Automotive Wrap Films Market Size & Trends

2023-05-23

The global automotive wrap films market size was estimated at USD 7.11 billion in 2023 and is anticipated to grow at a compound annual growth rate (CAGR) of 22.1% from 2024 to 2030. Automobile wrap films have numerous benefits such as maintaining vehicle paints, enabling color option flexibility, and removing the need for an entire paint makeover, hence supporting the global growth of the automobile wrap film sector. The benefits provided by automotive wrap films in the form of preserving vehicle paints, allowing flexibility in color selection, and eliminating the requirement for a complete paint makeover, thus fueling the growth of the market across the globe.

North America Automotive Wrap Films market size and growth rate, 2024 - 2030

North America market is characterized by various manufacturing industries, as a result of the increased emphasis on research and development, combined with favorable government initiatives to attract investments in automotive industry, which is likely to result in regional market expansion. The effectiveness of these initiatives is measured by global positioning satellite tracking systems, which provide specific vehicle information. As a result, automobile wrap films are widely used for mobile marketing throughout the region.

Moreover, increasing demand for color wraps, including matte black and matte orange, in North America, is expected to drive the market over the forecast period. Heavy vehicles such as buses and large vans used for tourism use wrap films for promotions. The need to protect the vehicle’s original paint for an extended time is further spurring the demand for these films.

Futhermore, the growing consumer demand for customizing vehicles fuels the market for wrap films in a variety of colors, coatings, and textures. The growing automotive industry on account of electric vehicles across the globe, especially in Mexico and the U.S., on account of the increasing demand for compact family cars from the middle-class population is expected to positively impact the demand for wrap films in the automotive industry.

Market Concentration & Characteristics

Market growth stage is high, and pace of the market growth is accelerating. The automotive wrap films market is characterized by a high degree of innovation owing to the rapid technological advancements driven by factors such as advancements in the production of wrap films, the availability of raw materials, and increasing plastic consumption across automotive interior and exterior applications. Subsequently, innovative wrap film applications are constantly emerging, disrupting existing industries and creating new ones.

Automotive Wrap Films Market Concentration & Characteristics

The automotive wrap films market is also characterized by a high level of merger and acquisition (M&A) activity by the leading players in the region. This is due to several factors, including the desire to gain access to new production technologies and talent, need to consolidate in a rapidly growing market, and increasing strategic initiatives of wrap films in the automotive industry.

The automotive wrap films market is also subject to increasing regulatory scrutiny. The market is subject to numerous regulations, guidelines, and restrictions regarding wrap film production and its applications owing to the toxic nature of raw materials such as polyvinyl chloride, coupled with certain health hazards of improperly disposed products and over-exposure to chemicals contained in these films.

There are a limited number of direct product substitutes for wrap films in automotive industry. However, there are several technologies that can be used to achieve sustainable outcomes to wrap films, such as Silicone and bio-degradable films. These substitutes can be used in certain applications, but they typically do not offer the same level of performance or flexibility as wrap films.

End-user concentration is a significant factor in the automotive wrap films market. Since there are several end-user industries that are driving demand for wrap films in the automotive industry. The concentration of demand in a small number of end-user industries creates opportunities for companies that focus on developing wrap filmsolutions for the automotive industry. However, it also creates challenges for companies that are trying to compete in a crowded market.