Aluminium Composite Panels Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Aluminum Composite Panels Market is segmented By Core Materials (Plastic, Wood, Others) By Coating (Polyvinylidene Fluoride, Fluoropolymer Resins, Polyester Paint, Others) By Application (Construction, Automotive, Packaging, Others) By Distribution Channel (Direct, Indirect) and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Market Overview

Global Aluminum Composite Panels Market reached US$ 5.5 billion in 2023 and is expected to reach US$ 8.4 billion by 2031, growing with a CAGR of 5.5% during the forecast period 2024-2031.

The emphasis on energy-efficient and sustainable building approaches increases demand for materials like aluminum composite panels. Aluminum composite panels are commonly used in green building certification due to their potential for energy savings, low maintenance requirements and recycling capacity. As manufacturing techniques advance, aluminum composite panels' performance, quality and customizability improve. 

Innovations in panel design, surface treatments and coatings increase the commercial potential of ACPs. In June 2023, Alumaze, a business that specializes in aluminum composite panels, presented a new product line. It includes ACP sheets manufactured at the recently established factory in Vizianagaram. The rapid building of this manufacturing factory, completed within eight months, was supported by a major investment totaling US$ 6 million.

In 2022, Asia-Pacific is expected to be the fastest growing region holding more than 1/3rd of the global aluminum composite panels market. The expansion of the building industry leads to the growth of the aluminum composite panel market. Asia-Pacific construction market is worth US$ 4.95 trillion (excluding India) and is expected to reach US$ 5.45 trillion by 2021, according to ENG Cranes. 

Market Scope

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Market Dynamics

Rising Government Regulations 

Stringent laws governing fire safety, building codes and environmental standards may raise demand for ACP. Aluminum composite panels provide good air and water barrier, flexibility, heavy-duty performance and durability, which are projected to boost market growth over the projection period. Several rules and safety standards, including as LEED and British Safety Standards, govern the architecture and structure while simultaneously encouraging the use of ACPs.

U.S. government has set laws requiring light-duty automobiles to meet Corporate Average Fuel Efficiency criteria of 54.5 mpg by 2025. The federal proposal to raise CAFE standards is thus projected to provide as a significant push for the inclusion of lightweight materials, like aluminum composites, into automobiles, thereby driving the industry.

Growing Demand from Various End-Use Industries

Aluminum composite panels are used extensively in transportation, architecture and construction and advertising boards. The use in transportation stems from their advantageous qualities like as lightweight, pressure resistance, fire resistance, non-toxic fumes, ease of assembly, cost-effectiveness and sound insulation. The increasing need for high-performance panels and regulated installation techniques in the architecture and construction industry has led to developments in aluminum composite panel technology.

Factors like the panels' superior fire, weather, chemical resistance and lightweight qualities affect the market's growth. The development of a fire-rated A1 grade Aluminum Composite Panel core for Alubond A1 by Metal Plast Industries, a fully-owned subsidiary of the varied multinational business Mulk Holdings International, in 2022 will lessen the spread of fire in high-rise buildings globally.

High Raw Material Price

Global aluminum composite panel market growth is expected to be hampered due to the volatile availability and costs of core components such as polyethylene core, aluminum metal and other coating materials. Aluminum composite panels' raw ingredients are more expensive than other materials, as are their manufacturing expenses. 

Raw material costs have risen due to volatility in crude oil prices and currency exchange rates. Development of facilities for production smelting, refining and metal recovery requires a significant initial capital expenditure. Bauxite-to-aluminum smelters are expensive. According to Metal World, the aluminum sector consumes approximately 13,000-15,000 electricity units per ton.

Segment Analysis

The global aluminum composite panels market is segmented based on core materials, coating, application, distribution channel and region.

Rising Demand for Lightweight Construction Materials

Automotive is expected to be the dominant segment with more than 30% of the market during the forecast period 2024-2031. The panels are lightweight with high strength-to-weight ratio. It enhances stiffness and durability, resists weather & UV ray, provides greater thermal & sound insulation and is resistant to extreme environments including acids, alkali salts and pollution. 

Saudi Arabia is focusing on a number of residential and commercial projects, which will likely lead to increased construction in the country. US$ 500 billion mega-city "Neom" project, the Red Sea Project - Phase 1, which is expected to be completed by 2025, has 14 luxury and hyper-luxury hotels with 3,000 rooms spread throughout five islands and two inland resorts. 

Geographical Penetration

Growing Construction Sector in Asia-Pacific

Asia-Pacific is the dominant region in the global aluminum composite panels market covering over 1/3rd of the market. Factors such as increased construction activity and a preference for low-maintenance building goods are driving the market growth. Tourism departments in the region's governments are making significant investments in hotels, which is beneficial to market growth because ACPs are used to decorate and improve hotel rooms. 

As per China's Five-Year Plan, which was released in January 2022, the construction industry increased by 6% in 2022. Prefabricated parts, either partially or completely made and shipped to construction sites for assembly, is expected to account for over 30% of new construction in the country. As a result, with the high expansion expected in the construction and automotive industries, demand for ACP is expected to expand during the forecast period. 

Competitive Landscape

The major global players in the market include ALUCOIL, Alucobond U.S.A, 3A Composites, Yaret Industrial Group, Alumax Industrial, Shanghai Huayuan New Composite Materials, Changshu Kaidi Decoration Material, Guangzhou Xinghe ACP, Jyi Shyang Industrial and Msenco Metal.

COVID-19 Impact Analysis

Construction sector saw a setback as various projects were postponed or canceled due to lockdowns, social distancing and economic uncertainty. The decrease in demand for new construction, infrastructure projects and renovations contributed to lower demand for ACPs. Construction projects were put on hold or delayed as governments-imposed limitations to prevent the spread of COVID-19. 

It delayed orders for aluminum composite panels and delayed project timetables, impacting ACP manufacturers' income and profitability. There has been more focus on health, safety and sustainability, resulting in increasing demand for building materials with antibacterial qualities, enhanced indoor air quality and energy efficiency. ACP manufacturers had to alter their product lines to satisfy the changing needs.

Russia-Ukraine War Impact 

Russia and Ukraine are among major producers of aluminum. Any disruptions in the manufacture or shipping of these materials may have an impact on the aluminum composite panel supply chain. It could cause supply shortages or delivery delays, affecting construction projects and manufacturers who rely on ACPs. As a remedy to the harsh circumstances caused by the Russia-Ukraine war, the top aluminum production corporations concentrated their efforts on recycled aluminum as a less expensive choice during the challenging era. 

Rio Tinto, for example, will commission a new remelt furnace at its Laterrière Plant in March 2022, adding 22,000 metric tons of recycling capacity to its aluminum operations in Quebec's Saguenay-Lac-Saint-Jean region. The US$ 8.4 million initiative was completed over two years to give rolled product customers in North America's automotive and packaging industries a new environmentally friendly supply solution incorporating low-carbon and recycled aluminum.

Key Developments

• In April 2023, Alcoa Corporation said that it will invest US$ 100 million in a new ACP manufacturing factory in China. The investment reflects the increased demand for ACP in the Chinese market.
• In October 2022, Aludecor, one of India's major aluminum composite panel companies, has opened its third manufacturing facility in Haridwar, India. 

Why Purchase the Report?

• To visualize the global aluminum composite panels market segmentation based on core materials, coating, application, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of aluminum composite panels market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global aluminum composite panels market report would provide approximately 70 tables, 63 figures and 205 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies