The India AAC blocks and non-reinforced panels market is estimated to be valued at INR 11095.0 crores by 2027, surging from INR 5323.8 crores in 2019 at a noteworthy CAGR of 14.3%.
Impact Analysis of COVID-19 on the India AAC Blocks and Non-Reinforced Panels Market
The India AAC blocks and non-reinforced panels market is estimated to experience a severe impact amid the COVID-19 pandemic. This growth is due to the rules and restrictions imposed by the Indian government. Moreover, due to the lockdown restrictions, many projects related to constructions as well as infrastructure were cancelled.
Furthermore, almost all the sectors especially construction, retail, and tourism have been drastically affected as the demand and exports sharply dropped. Thereby, the pandemic is having a considerably negative effect on India’s economic growth. Also, as the severity and duration of the pandemic continues to increase, uncertainties of the economy continue to weigh heavily on the Indian construction industry. In addition to this, decreasing raw material production, increasing financial burden on builders, and breaks in supply chains for material and production equipment are adversely influencing the market developments, during the pandemic.
Impact of Post COVID-19 on the India AAC Blocks and Non-Reinforced Panels Market Growth. Get in touch with Expert [email protected]
India AAC Blocks and Non-reinforced Panels Market Analysis
The major driving factors include the increasing urbanization and 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 the factors driving the market. Demand for traditional building materials is primarily driven by expansion of the construction sector across India. Overall increase in construction and infrastructure related activities across the India has resulted in rise in demand for residential, commercial, and industrial construction, leading to consistent expansion in the building materials industry.
However, the cost associated with AAC and the lack of awareness is expected to restrain this market. Focus on construction projects is expected to offer significant growth opportunities to the AAC manufacturers. A significant challenge faced by the players in this market is the brittle nature of these materials which is expected to restrain the market.
Green building materials, including AAC blocks and non-reinforced panels, are utilized in the construction industry in order to resolve multiple environment challenges such as natural resource depletion, anomalous climate change, atmospheric pollution, and loss of biodiversity. Moreover, real estate developers are increasingly shifting to green building, by using environment-friendly construction materials like non-reinforced panels, fiber-cement sandwich panels, and AAC blocks. The key players operating in the country such as Magicrete Building Solutions Pvt Ltd., one of India's leading manufacturers of AAC Blocks, is also coming up with advanced innovations including ‘precast technology’ , which consists of custom-designed precast concrete components like roof slabs, beams, columns, wall panels, that promote green-way construction, across the India.
India AAC Blocks and Non-reinforced Panels Market, Segmentation
The India AAC blocks and non-reinforced panels market is segmented based on type, product, end use, and region.
The product type segment is further classified into AAC blocks and non-reinforced panels. Among these, AAC blocks segment is predicted to generate the maximum revenue INR 1,894.9 crores by 2027, with an increase from INR 931.1 crores in 2019.
The evaluation of AAC blocks is a revolution in the construction sector due to its benefits such as low energy resource consumption, low fossil fuel consumption, minimalistic greenhouse gas emissions, and others. Due to these benefits, most of the builders are utilizing AAC blocks in the construction of both residential and commercial buildings to minimize energy utilization for cooling and heating purposes. This factor is predicted to significantly drive the market growth in the forecast years.
On the basis of end-user, the market has been sub-segmented into residential, commercial, and others. Among the mentioned sub-segments, the commercial sub-segment is anticipated to have a dominating market share in the India market and register a revenue of INR 1,001.3 crores during the analysis timeframe.
Commercial end-use sub-segment accounted for the largest market share in terms of revenue and is projected to continues its constant growth over the market throughout the analysis period. This growth is majorly owing to extensive utilization of AAC blocks in the construction of commercial buildings construction due to growing urbanization as well as increasing requirement of lightweight building materials.
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The market for India AAC blocks and non-reinforced panels in Hyderabad to be the most dominant. This market generated a revenue of INR 680.9 crores in 2019 and is further projected to reach up to INR 1,411.5 crores by 2027.
Rising demand for AAC blocks and non-reinforced panels from the construction sector is significantly predicted to drive the Hyderabad market growth in the forecast years. This growth will be majorly owing to Hyderabad construction sector experiencing a constant growth in the previous years.
Key Market Players:
The key companies involved in the India AAC blocks and non-reinforced panels market are
Maxlite AAC Blocks (India) Private Limited