Press Release

India Autoclaved Aerated Concrete Blocks Market is Expected to Register a 9.10% CAGR Through 2030

Rapid Urbanization & Infrastructure Development and Rising Demand for Cost-Effective & Durable Building Materials are likely to propel the market during the forecast period.


According to TechSci Research report, “India Autoclaved Aerated Concrete Blocks Market – By Region, Competition, Forecast and Opportunities, 2020-2030F”, India Autoclaved Aerated Concrete Blocks Market was valued at USD 3.62 Billion in 2024 and is expected to reach USD 6.16 Billion by 2030 with a CAGR of 9.10% during the forecast period.

India is experiencing an unprecedented rate of urbanization, with millions of people migrating to cities in search of better opportunities. This rapid urban expansion has led to an increased demand for residential, commercial, and industrial infrastructure. The construction industry is under pressure to deliver high-quality, cost-effective, and sustainable buildings within short time frames.

AAC blocks, known for their lightweight nature and quick installation, have become a preferred choice in modern construction. Compared to traditional clay bricks, they reduce structural load, making them ideal for high-rise buildings and large-scale infrastructure projects. Additionally, the government's push for affordable housing under schemes like "Pradhan Mantri Awas Yojana" (PMAY) and the "Smart Cities Mission" has further fueled demand. Furthermore, large-scale developments such as metro rail projects, airports, highways, and commercial complexes require sustainable building materials that provide long-term cost efficiency. AAC blocks offer excellent thermal insulation, reducing energy consumption in air-conditioned buildings. Their high durability, soundproofing capabilities, and fire resistance make them an attractive option for builders and developers. As India continues to urbanize, the demand for AAC blocks is expected to rise exponentially, driven by the need for faster construction, energy efficiency, and environmental sustainability.


Browse over XX Market data Figures spread through XX Pages and an in-depth TOC on " India Autoclaved Aerated Concrete Blocks Market.” 


Based on End User, The Residential held the largest market share in 2024.  The residential sector holds the largest share in the Indian AAC blocks market due to rapid urbanization, rising housing demand, and government-backed affordable housing projects. Several factors contribute to the dominance of AAC blocks in residential construction: India is experiencing rapid urbanization, with a significant increase in housing demand in metropolitan and Tier-2 and Tier-3 cities. With millions of people migrating to urban areas, the need for cost-effective, durable, and energy-efficient building materials has surged, driving the adoption of AAC blocks in residential projects. The government’s focus on affordable housing through schemes like Pradhan Mantri Awas Yojana (PMAY) has accelerated the use of AAC blocks. These blocks enable faster construction with reduced labor and material costs, making them ideal for large-scale housing projects. AAC blocks help reduce construction costs due to their lightweight nature, larger size, and reduced mortar consumption. Additionally, their superior thermal insulation helps homeowners save on energy bills by maintaining comfortable indoor temperatures, reducing the need for air conditioning. AAC blocks provide fire resistance, soundproofing, and earthquake resistance, making them an attractive choice for residential construction, especially in high-rise buildings and seismic zones. AAC blocks are widely available across India, and their compatibility with traditional masonry techniques makes them easier for builders and contractors to adopt in residential construction.

Based on region, North India has emerged as the fastest-growing region in the Autoclaved Aerated Concrete (AAC) blocks market due to rapid urbanization, increasing construction activities, and favorable government initiatives. Several key factors contribute to this accelerated growth> Cities like Delhi-NCR, Lucknow, Jaipur, Chandigarh, and Ludhiana are experiencing a construction boom due to increasing population and urban migration. With rising demand for residential, commercial, and industrial spaces, the adoption of AAC blocks has surged due to their lightweight, cost-effective, and energy-efficient properties. The Pradhan Mantri Awas Yojana (PMAY) and Smart Cities Mission have significantly boosted housing and urban development projects in North India. States like Uttar Pradesh, Haryana, and Rajasthan have seen a surge in affordable housing construction, where AAC blocks are increasingly used for their cost efficiency and quick installation. Environmental concerns and stringent regulations against red clay brick manufacturing (due to topsoil depletion and pollution) have driven demand for AAC blocks. The National Green Tribunal (NGT) has imposed restrictions on traditional brick kilns, encouraging builders to switch to eco-friendly alternatives like AAC blocks. Several leading AAC block manufacturers have set up new production plants in North India, reducing transportation costs and improving supply chains. This has made AAC blocks more accessible and affordable in the region.


Major companies operating in the India Autoclaved Aerated Concrete Blocks Market are: 

  • JK Lakshmi Cement Ltd
  • Biltech Building Elements Limited
  • Magicrete Building Solutions Pvt Ltd
  • Renaatus Procon Private Limited
  • Ambuja Cements Ltd
  • Godrej & Boyce Mfg. Co. Ltd
  • Aceton Industries Resources Private Limited
  • Methra Industries India Private Limited
  • HIL Limited
  • Siporex India Private Limited

 

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The Indian Autoclaved Aerated Concrete (AAC) blocks market presents a significant growth opportunity driven by rapid urbanization, increasing infrastructure development, and the rising demand for sustainable construction materials. The government's initiatives, such as "Housing for All" and Smart Cities Mission, further accelerate market expansion. AAC blocks offer advantages like lightweight construction, thermal insulation, and eco-friendliness, making them a preferred alternative to traditional bricks. Growing awareness of energy-efficient buildings and stringent environmental regulations support market growth. With increasing investments in residential, commercial, and industrial projects, the AAC block industry in India is poised for substantial expansion in the coming years.” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.  

India Autoclaved Aerated Concrete Blocks Market, By Product Type (Block, Lintel, Floor Elements, Roof Panel, Wall Panel, Cladding Panel, Others), By End User (Residential, Commercial, Industrial, Infrastructure), By Application (Construction Materials, Road Construction, Roof Insulation, Bridge Sub-Structure, Void Filling, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F ”, has evaluated the future growth potential of India Autoclaved Aerated Concrete Blocks Market and provides statistics & information on Market size, structure and future Market growth. The report intends to provide cutting-edge Market intelligence and help decision-makers make sound investment decisions., The report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Autoclaved Aerated Concrete Blocks Market.

 

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