Aluminum Composite Panel Market is projected to register a CAGR of over 6% during the forecast period (2022-2027).
The market was negatively impacted by COVID-19 in 2020. Presently, with the resumption of operations in major end-user industries, the market recovered significantly in 2021-2022.
- Over the short term, the increasing demand for PVDF-based aluminum composite panels is expected to drive the market demand during the forecast period.
- The availability of cheaper alternatives is hindering the growth of the market studied.
- Large-scale investments in hotels in ASEAN countries is likely to act as an opportunity for the studied market.
- The Asia Pacific accounts for the highest market share and is expected to dominate the market during the forecast period.
Key Market Trends
Demand for Strong and Lightweight Materials in Construction
- Aluminum Composite Panels (ACP) are lightweight and have an impressive strength-to-weight ratio. They provide improved rigidity and durability, weather and UV resistance, superior thermal and sound insulations, and resistivity to harsh conditions, such as acids, alkali salts, and pollution.
- Owing to the aforementioned factors, they find widespread applications in interior decorations, claddings, building exterior wall insulations and coverings, and exterior and interior components of transportation vehicles, such as ships, trucks, and passenger cars, among others.
- The construction industry has been witnessing rapid growth in the past few years, mainly on account of the large investments and demand for infrastructure in emerging economies, such as China, India, Brazil, and Russia, among others.
- Currently, the construction industry is majorly witnessing strong growth in the Asia-Pacific and the Middle East, and African regions.
- In the Asia-Pacific region, India is anticipated to remain the fastest-growing G20 economy. The Indian government announced a target of USD 376.5 billion investment in infrastructure over a period of three years (2023-2025), including USD 120.5 billion for developing 27 industrial clusters and USD 75.3 billion for road, railway, and port connectivity projects.
- Saudi Arabia is embarking on many residential and commercial projects, which are expected to increase the construction activities in the country. Some of such projects undertaken or in various phases of development include a USD 500 billion futuristic mega-city 'Neom' project, the Red Sea Project - Phase 1, which is expected to be completed in 2022 and has 14 luxury and hyper-luxury hotels that may comprise 3,000 rooms, all across five islands and two inland resorts, Qiddiya Entertainment City, Amaala - the uber-luxury wellness tourism destination, Jean Nouvel's Sharaan resort in Al-Ula, Ministry of Housing's Sakani homes, and Jeddah Tower.
- All the aforementioned factors are expected to increase the demand for Aluminum Composite Panels (ACP) during the forecast period.
Asia-Pacific Region is Expected to Dominate the Market
- Asia-Pacific region dominated the global market share in the market studied. Factors such as growing construction activities and preference for low-maintenance building products are favoring the market growth.
- Large-scale investments in hotels by the tourism departments of ASEAN countries provide lucrative opportunities for the growth of the market, owing to the use of ACPs in interior decoration purposes for aesthetic appeal.
- The construction sector is a key player in China's continued economic development. The value of construction output accounted for 25.7% of China's GDP in 2021, up from 11.0% in 2020, according to the National Bureau of Statistics.
- According to China's Five-Year Plan unveiled in January 2022, the construction industry is estimated to register a growth rate of 6% in 2022. Prefabricated parts, which are either partially or wholly manufactured and transported to construction sites for assembly, may account for over 30% of the new construction in the country.
- The Indian government strongly focuses on infrastructure development to boost economic growth. The real estate sector in the country is expected to reach a market size of USD 1 trillion by 2030, while contributing 13% of the country's GDP by 2025.
- The increasing investments in the residential and commercial sectors, along with strategic initiatives by the Indian government, are expected to boost the construction sector in the country, which, in turn, is anticipated to drive the aluminum composite panel (ACP) market in India.
- South Korea produced 3,506,774 vehicles in 2020, a decline of 11.2%, compared to previous year. The decline in production was due to the decrease in domestic sales and imports. However, production increased in the first nine months of 2021 and reached 2,576,501units. It increased by 1%, with over 2,549,109 vehicles produced in the first nine months of 2020. According to the OICA, automotive production in 2021 stood at 3,462,404 units.
- Hence, with the rapid growth expected in the construction and automotive industries, demand for aluminum composite panels (ACP) in the region is expected to increase drastically over the forecast period.
The aluminum composite panel (ACP) market is fragmented in nature. Key players in the aluminum composite panel (ACP) market include 3A Composites GmbH, Jyi Shyang Industrial Co. Ltd, Arconic Inc., Alstrong Enterprises India (Pvt.) Ltd, and Alubond USA, among others ( not in any particular order).
- The market estimate (ME) sheet in Excel format
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