Aluminum Composite Panels Market by Base Coating Type (PE, PVDF), Type (Fire-resistant, Antibacterial), Application (Building & Construction, Advertising, and Transportation), Composition (Core material, Metal skin), and Region - Global Forecast to 2022
Markets forecasts the aluminum composite panels market to grow from USD 6.3 billion in 2017 to USD 8.8 billion by 2022, at a CAGR of 6.9% during the forecast period. The aluminum composite panels market is witnessing high growth, owing to factors such as increase in industrial and commercial activities, growth in demand from end-use industries, and increase in popularity of anti-toxic and antibacterial panels’ coupled with benefits associated with aluminum composite panels, such as durability and reduced sound transmission; protect the surface from UV-sunlight, heavy rain, wind, humidity, and harmful bacteria & microbes. Increased urbanization and growth of the construction industry have led to an increase in demand for aluminum composite panels, particularly in the emerging economies of Asia Pacific and South America.
By application industry building & construction - the largest application industry of aluminum composite panels
Building & construction is estimated to be the largest application industry of aluminum composite panels. The aluminum composite panels market is driven by the increasing standardization in architecture that increased the necessity of installation of aluminum composite panels in new constructions and due to the superior quality of durability, fire resistance, anti-bacterial, and weather proof properties that aluminum composite panels offer. Emerging markets, such as the Asia Pacific region, have contributed to an increase in the application of aluminum composite panels in building & construction. High repairing cost if broken or dented is the restraining factors for the aluminum composite panels market.
“Fire-resistant segment, by type, projected to grow at the highest CAGR during the forecast period.”
The fire-resistant segment, by type, is projected to grow at the highest CAGR between 2017 and 2022. The dominant market position of the fire-resistant aluminum composite panels segment can be attributed to its fire repellent property that prevents fire accidents in the residential or commercial sectors. The fire-resistant aluminum composite panel has a growing demand, owing to its high preference in residential and non-residential sectors. These panels are fire resistant, provide barrier against bacteria and microbes, and are dust-proof and ideal to minimize static-electrical charges. These factors have helped expand the market for aluminum composite panels in recent years
“Asia Pacific to gain maximum traction during the forecast period.”
The Asia Pacific region is projected to be the fastest-growing market during the forecast period, followed by South America. In Asia Pacific, China is the largest consumer for aluminum composite panels, followed by Japan. China, with its growing building & construction industry, is expected to drive the aluminum composite panels market. Japan, with its growing inclination toward convenient and safe building materials, is expected to drive the aluminum composite panels market in the Asia Pacific region.
Driver: Growth in demand from end-use industries
Aluminum composite panels have various applications in transportation, building & construction, and advertising boards. Owing to the various properties including lightness, resistance to compression, fire resistance, non-combustibility, non-toxic fumes, easy assembly, time- and cost-effectiveness, and acoustic insulation, these panels are widely used in transportation.
Rise in demand for high-performance aluminum composite panels and standardization in the building & construction industry led to the development of the installation of aluminum composite panels. Optimal fire, weather, and chemical resistance and lightweight features of aluminum composite panels coupled with the emerging international building codes that have challenged the construction market to be design-oriented with sustainability and energy efficiency are the key factors influencing the growth.
The major characteristics of aluminum composite panels are also influencing the growth of the market persistently, such as coating in aluminum composite panels, which helps to enhance the appearance of the internal & external walls and provide easy maintenance with high durability. Its application in the exposed area of buildings helps to protect against external climatic conditions and retain its color and gloss for a long period. Polyvinylidene difluoride (PVDF) and polyethylene (PE) are the most preferred coating materials in the aluminum composite panels market.
The industrial growth after the economic slowdown has given rise to new constructions, both commercial and non-commercial. According to the global construction 2030 report by Global Construction Perspectives and Oxford Economics, the global construction industry is expected to reach USD 8 trillion by 2030. Construction of factories, manufacturing plants, stadiums, and offices has increased. This would directly influence the need for sustainable decorative building construction solutions in these structures due to which an increase in the demand for aluminum composite panels is observed.
According to the same source, the construction industry has been growing at a rate of 10% for the past few years in the Middle Eastern countries such as Saudi Arabia, UAE, and Qatar. The Asia Pacific region is projected to witness the highest number of new constructions between 2017 and 2022. The construction spending growth during this period for China is expected to be 7.3%, for India it is expected to be 7%, while for Vietnam it is expected to be 6.8% of the global construction spending. The “Make in India” program introduced by the Government of India promotes new construction projects, mostly industrial and commercial in the country. The sub-prime crisis in the US caused a recession in the construction industry. However, the industry has recovered and is growing at a moderate pace. The global construction industry contributes around one-tenth of the global GDP, according to Oxford Economics.
Restraint: High repairing cost if broken or dent
Regular maintenance of aluminum composite panels is required to maintain rigidity and increase the sustainability & durability of the panel. Proper cleaning is also essential to remove the accumulation of dust and prevent any organic growth.
These panels also help in maintaining the appearance of the building. However, if are broken or dented, it is difficult to repair the damaged part without affecting the aesthetic qualities of the aluminum composite panel. Aluminum composite panels can easily be dented if not properly installed. This may also cause damage to the original structure of the panel. Hence, the cost and time associated with repairing could be a major challenge faced by aluminum composite panel manufacturers. However, new technologies such as lamination with premade adhesive films and extrusion lamination prevent such causes; the cost associated with these technologies is quite high, thereby posing a challenge.
Opportunity: Industrial expansions in emerging economies
Emerging economies have been focusing on rapid industrialization over the last few decades. Countries such as China, India, Indonesia, South Africa, Brazil, and Argentina are transforming their economies from being agricultural-based to being based on manufacturing and other industries. With the emergence of new industries, the need for industrial construction is also increasing; this is creating scope for aluminum composite panels.
Aluminum composite panels are generally used in curtain walls, decorative renovation for story-added old buildings, advertisement boards, display platforms & signboards, wallboards, and ceilings for tunnels. The growth of these industries depends on various macroeconomic factors such as GDP growth, employment rate, and standard of living. Economic developments coupled with easy availability of labor and raw materials, particularly in China, majorly drive the continuous expansion of production facilities. As aluminum composite panels are used in almost every industry, their demand is projected to grow significantly with the expansion of facilities. This growth is not only limited to China and the US, but also supported to the UAE, Germany, India, and Japan.
Challenge: High Price of raw material
The growth of the aluminum composite panels market is restricted by volatility in the supply and prices of the core materials such as (PE), aluminum metal, and other coating materials. Raw materials of aluminum composite panels are expensive as compared to other construction material, wherein the cost of manufacturing these products is also high. Fluctuating crude oil prices and foreign currency fluctuations have resulted in higher raw material costs. This puts an added pressure on the manufacturers of aluminum composite panels.
The initial capital investment required for establishing production, smelting, refining, and metal recovery facilities is high. Smelters used for converting bauxite to aluminum are expensive. According to Metal World, the aluminum industry is power intensive and consumes around 13,000–15,000 power units per ton.
According to the same source, the aluminum industry is highly capital-intensive; around USD 1.2 billion is required to establish a viable Greenfield project. These costs include the capital required for the processing facility, warehouse, or plant & equipment. The aluminum industry is also labor- and energy-intensive. The energy required in the aluminum industry accounts for around 25% of the production cost.
Scope of the Report
The research report categorizes the Aluminum composite panels to forecast the revenues and analyze the trends in each of the following sub-segments:
Aluminum composite panels by Coating Type
· Polyvinylidene Difluoride
· Laminating coating
· Oxide Film
Aluminum composite panels by Type
Aluminum composite panels by Composition
· Surface Coating
· Metal Skin
· Core Materia
· Rear Skin
Aluminum composite panels by Vehicle Type
· Passenger cars
· Light Commercial Vehicles
Aluminum composite panels by Application
· Building & construction
Aluminum composite panels by Region
· North America
· Asia Pacific
· South America
· Middle East & Africa
Critical questions the report answers:
· Where will all these developments take the industry in the long term?
· What are the upcoming trends for the Aluminum composite panels market?
· Which segment provides the most opportunity for growth?
· Who are the leading vendors operating in this market?
· What are the opportunities for new market entrants?