Aluminum Composite Panel (ACP) Market 2020 – 2025 to register a CAGR of over 6% during the forecast period

Market Overview

The Aluminum Composite Panel (ACP) market is expected to register a CAGR of over 6% during the forecast period. Aluminum Composite Panel (ACP) is a flat panel crafted out of two aluminum alloy sheets bonded with a non-aluminum core, in order to form a composite. It is used as cladding or facade material of buildings, insulation, and signage. In addition, ACPs have many applications associated with body paneling, in the automotive industry.

– Increasing demand for PVDF-based aluminum composite panels is expected to drive the demand for the market, during the forecast period.
– Availability of cheaper alternatives is likely to hinder the market growth.
– Large-scale investments on hotels in ASEAN countries are projected to act as an opportunity for the market, in the future.

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Key Market Trends

Demand for Strong and Lightweight Materials in Construction

– ACPs are lightweight and have an impressive strength to weight ratio. They provide improved rigidity and durability, weather and UV resistances, 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 since the past few years, mainly on account of the large investments and demand for infrastructure in the 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 Middle East & 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, including USD 120.5 billion for developing 27 industrial clusters, and USD 75.3 billion for road, railway, and port connectivity projects.
– In the Middle East, Qatar is expected to be among the fastest-growing construction markets, globally, till 2022. Qatar’s construction market, with a projected growth of 12.1%, between 2017 and 2021, is expected to benefit from the investment in the preparations of the FIFA World Cup 2022, which is being hosted by Qatar. This is anticipated to further influence the growth in sales and applications of ACP in the construction sector, in that particular region.
– All the aforementioned factors, in turn, are expected to increase the demand for the ACPs during the forecast period.

Asia-Pacific Region to Dominate the Market

– The Asia-Pacific region dominated the global market share. Factors, such as growing construction activities and preference for low maintenance building products, are favoring the market growth.
– Large-scale investments on hotels, by tourism departments of ASEAN countries, provide lucrative opportunities for the growth of the market, owing to their use in interior decoration purposes for aesthetic appeal.
– India is the fastest-growing construction market in the Asia-Pacific region. The construction sector in India has been growing rapidly, with increased investment by the government. The Indian government’s ‘Housing for All by 2022’ is also a major game-changer for the industry.
– The country is likely to witness an investment of around USD 1.3 trillion in housing over the next seven years, where the country is likely to witness the construction of 60 million new homes. The availability of affordable housing is expected to rise around 70%, by 2024, in India.
– 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.
– Moreover, the growing interest of the companies, in exploring the rural markets in the region, has further aided the growth of the sector. The Government of India encourages foreign investment in the automobile sector and allows 100% FDI under the automatic route.
– Hence, with the rapid growth expected in the construction and automotive industries, demand for aluminum composite panels (ACP) in the region is expected to rapidly increase over the forecast period.

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Competitive Landscape

The aluminum composite panels (ACP) market is fragmented. Key players in the aluminum composite panels (ACP) market include 3A Composites GmbH, Jyi Shyang Industrial Co., Ltd., Arconic Inc., Alstrong Enterprises India (Pvt) Ltd, and Alubond U.S.A., among others.

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