Published On: February 2018
Paint Protection Film: Market Introduction
Paint protection film is a transparent polyurethane film specially designed to maintain the beauty and integrity of automotive finishes. This film helps in preserving vehicle’s paint finish from extreme weather condition and other potential sources of damage on the roads which include road debris, sand, stones, and bug acids that may pose potential damage to the paint. Passenger car sales have registered exponential growth in the past few years on account of increasing demand for personal vehicles. Moreover, demand in this market is growing year by year owing to strong growth in numerous end-user industries. The overall paint protection film market project strong gains in demand in the automotive as well as electrical & electronics industry. On the other hand, high installation cost associated with the product is predicted to limit the gains in the upcoming years. Furthermore, rising maturity of established markets such as the U.S., Canada, and Germany is estimated to provide above-average growth on account of shifting manufacturing bases to Asia Pacific region.
Emerging paint protection film application in aerospace and electronics sector
Importance of paint protection film has been recognized in electrical & electronics sector in the past few year. It is gaining prominence in electronic items due to the need of protecting devices from damage. The government of emerging economies has set up Special Economic Zones (SEZs) and Electronic Hardware Technology Parks (EHTPs) and has brought about a favorable atmosphere for Foreign Direct Investment (FDI). This factor increased the liberalization and relaxed tariffs to boost growth in the sector. Moreover, the government of India offers Modified Special Incentive Package Scheme (MSIPS) in which the government is predicted to provide up to USD 1.7 Billion to the electronics sector in the upcoming five-year plan. The increasing consumer base and the growing penetration in consumer durables has offered sufficient scope for the growth of electronics sector across the emerging economies. Moreover, in recent years civil aviation has emerged as the one of the fastest increasing sectors in the developing countries. In countries such as India, China, Qatar, and Thailand the aviation industry has ushered in a new era of expansion, predominantly driven by various factors such as advanced information technology, modern airports, foreign direct investment (FDI), low-cost carriers (LCCs) and rising emphasis on regional connectivity. Increasing air traffic across the emerging economies along with rising tourism activities is estimated to propel the demand for new jets which in turn is predicted to fuel the growth of the paint protection film market over the next few years.
Improved living standard & its impact on the global growth
Continuous improvement in the global standard of living combined with rising per capita disposable income is found to be directly proportional to the demand of this market. Most of the developed and developing countries have experienced positive growth in their living standard which has increased the consumer spending of the majority of the population. With this above-mentioned reason, the middle-class population has increased spending on aesthetic applications, decorative articles, and smart gadgets such as mobile phones and tablets. This combined effect of spending on electronics item is predicted to drive the demand for paint protection film.
Competition scenario:-tier-1 players are holding over 60% global market share, while the rest is distributed among relatively small players
As per our analysis, the market consists of several leading players, which are enjoying a significant share of the market and gathering considerable revenue each year in this particular product segment. The important manufacturers which are operating in the market are 3M (U.S.), Eastman Chemical Company (U.S.), Avery Dennison Corporation (U.S.), HEXIS S.A. (France), PremiumShield (U.K.), XPEL TECHNOLOGIES CORP. (U.S.), Saint-Gobain Performance Plastics (U.S.), ORAFOL Europe GmbH (Germany), SWM (U.S.), and RENOLIT (Germany).
Among these players, the major players holding over half of the global production are 3M (U.S.), Avery Dennison Corporation (U.S.), ORAFOL Europe GmbH (Germany). These companies are implementing numerous business policies such as production capacity expansion, product launch, and supply agreements to retain their dominance over the assessment period. For instance, Saint Gobain group acquired Italian company H-OLD. H-OLD manufactures and distributes mostly in Europe. With this acquisition, company reinforces the high-performance plastic business in terms of geography and application. Furthermore, ORAFOL Europe GmbH acquired Rowland Technologies Inc. Rowland Technologies is a specialty manufacturer of high-quality plastic films. This strategic acquisition will help the company to enhance their production capacities and product offerings. Recently, Eastman Chemical Company has launched a new product “Treva bioplastics”. This New product is BPA and phthalate free. With this product launch, the company has improved its product portfolio in specialty plastics segment and has strengthened its position among global paint protection film manufacturers.
With this current scenario, it can be concluded that emerging application of paint protection film as well as increasing competitive rivalry results in adoption of paint protection film.