The AAC Blocks and Panels Global Market to grow at 7.1% CAGR (2026–2030), reaching $31.88B revenue by 2030

The Business Research Company

The Business Research Company's AAC Blocks And Panels Market Report 2026 – Market Size, Trends, And Global Forecast 2026-2035

LONDON, GREATER LONDON, UNITED KINGDOM, January 22, 2026 /EINPresswire.com/ -- "The construction industry is increasingly turning to innovative and efficient materials to meet the growing demand for sustainable and lightweight building solutions. Among these, autoclaved aerated concrete (AAC) blocks and panels are gaining significant traction. Let’s explore the current market size, key growth drivers, regional dynamics, and future prospects of the AAC blocks and panels market.

The Expanding Market Size of AAC Blocks and Panels
The AAC blocks and panels market has witnessed robust growth in recent years and shows promising signs of continued expansion. Market value is projected to rise from $22.54 billion in 2025 to $24.2 billion in 2026, reflecting a steady compound annual growth rate (CAGR) of 7.4%. This upward trend in the historical period stems from a surge in the adoption of lightweight construction materials, a growing preference for energy-efficient solutions, increased incorporation of fly ash in building components, a boom in residential construction projects, and an early shift toward sustainable building practices.

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Forecasted Growth and Trends Shaping the AAC Blocks and Panels Market
Looking ahead, the market is expected to grow significantly, reaching $31.89 billion by 2030 at a CAGR of 7.1%. This expansion is fueled by the rise of green building certifications, ongoing infrastructure developments, a growing demand for fast construction techniques, advancements in AAC formulations, and a higher uptake in commercial high-rise construction. Key trends during the forecast period include greater use of lightweight materials, increased reliance on AAC for thermal and acoustic insulation, preference for quick and efficient building solutions, wider application of AAC in urban infrastructure, and a gradual replacement of traditional clay bricks with AAC blocks.

Understanding AAC Blocks and Panels as Construction Materials
Autoclaved aerated concrete blocks and panels are made from a unique mixture that expands like bread dough, including fine aggregates, cement, and an expansion agent. These materials are characterized by having about 80 percent air content, making them lightweight yet durable. They are versatile and can be used for constructing walls, floors, and roofs, offering advantages such as high insulation and load-bearing capacity.

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Primary Factors Propelling the Global AAC Blocks and Panels Market
A key driver pushing the AAC blocks and panels market forward is the rise in construction activities worldwide. Construction encompasses all activities related to land development, including infrastructure and building projects. The growing demand for AAC blocks is largely due to their lightweight nature, excellent insulation properties, durability, and the fact that they weigh roughly one-third as much as traditional red bricks. For example, data from July 2023 by the Australian Bureau of Statistics highlighted an increase in homes under construction, growing from 240,065 in 2022 to 240,813 in the first quarter of 2023. New home builds also rose from 101,240 in 2022 to 103,778 in 2023. This upward trend in construction activity directly supports the expansion of the AAC blocks and panels market.

Regional Market Leadership of AAC Blocks and Panels
In 2025, Asia-Pacific held the position as the largest regional market for AAC blocks and panels. The market analysis also covers other important regions such as South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, providing a comprehensive view of global market dynamics and regional opportunities.

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