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The cellular concrete market size is forecast to increase by USD 650.7 million at a CAGR of 4.59% between 2023 and 2028. The market is experiencing significant growth due to several key factors. Firstly, the increase in construction activities worldwide, driven by urbanization and infrastructure development, is leading to a surge in demand for cellular concrete. Secondly, the rising disposable income in developing countries is making construction more affordable for a larger population, further fueling the market. Cellular concrete, also known as aerated or foam concrete, is increasingly being used for thermal and acoustic insulation in both residential and commercial buildings. However, the market also faces challenges such as the shortage of construction labor in developed countries, which is driving up costs and increasing the need for automated solutions. Additionally, the high initial investment required for cellular concrete production can be a barrier to entry for new players in the market. Despite these challenges, the market is expected to continue growing due to its numerous benefits, including its high strength, durability, and energy efficiency.
The Market is witnessing significant growth due to the increasing demand for lightweight materials in the construction sector. Cellular concrete, also known as aerated or foamed concrete, is used for thermal and acoustic insulation in various applications such as un-reinforced wall blocks, hollow blocks, insulation plates, reinforced walls, roof, floor materials, division panels, and insulation material. The market is driven by the need for noise control, cost-effective solutions, and energy benefits in both residential and commercial buildings. However, market hindrances include the high initial investment for manufacturing equipment and the use of gas-forming chemicals and foaming agents. Precast wall systems are gaining popularity due to their moisture resistance and environment-friendly properties. Cement-silica, cement-pozzolan, and lime-pozzolan are commonly used as binders in cellular concrete production. The market is segmented into residential and commercial buildings based on application. Dead weight is a critical factor in the construction industry, and cellular concrete's lightweight properties make it an attractive alternative to traditional materials. Green building certifications such as LEED and BREEAM are also driving the demand for cellular concrete in the construction of green homes.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The non-residential segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth in various sectors, particularly in construction, due to its lightweight properties and excellent insulation capabilities. This material's ability to provide noise control and cost-effective solutions makes it a popular choice for partition walls and precast wall systems.
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The non-residential segment was the largest segment and was valued at USD 1.43 billion in 2018. In the construction sector, cellular concrete is used as roof, floor materials, and division panels for its moisture resistance and environment-friendly properties. It is also employed in high-speed railways and transportation sectors for its engineering applications. Portland cement, cement-silica, cement-pozzolan, lime-pozzolan, gas-forming chemicals, and foaming agents are essential components in the production of cellular concrete. Hence, such factors are fuelling the growth of this segment during the forecast period.
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APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is witnessing significant growth in various sectors due to the use of lightweight materials in construction. These materials offer thermal and acoustic insulation, making them ideal for both residential and commercial buildings. However, market hindrances such as high production costs, investment restrictions, and transportation sector challenges can impact growth. Un-reinforced wall blocks, hollow blocks, insulation plates, and reinforced wall systems made of cellular concrete are popular in construction for their cost-effectiveness, moisture resistance, and environment-friendly properties. In addition, precast wall systems, partition walls, and roof and floor materials are used for noise control and energy benefits in green homes. Hence, such factors are driving the market in APAC during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increase in construction activities is notably driving the market. The global market for cellular concrete is experiencing significant growth due to the increasing urbanization and infrastructure construction activities across various regions. Countries like India, China, the US, Brazil, Malaysia, Russia, Hungary, and Vietnam are leading the global construction market, with a focus on infrastructure development.
Moreover, in Vietnam, major projects such as the renovation of coastal areas and the establishment of industrial hubs are underway. These projects require building materials with superior fire resistance, termite resistance, heat insulation, soundproofing, and acoustic properties. Thus, such factors are driving the growth of the market during the forecast period.
Rapid urbanization and rising disposable income is the key trend in the market. Urbanization and economic growth in countries such as India, Vietnam, Malaysia, China, and Qatar have driven an increase in disposable income and purchasing power, leading to a surge in demand for infrastructure development. This trend is expected to positively impact the global market, as cellular concrete, also known as autoclaved aerated concrete, is widely used for building components such as blocks, floor panels, wall panels, screeds, and void filling in both residential and commercial construction projects.
Moreover, the market is further boosted by the growing preference for green building materials, which offer fire resistance, termite resistance, soundproofing, and acoustic properties, as well as thermal insulation properties that contribute to energy efficiency. Thus, such trends will shape the growth of the market during the forecast period.
Shortage of construction labor in developed countries is the major challenge that affects the growth of the market. The construction industry in developed markets, including the US, Europe, and Australia, is experiencing a labor shortage crisis, impacting firms and contractors' ability to hire workers for site jobs. This issue stems from the downsizing of labor forces following the pandemic, leading to massive layoffs of construction workers, particularly site laborers.
Consequently, the industry's recovery has been slow, with many infrastructure projects and building components, such as blocks, floor panels, wall panels, screeds, and void filling, facing delays. Autoclaved aerated concrete (AAC), a popular green building material, offers solutions to some of these challenges. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cell-Crete Corp: The company is involved in offering lightweight cellular concrete which is being used as the lightweight backfill and flowable fill material having good amount of strength, durability, placement capacity and consistency during the construction of buildings.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing demand for lightweight materials in the Construction sector. These materials offer thermal insulation and acoustic insulation properties, making them ideal for use in both Residential and Commercial buildings. However, Market hindrances such as investment restrictions in the Economic conditions and high cost of raw materials like Portland cement, cement-silica, cement-pozzolan, lime-pozzolan, gas-forming chemicals, and foaming agents, may hinder the market growth. The use of cellular concrete in Un-reinforced wall blocks, Hollow blocks, Smart City, Insulation plates, Luxury Hotel, Reinforced wall, Roof, construction materials, floor materials, Division panels, and Insulation material is increasing due to their cost-effective nature and noise control properties. Precast wall systems are also gaining popularity due to their moisture resistance and energy benefits. The Engineering, procurement, and construction (EPC) industry is a significant consumer of cellular concrete in the Transportation sector, particularly in High-speed railways. The market is expected to grow further with the increasing focus on Green homes and Environment-friendly construction practices. Geotechnical applications of cellular concrete are also on the rise due to its ability to reduce dead weight and backfill requirements. The market is expected to continue its growth trajectory in the coming years, driven by the increasing demand for lightweight and insulating materials in the Construction sector.
Market Scope |
|
Report Coverage |
Details |
Page number |
129 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.59% |
Market growth 2024-2028 |
USD 650.7 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.39 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 42% |
Key countries |
US, China, India, France, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acico Group, Aerix Industries, Aircrete Europe, Broco Industries, Canadian Cellular Concrete Services Inc., Cell-Crete Corp., Cellucrete Corp., Cellular Concrete Technologies, Conco, DLVEWS, Edilportale.com SpA, GEOFILL LLC, Lafarge, Laston Italiana Spa, Vicon Nano Science Eco Construction Systems, and Ytong |
Market dynamics |
Parent market analysis, market report market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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