HPL Exterior Boards Market

Market Overview

The global HPL exterior boards market size was valued at USD 5.3 billion in 2023 and is projected to reach  USD 7.4 billion by 2032, registering a CAGR of 3.6% during the forecast period (2024-2032). Global demand for infrastructure development is expected to drive the HPL Exterior Boards market share during the forecast period.

HPL is an abbreviation for high-pressure laminate. High-pressure laminate is a durable and versatile material widely used for exterior and interior surfacing and cladding. It comprises layers of resin-impregnated kraft paper and a layer of ornamental paper fused with high heat and pressure. Typically, a translucent overlay protects the top layer from abrasion and UV rays.

The building business has grown in recent years due to increased urbanization and population growth. HPL exterior boards are also gaining popularity in the building industry due to the requirement for long-lasting and visually appealing materials, driving the global market. Furthermore, the massive construction sector in emerging economies boosts demand for HPL exterior boards. This is expected to open new chances for HPL exterior board market advancement.

Highlights

• 6-8 mm generates the highest revenue share by type.
• Exterior Walls dominate the market by application.

Market Dynamics

Global HPL Exterior Boards Market Drivers:

Growing Demand from Construction Sector

Rapid urbanization, increased infrastructure development, and rising demand for residential, commercial, and industrial spaces drive the demand for long-lasting, high-performance construction materials such as HPL exterior boards. The construction sector in North America is expanding rapidly, owing to increased demand for residential homes and infrastructure. The US Census Bureau estimates construction spending at USD 2,083.9 billion in March 2024, 0.2 percent lower than the revised February estimate of USD 2,087.8 billion. The March number is 9.6% higher than the March 2023 forecast of USD 1,901.4 billion. Construction spending reached USD 461.0 billion in the first three months of this year, up 10.6 percent from USD 416.7 billion in 2023.

Furthermore, the Asia-Pacific area is expected to account for a large portion of this expansion, with China, India, and Southeast Asian countries taking the lead. In 2023, China's construction industry produced more than 31 trillion yuan, nearly doubling its production from a decade previous. This was attributed to real estate-related stimulus and government-funded projects. In Europe, the building industry is recovering, emphasizing residential and commercial developments. The demand for HPL exterior boards is highly correlated with the construction industry and real estate development. The need for long-lasting and visually appealing external building materials, such as high-pressure laminate (HPL) boards, increases in lockstep with the expansion of construction activities. As a result, the expansion of the construction sector is expected to accelerate global market growth.

Global HPL Exterior Boards Market Restraints:

Environmental Concerns

HPL boards are made with resins and other chemicals that can impact the environment. Increased regulatory scrutiny and the push for more sustainable and eco-friendly building materials may limit the market for HPL exterior boards. Phenolic and melamine resins emit formaldehyde, a volatile organic compound (VOC), both during and after installation. Formaldehyde is a known carcinogen that causes indoor air pollution. In 2023, the European Union (EU) issued Regulation (EU) 2023/1464 (the Regulation), which regulates formaldehyde and formaldehyde-releasing substances in articles. The Regulation includes several significant points and provisions.

Additionally, HPL board manufacturing requires high temperatures and pressures, which consumes energy. According to a study conducted by the European Panel Federation, the energy needed to produce one square meter of HPL can range from 8 to 12 MJ. Furthermore, the composite nature of HPL boards makes them difficult to recycle. The combination of paper layers and resins makes separating and recycling the components difficult. As a result, HPL waste frequently ends up in landfills, where it may take decades to decompose. 

Hence, increasing environmental regulations in regions such as the European Union require more stringent waste management practices and reduced landfill waste. For example, the EU's Waste Framework Directive focuses on waste prevention and recycling, making it difficult for HPL manufacturers to find long-term disposal solutions. 

Global HPL Exterior Boards Market Opportunity:

Rising Demand from Emerging Economies

The demand for HPL exterior boards is increasing in emerging economies due to the extensive construction industry in Asia-Pacific, Latin America, the Middle East, and Africa. For example, rising demand for housing and hotels in Latin America propels the construction industry forward. According to the International Monetary Fund (IMF), emerging Asia is expected to grow by 4.5% in 2024, up 0.3 percentage points from their October 2023 forecast. This growth rate is slightly slower than the 5% growth in 2023. The IMF attributes this expansion to China and India.

Consequently, countries such as Brazil and Mexico are making significant investments in infrastructure. In 2023, the government relaunched the Growth Acceleration Program (PAC), a flagship initiative to stimulate the economy through infrastructure investments. The PAC will allocate USD 200 billion over the next four years to infrastructure, energy, and transportation projects. 

Furthermore, the Middle East and Africa are experiencing significant urbanization. According to the World Bank, Sub-Saharan Africa's urban population currently stands at around 472 million people and is expected to double over the next 25 years. This implies that by 2050, the global share of African urban residents could rise from 11.3% in 2010 to 20.2%. Major projects, such as Saudi Arabia's Vision 2030, require significant construction investments, which provide opportunities for HPL exterior boards.

Regional Analysis

The global HPL exterior boards market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global HPL exterior boards market shareholder and is estimated to grow at a CAGR of 3.8% over the forecast period. In Asia-Pacific, the construction sector is growing because of increased local demand and the availability of low-cost labor. As a result, market players are concentrating on this area to expand their market share and profits. China, Japan, India, and South Korea are significant developing countries in Asia-Pacific. The population and disposable income growth in China, India, and Indonesia have expanded residential housing in the Asia-Pacific region. Consequently, there has been an increased demand for HPL exterior boards within the construction industry. China's construction industry is expected to grow by 4% in real terms by 2024, driven by infrastructure, energy, and utilities. 

Similarly, Indonesia exhibits the capacity to achieve a growth rate of approximately 9% during the forthcoming five-year period, primarily attributable to ongoing residential initiatives and a notable count of 378 hotel construction undertakings currently in progress. The Indonesian government also set aside IDR 422.7 trillion (USD 27.01 billion) from the 2024 state budget, its largest infrastructure budget in five years, to fund infrastructure projects. This represented a 5.8% increase over the 2023 infrastructure budget realization forecast, totaling IDR 399.6 billion (USD 25.54 billion). Therefore, the increasing prominence of the construction sector would result in a corresponding surge in the demand for HPL exterior boards throughout the forecast period.

Europe is anticipated to exhibit a CAGR of 3.9% over the forecast period. The demand for new construction and renovation constitutes a large market for HPL exterior boards. Construction output in the eurozone rose by 1.9% in December 2023 compared to December 2022 and 2.4% in the EU. The annual average production for 2023 increased by 0.2% in the eurozone and 0.1% in the EU compared to 2022. Moreover, the European Commission has also proposed to invest USD 13.8 billion in transport projects. Therefore, the investment proposal and several upcoming projects are expected to accelerate the demand for HPL exterior boards in European countries.

In addition, the region has several countries with extreme weather conditions, like freezing weather in the Nordic area and record-breaking rainfall in the UK. In October 2023, Eastern Scotland experienced a significant increase in rainfall, surpassing its previous record. The recorded rainfall, measuring 235.9mm, exceeded the region's average by 82%. During the occurrence of Storm Babet, the area saw notable and very consequential flood consequences, as evidenced by the issuance of two red rain warnings by the Met Office. As a result, HPL exterior boards are preferred for construction in this region as there is a need for durable and weather-resistant exterior solutions that contribute to the demand for HPL exterior boards in the area. 

The North American HPL exterior boards market is expected to grow significantly over the forecast period, owing to strong GDP growth and a high employment rate. Over the last few years, this region has seen a significant increase in market demand for HPL exterior boards. Furthermore, the US HPL exterior boards market had the largest market share, while Canada's HPL exterior boards market was the fastest-growing in the region.

Segmental Analysis

The global HPL exterior boards market is segmented based on type and application.

The market is further segmented by type into 6-8 mm, 8-10 mm, 10-12 mm, 12-14 mm, and 14-16 mm.

The 6–8 mm segment dominates the global market. This segment covers the HPL external boards, which have sizes ranging from 6 to 8mm. The structures, such as commercial, industrial, civil, and specialized buildings (e.g., hospitals, offices, hotels, schools, railway stations, subways, and airports), necessitate implementing these boards to ensure environmental and fire safety. 6-8 mm HPL exterior boards are commonly used in applications that require a balance of flexibility and strength. These boards, such as facades, balconies, and decorative cladding, are frequently used for residential and light commercial projects. Their slim profile makes them easier to transport and install, lowering labor costs and installation time. They offer adequate protection from weather elements, UV radiation, and impact, making them appropriate for moderate climates.

Furthermore, 6-8 mm boards can be used in renovation projects where adding negligible weight to existing structures is critical. Despite their thinner profile, these boards provide a wide range of aesthetic options and durability.

The 10-12 MM category is expected to grow significantly during the forecast period. The 10-12 mm HPL exterior boards are preferred for projects that require more excellent durability and strength, such as commercial buildings, high-rise apartments, and industrial structures. These boards have excellent impact resistance and are ideal for harsh weather and physical stress environments. The increased thickness also improves sound insulation and thermal resistance, improving the building's overall comfort and energy efficiency. Due to their durability, 10-12 mm boards are commonly used in areas with strict building codes and safety standards. They are also used in applications that require heavy mechanical loads or frequent maintenance activities, ensuring long-term performance and reliability. 

Furthermore, this section covers HPL external boards ranging in size from 10 to 12 mm. They are used to construct residential and commercial buildings, hotels, train stations, and other facilities that require environmental and fire protection.

Based on application, the global HPL exterior boards market is segmented into facades, exterior walls, exterior flooring and roofs, outdoor furniture, and balconies.

The exterior wall segment owns the highest market share. The construction of the exterior walls utilizes HPL exterior boards. High-pressure laminate (HPL) exhibits intrinsic resistance to mold formation and mildew, making it particularly advantageous for external applications susceptible to moisture exposure. This characteristic contributes to preserving the integrity and aesthetic appeal of the outside walls over time. The HPL exterior boards are lightweight and characterized by their ease of handling, facilitating a more efficient and expedited installation process.

Furthermore, the material can be readily shaped into diverse forms and dimensions, offering adaptability in architectural composition and guaranteeing an accurate alignment with the outer surfaces. Numerous HPL boards are specifically engineered to possess fire-resistant properties, augmenting the overall safety measures implemented within the structure. This aspect is essential in exterior applications with a higher likelihood of fire exposure.

Facades are expected to grow significantly over the forecast period. This category includes HPL exterior boards designed for facade applications. Facades reveal more sustainable buildings. The outer facade can gain energy from ventilated façades made of HPL (also known as phenolic) compact panels. Rainscreen Façade panels improve the overall health of the building by protecting the insulation and controlling moisture via a drainage and ventilation plane.

Recent Developments

• May 2024- Wetwall, a Wilsonart Company, launched its new Pro Plus Collection, designed explicitly for larger-scale commercial projects. The Pro Plus Collection boasts unparalleled efficiency, durability, and aesthetic appeal and is poised to transform commercial spaces' design and construction.
• May 2024- Sonae Arauco invested more than 5 million Euros in two new wood recycling centres in Portugal.
• April 2024- Fletcher Building pioneered low-carbon living with the launch of innovative LowCO homes.