Market Trends of Sandwich Panels Industry
This section covers the major market trends shaping the Sandwich Panels Market according to our research experts:
Industrial Segment to Dominate the Market
- In modern-day construction, the use of high-performance materials is essential. High performance entails that the material is strong, lightweight, and durable and can be used in various applications. For this reliability, sandwich panels can be one of the best options for industrial buildings.
- The vast spectrum of applications includes everything from industrial building construction to insulated roof and wall panels. Sandwich panels are in high demand in industrial applications, particularly in cold storage facilities and warehouses.
- The number of cold storage operations meant to extend and ensure the shelf life of fresh agricultural produce, seafood, frozen food, photographic film, chemicals, and pharmaceutical drugs is rapidly increasing.
- Multinational companies' expansion of retail food chains led to increased demand for cold storage. These factors, in turn, are expected to augment the demand for sandwich panels across the globe.
- The global cold chain logistics market was worth USD 255.82 billion in 2021 and is expected to exceed USD 410 billion over the next eight years.
- The Asia-Pacific cold chain logistics market was valued at USD 68.97 billion in 2021, compared to USD 61.75 billion in 2020. Over the next six years, this market is expected to reach just under USD 134 billion.
- The European cold chain logistics industry was valued at more than USD 85 billion in 2021 and is predicted to grow to USD 112.8 billion by 2025. The temperature-controlled items movement along a supply chain utilizing chilled packaging solutions to protect the quality of products such as fresh agricultural commodities, seafood, frozen food, or pharmaceutical products. It is known as cold chain logistics.
- According to the Indian Pharmaceutical Association, pharmaceutical items accounted for over two-thirds of India's cold chain storage by 2021. Due to cheap manufacturing costs and government subsidies, India includes the world's third-biggest pharmaceutical business.
- All the above factors are expected to drive the industrial segment, enhancing the demand for sandwich panels during the forecast period.
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Asia-Pacific Region to Dominate the Global Market
- Asia-Pacific region is expected to dominate the global market due to the high demand from countries such as China, India, and Japan.
- China is one of the major countries in Asia-Pacific with ample construction activities, with the industrial and construction sectors accounting for approximately 50% of the GDP.
- According to China Construction Industry Association, in 2021, residential buildings accounted for a significant share of finished construction in China. Buildings intended for housing accounted for over 67% of finished floor space. As the country's economy grows, people migrate from rural regions to major cities, increasing demand for residential accommodation in these locations. Furthermore, flats utilized as investment properties also drive up demand.
- In India, in the next 4-5 years, INR 21,000 crore (USD 2.53 billion) is planned to be invested in setting up or upgrading cold storage to address the stockpiling perishable commodities problem. There is an urgent need to upgrade the existing cold storage plant machinery and technology.
- Japan's construction sector is expected to expand moderately over the next five years, owing to increasing public and private infrastructure investments, renewable energy, and commercial projects.
- According to The Ministry of Land, Infrastructure, Transport, and Tourism (Japan), building construction investments in Japan were over JPY 42.6 trillion (USD 319.93 billion) in the fiscal year 2021. Most of the investments were made that year to construct residential houses. Building construction investment raised to JPY 43.4 trillion (USD 325.93 billion) in the fiscal year 2022.
- Thus, all the above factors will likely increase demand for the sandwich panels market during the forecast period.
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