Market Trends of Aluminum Composite Panel (ACP) Industry
This section covers the major market trends shaping the Aluminum Composite Panel Market according to our research experts:
Demand for Strong and Lightweight Materials in Construction
- Aluminum composite panels (ACP) are lightweight and have an impressive strength-to-weight ratio. They provide improved rigidity and durability, weather and UV resistance, superior thermal and sound insulation, and resistance to harsh conditions, such as acids, alkali salts, and pollution.
- Because of these things, they are often used as interior decorations, claddings, exterior wall insulation and coverings, and exterior and interior parts of ships, trucks, cars, and other vehicles, among other things.
- In the past few years, the construction industry has grown quickly. This is mostly because emerging economies like China, India, Brazil, and Russia are investing a lot in infrastructure and have a high demand for it.
- Currently, the construction industry is primarily witnessing strong growth in the Asia-Pacific, Middle East, and 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 in infrastructure investment over three years (2023-2025), including USD 120.5 billion for developing 27 industrial clusters and USD 75.3 billion for road, railway, and port connectivity projects.
- Saudi Arabia is working on a lot of residential and commercial projects, which will likely lead to more building in the country.The USD 500 billion futuristic mega-city "Neom" project, the Red Sea Project - Phase 1, which is expected to be completed by 2025 and has 14 luxury and hyper-luxury hotels with 3,000 rooms spread across five islands and two inland resorts, Qiddiya Entertainment City, Amaala - the uber-luxury wellness tourism destination, Jean Nouvel's Sharaan resort in Al-Ula, Ministry of Housing's Sa
- All the aforementioned factors are expected to increase the demand for aluminum composite panels (ACP) during the forecast period.
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Asia-Pacific Region is Expected to Dominate the Market
- The Asia-Pacific region dominated the global market share in the market studied. Factors such as growing construction activities and a preference for low-maintenance building products are favoring market growth.
- The tourism departments of ASEAN countries are making big investments in hotels, which is good for the growth of the market because ACPs are used to decorate hotel rooms and make them look nice.
- The construction sector is a key player in China's continued economic development. The value of construction output accounted for 25.7% of China's GDP in 2021, up from 11.0% in 2020, according to the National Bureau of Statistics.
- According to China's Five-Year Plan, unveiled in January 2022, the construction industry is estimated to register a growth rate of 6% in 2022. Prefabricated parts, which are either partially or wholly manufactured and transported to construction sites for assembly, may account for over 30% of the new construction in the country.
- The Indian government strongly focuses on infrastructure development to boost economic growth. The real estate sector in the country is expected to reach a market size of USD 1 trillion by 2030 while contributing 13% of the country's GDP by 2025.
- Increasing investments in the residential and commercial sectors, as well as strategic initiatives by the Indian government, are expected to boost the construction sector in the country, which is expected to drive the aluminum composite panel (ACP) market in India.
- South Korea produced 3,506,774 vehicles in 2020, a decline of 11.2% compared to the previous year. The decline in production was due to the decrease in domestic sales and imports. However, production increased in the first nine months of 2021 and reached 2,576,501 units. It increased by 1%, with over 2,549,109 vehicles produced in the first nine months of 2020. According to the OICA, automotive production in 2021 stood at 3,462,404 units.
- Hence, with the rapid growth expected in the construction and automotive industries, demand for aluminum composite panels (ACP) in the region is expected to increase drastically over the forecast period.
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