Current status of the block industry

The block industry is currently in an adjustment period driven by policies and technological upgrades, with a continuously expanding market size but facing structural challenges. By 2025, the industry's market size is projected to reach approximately 50 billion yuan, with an annual compound growth rate of around 8%, primarily propelled by green building policies such as the Green Building Action Plan. Globally, the market size was about 15 billion USD in 2023 and is expected to grow to 20 billion USD by 2025, with the Asia-Pacific region becoming the fastest-growing area due to accelerating urbanization.  

Demand is becoming increasingly diversified, with stable demand in traditional residential construction and significant growth in commercial buildings and public facilities. New products like self-insulating blocks are experiencing an annual demand growth rate of 30%, applied in residential, public, and industrial settings, offering ten times the insulation performance of red bricks while reducing construction time by about two months. However, the downturn in the real estate market has pressured traditional products like aerated concrete blocks. In 2024, industry output reached 1.845 trillion cubic meters, with demand at 1.7334 trillion cubic meters, and an average market price of about 280 yuan per cubic meter, intensifying price competition.  

The supply side is dominated by small and medium-sized enterprises (SMEs), most of which are small-scale and equipped with outdated technology, resulting in low industry concentration. Leading companies like Nanjing Xujian and Zhejiang Fengzhong gain advantages by introducing advanced production lines, while many lower-tier enterprises face dual pressures of quality and cost. Fluctuations in raw material prices (e.g., polystyrene and rock wool affected by international markets) and tightening environmental policies further squeeze profit margins for SMEs.  

Technological advancements focus on innovations in eco-friendly materials and production efficiency improvements. Mainstream processes include adding insulation materials like EPS and rock wool, while emerging technologies such as nanocomposites can reduce product costs by 20%. Smart manufacturing (e.g., automated production lines, 3D printing) drives customized production, though some enterprises still face technological bottlenecks.  

The competitive landscape is polarized, with leading companies attracting investment through technological R&D and brand influence, while SMEs encounter entry barriers. Investment opportunities center on technological innovation (e.g., bio-based material development), market expansion (e.g., Belt and Road Initiative countries), and supply chain integration. Key risks include intensifying market competition, raw material price volatility, and policy uncertainty.