According to a new market report published by Transparency Market Research titled ‘Autoclaved Aerated Concrete Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026,’ the global autoclaved aerated concrete market was valued at around US$ 11 Bn in 2017 and is projected to reach nearly US$ 20 Bn by 2026, expanding at a CAGR of above 7% between 2017 and 2026.
Autoclaved aerated concrete (AAC), also known as autoclaved cellular concrete (ACC) or autoclaved lightweight concrete (ALC), is a lightweight precast building material whose adoption has been on the rise recently.
Increase in Construction Spending Driven by Expansion of the Construction Sector:
Demand for traditional building materials is primarily driven by expansion of the construction sector globally. Overall increase in construction and infrastructure-related activities worldwide has resulted in rise in demand for residential, commercial, and industrial construction, leading to consistent expansion in the building materials industry. Furthermore, macroeconomic factors such as GDP growth in Europe, gradual recovery in construction expenditure across residential and non-residential sectors, and anticipated expansion in the real estate sector supported by government initiatives for providing affordable housing are expected to drive the autoclaved aerated concrete market. Construction of a wall with AAC block walls results in a cost savings as compared to traditional bricks. Due to the low density offered by AAC, the structural load (dead load) is very less, and the structural members can be designed accordingly. In turn, the requirement for concrete and steel is less for the foundation and all structural members of the building. The number of joints is less because of the bigger size of AAC blocks. This reduces the requirement for cement mortar. The labor required to lay AAC blocks is also considerably less, and this results in considerable time savings.
High Investment Costs Associated with the Production of AAC:
AAC has demonstrated its benefits for more than 70 years, owing to its properties such as high heat and fire insulation capacity. AAC structural members with reinforcement can be combined in an integrated production with non-reinforced block material, etc. The integrated production of reinforced products and block materials requires a qualified plant facility with an advanced reinforcement technology. AAC products are manufactured in block factories or in factories with an integrated reinforcement technology that allows for the manufacture of AAC products such as deck and roof elements, wall panels, and lintels apart from blocks. In terms of volume, the production of advanced reinforced components such as panels and lintels has remained subdued as compared to that of blocks. The investment required for building an integrated production facility for manufacturing panels and lintels along with blocks is more than twice that of a simple block.
A plant designed to produce reinforced products is also capable of producing blocks but with slight modifications. However, plants designed specifically for producing blocks have lower capital cost than those designed to manufacture reinforced products. Moreover, the process time required in case of panels and lintels for pressure rise and curing in autoclaves is almost twice that of blocks.
Request a PDF Brochure @ https://www.transparencymarketresearch.com/sample/sample.php?flag=B&rep_id=12650
Affordable Housing in Emerging Nations:
The demand for affordable housing is likely to remain robust, driven by a rising population, young demographic profile, shift toward nuclear families, and rapid urbanization. For instance, the market potential of affordable housing projects in India is expected to touch US$ 930 Bn by 2022. The Indian government’s scheme, Pradhan Mantri Awas Yojana, aims to construct two crore (20 million) houses in India, in three phases, till 2022. Housing shortage is expected to increase from the current level of 19 million units to 25 million by 2021, based on a stable decadal growth rate.
Enhancement of Production Capabilities by Key Players
Key players profiled in the report of the autoclaved aerated concrete market include Xella Group, H+H International, SOLBET, ACICO, AERCON AAC, UltraTech Cement Ltd., Biltech Building Elements Limited, AKG Gazbeton, Bulidmate, Eastland Building Materials Co., Ltd., Brickwell, and UAL Industries Ltd. Major players operating in the market are investing significantly in the expansion of production capacity in order to meet the increase in demand. For instance, CSR Hebel, Australia’s leading manufacturer of high-quality autoclaved aerated concrete (AAC), expanded its production capacity by building a second production line in Somersby, Australia in September 2017. This highly automated plant is specially designed for panel production only and is expected to have a capacity of 300,000 cubic meters per year. The facility is equipped with the latest available Aircrete technology, making it one of the world’s most advanced and highly automated AAC panel plants.
Request a COVID-19 Impact Analysis @ https://www.transparencymarketresearch.com/sample/sample.php?flag=covid19&rep_id=12650
Related Report - PE Blow Molded Products Market