Growing Demand for Customization of Vehicle Wraps to Provide Good Growth Opportunities for Automotive Wrap Films Market
The growth of the automotive wrap films market is largely influenced by the demand for customization. With a steady growth in GDP per capita among various developed and emerging economies, customers are inclined towards modernizing their vehicles by applying protective yet aesthetically appealing coatings such as automotive wrap films. Moreover, with rise in digital printing technologies, it is possible to deliver automotive wrap films in a better and faster manner. According to FESPA (originally, Federation of European Screen Printers Associations), vehicle wrapping demand will continue to soar providing opportunities for vehicle printing businesses worldwide. Vehicle wrapping will now be looked upon as an application, as automotive wrap films can be used to advertise, especially when applied on commercial and heavy duty vehicles.
In addition, rising demand for longevity and durability of vehicle is likely to spearhead innovations in this space. Manufacturers of automotive wrap films are leveraging digital and self healing technologies to enhance their presence. For instance, Avery Dennison is using digital printing to develop new product lines in the automotive wrap films marketplace.
Light Duty Vehicles Likely to Fuel Demand for Automotive Wrap Films
Use of automotive wrap films in light duty vehicles is expected to increase in the coming years given the customer preference for customized automotive wraps for their vehicles. Moreover, factors such as price compatibility are pushing the millennial customers to opt for various light duty vehicles including cars, SUVs and vans. On the other hand, automotive wrap films market is poised to witness significant contribution from medium duty vehicles with a steady flow in terms of revenue from this space. However, lucrative opportunities lie for manufacturers of automotive wrap films from light duty vehicles with a promising market scenario in the years to follow.
Developed Economies to Cumulatively Dominate the Global Automotive Wrap Films Market; Asia Pacific to Remain an Opportunistic Marketplace
Sales of automotive wrap films in developed economies of North America and Europe region, cumulatively, are expected to hold significant share in the market. This can be attributed towards high demand for matte automotive wrap films, especially matte black and matte orange in North America and textured finish in automotive wrap films in Europe. Additionally, with higher purchasing power parity in these regions coupled with growing GDP per capita is likely to contribute to the growth of the automotive wrap films market from market valuation standpoint. On the other hand, Asia Pacific is likely to remain an opportunistic market place for manufacturers of automotive wrap films. This is mainly due to the growth of the automotive sector in the emerging economies in APAC. According to International Organization of Motor Vehicle Manufacturers, this region is highly lucrative and is expected to hold a significant market share for commercial and passenger vehicles. This aspect continues to provide an impetus triggering demand for automotive wrap films. Moreover, government regulations apropos to green environment have offered good growth opportunities for automotive wrap films, with them being used in various heavy duty vehicles such as trucks, vans and buses.
Automotive Wrap Films Market Competitive Landscape
Manufacturers of automotive wrap films are focusing on key strategies to enhance their market share. Few of the manufacturers, in the wake of rising vehicle ownerships, are providing customizations in their product offerings. Moreover, other strategies circling capacity expansion, such as, new product development, acquisitions, collaborations and mergers are also being used by automotive wrap films manufacturers. In 2020, Arlon Graphics launched a new SLX+ automotive wrap film that features the FLITE Technology. It consists of a fine initial tack along with a quick flow characteristic that facilitates better panel anchoring. In January 2021, ACPO Ltd. was acquired by Avery Dennison. This US$ 87.6 million acquisition was to strengthen Avery Dennison’s leadership. Same year in April, 3M launched the 3M Ceramic Coating, a protective finish that is long lasting and provides high gloss and slick surface that adds to the aesthetics of the vehicle. It also supports in shedding water rapidly along with dust particles. The company also claims that this coating offers high resilience towards acid, salts and other reactive chemicals. In June 2021, Alsa Corporation planned to enter the automotive wrap films market. The company is planning to develop advanced automotive wrap films that withstand scratches and have a matte finish with high durability and yet providing a soft feel.
Overall the automotive wrap films market is expected to remain optimistic, albeit few challenges that are likely to hinder its growth. For instance, technical complexity involved in installation of automotive wrap films on the surface make the process tedious as the film needs to fit perfectly in the space it is allotted for. An error in installation may result in formation of dust layer between the film and the surface in turn killing the purpose of the film functioning, resulting in a dent in customer confidence.
Few of the key players in the automotive wrap films market are 3M Company, Arlon Graphics LLC, Hexis S.A., Avery Dennison Corporation, Ads Window Films Limited, Eastman Chemical Company, Madico Inc., and Foliatec Bohm GmbH & Co. Vertriebs Kg.
The Global Automotive Wrap Films Market Is Segmented As Below:
By Vehicle Type
By Film Type
Key Elements Included In The Study: Global Automotive Wrap Films Market
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