As the construction and infrastructure industries grow rapidly, so does the demand for sustainable materials that can strengthen its position. Therefore, it is won’t be a stretch to say that the future of ACM panels is beyond bright. These are flat panels that are made of two aluminum-based sheets which are bonded with a core material.
According to the global market statistics, the market is expected to grow by a whopping $8.7 billion in the next six years. Due to the fact that the cladding material is weather and fire-resistant, its usefulness for external/internal wall cladding, flooring, and ceilings has made it a prime resource in the construction industry. Moreover, the increase in car production in emerging countries across the globe besides Canada is only strengthening the market.
That’s because, besides durability, ACM panels can be recycled for automotive aluminum scrap which is only going to benefit the automotive industry. The fact that this cladding material is eco-friendly has made it quite popular in today’s markets. It will fuel product demand in the future as well. It offers sound and thermal insulation besides an aesthetic quality, which will increase its use in modern construction and architecture down the line.
The market for ACM panel is moving towards a consolidation because of the increase in demand and its multi-faceted uses. However, competitive pricing models and lack of process integration may keep the competition and rivalry high in the market.
Currently, the largest consumers of ACM panels are located in the Asia Pacific such as China, India, Australia, and Japan, which also happen to be the major markets. The rapid growth of the industry has improved financial conditions in the countries which have, in turn, increased construction for residential as well as non-residential buildings. A rise in the population and the rapid economic expansion in the regions are also factors to be considered.
China has the lion’s share of the ACM panels market in the Asia Pacific which is understandable if we examine its economic history. Following the recession, which spanned from 2007 to 2009, there was a rapid increase in the demand for low-maintenance building supplies and products in the country. The presence of a number of leading players is also increasing the market in the region at a rapid pace.
Besides being eco-friendly, ACM panels are also used to insulate commercial buildings, food, and beverage stores, and also homes. These are also being used in the advertising industry as well as lighter and cost-effective alternatives for heavier substrate options. Even though recent restrictions on PE (polyethylene cores) in the US and Germany are threatening market participants, the demand for these panels will only continue to grow with the development of fireproof cores.