Multi-Metal Aluminum Sandwich Panels Market Expected to Reach $11.4 Billion by 2027

According to a new report published by Allied Market Research, titled, " Multi-Metal Aluminum Sandwich Panels Market by Metal, Foam Material, and Application: Global Opportunity Analysis and Industry Forecast, 2020-2027," the global multi-metal aluminum sandwich panels market size was valued at $7.5 billion in 2019, and is projected to reach $11.4 billion by 2027, growing at a CAGR of 6.8% from 2020 to 2027.

A multi-metal aluminum sandwich panel is any structure made of three layers: a low-density core and a thin skin-layer bonded to each side. It is used in applications where a combination of high structural rigidity and low weight is required. These panels are an example of a sandwich structured composite: the strength and lightness of this technology make it popular and widespread. Its versatility means that the panels have many applications and come in many forms: the core and skin materials can vary widely, and the core may be a honeycomb or a solid filling.

High growth in the construction industry globally is the major driver for the growth of the market. In building and construction, these prefabricated products are designed for use as building envelopes. They appear in industrial and office buildings, clean and cold rooms, and private houses, whether renovation or new-build. They combine a high-quality product with high flexibility regarding design. They generally have good energy-efficiency and sustainability. Sandwich panel construction techniques have experienced considerable development in the past 40 years.

Previously, multi-metal aluminum sandwich panels were considered products suitable only for functional constructions and industrial buildings. However, their good insulation characteristics, versatility, quality, and appealing visual appearance have resulted in a growing and widespread use of the panels across a huge variety of buildings. However, fluctuations in the prices of raw materials are the key restraint hindering the market growth.

The global multi-metal aluminum sandwich panels market is segmented on the basis of metal, foam material, application, and region. 

Based on the metal, the global multi-metal aluminum sandwich panels market is segmented into aluminum, steel, titanium, and others. The plastic additives segment dominated the global market in terms of revenue in 2019, with over two-third of the total share in 2019.

Based on foam material, the global multi-metal aluminum sandwich panels market is segmented into with foam and without foam. With foam multi-metal aluminum sandwich panels is further sub-segmented into aluminum, glass wool, expanded polystyrene, polyurethane, and others. With foam segment dominated the global market, with over five-sixth of the total share in 2019.

Based on application, the global multi-metal aluminum sandwich panels market is segmented into aerospace, architectural, construction, locomotive & automotive, marine, industrial, chemical, oil & gas, and others. Marine application is further divided into military and civil. Construction application dominated the global market, with over three-fifth of the total share in 2019.

Region wise, the multi-metal aluminum sandwich panels market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific accounted for a major multi-metal aluminum sandwich panels market share in 2019, and dominated the global market with more than half of the total market share in 2019.

Key players operating in the global multi-metal aluminum sandwich panels market include Kingspan, Metecno, Isopan, Arcelormittal, Fischer Profil, Isomec, Gcs, Jingxue, Marcegaglia, and Dana Group.

COVID-19 analysis:

COVID-19 is an infectious disease that originated in Hubei province of the Wuhan city in China in late December. According to the International Monetary Fund (IMF), due to the outbreak of novel coronavirus (COVID-19) pandemic, the global economy is expected to shrink by 3.0% in 2020. Many countries are under strict lockdown, which has forced several sectors to shut down their operations. This has halted manufacturing activities and reduced the demand and production of multi-metal aluminum sandwich panels. According to the United Nations Industrial Development Organization (UNIDO), the Micro, Small & Medium Enterprises (MSME) sector across the developing economies, such as India, has been worst affected due to COVID-19 outbreak and the lockdown imposed thereafter. This is expected to decline the demand for multi-metal aluminum sandwich panels. In addition, in the second half of 2020, some countries have started to lift restrictions and gradually start business operations in various sectors. Even with the gradual lifting of the lockdown, it is expected to be challenging for the manufacturing sector to get back to normal working conditions. This is expected to subsequently affect the market growth in coming years. The production of multi-metal aluminum sandwich panels is also likely to hamper during and after the lockdown due to non-availability of workers. According to the UNIDO, 30.0%–70.0% of pre-COVID-19 workforce of multi-metal aluminum sandwich panels manufacturing companies has migrated back to their hometowns due to uncertainties and loss of income during the lockdown. This non-availability or less availability of workforce is expected to directly affect the annual production of multi-metal aluminum sandwich panels. According to the International Aluminum Institute (IAI), the global aluminum production in December 2019 was 5,439.0 thousand metric tons in comparison with 5,317.0 thousand metric tons in June 2020, registering a decline in production rate by 2.24%. The decline in production rate of aluminum was due to supply shortage of alumina and closure of aluminum smelters across the world due COVID-19 outbreak and amid lockdown. Due to unavailability of raw material, the production of multi-metal aluminum sandwich panels has been declined significantly during the first half of 2020. According to the International Aluminum Institute (IAI), in second half of 2020, the global aluminum production in July 2020 was 5,463.0 thousand metric tons in comparison with 5,694.0 thousand metric tons in December 2020, registering a growth in production rate by 4.23%. Due to surge in production of raw material aluminum and the lifting up of lockdown restriction across the developing economies to start the industrial activities is likely to surge the demand for multi-metal aluminum sandwich panels from various industry verticals and is expected to provide huge opportunities to sandwich panels manufacturers to grow and generate maximum revenue. Multi-metal aluminum sandwich panel sandwich can be one of the best options for industrial buildings. The specific demand for energy in the residential and industrial buildings can be significantly reduced with modern insulation. Due to outbreak of COVID-19, the construction industry across the globe has been affected badly as large number of ongoing construction projects has been halted amid non-availability of workers and the disrupted supply chain of construction material. Therefore, the demand for multi-metal aluminum sandwich panels from the construction industry has been declined significantly. The automotive industry has been affected badly amid the lockdown imposed due to the COVID-19 outbreak and has recorded decline in production of vehicles (passenger & commercial) by 20.0% in 2020. Automotive manufacturers have halted their production activities due to disrupted supply chains of automotive components and decline in demand for passenger vehicles across the globe. In addition, manufacturing of railway coaches and locomotive has been declined during the COVID-19 pandemic due to disrupted supply chain of locomotive components and non-availability of the workers. This halted the construction of high-speed locomotive coaches and front cabins of high-speed locomotives and non-structural interior panels. Further, the demand for multi-metal aluminum sandwich panels during the COVID-19 pandemic has been restrained significantly.

Key findings of the study

• In 2019, Asia-Pacific dominated the global multi-metal aluminum sandwich panels market with around 46.3% of the share in terms of revenue.
• The aluminum segment dominated the global multi-metal aluminum sandwich panels market with around 66.2% of the share in terms of revenue.
• The steel segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 13.5% from 2020 to 2027.
• With foam segment dominated the global multi-metal aluminum sandwich panels market with around 81.9% of the share in terms of revenue.
• The construction segment dominated the global multi-metal aluminum sandwich panels market with around 61.1% of the share in terms of revenue.