Industrialization, technological advancement and government support are propelling the Karnataka Bricks and Blocks Market: Ken Research

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1. Urban sprawl and the ongoing building of numerous Greenfield ports, airports, and housing developments are helping the brick and block business in Karnataka to thrive.

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The main driver of the brick market in Karnataka is the growth of the building sector. The government’s continued construction initiatives, including as the construction of an airport, the Ring Road, and housing communities, supported the brick market. As of July 2022, there are 34 operational SEZs, 61 SEZs with formal approvals, and 50 notified SEZs in Karnataka, which is the IT heartland of India and home to the fourth-largest technological cluster in the world. This is what is causing the need for bricks in the area.

2. AAC manufacturers emergence, rapid urbanization, government support, and technical advancement are the key elements that encourage expansion.

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AAC Blocks market have been witnessing entry of multiple manufacturing players in the last 3-4 years as the government has taken initiative to use AAC Blocks to reduce environmental impacts and improve energy efficient materials in brick manufacturing process. On the other hand, construction activity is rising as a result of rapid urbanization, with the current population of 66.2 Mn which is projected to grow to 74.2 Mn by FY 2027F pressurizing the cities for development and improving the infrastructure of the state for better quality of life. Additionally, the Karnataka government has ordered operators of thermal power plants to give fly ash to brick producers at no charge. To encourage manufacturers’ interest in creating fly ash bricks, numerous incentives are being offered to reduce carbon emissions. Furthermore, new building technologies are being developed, such as Smart Bricks and Apis Cor, which will benefit the market. SAM is a robot that semi-automates brick wall construction, able to lay 3000 bricks per day while a worker typically lays 500, and Apis Cor is a robot that can construct a house in 24 hours.

3. The Karnataka AAC Block Market is expanding due to rising demand for energy-efficient buildings, durability, and the state’s abundant supply of blocks.

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The primary growth drivers of the market for AAC blocks are increasing urbanization and industrialization. Development in the infrastructure sector, rising interest in using lightweight materials in construction, and rising interest in the construction of green buildings are further drivers boosting growth. In addition, the government of Karnataka is actively undertaking Smart City initiatives in Bengaluru, Mangaluru, Shivamogga, Tumakuru, Davanagere, Hubballi-Dharwad, and Belagavi. As a result, the demand for AAC blocks from these regions is increasing quickly in many commercial projects.

4. Karnataka Bricks and Blocks Market faces difficulties such as technological obsolescence, socio-economic concerns, and environmental restrictions.

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Since its inception, the brick industry in Karnataka has produced bricks using traditional methods and has not significantly advanced technologically. The majority of bricks are made manually due to a lack of technological expertise and government funding. Additionally, the existing decentralized production activity used by the Karnataka brick industry is energy-intensive, resource-depleting, and extremely polluting. Furthermore, because labor is brought in through a contractor and is not protected by the act due to the unorganized level of industry, workers in the Karnataka brick business are subjected to harsh working conditions and low pay.

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