Assessment of COVID-19 Effect: Demand for Autoclaved Aerated Concrete Dips Owing to Suspension of Construction Activities amidst Pandemic Lockdowns
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Assessment of COVID-19 Effect: Demand for Autoclaved Aerated Concrete Dips Owing to Suspension of Construction Activities amidst Pandemic Lockdowns

Views:22     Author:Site Editor     Publish Time: 2020-11-13      Origin:Site

Autoclaved aerated concrete manufacturers are expected to invest extensively in material improvements in addition to collaborations, mergers, and acquisitions to strengthen their market position during the crisis period.

ROCKVILLE, MD / ACCESSWIRE / June 30, 2020 / The covid-19 pandemic has had a massive impact on commercial activity around the world, including that of the construction industry. As the duration and severity of the outbreak continues to rise, uncertainties of the economy continue to weigh heavily on the construction sector. Delays and cancellation of construction projects hurt the prospects of the autoclaved aerated concrete market in the short term.

The global autoclaved aerated concrete market has been estimated to rise at a healthy 5% CAGR during the projection period between 2020 and 2030. As per the Fact.MR study, breaks in supply chains for material and production equipment are adversely affecting the industry. Widespread construction site shutdowns will influence market developments. On the other hand, recovery of the autoclaved aerated concrete industry is likely to be strong as demand for infrastructure and building applications grows with relaxations of restrictions.

"Autoclaved aerated concrete is recyclable, reusable, and eco-friendly. Owing to the higher importance of environment ratings, the material is largely used in residential construction projects. Sustainability initiatives will continue to drive up demand during and after the coronavirus crisis, minimizing the carbon footprint of the construction sector," says the FACT.MR study.

Autoclaved Aerated Concrete Market- Key Takeaways

· Autoclaved aerated concrete blocks are highly sought after, owing to demand for low cost clay brick alternatives.

· Residential construction applications are the primary use of autoclaved aerated concrete driven by the demand for affordable, eco-friendly, homes.

· Industrial applications of autoclaved aerated concrete are on the rise for insulation and low-cost production characteristics.

· Asia Pacific excluding Japan is generating lucrative opportunities for autoclaved aerated concrete manufacturers owing to rapid industrialization and urbanization in the region.


Autoclaved Aerated Concrete Market- Driving Factors

· Rising levels of industrialization and urbanization, coupled with investments into infrastructure aid market growth.

· Rising emphasis on the development of sound-proof, eco-friendly buildings will generate key remunerative opportunities.

· High demand for lightweight construction materials is a key factor that supports the adoption of autoclaved aerated concrete.

· High demand for low cost houses enables widespread adoption of autoclaved aerated concrete materials.

Autoclaved Aerated Concrete Market- Major Restraints

· Competition from a number of affordable alternatives holds back sales and revenue.

· Lack of awareness about autoclaved aerated concrete in the construction sector limits market growth.

COVID-19 Impact on Autoclaved Aerated Concrete Market

Risk of the contagion to construction sector employees is a key area of concern. Consequently, supply shortages are adversely impacting the autoclaved aerated concrete market.

Further, investments in the construction sector have significantly dipped owing to uncertainties in terms of the global economy, and the duration of the outbreak. In addition, travel and transport bans are affecting the availability of workforce in the construction industry, hurting the application of autoclaved aerated concrete. The market is expected to recover strongly once the pandemic is brought under control.

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