Automotive Wrap Films Market Overview
The global automotive wrap film market was valued at USD 4,357.60 in 2021 and is expected to register a CAGR of 21.45% during the review period. The global automotive wrap films market is projected to reach USD 30,164.93 million by the end of 2030.
A car wrap is defined as a large vinyl graphic or decal which is applied directly to the painted surface of the vehicle. A wrap film changes the color and entire look of the vehicles unique, vibrant, and branding.
The growth is mainly attributed to significant growth in personalization of automobiles by application of custom automotive wrap films. Also, rising demand for out-of-home (OOH) advertising is further expected to bolster the demand for vehicle wraps for advertising purpose.
COVID-19 Impact on the Global Automotive Wrap Films Market:
The outbreak of COVID-19 across the globe has resulted in lockdown of cities, border restrictions, and breakdown of transportation network. The pandemic caused a significant impact on the supply chain, international trade, and manufacturing operations around the world. The COVID-19 outbreak affected global trade flows at an unprecedented speed and scale. It imposed pressing challenges for both the import and export trade around the world, which adversely affected the supply chain of automotive wrap films industry.
The COVID-19 pandemic has adversely affected the oil & gas and automotive sectors. The outbreak of COVID-19 negatively affected the oil & gas sector with oil prices reaching negative in mid-2020. There was a decline in oil demand and surplus of oil and petroleum due to lockdown and restricted travel. Oil prices began to bounce back in May with upliftment of lockdown in several countries worldwide. As vinyl wraps are dependent on PVC and plasticizers which are produced from crude oil, there was price fluctuation and shortage of these raw materials in the early month of pandemic.
The vehicle wrapping and printing shops reopened after upliftment of lockdown norms in many countries across the globe. These shops faced issues with sourcing of raw materials, particularly vinyl. Also, the supply of new vehicles declined as the automakers decreased their staff and production amid pandemic. However, the market gained normalcy in the early months of 2021, post ease in trade restrictions & supply chain disruptions.
- Increasing adoption of vehicle wraps in advertising sector: Advertising is one of the key aspects for a company to widen the consumer base and increase branding. Vehicle advertisements increases visibility for the company. Out-of-home (OOH) advertising, which comprises of fleet advertising is one of the most efficient methods to boost brand awareness and spur business growth. Brightly colored vehicle wraps with big messages and logos are disruptive and can hardly be missed by commuters. Thus, advertising on car, mini trucks, delivery trucks, etc. helps the companies to market their product offerings even in remote areas where it is challenging to reach out to potential customers via newspaper advertising, the Billboard ads, TV advertising, etc.
- Growing demand for personalization of cars: Vehicle wraps are a large vinyl decal or graphic which is designed to cover the exterior of the vehicle. These wraps resemble paint and generally come with specialty graphics on them. Companies can wrap their fleet with custom logos, whereas individual drivers may want the look of a superior quality paint job for a lesser cost.Increasing sales of cars and premium vehicles among the middle-class and higher earning individuals has augmented the need for vehicle wraps. Personalization of cars either to avoid repainting or provide a better aesthetic look has spurred the demand for vehicle wrap films. Car enthusiasts are now looking to customize their personal vehicles with full vehicle wraps or decals. Generally, people turn to car wraps to make their cars stand out from the crowd with unique finishes and colors, as automakers today offer only a limited selection of colors and finishes. With increasing awareness regarding the convenience and versatility of car wraps, more people are preferring to vehicle wraps for personalizing their own cars.
- High preference for vehicle wraps over paint: Vehicle wraps are a cost-effective option when compared to a high-quality paint job. A full vehicle wrap is much cheaper. With a full or partial vehicle wrap, the vehicle can also work as a rolling billboard, thus generate more revenue, with a higher rate of interest (ROI). If one wants to change the look of the vehicle, vehicle wraps can be easily and cost-effectively be replaced with new ones, which is not the case with paint jobs. It requires expensive repainting of the vehicle surface. There is a significant shift of preference from expensive paint jobs towards affordable vehicle wrap films as vinyl wraps automatically protect the automobile from corrosion and other weather conditions. It also offers resistance to stone chips and abrasion.
- Availability of substitutes: Autoflex is an innovative way to protect cars and other automobiles, change the color, or customize it without affecting the original paint finish. It is a suitable alternative to vinyl wrapping films. Autoflex coatings are generally sprayed on in a similar way the standard automotive paints are applied in a body shop. These coatings are highly pigmented which helps in achieving quick and safe color average. It has superior durability and strength which is unmatched by any competitive product and creates a strong and hard finish after its application. Thus, it is likely to hinder the demand for vehicle wraps. Thus, availability of substitutes such as Autoflex is expected to hamper the product adoption in the coming years.
- Issues pertaining to installation of vehicle wraps: Installation of vehicle wrap is not an easy task and improper installation can result in higher cost of removal and reapplication. This requires highly skilled installers having experience with different materials. Some of the common reasons why installation fails in vehicle wraps are improper Pre-Installation Cleaning, wrong film selection, over stretching of the vehicle wrap, not post heating after installation.
- Rising popularity for vehicle wraps in developing economies: The developing economies of Asia Pacific, Latin America, and Middle East & Africa are relatively less tapped, hence provide lucrative opportunities for market expansion. Rising global population coupled, increasing purchasing power, improved standards of living, growing need for mobility, and better comfort and technologically advanced passenger cars and sedans are some of the major factors bolstering the adoption of vehicle wraps in emerging countries. Advertisements via buses, delivery trucks, and other light commercial vehicles is highly common in countries of India, China, Brazil, etc. as these are highly cost-effective than billboards and internet advertising. Moreover, these countries have a large rural population where the normal modes of advertisements such as TVs, newspapers, and billboards, may not reach. Reaching the rural population is possible by buses as they have high accessibility in these areas. Moreover, increasing industrialization & urbanization and supportive government initiatives to facilitate several policies in countries such as India and Indonesia are expected to bolster the product adoption.
- GROWING EMPHASIS ON THE INTRODUCTION OF NEW COLORS AND FINISHES IN VEHICLE WRAPS: Color in vehicle wraps is an important factor in both improving the aesthetic of vehicles and in increasing branding of the company. Color needs to be right the first time, if it isn’t the advertising can be negatively affected and result in less brand awareness. Vehicle wraps are constantly involving to cater the needs and suit each application. On a consumer level, there is a diverse range of requirements in terms of color and finish. Buyers can request distinct designs to make their car stand out from the crowd. Most companies are now emphasizing on introducing new colors and textures. For instance, in 2019, TeckWrap launched five bold new vinyl wrap colors in gloss metallic, satin metallic, and gloss aluminum finishes to expand its product portfolio and cater consumer demand worldwide
By PRODUCT TYPE
- Cast Film
- Calendered Films
By Distribution Channel
By Vehicle Type
- North America
- South America
- Middle East
- The market in North America accounted for the largest market share in 2021 and is projected to register the highest CAGR during the assessment period. The regional growth can be attributed to early adoption of vehicle graphics in the region particularly in the US. High product demand in the light commercial vehicles segment is projected to propel the market growth at a significant rate during the review period.
- The market in Europe region is expected to register highest growth during the forecast period due to significant product demand across vehicle types particularly in the western European countries The market growth in Europe is mainly attributed to presence of key automakers such as Daimler, Porsche, BMW, Audi, Rolls-Royce etc. Presence of high net-worth individuals (HNWI) and high standards of living has augmented the sales of premium cars and sedans. Personalization of premium cars by using vehicle wraps further augments the regional market growth. High production and sales of electric vehicles such as buses and cars, is likely to bolster the adoption of automotive wrap films for advertising.
- The Latin America market held a moderate share of 5.10% in 2021 and is projected to reach USD 1,356.45 million during review period. Improving standards of living as well as increasing need for mobility is augmenting the sales of passenger cars, thereby boosting the demand for vehicle wraps. Moreover, there is a growing demand for mobile advertising, as it is a cheaper form of advertisement for local fruit & vegetable vendors, restaurants, and food trucks, etc., which proliferates the regional market growth.
- The Middle East & Africa market was valued at USD 194.78 million in 2021 and is estimated to register a steady CAGR of 20.32% by 2030. Rapid urbanization in GCC countries and South Africa is likely to increase the demand for personal cars, thereby augmenting the need for vehicle wraps in personalization of vehicles. HCV vehicles are gaining traction for vehicle advertising in the region owing to its wider reach at a lower cost..
North America held the largest market share in 2021 and is expected to grow at the fastest rate during the assessment period. The region's growth can be attributed to the region's early adoption of vehicle graphics, particularly in the United States. High product demand in the light commercial vehicle segment is expected to drive significant market growth during the review period.. The industry is likely to become more competitive as partnerships, mergers, and acquisitions increase. Furthermore, a growing number of players will enter the market within the estimated assessment period, boosting competition in the market. The major players in the market include 3M, Arlon Graphics, Llc, Avery Dennison Corporation, HEXIS S.A.S., KAY PREMIUM MARKING FILMS LTD, Vvivid Vinyl Inc., and ORAFOL Europe GmbH.Some of the key developments include:
- In August 2019 3M launched a new generation of film wrap under the brand name 3M Wrap Film 2080 series to meet growing demand for technologically advanced and customized wrap films.
- In June 2021 Arlon graphics, developed a new cast wrap film named as premium colour change for fleet and vehicle applications. This film includes Flite Technology, innovative self-healing adhesive, ultra-gloss levels, an engineered liner for bubble-free application, and a protective film on gloss colours among others.
- In March 2021 Avery Dennison Corporation launched new upgraded supreme wrapping film for vehicles with twelve new colours in its Rugged Range and Sleek Satin collections. This film possesses superior properties including greater environmental resistance and enhanced durability. It has launched the Rugged Range and Sleek Satin collections featuring 12 on-trend colour options for vehicle owners to customise their car according to their preferences.
- The Global Automotive Wrap Films market is segmented by product type, distribution channel, vehicle type and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global automotive wrap films market emerging and fast-growing segments, regions, and countries.
Objectives of the Study
- To provide detailed analysis of the automotive wrap films market structure along with forecast for the next nine years of various segments and sub-segments of the automotive wrap films market
- To provide insights about factors affecting the market growth
- To analyze the global automotive wrap films market based on various tools such as supply chain analysis, and Porter’s five force analysis
- To provide historical and forecast revenue of the market segments and sub-segments with respect to regions and their respective key countries
- To provide country level analysis of the automotive wrap films market with respect to the current market size and future prospective
- To provide country level analysis of the market for segments by product type, distribution channel, vehicle type, and region
- To provide strategic profiling of key players in the market, comprehensively analyzing their core competencies, and drawing a competitive landscape for the market
- To track and analyze competitive developments such as joint ventures, strategic alliances, mergers and acquisitions, new product developments, and research and developments in the automotive wrap films market
- Industrial sector
- Broadcast sector
- Enterprise sector
- digital communication
- Textile industries