PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1576981
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1576981
Global sandwich panel market size was valued at USD 7.69 billion in 2023, which is expected to grow to USD 13.70 billion in 2031, with a CAGR of 7.75% during the forecast period between 2024 and 2031. The booming non-residential construction activities at the global level are driving the growth of the market. For instance, according to the recent report published by GCP Global, the global construction industry, including non-residential construction projects, will reach USD 8 trillion by the end of 2030.
The significant increase in activities concerning construction and infrastructural development, especially across Asia-Pacific, is fostering revenue expansion in the sandwich panels market. For instance, as of December 2023, the Penang Chip Packaging Facility in Malaysia is under the construction phase. The construction of the project will be completed by the end of 2024.
Construction activities, including office complexes, distribution centers, residential home projects, factories and warehouses, and others, are growing due to various factors, including increased commercial infrastructure spending and strong demand for construction. Hence, the rise in non-residential construction activities is fueling the demand for sandwich panels as it ensures high-performance and thermal-humidity insulation and waterproofing, which, in turn, accelerates the growth of the market in the forecast period.
In addition, the initiatives by governments globally for the development of affordable housing projects, investments in warehouse facilities by companies, increasing demand for larger living spaces, and the development of high-rise residential buildings are the key trends propelling the surge in the development of new residential projects. For instance, in June 2024, Coldxpress Refrigerated Transport VIC Pty Ltd. announced it would expand its operations by bringing sustainable cold storage solutions to its clients. The new facility in Rowville is being built as a prevailing 8000 square meters warehouse and ultimately will be a 12,000 pallet position cold storage facility featuring high-quality fire retardant insulated sandwich panels. Therefore, booming residential and non-residential construction activities are fostering the demand for sandwich panels to prevent mold and humidity. This prominent aspect is thriving the growth of the market.
The development of a new range of sandwich panels with improved performance efficiency will create a lucrative growth outlook for market growth in the long run. For instance, in March 2024, Kingspan Holdings Limited announced that Terasteel S.A., the Romanian division of Kingspan Group, will soon open a new sandwich panels factory in Lehliu Gara, Calarasicounty, strengthening its market presence in Romania, Bulgaria, Moldova, and Ukraine.
Rising Number of Construction Projects is Augmenting Market Growth
The demand for sandwich panels is rising significantly due to the growing number of construction projects that use speed installation and offer better insulation compared to other systems. Sandwich panels are used on roofs and facades, and they can be found for interior partitions that demand insulation. Additionally, sandwich panels are highly energy-efficient and ensure minimized smoke contamination when non-combustible insulation is deployed, accelerating the growth of the global sandwich panel market in the forecast period. In addition, sandwich panels are considerably utilized in construction projects, including industrial buildings, residential buildings, factories, warehouses, public buildings, and purification projects. Furthermore, the increasing partnership projects among key players, the surging government funding for the development of commercial buildings, and the rising renovation activities related to public buildings are some of the prime aspects spurring the development of construction projects, driving the demand for sandwich panels globally.
In August 2024, Rautaruukki Corporation partnered with Logicenters to develop a logistics center in Tampere, Finland. The facility will utilize innovative Ruukki LowCarbon products, including 10,000 square meters of sandwich panels made from next-generation SSAB Zero steel and 500 square meters of design profiles crafted from SSAB Fossil-free steel.
Recent Product Innovations Related to Sandwich Panels is Supplementing Market Growth
The sandwich panels market is experiencing growth due to recent product innovations and technological advancements. These innovations include the development of recyclable and bio-based sandwich panel solutions, as well as the integration of advanced technologies like 3D printing and smart materials, particularly in the aerospace industry. Moreover, according to the U.S. Census Bureau, construction spending in North America reached USD 1,428.5 billion in the first eight months of 2024, marking a 7.6% increase from USD 1,327.0 billion in 2023. This growth is driven by advancements in construction technologies, including enhanced bonding techniques and eco-friendly materials, supported by government initiatives like the U.S. Department of Energy's Building Technologies Office, expanding the application range. Also, the increasing demand for lightweight materials and the rising need to reduce fuel consumption and emissions in construction projects are expected to drive the demand for sandwich panels in the upcoming years. As a result, the leading manufacturers of sandwich panels are developing a new range of products to increase their market share at the global level.
For instance, in June 2023, the Gill Corporation, headquartered in the United States, introduced a new range of sandwich panels named Gillfab 4037. The Gillfab 4037 sandwich panel is composed of a Dura-Core II aluminum honeycomb core and 7581 fiberglass cloth-reinforced epoxy laminate facings. The sandwich panel is designed for non-structural interior applications in business aircraft. Henceforth, the recent innovations associated with the sandwich panels equipped with superior efficiency and durability will boost the demand for panels with different applications, thereby creating a prominent potential for market growth in the forecast years.
Non-Residential Dominates Global Sandwich Panel Market Share
Non-residential dominates the share of the global sandwich panel market owing to an increase in the establishment of distribution centers, rapid economic development, and a significant rise in demand for efficient industrial spaces. A significant shift in the preferences of consumers drives the demand for shopping malls and supermarkets, which further increases the demand for sandwich panels in emerging countries. In addition, the rising investment by governments of different regions in setting up different commercial showrooms and offices, coupled with sports facilities, is another key driver to accelerating the demand for sandwich panels across the globe. Furthermore, different applications within the non-residential construction sector underline the rising requirement for sandwich panels, propelled by the growing requirement for efficient, cost-effective building solutions in different industries. Also, companies in the market are planning to invest in the development of sustainable sites to expand their market presence and reduce carbon emissions.
For instance, in June 2024, Tata Steel Limited announced a USD 13.01 million investment in its Corby tube-making works following the sale of redundant land. The complex 99-acre site will become a logistics hub, featuring over 18,000 square meters of Trisomet insulated panels for faster installation and enhanced water drainage and strength performance.
Europe to Dominate the Global Sandwich Panels Market Share
The market for sandwich panels is increasing in Europe due to the growing demand from the building and construction industry and the presence of giant sandwich panel companies, including ArcelorMittal SA and others. For instance, in August 2024, the French building materials company, ArcelorMittal was awarded the smarter E AWARD 2024 for its solution for heat-insulating standing seam sheet metal roof elements which are better known as sandwich roof panels that are efficiently used to integrate high-performance photovoltaic (PV) modules.
Additionally, the increasing construction of residential buildings is contributing to market growth in the forecast period. The increasing government investments in the development of new infrastructure projects and surging public-private partnerships for residential construction projects are boosting the revenue growth of the building and construction industry across Europe, thereby fostering the growth of the market. Furthermore, companies in Europe sandwich panel market have announced the establishment of new and advanced manufacturing facilities, addressing the rising demand for high-performance sandwich panels.
For instance, in May 2024, Assan Panel A.S. revealed plans to build its first manufacturing facility at Freeport East in the United Kingdom, with an investment of USD 48 million. The plant is expected to be operational by Autumn 2025, producing sandwich panels with PIR, mineral wool, or polyurethane.
Future Market Scenario (2024 - 2031F)
Sustainable building and construction materials will scatter the market in prospects.
Government initiatives for new residential projects, especially in Middle Eastern, Asia-Pacific, and Latin American regions, will boost the demand for sandwich panels, thereby spurring market growth at the global level.
Expanded Polystyrene (EPS)-based sandwich panel will capture further traction to upscale market growth in the upcoming years.
Growing demand for larger commercial spaces in Europe, along with America, will supplement the growth of the market in the long run.
Key Players Landscape and Outlook
Companies in the global sandwich panels industry are actively leveraging their technical potential and expertise for the development of a new range of products related to sandwich panels and increasing their research and development (R&D) capabilities to expand their revenue share in the global sandwich panel market. These strategies are elevating the sandwich panels market competition among the key players at the global level.
In June 2024, Kingspan completed the acquisition of a Thailand-based manufacturer of insulated panels, FatekAdvance Insulation Company. The facility in the Rojana Industrial Park Ayutthaya has been renamed Kingspan Insulated Panels (Thailand) Co, Limited. They aim to manufacture sandwich panels together.
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