Asia-Pacific Autoclaved Aerated Concrete Market is Expected to grow at a robust CAGR of 6.04% through 2030F

The increasing Asia-Pacific Autoclaved Aerated Concrete market is driven by Urbanization and Green Building Demand Driving AAC Adoption, Infrastructure Boom in Emerging Economies Fuels AAC Demand during the forecast period 2026-2030F.

According to TechSci Research report, “Asia-Pacific Autoclaved Aerated Concrete Market – By Country, Competition, Forecast and Opportunities, 2020-2030F”, The Asia-Pacific Autoclaved Aerated Concrete Market was valued at USD 6.99 Billion in 2024 and is expected to reach USD 10.03 Billion by 2030 with a CAGR of 6.04% during the forecast period. One of the most prominent trends shaping the Asia-Pacific AAC market is the rapid pace of urbanization coupled with growing emphasis on sustainable construction. With over half the population in countries like China, India, and Indonesia moving toward urban areas, governments and private developers are prioritizing smart, energy-efficient infrastructure. This is creating robust demand for green building materials like AAC, which offers thermal insulation, soundproofing, and reduced energy consumption.

Urban infrastructure projects—including mass housing, smart cities, hospitals, and commercial complexes—are increasingly incorporating AAC blocks to meet green building codes and energy-efficiency standards. The shift is most visible in metro regions such as Shanghai, Delhi NCR, Jakarta, and Bangkok, where regulations are stricter and awareness of sustainable materials is higher.

Moreover, AAC’s lightweight property reduces dead load on structures and helps shorten project completion timelines—both critical in dense urban developments with strict deadlines and limited space for heavy equipment. As city governments across the Asia-Pacific region introduce incentives for green construction and energy-efficient building codes, AAC adoption is gaining momentum. This trend is expected to continue as governments prioritize carbon neutrality targets and urban resilience planning. AAC is increasingly viewed not just as an alternative material but as a strategic enabler of climate-aligned urban development across the region.

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Based on product Type, Block is the fastest growing segment in the Asia-Pacific Autoclaved Aerated Concrete market during the forecast period, due to several key factors that align with the region’s evolving construction needs. AAC blocks offer significant advantages over traditional masonry materials, including superior thermal insulation, lightweight properties, and ease of installation, which make them highly attractive to builders and developers across Asia-Pacific.

One primary driver of growth is the growing demand for affordable and energy-efficient housing in rapidly urbanizing countries such as India, China, Indonesia, and Vietnam. AAC blocks help reduce construction time and labor costs due to their larger size and uniform shape, allowing faster wall erection compared to conventional bricks. This speed is critical for addressing housing shortages and accelerating large-scale residential projects in emerging economies.

Additionally, AAC blocks provide excellent thermal insulation, helping to lower cooling and heating energy requirements, which aligns well with increasingly stringent energy codes and sustainability goals being adopted by governments across the region. The lightweight nature of AAC blocks reduces the dead load on structural components, enabling cost savings on foundations and structural reinforcements, making them especially popular in multi-storey and high-rise buildings.

Another factor contributing to the rapid growth of AAC blocks is the rising preference for eco-friendly building materials. The low embodied carbon footprint of AAC blocks compared to traditional fired bricks or concrete blocks resonates with environmentally conscious developers and policymakers pushing for greener construction practices.

The availability of AAC block manufacturing plants and advancements in production technology in the Asia-Pacific region further boost adoption. Local production reduces transportation costs and improves supply chain efficiency, making AAC blocks more accessible and affordable.

Based on country, India is the fastest growing country in the Asia-Pacific Autoclaved Aerated Concrete Market during the forecast period due to several compelling factors tied to its rapid urbanization, government initiatives, and evolving construction practices. The country’s expanding population and accelerating urban migration have intensified demand for affordable, efficient, and sustainable housing solutions. AAC fits this need perfectly by offering lightweight, thermally efficient, and quick-to-install building materials, ideal for large-scale residential and commercial projects.

One of the key growth drivers is the Indian government’s strong push towards affordable housing through programs like the Pradhan Mantri Awas Yojana (PMAY), which aims to provide housing for all by 2030. These initiatives encourage the use of innovative construction materials like AAC that enable faster project completion, reduce costs, and improve energy efficiency. AAC blocks and panels help developers meet these objectives by significantly reducing construction time and providing better insulation, lowering long-term energy consumption.

Additionally, India is experiencing an infrastructure boom, including highways, commercial complexes, and public buildings, which further fuels AAC adoption. The demand for green building materials is rising as sustainability becomes a major priority for both public and private sectors. AAC’s low carbon footprint, recyclability, and contribution to energy conservation align well with India’s commitment to environmental sustainability and stricter building codes.

Furthermore, the increasing awareness of AAC benefits among architects, builders, and contractors is driving market penetration. Improved local manufacturing capabilities and availability of AAC products have reduced logistics costs, making AAC more accessible across urban and semi-urban areas.

Key market players in the Asia-Pacific Autoclaved Aerated Concrete market are: -

• Guangxi Hongfa Heavy Machinery Co. Ltd
• Fujian Qunfeng Machinery Co. Ltd
• Build mate Projects Pvt Ltd
• CSR Limited
• Celcrete Cladding Systems NZ Ltd
• New Era Block Tile Jsc
• JK Lakshmi Cement Ltd
• Ambuja Cements Ltd
• Broco Pearl Electrical Industry
• HIL Limited

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“The Asia-Pacific Autoclaved Aerated Concrete (AAC) market presents significant opportunities driven by rapid urbanization, rising demand for affordable and sustainable housing, and increasing government support for green building initiatives. Growing infrastructure development across emerging economies offers vast potential for AAC adoption due to its lightweight, energy-efficient, and fire-resistant properties. Advances in manufacturing technology and expanding local production capacities also create cost advantages, enhancing market accessibility. Additionally, increasing awareness about carbon footprint reduction and stricter building regulations encourage the use of AAC, positioning the market for robust growth opportunities in residential, commercial, and industrial construction sectors across the region.Top of Form” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“Asia-Pacific Autoclaved Aerated Concrete 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 Country, Competition, Forecast and Opportunities, 2020-2030F,” has evaluated the future growth potential of Asia-Pacific Autoclaved Aerated Concrete 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 take sound investment decisions. Besides the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Asia-Pacific Autoclaved Aerated Concrete Market.

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