The global autoclaved aerated concrete (AAC) market size is projected to grow from USD 18.8 billion in 2020 to USD 25.2 billion by 2025, at a CAGR of 6.0%, during the forecast period.

The increasing urbanization industrialization, growth in the infrastructure sector, rising demand for lightweight construction materials, growing preferences for low-cost houses, and an ever-increasing focus on green soundproof buildings are driving the AAC industry growth.

The blocks segment is projected to be the fastest-growing element in the market during the forecast period.

The blocks segment dominated the overall AAC market in 2019. This segment is driven by the increase in demand for AAC blocks in residential as well as non-residential industries. Besides AAC blocks’ insulating capability, one of its advantages in construction is its quick and easy installation, because the material can be routed, sanded, and cut to size on site.

The residential segment is projected to account for the largest share during the forecast period.

The residential segment is estimated to hold a larger market size. The large market size for this segment is attributed to the requirement for lightweight and environmentally-friendly building materials in residential constructions. AAC building materials have become an integral part of the building construction industry due to their durability and excellent features.

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