INVC NEWS
New Delhi,
The report titled publication “India Bricks and Blocks Market Outlook to 2024- Rising Emphasis on Green Buildings and High Rise Building Projects Elevating Demand for AAC Blocks” provides a comprehensive analysis on bricks market(Clay Brick, Fly Ash Brick and Concrete Block) and AAC Blocks market of India. The report focuses on the overall market size of bricks market both in terms of revenue and number of bricks; market segmentation by application (Residential and Non-Residential Market); By Type of Bricks (Clay, Fly Ash and Concrete); By Type of Process of Clay Brick (Zig-Zag, FCBTKs and Others); By Type of Concrete Block (Solid, Hollow, CLC and RMC). The report also focuses on the overall size of AAC block market in terms of revenue generation; market segmentation By Regions of India (West, North, South and East); By Type of Sizes (4”,6”,8” and Others); By Application Type (Residential and Non-Residential). The report also includes investment models for clay brick, fly ash brick, concrete block and AAC block manufacturing plant, trends and developments and issues and challenges in the market. Completion analysis including cross comparison on the basis of key performance indicators of the players, company profiles of major organized sector players and their market share in terms of sales volume. The report concludes with market projections and analyst recommendations highlighting the major opportunities and cautions.
India Bricks Market Overview and Size
Bricks market of India includes clay bricks, fly ash and concrete bricks and blocks, where clay bricks dominate the bricks market despite close down and conversion of clay brick kilns to newer technology due to government interventions in reducing air pollutions from red clay brick kilns. Fly Ash and concrete blocks are still not running to their full capacity due to shortage of fly ash provide by thermal plants, low awareness of the product and higher cost of concrete blocks compared to traditional red clay bricks.
Market Segmentation for India Brick Market
By Brick type (Clay Brick, Concrete Block, and Fly Ash Brick): In India’s brick industry majorly three types of bricks are available: clay brick fly ash brick, and concrete block. As of FY’2019, clay brick was the most widely sold product category with highest market share in terms of revenue followed by concrete block and fly-ash bricks. Clay brick being traditionally used since ages and is readily available in the market with total of around 145,000 brick kilns across India as of FY’2019. Moreover, people have low awareness about the new category of bricks such as Fly Ash bricks and usually have been observed to opt for clay bricks in most construction works.
By Concrete block type (Solid, Hollow, CLC and RMC): Solid block is the market leader followed by hollow block in terms of volume, as of FY’2019. Solid blocks are commonly used to build load bearing walls due to its density and compressive strength of 5 Newton/meter square which is much higher than other types of concrete blocks. Hollows blocks are used as outer or inner walls in high rise buildings to reduce the overall dead load of the building. CLC and RMC occupied least of the market share in terms of volume in FY’2019.
By manufacturing process of clay brick (Zig-Zag, FCBTK, Others): Conversion from FCBTK, Clamp and others techniques to Zig-Zag was observed in order to reduce coal consumption and air pollution through government regulation. Hence, Zig-Zag technique accounted for more than half of the clay bricks manufactured in the country annually in terms of revenue, followed by FCBTK in terms of revenue in FY’2019.
By application (Residential & Non-Residential): Residential structures accounted for more than half of the market share as compared to non-residential in terms of revenue in FY’2019, when it comes to end usage of bricks in India. Clay bricks were extensively used for construction of residential buildings whereas fly-ash bricks, concrete blocks comparatively found higher acceptance for construction of non-residential structures.
Comparative Landscape
In India, the brick industry is unorganized market and has very few large organized players. These players basically operate in regional level within the radius of 100-150 km due to threat of breakage and higher freight cost. In this market sales is more dependent on the margin companies gives to the dealers rather than the advertisement and marketing done by the company because the major sales depends on how dealers convince the buyers of the products because in this segment customer is not much aware about the products so they believe on dealers only.
Future Outlook and Projections
In future, it is anticipated that India Bricks Market in terms of Revenue and Volume of Bricks will increase at a positive CAGR during FY’2019–FY’2024 owing government subsidy support for fly ash plants and cut down in GST rates from 28% to 5% slab. Also, positive growth in GDP, increased infrastructure developments, Foreign Direct Investments in real estates, growing awareness for fly ash bricks and government projects such as “Smart Cities Project”, “Housing for All” will positively impact the bricks market in forecasted period of FY’2019-FY’2024.
India AAC Block Market Overview and Size
AAC blocks market in India is in its growth stage, the market has been growing stupendously in the last few years owing to increased awareness amongst the builders and architects about the several beneficial attributes of AAC blocks over clay and fly ash bricks. In India, the major difference between clay brick and AAC block is the price and ease of availability, AAC blocks are slightly expensive than clay bricks. Moreover, in a country like India where thermal power plants generates a lot of coal waste (fly ash) AAC blocks is a blessing which uses fly ash as a raw material therefore the greener future of India lies in AAC block and is the future of the India’s brick industry.
Market Segmentation India AAC Block Market
By Size (4”, 6”, 8”, others): As of FY’2019, 4” block was the most widely sold size which are used for inner walls followed by 8” block majorly used for outer walls, 6” block which are used for inner walls of doors, windows and kitchen walls and others (customized sizes) which are recommended by architects for inner wall design.
By Region (West, South, North and East): In AAC blocks market of India as of FY’2019, West region dominates the market in terms of revenue which includes states such as Gujarat, Maharashtra, Rajasthan and other followed by South region, North region and East Region with market share in terms of revenue.
By application (Residential & Non-Residential): Residential structures accounted for more than half of the market share as compared to non-residential in terms of revenue in FY’2019, when it comes to end usage of AAC blocks in India. Residential buildings dominated the market as major high rise building constructed in India are residential building compared to non-residential such as in Mumbai, Maharashtra out of 71 high rise projects only 6 projects are of commercial building and rest for residential.
Competitive Landscape of India AAC Block Market
India AAC block market was observed to be highly fragmented between regional and local players operating in various regions of the country. Presence of around 80-85 manufacturing plants was observed during FY’2019 with major regional players such as HIL Limited, Biltech, Magicrete, Ascolite and others.
India AAC Blocks Market Future Outlook and Projections
Growing urbanization in major cities and decreasing chance of horizontal expansion of buildings will lead to more high rise building projects in tire 1 cities and growing demand in tier 2 cities will positively impact AAC blocks market. Also, changes in Good and Service Tax (GST) cut down in AAC blocks to 5.0% and cut down in tax from housing purchase will boost construction industry in short term period. Hence, this will positively help AAC blocks gain more market traction. The AAC blocks market is anticipated to incline with a positive growth in CAGR during FY’2019-FY’2024.
