Functional Films Market

Increasing demand in the healthcare and pharmaceutical industries, as well as in smart technology is driving the market growth

Future market growth is anticipated to be driven by rising healthcare and pharmaceutical industry need for functional film for medical product packaging. Additionally, throughout the course of the forecast period, the market for functional films is anticipated to grow as a result of the rise of the medical packaging sector and technological developments in the medical packaging system. Through the production of high-quality pharmaceutical products, functional film contributes significantly to the development of medical products. During the forecast period, increasing demand for optically functional films to control light reflection and penetration is anticipated to propel market growth.

It is present on numerous screens, including televisions and mobile devices. Due to the growing need for larger monitors, television segments have become the most important application area. In addition, the smartphone market is rapidly expanding as demand for smartphone adoption rises. On the other hand, the increasing use of active-matrix organic light-emitting diode (AMOLED) screens in place of LCD panels is predicted to hinder the use of optical functional films. As a result, during the projected period, market growth for functional films is anticipated to decelerate.

The functional film market's perspective has been greatly expanded by advancements in polymer production methods. Functional films' growing adaptability may be a result of the engineers' flexibility to give them overly complex geometries. Additionally, the functional film industry's prospects are enhanced by chemical companies' adoption of less energy-intensive techniques. When new businesses are introduced in multiple developing and developed regions where the demand is mature, new revenue streams are created. To fulfil the rapidly rising demand for functional films in several industries, incumbent enterprises are investing in enlarging their supply networks and storage capacity.

Recent years have seen the emergence of novel applications, which has benefited market participants for functional films. For instance, the production of heat-controlling construction materials is increasingly using functional films. These materials are in great demand all over the world as a necessary component of eco-friendly home builds. There is also a sizable income potential as a result of the expanding application in beverage packaging and the automotive industry. Over time, barrier films have become more and more well-liked in the latter. Thus, driving the Functional Films market revenue.

Toray Industries, Inc. has today announced that in October 2021, it has developed new biaxially oriented functional films, Lumirror which are part of their product range. The height surface protrusions were controlled accurately when making this film so as not to leave any defects caused by rough protrusions but to maintain the smoothness required during handling, among other properties such as slipperiness.

Among its investments into functional films, this year alone include Performance Films Patterns and Software Center of Excellence located at its site in Cortlandville, New York State – USA; various expansions within the Martinsville manufacturing facility, which produces Core pattern and business operations software used globally by Eastman Company (Kingsport) TN -USA where they have been operating since establishment; development investment into Core pattern & business operations software used globally.

The Global Functional Films Market Industry experiences a notable increase in demand for sustainable packaging solutions. As consumers become more environmentally conscious, manufacturers are compelled to adopt eco-friendly materials. This shift is reflected in the growing use of biodegradable films and recyclable packaging options. In 2024, the market is projected to reach 26.2 USD Billion, driven by the need for sustainable alternatives in various sectors, including food and beverage. Companies are increasingly investing in research and development to create films that not only meet performance standards but also align with sustainability goals, thus enhancing their market position.

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Functional Films Market dominated the global market in 2022 (45.80%). The growth in North America has been fueled by the presence of some of the well-established market participants. The area is a leader in the creation of practical films needed for a variety of cutting-edge applications. Coating films and optical films have become the market leaders in North America. The presence of some of the top businesses from the chemical industry supports the growth seen in these categories.

Suppliers of raw materials are actively developing these film chemistries for use in industrial and agricultural films. For instance, the automotive and electrics and electronics (E&E) industries can employ BASF's Ultra son application for thin films as an electrical insulator and protective layer. Further, the U.S. Functional Films market held the largest market share, and the Canada Functional Films market was the fastest growing market in the North America region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: FUNCTIONAL FILMS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Functional Films market is expected to register fastest growth from 2023 to 2032. European nations like Germany are regarded as centres for functional cinema. Leading German chemical corporations have worked with several of the film producers. These alliances strive to work together to develop solutions that meet market demands and are also profitable. During the projection term, the nation is probably going to produce successful business. Taking supply-side development into account, it has a very high market potential.

Due to its proximity to other European markets, the United Kingdom benefits from facility developments and capacity increases for producers of functional films. For instance, in order to support the company's Pack Positive sustainable growth plan, Coveris developed two new extrusion lines at its Cheshire-based facility in the United Kingdom. Further, the German Functional Films market held the largest market share, and the U.K Functional Films market was the fastest growing market in the European region

The Asia Pacific Functional Films market accounts for the significant market share. The functional film market in China is primarily driven by providers in the plastics sector. The Chinese market for functional films has experienced significant expansion thanks to internet activity, online sales, a sizable consumer base, and close proximity to growing economies. More than half of the world's thin-film production capacity is located in China, where industrial films and thin films are very active industries. One of the industrialised nations that is actively promoting market expansion is Japan. Japan has a large and fragmented functional film industry.

Significant growth-contributing companies like Panasonic Corp. and Toppan Printing Ltd. are also based there. The region's top players have implemented a number of expansion tactics that are assisting the market's overall growth. Moreover, China’s Functional Films market held the largest market share, and the Indian Functional Films market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Functional Films market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Functional Films industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Functional Films industry to benefit clients and increase the market sector. In recent years, the Functional Films industry has offered some of the most significant advantages to medicine. Major players in the Functional Films market, including LG Chem, Sumitomo Chemical, Kangdexin, Eastman, Nitto Denko Corporation, Samsung SDI, Bayer, Toray Industries, SKC, SEKISUI, Toppan, 3M, Honeywell, Mntech, and CCS, are attempting to increase market demand by investing in research and development operations.

A variety of electric and electronic goods are developed, manufactured, sold, and serviced by Panasonic Holdings Corp. (Panasonic), originally known as Panasonic Corp. The range of products offered by Panasonic includes air conditioners for individual rooms, TVs, landlines, digital cameras, video equipment, audio equipment for the house, rice cookers, lamps, wiring devices, air conditioners, air purifiers, and bicycles. Additionally, it provides projectors, batteries, electric motors, electronic materials, electronic components, electronic materials, semiconductors, LCD panels, mounting machines, welding equipment, PCs and tablets. The business administers and runs facilities as well as R&D sites across Europe, Asia, the Americas, and Japan.

In Japan's Osaka city of Kadoma-shi, Panasonic has its headquarters. Panasonic will begin selling an anti-glare type anti-reflection film for automotive displays in October 2020. The film features strong infrared transmittance and great weather resistance that complies with DIN (German Industry Norm) Standards.

Previously known as Toppan Printing Co Ltd, Toppan Inc (Toppan) provides goods and services for the information and communication, living and business, and electronics sectors. Magnetic cards, books and magazines, catalogues, photomasks, plastic moulded items, and documentation pertaining to securities are among the products offered by the organisation. Additionally, it provides photomasks for semiconductors, GL films (a transparent barrier film), wallpaper, decor items, surface treatment films, and flip chip ball grid array (FC-BGA) substrates. Surface treatment, microfabrication, information processing, and material shaping are some of the company's major technologies.

Asia, Europe, North America, the Middle East, and Africa are all areas where it conducts business. The headquarters of Toppan are in Bunkyo-Ku, Tokyo, Japan. Toppan Printing created a fire-extinguishing film in February 2021 that releases aerosol particles in response to heat. The new movie is intended for battery and electrical appliance manufacturers.