Press Release

Asia-Pacific AAC Blocks and Panels Market is Expected to grow at a robust CAGR of 7.71% through 2030F

Asia-Pacific Autoclaved Aerated Concrete Blocks and Panels market is increasing due to the rising demand for sustainable, energy-efficient, and cost-effective construction materials in the region during the forecast period 2026-2030F.

 

According to TechSci Research report, “Asia-Pacific AAC Blocks and Panels  Market – By Country, Competition, Forecast & Opportunities, 2020-2030F", Asia-Pacific AAC Blocks and Panels Market was valued at USD 10.42 Billion in 2024 and is expected to reach USD 16.42 Billion by 2030 with a CAGR of 7.71% during the forecast period.

The residential construction sector represents one of the most prominent consumers of autoclaved aerated concrete (AAC) blocks and panels across the Asia-Pacific region. This growing demand is primarily driven by the increasing need for housing solutions that are not only cost-effective but also high-performing in terms of durability, safety, and energy efficiency. As urban populations continue to rise, developers and government housing authorities are placing greater emphasis on materials that support large-scale construction while reducing overall project costs and timelines.

AAC blocks and panels are particularly well-suited for residential projects due to their unique combination of lightweight structure, thermal insulation, and environmental sustainability. These characteristics make them ideal for enhancing the energy efficiency of homes, reducing dependence on artificial heating and cooling, and thereby lowering long-term energy expenses for occupants. Additionally, the inherent fire-resistant and soundproofing capabilities of AAC products contribute to increased safety and comfort in residential buildings, which are becoming important decision-making factors for both buyers and builders.

Moreover, the ease of installation associated with AAC panels significantly shortens construction periods, making them an efficient solution for fast-paced residential developments. As developers seek to align with modern construction standards and growing environmental regulations, AAC materials are increasingly being chosen as the preferred building solution for future-ready residential infrastructure

Supply chain disruptions and availability issues represent a critical challenge for the growth of the Autoclaved Aerated Concrete market in the Asia-Pacific region. The production of AAC requires a consistent and reliable supply of raw materials such as silica sand, lime, and cement, all of which must meet specific quality standards. Fluctuations in the availability and price of these raw materials can directly impact the production costs and supply of AAC products. Moreover, the highly specialized equipment and technology required for the autoclaving process can also face delays or interruptions in the supply of spare parts or maintenance services, further affecting production timelines.

The regional nature of the supply chain for AAC manufacturing means that transportation and logistics can present additional challenges, particularly in countries with less developed infrastructure or those with remote or rural locations. Additionally, as construction projects become more widespread in Asia-Pacific, especially in emerging economies, the demand for AAC could outpace supply, leading to product shortages or delays in project completion. This situation becomes more complicated if the supply chain is disrupted by external factors such as geopolitical tensions, environmental disasters, or global economic shifts. Addressing supply chain constraints requires the development of robust and diversified procurement strategies, as well as partnerships with local suppliers to ensure a steady and sustainable supply of materials.

Companies in the AAC market must also invest in building resilient distribution networks that can withstand external disruptions and ensure timely delivery to meet project timelines. Ensuring that supply chain management is efficient and adaptable will be essential for sustaining the growth of the AAC market in Asia-Pacific.

 

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Based on By Distribution Channel, The Indirect Sales segment is the fastest-growing distribution channel in the Asia-Pacific Autoclaved Aerated Concrete Blocks and Panels market. This growth is primarily driven by the increasing preference of construction companies and contractors to procure materials through intermediaries, such as distributors and retailers. These intermediaries have established networks and the ability to provide logistical support, making it easier for businesses in the construction sector to access Autoclaved Aerated Concrete products in a timely and cost-effective manner.

As the construction industry grows and urbanization accelerates in the Asia-Pacific region, there is a significant increase in demand for building materials, including Autoclaved Aerated Concrete blocks and panels. In this context, distributors and retailers serve as key enablers, helping manufacturers expand their reach to a broader market, especially in remote or emerging areas. This is particularly important in regions like Southeast Asia and India, where large-scale construction projects are increasing in both urban and rural settings.

Indirect sales offer more flexibility and lower risks for manufacturers as they do not have to directly manage the complexities associated with end-user transactions. Distributors and retailers are often well-versed in regional preferences and can adapt to local market demands, ensuring that Autoclaved Aerated Concrete products are available where they are most needed.

The growth of the e-commerce sector in the region has contributed to the expansion of indirect sales, as online platforms and retailers offer an accessible route for purchasing building materials. The increasing use of digital tools and online marketplaces allows for more efficient distribution channels and streamlined procurement processes.

Based on country, Malaysia is emerging as the fastest-growing region in the Asia-Pacific Autoclaved Aerated Concrete Blocks and Panels market, driven by several key factors. The country’s rapid urbanization, robust infrastructure development, and increasing focus on sustainable construction practices are contributing significantly to the market's expansion. Malaysia’s government has been actively promoting green building initiatives, including incentives for using environmentally friendly construction materials, which has increased the adoption of Autoclaved Aerated Concrete products in both residential and commercial sectors.

The demand for energy-efficient and lightweight construction materials, particularly in urban areas, is pushing the growth of Autoclaved Aerated Concrete blocks and panels in Malaysia. The material’s superior insulation properties, fire resistance, and reduced environmental impact make it an attractive choice for developers aiming to meet modern construction standards. With urban growth, the need for affordable housing, particularly in cities like Kuala Lumpur and Penang, further bolsters the demand for cost-effective and efficient building materials.

Malaysia is experiencing a significant push for infrastructure projects such as highways, bridges, and industrial complexes, which further drive the need for durable and lightweight building materials. The construction industry’s shift toward modular and prefabricated construction methods also supports the adoption of Autoclaved Aerated Concrete products, which are ideal for off-site fabrication due to their easy handling and lightweight nature.

The government's alignment with global sustainability trends through policies that support green building certifications and eco-friendly materials provides a conducive environment for growth in the Autoclaved Aerated Concrete market. As construction practices evolve and the market embraces sustainable solutions, Malaysia is poised to maintain its position as the fastest-growing region for Autoclaved Aerated Concrete blocks and panels in the Asia-Pacific market.

 

Key market players in the Asia-Pacific AAC Blocks and Panels  market are: -

  • Xella Group.
  • CSR Limited.
  • H+H International A/S
  • BigBloc Construction Ltd
  • Keda Industrial Group
  • JSW Group.
  • LafargeHolcim.
  • BASF SE
  • AAC Block Manufacturing Company.
  • Techno Block.


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“​The Asia-Pacific Autoclaved Aerated Concrete Blocks and Panels market is expected to experience significant growth in the future, driven by increasing urbanization, government support for green building initiatives, and rising demand for energy-efficient and sustainable construction materials. The shift toward modern construction techniques such as modular and prefabricated building methods will further accelerate the market. Additionally, growing awareness about the environmental benefits of Autoclaved Aerated Concrete products and their superior thermal insulation and fire-resistant properties will continue to fuel adoption across residential, commercial, and infrastructure projects, ensuring a positive market outlook in the coming years”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based Global management consulting firm.

Asia-Pacific AAC Blocks and Panels Market By Type (Blocks, Panels, Lintels, Others), By Distribution Channel (Direct Sales, Indirect Sales), By End Use (Residential, Commercial, Industrial, Infrastructure), By Country, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Asia-Pacific AAC Blocks and Panels  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 AAC Blocks and Panels  Market.

 

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Relevant Reports

Asia-Pacific AAC Blocks and Panels Market By Type (Blocks, Panels, Lintels, Others), By Distribution Channel (Direct Sales, Indirect Sales) By End Use (Residential, Commercial, Industrial, Infrastructure), By Country, Competition, Forecast and Opportunities, 2020-2030F

Infrastructure | Jul, 2025

Asia-Pacific AAC Blocks and Panels market is increasing due to rising demand for lightweight, energy-efficient, and sustainable construction materials across residential and commercial sectors during the forecast period 2026-2030F.

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