Aluminum Cladding Market Trends

Growth Drivers

• Increasing use in green building: The sustainability and green building trend is positively influencing the demand for aluminum cladding in construction. Compared to other materials such as plastic and wood, aluminum is recyclable, lightweight, and effectively aids in mitigating carbon footprint. Recycling of aluminum cuts costs up to 92% associated with the primary production of aluminum. Leadership in Energy and Environmental Design (LEED), Green Globe, and International Green Construction Code (IgCC) are some of the green building certifications fueling the use of sustainable construction materials such as aluminum sheets and panels.
  
  Many aluminum cladding product manufacturers earn high profits by aligning with the sustainability trend. For instance, in July 2024, Compagnie de Saint-Gobain SA one of the leaders in sustainable construction materials revealed that it captured a record operating margin of 11% in the first of FY 24. Through its 3 strategic acquisitions (Bailey, CSR, and FOSROC) it added USD 2.09 billion to the annual sales and around 441.5 million in EBITDA.
• Technological innovations: The ongoing innovations in aluminum cladding in terms of improving its durability, weather resistance, and customizations are expected to boost global aluminum cladding market growth during the forecast period. Furthermore, the growing trend of smart buildings integrated with advanced materials and systems is augmenting the demand for aluminum cladding for use in solar panels, smart lighting, and walling. The rising construction of high-rise buildings such as skyscrapers is also driving the demand for lightweight aluminum cladding products such as panels and sheets.
  
  For instance, the New York State government invested around USD 50 million in the Empire Building Challenge (EBC) to establish different ways to achieve carbon neutrality in tall buildings. This investment move is expected to align with the Climate Leadership and Community Protection Act’s goal of mitigating 85% of greenhouse gas emissions by 2050. Such investments are set to drive the use of sustainable materials such as aluminum claddings in the coming years.

Challenges

• Rising preference for cost-effective alternatives: The aluminum cladding market growth can be hampered due to the growing preference for alternative materials. Materials such as cement, fiber, and PVC are cost-effective and more durable in certain conditions compared to aluminum. Cement, for instance, can withstand adverse weather conditions, including fire. These features can appeal to end users to employ alternative construction materials, limiting the sales of aluminum cladding panels and sheets.
• Supply chain disruptions: Fluctuations in the supply chain due to factors such as raw material costs and trade restrictions can hinder the aluminum cladding market growth to some extent. Supply chain disruptions often lead to delays in final product availability, which can make aluminum a less attractive option in the construction sector.