economic stability. The “Crescer” initiative, launched by the government, grants concessions on infrastructure
projects to private investors in the hope of reaching nearly EUR 19 billion in investments, by 2020. “Minha Casa Minha Vida”, a housing program was
reestablished, promising 35,000 residential units by 2017.
• However, the likelihood of numerous infrastructural projects facing temporary delays is high in Brazil, as witnessed in the past. In addition, the implication of
construction companies involved in corruption scandals raises questions regarding credibility.
• The demand for housing is higher in the country. However, the investors have low confidence, owing to high volatility in the economy and restricted credit supply.
The government initiatives require time for execution. Thus, the construction industry can remain stagnant for a considerable amount of time and is expected to
grow from 2020.
• The autoclaved aerated concrete market has potential in the country and is expected to increase at a moderate rate, with improving construction and infrastructure
projects during the forecast period.
• The Colombian economy is the third-largest in South America. The GDP was USD 282.6 billion in 2016 and is estimated to reach USD 300 billion by 2017.
• In 2016, the inflation rate had increased to around 8-9%, from 6.8% in 2015. The consumer confidence has decreased, owing to the scandal which involved bribing
in exchange for construction activities. The government has announced to decrease social spending by 10% in the budget proposed for 2017, owing to low prices
of oil, which is the main source of government revenue.
• The construction sector is expected to grow at a higher rate, owing to the government’s efforts in construction activities like new residential buildings, roads,
hospitals, and over-bridge construction activities planned during the forecast period. The advancing fourth generation (4G) Public-Private Partnership (PPP) had
dealt with about 28 projects, including airport expansion and river transport infrastructure projects. The eventual expansion of the 4G program is expected to have
a positive impact on the Colombian economic competitiveness, by lowering the increased logistic costs that hamper the country’s productivity and drive up the
industry outputs.
• In 2016, the Colombian government had collaborated with Swedish International Development Cooperation Agency ( SIDA) to contribute to peace building, state
building, and sustainability development.. The US Colombia Trade Promotion Agreement (TPA) offers many benefits for the United States, like strong protection
for investors, US companies treated as locals during public bids, expanded access to service market, etc. Owing to the increase in opportunities in road
construction and 4G contracts, American investors are interested to offer services to Colombia’s construction companies.
• The residential sector demand for housing is higher in the country , with more demand arising from the middle-class population. The use of autoclaved aerated
concrete has been increasing, with consumer awareness about the benefits.
• There are few manufacturers of autoclaved aerated concrete products in the country, but the number is expected to grow. Majority of the products are imported
from Brazil and other global suppliers. The demand for autoclaved aerated concrete products is expected to increase at a higher rate, with higher construction
activities expected during the forecast period.
• Rest of South America includes countries, such as Chile, Peru, Venezuela, etc., which hold a major share in the South American region.
• Chile’s construction sector had witnessed negative growth in 2016, but is expected to modestly expand during 2017. The importation of construction machinery and
equipment decreased by 15% between 2015-2016 and is expected to remain with zero growth during 2017. The Chilean government has to take measures like
investing at least 3.5% of the GDP to increase and improve the current infrastructure. Currently, investment aggregates approximately between 1.5 and 2.5%.
Financing of infrastructure projects is mostly by direct state investment and public/private partnerships. In addition, there is a need for expansion in ports, airports,
and highways as Chile has a large portfolio of outstanding transportation infrastructure projects .
• The construction industry in Venezuela has taken a downturn. Building middle-income homes is rarely feasible, owing to meagre financing available for construction
or purchase, with middle-class spending power battered by inflation .Venezuela is witnessing a slight increase in the construction of luxury buildings. Venezuela has
started advancing toward the socialism to protect laborers’ interests.
• The construction sector, one of the most important industries in Peru, is witnessing a continuous growth. The growing Peruvian middle-class and the increase in
tourism is fuelling the construction industry, which also drives the economic growth. New malls and hotels are built all over the country and the high housing demand
of the growing-middle class population induces the building of residential areas within Lima and other Peruvian provinces. The government also plans to attract
private investments into infrastructure construction, by exempting complex tax barriers to improve the underdeveloped Peruvian infrastructure.
• Countries in the rest of South America are expected to experience stagnancy in the construction sector for sometime, owing to decline in the economy’s growth and
is expected to increase after a considerable amount of time, with government policies and estimated growth of municipal corporation (government) construction at
higher rate in the countries during the forecast period. Therefore, an increase in demand for aerated autoclaved concrete products is expected in the future.
6.5.4 Israel
• Saudi Arabia, an oil-rich country, has an emerging economy that had slowed down in 2016, when compared to 2015, owing to lower crude oil prices and the
country’s regulatory policy. The market openness and investment opportunities in the kingdom are less, when compared to other emerging economies, which have
become restraints to the growth rate. The GDP of Saudi was USD 646 billion for 2016 and is expected to increase to 2.2% by 2017..
• The major application of autoclaved aerated concrete is in the construction industry, which is expected to remain moderate in 2017, owing to the lack of government
revenue, which resulted from decrease in oil prices. Banks, which were the main source of investment, have restricted lending owing to the poor economic
conditions and lack of credibility, as a result of increase in non payment notifications and insolvencies in 2016.
• The Saudi Arabian government is trying hard to maintain economic stability by attracting private investments. In its tenth development plan, the government is
reforming the economic plans, with growing investments in diversified sectors and to get transformed into a diversified economy, away from oil.
• The announcement of the Vision 2030 and associated National Transformation Plan (NTP) has increased investments in various sectors, such as healthcare,
education, and infrastructure to support the country’s economic growth. The government has expansive plans for the development of social infrastructure,
transportation and energy & utility construction in the country. The government and private investment in different sectors in the country is expected to lead to rise
in the industrial and commercial building & construction activities in the kingdom.
• The demand for residential buildings is expected to be fueled by the population growth, rapid industrialization, and positive regional economic conditions. The
country’s population is expected to increase at a significant pace during 2010-2030, as per the United nations Department of Economic and Social Affairs
(UNDESA) report. Furthermore, the government’s white land tax initiative, to reduce the housing shortage, is expected to boost the demand for autoclaved aerated
concrete in the country.
• The construction industry is expected to grow moderately in the forecast period, as considerable time is required to overcome the deteriorated economic stability.
Then, further increase can be expected in the industry, which, in turn, is expected to increase the demand for autoclaved aerated concrete in the country in the
future.
• The South African economy has been under crisis since 2015, with depreciation in currency value and high unemployment rate. Thus, there is a shrinkage in the
economic growth. The GDP was USD 294.8 billion in 2016 and is expected to grow by 2% in 2017, according to a forecast by the International Monetary Fund
(IMF).
• Brexit is expected to affect the South African economy, since South Africa is the largest recipient of FDI from the United Kingdom. FDI had also slowed down in
2015, which has again contracted the economic growth rate. The government is planning to have a one-stop-shop program, which is expected to improve new
businesses, in addition to taking up new initiatives for promoting investments and build up consumer confidence.
• The South African construction industry has been facing a downturn in the non-residential sector, owing to slow recovery of the economy. The data has shown a
sharp rise in construction prices of 9.5% in the first quarter of 2017, driven by high national inflation pressure and a marked increase in input costs. The economic
had a serious effect on the building plan permissions, which decreased their value by 21.9% compared to the same period in 2016.
• The residential sector has shown positive outlook, with a significant 52%,when compared to 2016, with the South African government investing in housing, energy,
transport & sanitation sectors (which were not ceased, despite the bleak outlook for economy growth) and modernizing the airports and buildings of educational
institutions. The authorities have announced to an investment of USD 767.8 million in educational building construction for 2023 and USD 67.3 billion in airport,
water, energy, and transport infrastructure development and renovation works. In addition, the construction industry has weighed upon the private sector project
investments, which have slightly increased.
• The construction industry is expected to remain stagnant in the coming years, owing to the lack of business confidence in construction activities and uncertain
political and economic outlook. However, the industry can show progress in the forecast period, owing to an increase in reliance on infrastructure pipeline. The
infrastructure developments in construction activities are expected to add value to the autoclaved aerated concrete market during the forecast period
• Qatar is an oil-rich country, with maximum dependency on the hydrocarbon and oil & gas sectors. In 2016, the country witnessed a budget deficit for the first time in
the last 15 years, owing to low oil prices. The GDP was USD 152 billion in 2016, and is estimated to increase slightly to 3.8% by 2017.
• Qatar is the fastest-growing construction market in the Gulf region. Despite the economic crisis, the budget for infrastructure and construction activities were not
reduced, which maintained the confidence among the private sector. The country had spent nearly USD 98 billion on large-scale projects and an additional USD 13
billion on new projects in 2017.
• A number of infrastructure projects are expected to be undertaken by the government, in preparation for the FIFA World Cup 2022 event, thus providing the
necessary stimulus to the growth of the construction industry. The event was the major reason for Qatar not suffering a severe slowdown as some of its Gulf
Cooperation Council (GCC) neighbors, in the wake of low oil prices.
• The construction industry can be classified under building, infrastructure, and energy. The building construction segment, which includes residential, commercial,
healthcare, and education is estimated to increase from USD 12,073 million in 2016 to USD 16,993 million in 2017. Qatar has set a target to develop the highest
number of green or carbon-neutral buildings by 2030. The infrastructure construction, which includes roads, bridges, and airports is estimated to increase from USD
5,336 million in 2016 to USD 6,629 million in 2017.
• Qatar’s Public Works Authority is working on projects worth USD 200 billion. The country is mainly focusing on the 2022 FIFA World Cup. The energy sector, which
includes power and oil & gas is estimated to increase from USD 1,500 million in 2016 to USD 3,000 million in 2017, with main focus on deploying solar energy.
• The increase in the demand for the construction industry has increased the demand for construction-related materials, such as autoclaved aerated cement, which is
increasing at a higher rate, with high demand from industrial buildings, residential buildings, hotels & resorts, among others. The middle-class’ residential demand
has gone up in the country, in addition to an increase in demand for villas from the high-class population. The growing construction market is expected to boost the
growth of the market for autoclaved aerated concrete products in the country.
• Rest of Middle East & Africa mainly includes countries, such as Kuwait, UAE, Bahrain, Oman, etc., with major share in the regions.
• The construction industry in Kuwait is poised for growth, as the government is investing USD 234 billion in the construction industry, despite a decrease in oil
prices. Construction being the catalyst for economic growth, the government is investing in five major construction projects, which include oil &gas, urban
construction (which contribute to 73% of construction activities), hospitality, and tourism.
• UAE is witnessing increase in the number of construction activities, owing to growing infrastructure activities in the countries. There has been an increase in
momentum in UAE’s non-oil activities in the private sector in December 2016, owing to improving economic conditions. Dubai’s 2017 budget has increased the
emirate’s infrastructure spending by 27%, with the launch of “Dubai Harbor”, a multi-billion dollar tourism project.
• In 2016, the Bahraini government had planned to invest USD 32 billion for infrastructure pipeline, which is a key driver for economic growth. In addition, projects
including a major upgrade of the international airport, road-building schemes, a new railway link with Saudi Arabia, utilities developments and logistics support,
investments in housing, industry, and services are in the rudimentary stage.
• Oman, being struck by low crude oil prices, is currently focusing on the development of transport infrastructure, energy and utilities’ facility, and housing sectors.
Under the Ninth Five-Year Development Plan 2016–2020, the government is investing in sea ports, railway lines, airports, and special economic zones. The
investment, coupled with the Oman Vision 2020 is expected to drive growth in the industry over the forecast period. In addition, Oman's National Energy Strategy
2040 focuses on development in energy and renewable energy power plants across the country.
• Rest of the Middle East & African market is estimated to grow in the forecasted period. Construction in countries, such as Kuwait, UAE, Bahrain, Oman, etc. is
estimated to grow at a moderate rate during the forecast period. Therefore, the autoclaved aerated concrete market has potential for growth during the forecast
period.
• The global autoclaved aerated concrete (AAC) market is expected to register a CAGR of 7.12% (in terms of revenue) during the forecast period. In a span of five
years, AAC is expected to penetrate the construction market in a significant manner, particularly in the developed nations.
• AAC is primarily developed as a substitute for wood that is used in construction. Europe has pioneered the usage of the product since its invention. However,
Asia-Pacific is expected to emerge as the highest AAC consuming region in the future. By 2022, Asia-Pacific is expected to use ~20% more AAC than Europe.
The awareness about AAC in Asia-Pacific is consistently increasing. Clay bricks are already being replaced by AAC in major cities of the region. Asia-Pacific,
predominantly a tropical region, favors the use of AAC. The cost effectiveness of AAC has already been realized in the region and social stigma is the only factor
restraining the market. Cement usage in AAC is high and, thus, cement prices directly affect the cost of AAC. The volatile cement prices in the region are
expected to hinder the demand for AAC in countries, such as India. From the manufacturing perspective, the region has already emerged as the largest producer
and exporter of AAC, particularly in China and India.
• Europe is a saturated market for AAC, owing to extensive use. Modest growth is expected from the eastern European nations, owing to the scope of penetration
of the market. By country, Germany is the major user of AAC in the region and is expected to hold its position in the future as well. Nordic countries collectively
consume more AAC than any other country in the world, except China, and are expected to continue the trend. However, non-autoclave technologies are
expected to foray into the market share and the potential of AAC in the near future, owing to the growing popularity of non-autoclave technologies. However, AAC
market share is expected to rise, as it may continue to replace clay bricks in Europe over the next five years.
• Although a predominantly developed region, North America is an extremely low-potential market for AAC. Few construction firms are showing interest in the
technology. However, abundant availability of substitutes and non-popularity of AAC are expected to hinder the market growth in the region. Except for Mexico,
the North American region is expected to be a low-potential market during the next five years. Mexico is a bright spot for the AAC market in the North American
region and is expected to get a significant boost in the future, with active investments in AAC manufacturing. Some of the manufacturers hoe to export AAC to the
United States in the near future.
• South America and Middle East & Africa are significantly growing markets for the AAC. The geographical conditions in the regions are favorable for the adoption of
AAC. AAC is being extensively used in Saudi Arabia, UAE, Egypt, Colombia, and Qatar. The countries form the major consumers in the regions. Wealthy
constructors are extensively using AAC in the regions, while the entire construction industry is expected to follow suit in the coming years.
• The AAC market is expected to grow at a healthy pace in the future, despite threats from new technologies and limitations.
Date Description
H+H International A/S signed an agreement with Grupa Ożarów SA’s to acquire the calcium silicate business in Poland. The transaction is
Jul 2017
expected to help create strong business for autoclaved aerated concrete and calcium silicate in Poland.
UltraTech Cement completed the acquisition of Jaiprakash Associates' six integrated cement plants and five grinding units, having a capacity
Jun 2017
of 21.2 million metric ton, worth INR 16,189 crore.
CSR Hebel had decided to expand capacity by building an additional manufacturing line for panel. The highly automated AAC plant is
Jun 2017
expected to have a capacity of 300,000 cubic meter, annually in Somersby, Australia.
Mar 2017 Under the EU Merger Regulation, the European Commission had approved the acquisition and sole control of the Xella group by Lone Star.
Aircrete Group had announced about investing and building a new autoclaved aerated concrete facility, with leading companies like Grupo and
Oct 2016
Pecam. Aircrete developed an ACC block and panel worth USD 20 million, with a capacity of 120,000 cubic meter in San Lorenzo.
Heidelberg Cement, through its subsidiaries, Lehigh Hanson Inc. and Essroc Corp., entered into an agreement with Argos USA LLC, to sell its
Aug 2016
Martinsburg, West Virginia plant and other related terminals.
Aug 2016 Tarmac acquired 11 ready-mix concrete sites from Hope Construction Materials and Breedon Aggregates, based in the United Kingdom.
Aug 2016 JK Lakshmi Cement expanded limestone mine outputs in Rajasthan, at an entailing investment of INR 120 crore.
Jul 2016 HeidelbergCement completed the acquisition of a 45% stake in Italcementi, from Italmobiliare.
Jul 2016 UltraTech Cement bagged the deal with the Indian company, Jaypee Group to acquire its cement assets worth INR 16,189 crore.
Jul 2016 Thomas Armstrong (Holdings) Ltd. had been appointed as a contractor for the renovation of Leeming Farm, Watermillock, United Kingdom.
Date Description
Jul 2016 Thomas Armstrong (Holdings) Ltd. Was appointed as a contractor for the renovation of Alston station in Cumbria, England.
Forterra acquired Sherman-Dixie Concrete Industries, a leading producer of precast concrete structures, based in Kentucky, Tennessee,
Feb 2016
Indiana, and Alabama.
Oct 2015 Hanson Building Products (now, Forterra) acquired Cretex Concrete Products (CCP), headquartered in Maple Grove, Minnesota.
Thomas Armstrong Group commenced the construction of a GBP 12 million production unit at a site in Cross Green, Leeds. The group is the
Jul 2015
largest privately-owned building block manufacturer in the United Kingdom.
Chennai-based RPP Infra Projects Ltd. entered into a joint venture agreement with Hunan Construction Engineering Group Corporation
Jun 2015 (HCEG), a Chinese construction firm and the United Kingdom's Delamore & Owl Group, for the joint development of infrastructure projects
across India and neighbouring countries.
Feb 2015 H+H International acquired Poland-based Grupa Prefabet S.A., in a move to restructure strategies in Poland.
Oct 2014 ACICO Industries announced the acquisition of Kuwaiti Industrial Building and Construction Company (IBC).
Xella Group
Globally, Xella Group is the largest manufacturer of AAC. The group is always focused on innovation and expansion, through its strategic expansions, acquisitions,
product launches, and research & development activities. For example, the company has recently introduced its newest aerated concrete block, Ytong Energy+,
which claims to possess unsurpassed insulating properties and is used in the construction of inner and outer walls. From 2021, private developers are expected to
be required to build zero-energy homes under the Energy Performance of Buildings Directive, which is the company’s long-term goal. The company has developed
this product, which will specifically be used for monolithic wall constructions, thereby, facilitating energy saving in buildings.
ACICO Industries
Demand for building & construction materials is expected to increase, as a direct result of the infra-structure projects announced by the State under the second
development plan (2015/2016 – 2019/2020) within the Kuwait Vision 2035. To this regard, the ACICO group launched the extension of its concrete production line,
which includes the establishment of a factory for the production of all types and sizes of aerated concrete and non-concrete, construction requirements, and import
and export of building materials. Furthermore, the company’s aspirations are not restricted to the presence in Kuwait, United Arab Emirates, Qatar, and Saudi Arabia.
The company plans to expand to other Middle East and North African countries, according to an accurately-assessed expansion strategy to maximize the market
share, future returns, and profits.
The second-largest manufacturer of AAC, H+H’s primary strategy is to penetrate new market segments, including high-rise residential and non-residential buildings,
create more sales from direct contact with the builders, and maintaining customer loyalty. The company initiates various agreements, developments, and acquisitions
to maintain its position in the market. For example, in 2016, the company decided to upgrade the Borough Green factory project to increase the availability of AAC
and to maintain the leading position in the market. The company tries to maintain diversity in the geographical market and not get affected by the performance of a
single region.
Syndicated Report Global Autoclaved Aerated Concrete Market
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9.9 Forterra Building Products Ltd 9.20 Thomas Armstrong (Holdings) Ltd.
ACICO GROUP
Website: www.acicogroup.com
FOUNDED IN 1990
Under the ACICO building system, ACICO Group produces ACC lintels, blocks, slabs, and
reinforced structural components, which can be used for both load-bearing and non-load-
Autoclaved Aerated Concrete (AAC)
bearing applications. ACC can be used in various buildings, such as, commercial, residential,
administrative, as well as in schools, hospitals, and villas, among others.
RECENT DEVELOPMENTS
Date News
ACICO Construction set up one of Kuwait’s largest pre-cast concrete plant, equipped with Italy’s
Jan 2017 Marcantonini Concrete Technology. This plant is expected to produce 100 cubic meters of
concrete per hour.
AERCON AAC
Website: www.aerconaac.com
No. of Employees: 66
FOUNDED IN 2002
+1-800-830-3171
Standard block; standard block with grips; single cored block; double cored block;
AAC Blocks
mine block; u-block; jumbo; cladding; shaft wall block
RECENT DEVELOPMENTS
No recent development.
Source: Factiva
AKG GAZBETON
Website: www.akg-gazbeton.com
Turkey
FOUNDED IN 2002
A part of AKG Grubu, AKG Gazbeton produces heat-insulated,
light, non-combustible block and reinforced products, with
earthquake safety, as well as Minepor insulating boards. With
its manufacturing facilities in Izmir, Kırıkkale, and Çorlu, AKG
Gazbeton offers superior quality AAC to the industry. Gazbeton
AAC is a strong, light-weight and environment-friendly building
material. It consumes less amount of binder and steel
reinforcement than the traditional concrete. Gazbeton products
are used in broad range of applications, including residential,
tourism, commercial, industrial, civic, and other facilities.
Exporting to more than 20 countries across the world, chief
among them being the European Union countries, AKG
Gazbeton has an annual total AAC manufacturing capacity of
1.713.960 cubic meters.
Kemalpasa Caddesi 6170/1 Sokak No: 7 - ~100
Işıkkent 35070 İzmir
- Headquarter
Turkey
MINEPOR It’s an A1-class non-combustible heat insulation material. It has high bearing capacity.
Wall Blocks Available in a size of 20 cm x 25 cm, with a thickness of 5-35cm. It can be used for interior or exterior wall-building.
Wall Blocks with Tongue and Available in a size of 60 cm x 25 cm, with a thickness of 5-35cm. It can be used for interior or exterior wall-building, as
Groove well as flat wall blocks.
Available in a size of 60 cm x 25 cm, with a thickness of 20-30 cm. U-blocks can eliminate the need for molds. Corner
U and Corner Blocks
blocks are used for wall corners, particularly in masonry constructions.
Available in dimensions of--length less than 600 cm, width less than 60 cm, and thickness of 10-30cm. They can be
Horizontal Wall Panels
used on interior or exterior walls of steel, concrete, and wooden structure.
Available in dimensions of--length less than 600 cm, width less than 60 cm, and thickness of 10-30 cm. They are used for roof
Roof Panels
floorings, mainly for residential and industrial buildings.
Available in dimensions of--length less than 600cm, width less than 60 cm, and thickness of 10-30 cm. It can be used at the
Flooring Panels
inter-stage and walkable roof floorings of all-load-bearing systems.
Available in dimensions of--length of 40-50 cm, width of 60 cm, and thickness of 10-30 cm. It is ergonomic, and provides high
Light Filler Blocks
adherence.
Lintels Available in various dimensions. They can be used for making openings for doors on walls and openings for windows.
RECENT DEVELOPMENTS
No recent development.
BAUROC INTERNATIONAL AS
Website: www.bauroc.eu
Estonia
FOUNDED IN 2002
Blocks and Partition Wall Plates Ecoterm+, classic, hard, universal, element and acoustic
RECENT DEVELOPMENTS
Date News
Mar 2017 Aeroc International changed its brand name to Bauroc International.
Jan 2017 Baroc (as Aeroc International AS), acquired VKG Plokk OU from Viru Keemia Grupp AS, along with its ROCLITE trademark.
Website: www.biltechindia.com
India
FOUNDED IN 1993
Can be used for external, as well as internal, walls; can be cut, drilled, and nailed by using normal hand tools, as these are
BILTECH-ACE Blocks
extremely adaptable.
Used for adding new floors, or for extension of existing structures; provided with tongue and groove profile on the edge to
BILTECH-ACE Panels
facilitate easy placement..
BILTECH-ACE Thermotiles Can be laid on new, as well as existing, RCC slabs, for the purpose of thermal insulation; durable and heat resistant.
RECENT DEVELOPMENTS
No recent development.
Website: www.domapor.de
FOUNDED IN 1997
+49039933 - 7313-0
Building Boards They are used in the manufacture of non-bearing internal partitions. They are classified to (PPPL) L= 599, (PPPL)L=624.
They are utilized in the manufacture of masonry, which include structural and non-structural interior and exterior walls, fire
Schedule Stones
walls, and in-fill walls. (PPW) L=599, (PPW) L= 624, are the classification for the scheduled stones.
Corner Stones They can be used as a start, or end, block, to avoid filling and cutting. (PPECK) L=599, (PPECK) L=624.
DRS 18, DRS 20, DRS 25. They are used for ring beam in the basement ceiling area, and also for wall termination. Here,
Ceiling Curbs
heat loss and damage caused by transmission of stresses are avoided.
They are used in the coverage of openings of windows and doors,, due to the advantage of being of the same plaster
Flat Lintels
base as the adjacent masonry. They are of types FST 115, FST 150, and FST 175..
PHA 115, PHA 150, PHA 175, PHA 200, PHA 240, PHA 240, PHA 300, PHA 365, PHA 425. They all have their lengths of about
Levelling stones
624 mm and height of 124 mm but width of about the number mentioned after PHA.
U-shaped shells serve as formwork bricks for windows and door lintels as well as a homogenous formwork element for ring
U-Shapes beams and ring anchors. During the production of falls, care must be taken to ensure that the joints are mortared and that the
shells are supported during the assembly until the filling concrete is adequately hardened..
They are used for the production of masonry according to DIN 1053-1 and DIN 4103-1. These include, for example, load-
Flat blocks
bearing and non-load-bearing exterior and interior walls, reinforcing walls, cellar walls, fire walls and walls that can be painted.
Recent Developments
Date News
DOMAPOR Baustoffwerke GmbH joined the Federal Association of Aerated Concrete Industries, comprising of German
May, 2017
manufacturers.
Source: Factiva
Website: www.ecogreenproducts.in
India
FOUNDED IN 2009
+91-79-26872000
It has the dimensions of about 600 mm x 200 mm, size tolerance of +/- 1.5 mm, compressive strength of 3-4.5 Newton/meter
AAC block
square, thermal conductivity of -0.16 -.18 W/m-k and a drying shrinkage of about 0.04 %.
Recent Developments
No recent development.
EKORU SRL
Website: www.ekoru.it
No. of Employees: 41
FOUNDED IN 2014
- 41
Via Lufrano
- Headquarter
72-80040 Volla (NA), Italy
39-081-7746611
Gasbeton Evolution 500 It is a classic thermal comfort product, for most masonry and better insulation.
Gasbeton Energy 300 Provides maximum energy efficiency for single-layer curtain walls without additional insulation.
Recent Developments
No recent development.
Website: www.forterra.co.uk
FOUNDED IN 1960
These are autoclaved aerated blocks used to ensure uniform thermal performance, and in high-
Thermalite Aircrete Hi-strength Coursing Blocks strength 7 or 10 blocks. Their block length is 440 mm, so that they can reduce the number of mortar
joints required when detailing, thus saving time and money.
These are 440 mm in length, with a compressive of 2.9 N/meter square, and face dimensions of
Thermalite Aircrete Coursing Bricks
215x65 mm. These are moisture-resistant, ensuring thermal performance.
It has a compressive strength of about 7.3 to 7.9 Newton/meter square, and face dimensions of
Thermalite Aircrete Hi-strength Coursing Bricks
215x65 mm. They can be applied in cavity walls, partitions, separating walls, and detailing.
Recent Developments
Date News
Forterra Plc announced its agreement to acquire the trade and assets of Bison Manufacturing Ltd, a United Kingdom-based
Jul 2017
manufacturer of hollowcore precast concrete flooring, from Laing O'Rourke Plc, for GBP 20 million.
Apr 2016 Forterra gained admission to the London Stock Exchange as an independent listed company.
Website: www.hplush.com
FOUNDED IN 1909
H+H PLAN STEINS They are used in all load-bearing and bracing outer walls, in residential and commercial construction.
H+H TEMPO PLANS They are alternatives for those who use large-sized stones in construction.
H+H MULTIELEMENTS They are used in fire walls with mortared butt joints.
They are used in the internal and external leaves of cavity walls, solid walls, separating walls, flanking
Celcon Blocks
walls, multi-storey buildings, beam, and block floors.
It is cement-based, and supplied as a dry, pre-mixed powder. It is used in buildings being built with the
Celfix Mortar
company’s thin–joint system.
Jumbo Blocks They are produced with the latest technology, which make them ideal for use with Celfix mortar.
Recent Developments
Date News
H+H International A/S’s subsidiary, H+H Polska Sp. z o.o., signed an agreement with Grupa Ożarów SA to acquire 99.19% of the
Jul 2017
shares in its Polish calcium silicate subsidiary, Grupa Silikaty Sp. z o.o., for approximately DKK 64 million.
Website: www.hansasteine.de
Germany
FOUNDED IN 1990
They are used in the manufacture of masonry. They are suitable for highly insulated wall structures, due to their low weight,
Hansa Plan Stones
and low dimension tolerance.
Hansa Building Boards They are used to make solid, lightweight masonry.
Hansa Poroquick 375 They are used in structural and non-structural exterior and interior walls, fire walls, basement walls, bracing, and in-fill walls.
They are used in creating monolithic exterior walls, with thick walls and high insulation requirements, in commercial and
Hansa Poroquick 500
residential construction.
They are used in insulating doors and window lintels, ring beams, and other structural components, vertical slots, and
Hansa U-CUP
stiffening in the masonry.
Recent Developments
Date News
May 2016 Hansa aerated concrete blocks: Conversion to 599 mm rock length
Source: Factiva
HIL LIMITED
Website: www.hil.in
India
FOUNDED IN 1946
Recent Developments
Date News
Mar 2017 HIL announced the commencement of commercial production of colored coated steel sheets at Balasore plant, Odisha, India.
HIL Ltd commenced its commercial production of AAC blocks plant at Jhajjar, Haryana, with an installed capacity of 0.15 million
Jan 2015
cubic metres per annum.
Website: www.heidelbergcement.com
Introduction
69120 Heidelberg
Germany
FOUNDED IN 1873
RECENT DEVELOPMENTS
Date News
HeidelbergCement finalized the acquisition of Cemex’s Pacific Northwest Materials Business consisting of aggregate, asphalt, and ready
Jun 2017
mixed concrete operations in Oregon and Washington, for about USD 150 million.
HeidelbergCement became the sole shareholder of Italcementi, making it the world’s leading vertically integrated building materials
Oct 2016
supplier.
Website: www.jklakshmicement.com
FOUNDED IN 1982
+91 11-30179862
Recent Developments
Date News
JK Lakshmi Cement began setup of 1MT grinding unit at Odisha, at an investment of INR 150 crore.
May 2017
The grinded unit is expected to be completed by March 2018.
May 2016 New grinding unit was purchased for Surat cement plant, which is expected to increase production to 0.9m MT.
Website: http://renacon.in/index
No. of Employees: 19
FOUNDED IN 1990
RENACON (AAC blocks) The company manufactures AAC blocks in various sizes, which use cement, fly ash, sand, lime, gypsum and water.
Financials
Recent Developments
No recent developments
SCHLAMANN K.G.
Website: http://www.schlamann-kg.de/de/
Y.O.E: 1972
COMPANY
PROFILE Location: Am kalksndsteinwerk 2, 31608
Marklohe, OT Lemke, Germany
Introduction
Contact Details: + 0 50 21 97 98 0 No. of
Employees: 35
FOUNDED IN 1972
Am kalksndsteinwerk 2, - 35
31608 Marklohe,
- Headquarters
OT Lemke, Germany.
+ 0 50 21 97 98 0
Schedule stones Building blocks for load bearing and reinforced walls
Levelling stones Created by their low height compensation at the foot or head of the wall
Ceiling curbs These curbs are equipped with 5 cm mineral wool insulation WLG 0.35
FINANCIALS
Recent Developments
No recent developments
SOLBET GROUP
Website: www.solbet.de
Poland
FOUNDED IN 1951
+48 52 387 42 11
They can be used for construction of single-layer or multi-layer walls with a layer of insulation. They can also be used for erecting
Blocks
internal, external, partition and load-bearing walls.
Plates They can be used to construct single-layer external walls. They are available in various dimensions.
AAC SOLBET boards are used as a ring beam cover in a single-layer wall (without insulation) and for non-construction elements
Boards
inside the building, e.g. shower trays, bathtubs and cabinets.
U-Blocks They are used as framework for making lintels, beams, tie beams and concrete pillars. They are available in various sizes.
It is suited for use for thin AAC joints. It can also be used for masonry units other than AAC blocks. They have high compressive
Thin Layer Mortar
strength, frost and water resistance and good adhesion.
RECENT DEVELOPMENTS
DATE NEWS
TARMAC
Website: www.tarmac.com
FOUNDED IN 1990
FINANCIALS
RECENT DEVELOPMENTS
DATE NEWS
Apr 2016 Tarmac and Max Bogl launched a joint-venture, to deliver new slab track system for the United Kingdom high-speed rail.
Website: www.xella.com
FOUNDED IN 2002
+49 203608800
Fermacell Dry lining construction quality for walls, ceilings and floors
RECENT DEVELOPMENTS
DATE NEWS
Aug 2017 Xella International S.A. (Xella) agreed to sell its business unit, Fels, to an industry buyer headquartered in Europe.
Aug 2017 Xella acquired the leading European insulation materials manufacturer, URSA.
Feb 2016 Dr Jochen Fabritius appointed new the CEO of the Xella Group.
Oct 2015 Xella International S.A. postponed its announced initial public offering.
Website: www.thomasarmstrong.co.uk
FOUNDED IN 1830
Thomas Armstrong Group has an experience of over 180 years
in delivering world-class construction services and building
products.
The company provides products & services in 12 main sectors,
namely, Construction, Concrete Blocks, Bespoke Joinery,
Renewable Energy, Prestressed Products, Paving Blocks,
Transport, Timber Products, Timber Frame Construction,
Mechanical and Electrical, Aggregates and Work wear, and
Tool Hire. The company operates via nine different offices at
strategic locations in the United Kingdom.
ULTRALITE
INSULITE
Lightweight and dense Concrete DENSE CONCRETE
Blocks CELLULAR
HOLLOW
ROCKFACED BLOCKS
Paving Blocks and Fittings Different shapes, size, and textures of paving blocks and fittings
FINANCIALS
RECENT DEVELOPMENTS
DATE NEWS
Thomas Armstrong (Construction) Ltd. secured the contract to create the new Edge of Care Accommodation in Carlisle for Cumbria
Mar 2017
County Council.
Jan 2017 Stocks Bros. Ltd - New block manufacturing facility at Cross Green.
Jul 2016 Thomas Armstrong planned to build a new EUR1.3 million Sports Hall for St. Joseph’s School.
Jul 2016 Thomas Armstrong appointed contractor for the renovation of Leeming Farm, Watermillock.
Apr 2016 Thomas Armstrong Construction commenced three new contracts for Impact Housing Association.
ULTRATECH
Website: www.ultratechcement.com
FOUNDED IN 1983
Fixoblock Jointing material used for laying AAC blocks, fly ash bricks, concrete blocks, etc.
Readiplast Ready mix cement plaster that can be used on inner and outer walls
Facing material that can be applied to any flat surface that can be used as a base coat for interiors and as a final
Super Stucco
coating for exteriors
Powergrout A grey, free flowing cement-based material, consisting of OPC cement, additives and graded sand
RECENT DEVELOPMENTS
DATE NEWS
Jun 2017 UltraTech Cement acquired the Cement plants of Jaiprakash Associates Limited
Jul 2016 UltraTech Cement signed a deal with Jaypee Group to bag its Cement assets for INR 16,189 crore
Nov 2015 Ultratech cement got recognized for the transparency in the climate change disclosure