Aluminum Composite Panels Market

Market Overview

The global aluminum composite panels market size was valued at USD 7.93 billion in 2022. It is projected to reach USD 14.33 billion by 2031, growing with a CAGR of 6.8% during the forecast period (2023–2031).

Aluminum composite panels are pre-finished aluminum cover sheets heated to a core made of polyethylene plastic. They are rigid, durable, lightweight, and ideal for industries such as automotive, building and construction, and advertising. The market for aluminum composite panels is expected to witness significant growth, owing to the rapid growth of building and construction sectors, backed by supportive government initiatives. Aluminum composite panels are environment-friendly materials extensively used in the construction sector for cladding and insulation purposes in commercial and residential buildings, including airports and food and beverage shops. They are also extensively used for creating false ceiling partitions, the construction of containers, and different architectural purposes.

Additionally, aluminum composite panels’ flexibility and superior resistance to fire and frost make them the ideal material for contractors and developers. Furthermore, aluminum composite panels are lightweight and, thus, involve low logistic costs; they also offer various advantages over traditional materials. Increasing spending on construction and the financial benefits offered by aluminum composite panels are expected to fuel market growth globally. Moreover, urbanization, population growth, and infrastructure development in the Middle East & Africa, and Asia Pacific are expected to drive market growth during the forecast period.

Market Dynamics

What are the factors driving the market growth?

Eco-friendly Construction

The fact that prior cladding materials were not sustainable was their main drawback. ACP sheets, however, were used to alleviate this problem. The most plentiful metal on earth, aluminum is also known to have a recyclable core. ACP sheets are sustainable and environmentally friendly. The scrapped ACP sheets are transferred to a manufacturing facility to create new ones, preventing the material from ending up as land waste in a landfill. Due to these materials' eco-friendly qualities, it is anticipated that the growing popularity of green buildings will increase demand for these products. The building and structure are governed by a number of laws and safety requirements, including LEED and British Safety Standards, which also support the installation of ACPs. ACPs are one of the prospective materials for the contemporary construction industry because they also offer great tensile strength and lower the overall weight of the building structure.

What are the factors restraining the market growth?

Repairing Costs

During storms and hurricanes, the panels are vulnerable to dents. Some manufacturers of Aluminium Composite Panels strengthen the panels with specific threads to prevent such damage. The joints must be meticulously sealed, and the building must be adequately waterproofed to prevent rainwater from entering the structure. Aluminum composite panels must be regularly maintained in order to preserve their rigidity and extend their durability. If bent or dented, it is difficult to repair the damaged component without compromising the aesthetic aspects of the aluminum composite panel. This can potentially cause structural damage to the original panel. The cost and time involved with repairs may be significant obstacles for manufacturers of aluminum composite panels. Emerging technologies, such as prefabricated adhesive film lamination and extrusion lamination, assist in eliminating these problems. However, the expenditures connected with these technologies are quite expensive. 

Regional Analysis

Geographically, the aluminum composite panels market trend has been segmented into the Asia Pacific, North America, Europe, and Latin America, and the Middle East & Africa.

North America is expected to witness substantial growth in the global aluminum composite panels market during the forecasted period, backed by rapid economic recovery and technological advancements. An increase in buyers for luxury vehicles in North America is also expected to contribute to the region’s growth momentum. It is anticipated that an increase in the number of green buildings in the region will propel the industry forward. Increasing government programs and endeavors to improve infrastructure in North America are contributing to the region’s expansion. In addition, the increasing usage of panels for ornamental and cladding applications to fulfill evolving energy and construction regulations is anticipated to contribute to the expansion. Increased North American production of electric and hybrid automobiles will also contribute positively to market growth.

The Asia Pacific is expected to witness significant growth in the aluminum composite panels market during the forecast period. Increasing vehicle production and demand from developing countries such as China and India drive market growth in the Asia Pacific. Additionally, increasing population and domestic production in India and China are also imparting to the region’s growth momentum. Lightweight vehicles are trending in Asia Pacific’s automotive industry, which in turn is surging the demand for aluminum composite panels. The market is developing due to expanding construction activity and a preference for low-maintenance building goods. Large-scale investments in hotels by the tourism departments of ASEAN countries offer significant growth potential for the market because of the aesthetic usage of ACPs in interior décor. The building industry is crucial to China's continuing economic growth. The Indian government places a major emphasis on infrastructure development to stimulate economic expansion. Increasing investments in the residential and commercial sectors, as well as strategic initiatives by the Indian government, are projected to stimulate the country's construction industry, which is likely to drive the aluminum composite panel (ACP) market in India.

Europe is expected to account for a substantial market share during the forecast period with the rapid growth of the region’s automotive sector. Moreover, the trend towards lightweight material solutions in the transportation sector will further strengthen and make a positive contribution to market success. Vehicle sales in Russia, Germany, and Italy strengthen the automotive industry. Panels in automobiles can be used as sound absorbers and decorative padding. Due to low financing rates, robust economic expansion, and pent-up demand, the European construction industry is expanding quickly. The residential, non-residential, and civil engineering industries, both new and rehabilitated, contribute to the expansion in Europe. According to Business Monitor International (BMI), the European construction industry grew significantly due to an improved outlook for commodity prices, increased confidence in the business, higher demand, and stronger exports.

Latin America is expected to exhibit significant growth during the forecasted period, owing to the increasing production and sales of automobiles and government initiatives promoting the rapid development of the automotive industry, especially in Brazil. According to the Brazilian Association of Automobile Manufacturers (ANFAVEA), the automotive industry's production increased to 6.2% in 2017. The Middle East and Africa region are slated to register a steady growth rate. Numerous residential and commercial projects are being initiated in Saudi Arabia, which is likely to expand construction activity in the country. The futuristic mega-city 'Neom' project, the Red Sea Project – Phase 1, Qiddiya Entertainment City, Amaala – the ultra-luxury wellness tourism destination are examples of ongoing or planned developments.

Segmental Analysis

The global market for aluminum composite panels can be segmented by type, coating base, and application.

On the basis of type, the market can be segmented into fire-resistant, anti-static, and anti-bacterial.

The fire-resistant segment is registering strong demand and is expected to witness healthy growth during the forecast period. The demand for fire-resistant composite panels is increasing in tandem with safety consciousness among consumers, including protection from fire in buildings and other enclosed spaces.

Based on the coating base, the market can be segmented into polyvinylidene difluoride (PVDF) and polyethylene (PE).

The polyvinylidene difluoride (PVDF) segment is expected to observe significant growth during the forecast period to the increasing demand for PVDF-based ACPs from automotive and advertisement hoardings. The remarkable properties and characteristics of PVDF, such as superior weather, corrosion, and pollutant resistance, lightweight, and easy maintenance, are expected to drive the segment's growth in the coming years.

On the basis of application, the market can be segmented into automotive, building & construction, advertising boards, and others.

The building and construction segment is anticipated to hold the largest market share, owing to increasing building & construction activities and large-scale investments in infrastructure and industrial sectors. The advertising board segment is expected to witness an exponential growth rate over the forecast period because of the rapidly expanding advertising, marketing, and mass media industry globally.

Recent Developments

• October 2022- Aludecor, the leading manufacturer of Aluminium Composite Panels in India, inaugurated its third manufacturing facility in Haridwar, becoming the country's largest ACP manufacturer. Aludecor is now equipped with a coil coating capability of 22,000 metric tonnes per year for its three manufacturing facilities in Haridwar. In addition to being the first company in the ACP category to introduce India's first coil coating line in 2006, Aludecor has the greatest coil coating capacity in India.
• January 2021- Alucopanel, a UAE-based Aluminum Composite Panel (ACP) manufacturer, announced the launch of the region's first government-approved A1 non-combustible grade ACP, which is recommended for construction projects requiring a very high level of fire protection, such as high-rise buildings, schools, hospitals, and shopping malls. Due to the revolutionary A1 core technology, Alucopanel A1 won't contribute to flames in the event of a fire in any building.