Aluminium Composite Panel Market - Forecast(2023 - 2028)

Overview

Aluminium Composite Panel Market is forecast to reach $10.23 billion by 2025, after growing at a CAGR of 7.0% during 2020-2025. The growing application range is anticipated to drive the market over the projected span of the lightweight aluminum composite panels for insulation in construction industry. Such composite panels have features such as low thickness, high insulation, fire protection film which are crucial for building structures that are one of the most important factors for demand on the aluminum composite panel market.

Report Coverage

The “Aluminium Composite Panel Market Report – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Aluminium Composite Panel Market.

Key Takeaways

• Increased construction industry urbanization and development has led, especially in the Asia-Pacific and South America, to an increase in the demand for aluminum composite panels.
• In the Asia-Pacific region, Japan is expected to lead the aluminum composite panels market with its rising inclination to convenient and safe building materials.
• In addition, high surface corrosion resistance and significant applications are expected to drive market growth in kitchens, bathrooms, walls, ceilings.
• The costs and time involved in repairing aluminum panel, for producers could be a major challenge. However, such causes are avoided by new technologies as pre-made adhesive film and extrusion lamination, and the associated costs are fairly high and are thus a challenge.
• The most common coating materials for composite aluminum panels in the market are Polyethylene core (PE).

Top Coating- Segment Analysis

Aramid fiber composites segment held the largest share in the Aluminium Composite Panel Market in 2018. Due to a variety of applications, including lightweight construction, high-speed trains, and advertising boards. In addition, the segment's growth is expected to benefit from its features, such as corrosion and wear strength and durability.

End-Use Industry - Segment Analysis

Building and Construction sector has been the primary market for Aluminium Composite Panel by growing at a CAGR of 7.4%. This Aluminium composite panel have wide range of applications in this sector, the market is estimated to record significant changes in respective countries. The top countries in the Building & Construction industry are expected to boom over the next five years. Americas and Europe are estimated to continue to emerge in the global glass landscape. Building & Construction end user further segmented into retail stores, restaurants and hotels, airports, hospitals, arts and exhibition centers, shopping malls, and others. Airports is the largest segment with the share of 22.7% followed by restaurants and hotels with 21.2%, and retail stores with 20.2%. Increase in spending of commercial construction especially in the developing countries such as China, India, and South Korea, will increase the demand of construct ion chemicals. Commercial construction will continue to grow in the future. With more consumer spending and governmental investments in tourism, office buildings and retail space, commercial construction businesses will reap the rewards.   

Geography - Segment Analysis

APAC dominated the Aluminium Composite Panel Market share with more than 42%, followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing. In the developing region such as APAC, the expansion of construction industry contributes into the growth of Aluminium composite Panel Market. The Asia Pacific construction industry is worth $4.95 trillion (excluding India) and is expected to reach $5.45 trillion by 2021 according to ENG Cranes. The healthy economic growth in APAC had risen the construction activities in the region. 

By 2020, one half of global construction spending is expected to come from APAC countries with China, Indonesia, Japan, South Korea, and Malaysia are exhibiting the highest growth potential. India is expected to grow at twice the rate of China over the next decade especially into infrastructure sector where government is investing approximately $376.5 billion over the next three years. Japan’s residential and infrastructure construction accounts for 28 to 33% of construction activities. Further, the construction activity is expected to rise in next few years because of upcoming Olympic Games. These factors are likely to increase demand in the region over the forecast period. Therefore, during the forecast period, all such favourable trends are collectively likely to drive the growth of the region's aluminium composite panel market.

Drivers – Aluminium Composite Panel Market

Increasing Demand for Strong and Lightweight Materials in Construction and Transportation

In order to reduce structural weight, sandwich panels are used mainly when designing and constructing transport systems such as aircraft, Satellite, missiles and high speed trains. For the manufacturing of sandwich panels, aluminum composites are used, which in turn boost market growth over the forecast period. In addition, technical developments in the ACP sheets and panels production process are projected to have a huge impact on the overall market. Because of the eco-friendly characteristics of such products, increasing popularity of green buildings is also expected to fuel product needs. The incorporation of ACPs, is governed by various regulations and safety standards, such as LEED and British Safety Standards is favorable for Aluminium composite market. ACPs also offer high tensile strength and reduce the total weight of the frame, which makes it one of the ideal materials for modern construction industries.

Challenges – Aluminium Composite Panel Market

High Price of raw materials

In terms of volatile availability and prices of core materials such as polyethylene core, aluminum metal and other coating materials, the growth of the aluminum composite panel market is limited. Compared to other construction materials, the raw materials of aluminum composite panels are also expensive and manufacturing costs are also high. Fluctuating crude oil prices and fluctuations in foreign currencies have led to increased cost of raw materials.  The initial capital investment required is high to develop facilities for production smelting, refining and metal recovery. The bauxite-to-aluminum smelters are costly. The aluminum industry is power-intensive and consumes between 13,000-15,000 power units per ton, according to Metal World.

Market Landscape

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Aluminium Composite Panel Market. In 2018, the market of Aluminium Composite Panel has been consolidated by the top five players accounting for xx% of the share. Major players in the Aluminium Composite Panel Market are Arconic Inc., Yaret Industrial Group Co Ltd., Mitsubishi Chemical Corporation, 3A Composites GmbH, Alubond U.S.A., Alumax Industrial Co. Ltd., Shanghai Huayuan New Composite Materials Co. Ltd., Changshu Kaidi Decoration Material Co. Ltd., Guangzhou Xinghe Aluminum Composite Panel Co. Ltd, and Jyi Shyang Industrial Co. Ltd., among others.