Automotive Wrap Films Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, Canada, China, Germany, UK - Size and Forecast 2023-2027

Automotive Wrap Films Market Forecast 2023-2027

The Global Automotive Wrap Films Market Size is estimated to grow by USD 6.33 billion at a CAGR of 17.32% between 2022 and 2027. Adverts displayed on automotive are effective at attracting audience attention, offering notable cost savings compared to re-spraying and conventional advertising methods. Moreover, these enhance the resale value of vehicles, driving market growth. However, challenges arise as these films demand regular maintenance and are susceptible to fluctuations in raw material prices. Additionally, the market faces obstacles due to limited consumer awareness.

Advertisements on automotives help capture audience attention is a major factor driving market growth.  Wrap films on automobiles are becoming a popular mode of advertising as they increase visibility among the target audience. They are particularly effective in sports cars, non-traditional vehicles, and heavy equipment, as well as service vehicles such as fire and emergency services vehicles. Customized vehicle wraps with unique textures and finishes, such as wood grain, brushed metal, and leather, are gaining popularity worldwide. These developments are expected to drive the growth of the global market during the forecast period.

What will be the Automotive Wrap Films Market Size During the Forecast Period?

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The market is experiencing significant growth due to the increasing popularity of vehicle wrapping as a cost-effective and creative alternative to traditional painting methods. Vehemently, Color and Mobility are key players in this industry, offering a variety of film types such as cast and calendared films, as well as textured and metallic finishes. These films provide protection against UV rays, scratches, and weather conditions, making them an attractive option for automotive enthusiasts and businesses alike. Additionally, the use of wrap films for advertising purposes has surged, with companies recognizing the potential for mobile billboards. The production process involves careful application and cutting to ensure a flawless finish. The market is expected to continue expanding, driven by technological advancements and the growing demand for customization in the automotive sector.

Market Segmentation

The market is experiencing significant growth due to the increasing popularity of vehicle wrapping as a cost-effective and creative alternative to traditional painting methods. Vehemently, Color and Mobility are key players in this industry, offering a variety of film types such as cast and calendared films, as well as textured and metallic finishes. These films provide protection against UV rays, scratches, and weather conditions, making them an attractive option for automotive enthusiasts and businesses alike. Additionally, the use of wrap films for advertising purposes has surged, with companies recognizing the potential for mobile billboards. The production process involves careful application and cutting to ensure a flawless finish. The market is expected to continue expanding, driven by technological advancements and the growing demand for customization in the automotive sector.

Application Analysis

The vehicle wrap film market share growth by the light-duty vehicles segment will be significant during the forecast period. Light-duty vehicles primarily include light-duty trucks and passenger cars. Wrap advertising on these vehicles is used to promote small to medium businesses.

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The light-duty vehicles segment showed a gradual increase in the market share of USD 1.61 billion in 2017 and continued to grow until 2021. Strategically, these films offer UV protection, heat reduction, glare reduction, enhanced privacy, and safety and security. Nano-ceramic films, self-healing coatings, smart films, and switchable films are advanced options. Opacity levels vary, with radar sensors and anti-glare films available. Installation complexity is manageable for automotive wrap films, which are popular for advertising on passenger cars, LCVs, and HCV, including light-duty trucks. This market includes cast film and calendared films, used for tinting exterior parts of passenger cars, luxury vehicles, and commercial vehicles like LCVs and HCV. OOH advertising through automotive window films and exterior parts is a growing trend, with tinting regulations and reflectance affecting market size. MRFR Database and analyst review provide further insights.

Compared with full-body paints, these are easier to change and update. These vehicles are popular among small business owners as they are affordable, impactful, and provide professional solutions for advertising. The growth of this segment is driven by the high penetration of passenger cars in many regions and their rising sales in various countries.

Type Analysis

During the forecast period, the cast film type segment dominated the global automotive wrap film market due to its durability and excellent conformability to substrates. The market encompasses the use of cast films for vehicle customization. These films offer superior optical properties, durability, and easy application, making them popular in the automotive industry. However, their high cost is a limiting factor. Cast films, with a thickness range of 20-200 microns, provide color option flexibility for a paint makeover, enhancing the esthetics of automobiles. The market growth is driven by mobile marketing opportunities, color wraps, and customization trends. End-users include passenger cars, buses, and industrial sectors. Raw materials like polyvinyl chloride and production technologies are crucial. Talent and regulatory scrutiny impact the market, with regulations and guidelines restricting the use of certain materials, such as health hazardous PVC and direct product substitutes like silicone and bio-degradable films.

Key industries include safety and graphics, electronics & energy, and specialty papers, with leading companies focusing on self-adhesive products and thin plastic films. Applications extend to heavy vehicles, buses, and electric vehicles, with color options ranging from matte black to matte orange.

Geographical Analysis

North America is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The US was the primary revenue generator for the North American automotive wrap film market in 2022. The automobile wrap films market in North America experienced significant growth in 2022, with the US being the major revenue contributor. This was due to the large number of passenger vehicles on the road, the preference for personal vehicles over public transport, and the increasing adoption of luxury and sports cars. In 2021, US automotive sales exceeded 15 million units, with a notable share attributed to luxury cars. The market is driven by the flexibility of color options for vehicle customization, paint makeovers, and mobile marketing. Color wraps, including matte black and matte orange, are popular choices for heavy vehicles, buses, and large vans in the tourism industry. The automotive industry's focus on customizing vehicles and the increasing popularity of electric vehicles contribute to market growth. Raw materials, such as polyvinyl chloride, and production technologies are essential factors in the market. Talent acquisition and regulatory scrutiny, including guidelines and restrictions, are also crucial considerations.

Direct product substitutes, such as silicone and bio-degradable films, are emerging trends. End-user concentration is high in passenger car applications and buses applications, with industrial sectors, pressure-sensitive materials, safety and graphics, electronics & energy, specialty papers, self-adhesive products, and thin plastic films being key industrial sectors. Leading companies in the market include Avery Dennison Corporation, 3M Company, and Hewlett-Packard Company. The growth of end-user industries in the automotive sector is also driving the demand for vehicles, which facilitates advertising through its use. This is driving the growth of the vehicle wrap film market in the region.

Market Dynamics and Customer Landscape

The market is experiencing significant growth driven by several key drivers and trends. Firstly, the increasing popularity of vehicle customization and personalization among consumers is propelling demand for automobile wrap films. These films offer a cost-effective solution for altering the appearance of vehicles while preserving the original paint underneath. Additionally, the rise of out-of-home (OOH) advertising and the effectiveness of vehicle advertising as mobile billboards are driving the adoption of wrap films for advertising purposes. Furthermore, advancements in technology and manufacturing processes, such as the production of bio-degradable films and the development of innovative wrap film solutions, are fueling market growth and attracting consumers concerned about environmental impact.

Moreover, the expansion of the automotive industry, particularly in electric vehicles (EVs) and heavy vehicles like buses and large vans, presents lucrative opportunities for the market. As manufacturers seek to differentiate their products and enhance brand visibility, the demand for customized wrap film solutions is expected to surge. Additionally, the trend of mergers and acquisitions (M&A) activity within the industry is reshaping the competitive landscape and driving innovation as companies strive to expand their product portfolios and geographic presence. Overall, with the increasing adoption across various vehicle types and the growing emphasis on personalization and advertising, the market is poised for continued growth in the forecast period.

Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Drivers

The market is being propelled by a significant cost reduction compared to re-spraying and traditional advertising methods, which serve as a primary market driver. While vehicle re-spraying can be time-consuming, taking up to four weeks, applying full wraps on electric vehicles typically requires only about two days. This efficiency contributes to cost savings for both vehicle owners and advertisers. Traditional advertising through print and broadcast media often comes with high costs and uncertain consumer reach. In contrast, these offer a more affordable alternative with predictable visibility. With a well-made full wrap costing between USD 1,500 to USD 2,500, it presents a cost-effective solution compared to prime-time television and radio ads.Advanced technologies such as nano-ceramic films, self-healing coatings, smart films, and switchable films are also gaining popularity. Installation complexity, tinting regulations, and reflectance are important factors to consider. Automotive window films and exterior parts, particularly in luxury vehicles, are significant market segments. MRFR Database and Analyst Review report on the market trends, covering cast film, calendared films, passenger cars, LCVs, HCV, and OOH advertising. Safety films and radar sensors are also relevant to the market. Anti-glare films are essential for ensuring optimal driver visibility. Additionally, the durability, lasting six to eight years, ensures long-term value for consumers, further driving market demand during the forecast period.

Significant Market Trends

The growing popularity of motorsports is a major market trend. Motorsports, a popular global competitive event, includes vehicles such as cars, bikes, boats, and snowmobiles, with cars being the most commonly used. Advertising, broadcasting, merchandising, and sponsorship are key reasons for using these in motorsports. Europe has the largest market share, and it hosts Formula One racing events. Automotive window films and tinting regulations play a crucial role in the market's growth. Reflectance and opacity are essential factors in the selection of automotive wrap films. Advanced films, such as anti-glare films and switchable films, offer improved safety and privacy. MRFR Database and Analyst Review report that cast films and calendared films are the primary types of automotive wrap films. The market for automotive wrap films is expected to expand, driven by the growing popularity of OOH (Out-of-Home) advertising and the increasing demand for safety films. Installation complexity and tinting regulations may pose challenges to the market's growth. The inclusion of EVs in Formula One under Formula E is supported by governments promoting sustainable solutions, creating opportunities for the global market to grow during the forecast period.

Major Market Challenges

Automotive wrap films require regular maintenance which is a major factor hindering the market growth. Regular maintenance ensures that they withstand extreme environmental conditions. Improper or lack of maintenance can cause premature degradation of vehicle wraps. These wraps are susceptible to damage caused by bird droppings, dirt, tree sap, and other contaminants. Additional waterless cleaners or spray wax are required for cleaning, which increases maintenance costs. Vehicles featuring these film wraps must ideally be parked in the shade or a garage. Consumers and vehicle owners consider the complexity of maintaining these films, which include nano-ceramic films, self-healing coatings, smart films, and switchable films, a significant barrier. Key benefits include glare reduction, enhanced privacy, and UV protection for exterior parts, particularly on luxury vehicles and OOH advertising. MRFR Database's Analytical Review highlights the importance of opacity, reflectance, and tinting regulations. Cast Film and Calendered Films are used in Passenger Cars, LCVs, and HCVs. UV protection, heat reduction, and safety films are essential for advertising and tinting regulations. Installation complexity and the need for anti-glare and radar sensor-compatible films are ongoing considerations. Complexity in the maintenance of these has been keeping many vehicle owners from adopting wrap films. Thus, this poses a challenge to market growth during the forecast period.

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Who are the Major Automotive Wrap Films Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. One of the major companies in the market include:

Eastman Chemical Co.- The company offers a wide range of industry-leading aesthetic solutions fit for the forward-thinking clinician and practice owner, from hair removal and body sculpting to women's wellness.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• 3M Co.
• A.P.A. Spa
• ACI Dynamix
• ADS Window Films Ltd.
• Arlon Graphics LLC
• Avery Dennison Corp.
• Compagnie de Saint Gobain SA
• Exotic Vehicle Wraps
• FILMTACK Pte. Ltd.
• GARWARE HI TECH FILMS Ltd.
• Global Pet Films Inc.
• HEXIS Co.
• Johnson Window Films Inc.
• LINTEC Corp.
• NEXFIL Co. Ltd.
• ORAFOL Europe GmbH
• Rayno Window Film
• VViViD Vinyl Inc.
• FOLIATEC Bohm GmbH and Co. Vertriebs KG

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified. Furthermore, it is also quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook 
  • Light-duty vehicles
  • Medium-duty vehicles
  • Heavy-duty vehicles
• Type Outlook 
  • Cast film
  • Calendered film
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

The Market is witnessing significant growth, driven by factors such as Innovation in film types like window films and tints, automotive paint protection, and automotive wrapping. This growth is also fueled by increasing Government initiatives and Regulatory scrutiny towards vehicle aesthetics and safety. The market caters to various vehicle types, including Passenger Vehicles and Commercial Vehicles, with a focus on Passenger car applications and Buses application. Matte black and matte orange are popular choices, reflecting consumer preferences for unique and stylish finishes.

The market refers to the industry that produces and supplies wrap films for the automotive sector. These films are utilized for various purposes such as protective coating, advertising, and customization of vehicles. The Vehicle Wraps segment is a significant part of this market, offering solutions for painting vehicles with colorful and eye-catching designs. Colors play a crucial role in this market, with Black, White, and Metallic being the most popular choices. The Flexible Nature of these films makes them easy to apply and remove, providing a cost-effective solution for vehicle owners. The Market for these films is growing due to the increasing trend of personalizing vehicles and the need for protective coatings. The Colors, Markets, and vehicle types are major segments in this industry, with the Color segment showing significant growth due to the increasing demand for unique and eye-catching designs. The Market for these films is expected to continue its growth trajectory in the coming years, driven by the increasing demand for customization and protection of vehicles.

Automobile wrap types are driving the market's rapid expansion, according to recent chemicals and materials research. Among film types such as window films, automotive paint protection films, and automotive wrapping films, the latter emerges as a significant contributor to growth. Particularly, in the passenger vehicles segment, they are gaining prominence for their protective and aesthetic qualities. The North America market leads the pack, followed closely by Asia-Pacific, Europe, South America, and the Middle East and Africa. Manufacturing industries are increasingly investing in advanced technologies to meet the rising demand for these versatile films. With research shedding light on their applications and benefits, the market anticipates sustained growth, propelled by innovation and expanding consumer preferences.

In the automotive industry, vehicle paints have long been the primary method for enhancing aesthetics and protecting vehicles from environmental elements. However, with the emergence of innovative technologies and changing consumer preferences, automotive films are reshaping the way vehicles are customized, marketed, and protected. One of the key advantages of automotive films is the flexibility they offer in terms of color options and customization. Unlike traditional paint, which is often limited to a specific color palette, automotive ones provide a wide range of color wraps and finishes, allowing vehicle owners to personalize their cars according to their preferences and style.

The automotive wrap film sector has witnessed significant growth, driven by the demand for mobile marketing and vehicle customization. Businesses and individuals alike are leveraging color wraps as a cost-effective and attention-grabbing advertising tool, using large vans and other vehicles as mobile billboards to promote products, services, and events. Tourism is another sector benefiting from the versatility of automotive films, with companies using custom wraps to showcase local attractions and landmarks on compact family cars and other vehicles. This not only promotes tourism but also enhances the visual appeal of vehicles and creates a unique branding opportunity. Technological advancements in automotive ones have led to the development of bio-degradables and nano-ceramics, offering enhanced safety, security, and environmental sustainability. These films provide UV protection, heat reduction, glare reduction, and enhanced privacy while also reducing the vehicle's carbon footprint.

End-user concentration in the market varies depending on factors such as personalization preferences, market growth stage, and distribution channels. Compact family cars and large vans are popular choices for vehicle customization, while electric vehicles (EVs) and autonomous vehicles (AVs) present new opportunities for integrating smart films and self-healing coatings. Safety and security are paramount considerations in the automotive films market, with consumers seeking films that offer protection against UV rays, heat, glare, and nighttime visibility issues. Smart films, or switchable films, provide additional benefits such as opacity control and sun-blocking features, enhancing comfort and convenience for vehicle occupants.

Despite the benefits of automotive films, challenges such as installation complexity and the risk of bubbles remain. Automotive manufacturers are investing in research and development to improve film installation techniques and enhance product performance, ensuring a seamless and bubble-free finish for consumers. In conclusion, automotive films are revolutionizing vehicle aesthetics and functionality, offering a versatile and customizable solution for vehicle owners, businesses, and industries. With continued innovation and advancements in technology, the automotive films market is poised for sustained growth and expansion, driving new opportunities for personalization, marketing, and protection in the automotive industry. 

Market Scope
Report Coverage	Details
Page number	170
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 17.32%
Market growth 2023-2027	USD 63.28 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	16.2
Regional analysis	North America, APAC, Europe, Middle East and Africa, and South America
Performing market contribution	North America at 36%
Key countries	US, Canada, China, Germany, and UK
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
Key companies profiled	3M Co., A.P.A. Spa, ACI Dynamix, ADS Window Films Ltd., Arlon Graphics LLC, Avery Dennison Corp., Compagnie de Saint Gobain SA, Eastman Chemical Co., Exotic Vehicle Wraps, FILMTACK Pte. Ltd., GARWARE HI TECH FILMS Ltd., Global Pet Films Inc., HEXIS Co., Johnson Window Films Inc., LINTEC Corp., NEXFIL Co. Ltd., ORAFOL Europe GmbH, Rayno Window Film, VViViD Vinyl Inc., and FOLIATEC Bohm GmbH and Co. Vertriebs KG
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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