Automotive Wrap Films Market

Rising demand for out-of-home (OOH) advertising to boost market growth

The rising demand for out-of-home (OOH) advertising is indeed driving the automotive wraps films market. Automotive wrap films are used to cover and protect the surface of vehicles while also providing a platform for advertising. The wraps can be customized with various designs and graphics, which makes them an effective and eye-catching tool for brand promotion.

The growth of the OOH advertising industry, particularly in emerging economies, is one of the major drivers of the automotive wraps films market. As the use of billboards, hoardings and other traditional advertising methods becomes more limited and expensive, companies are turning to alternative methods of promotion such as vehicle wraps. This has led to an increase in demand for high-quality and durable automotive wrap films. In addition to advertising, the use of automotive wrap films is also growing in the automotive industry for vehicle customization and personalization.

Wraps films can be used to change the color of a vehicle or add a unique design to its surface. This has led to increased demand from car enthusiasts and individuals looking to customize their vehicles. Overall, the rising demand for out-of-home advertising and the increasing trend of vehicle customization are driving the growth of the automotive wraps films market. Therefore, such factors related to Automotive Wrap Films have enhanced the Automotive Wrap Films market CAGR across the globe in recent years.

The Global Automotive Wrap Films Market Industry experiences a notable surge in demand for vehicle customization. Consumers increasingly seek personalized aesthetics for their vehicles, leading to a growing preference for wrap films over traditional paint. This trend is particularly evident in urban areas where individuality is highly valued. The market is projected to reach 3.5 USD Billion in 2024, reflecting the increasing willingness of consumers to invest in unique vehicle appearances. As customization becomes a status symbol, the adoption of wrap films is likely to expand, further driving market growth.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific region is expected to grow at the fastest (CAGR) in the Automotive Wrap Films market. The Asia Pacific region is home to some of the fastest-growing economies in the world, such as China and India, and has a rapidly expanding automotive industry. The rising disposable income of consumers in the region, along with a growing interest in vehicle customization, is driving the demand for Automotive Wrap Films.

In addition, the increasing popularity of out-of-home advertising in the region is also fueling the growth of the market. The adoption of new technologies and the availability of cost-effective production methods are also expected to contribute to the growth of the Automotive Wrap Films market in the Asia Pacific region.

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

Figure 3:  AUTOMOTIVE WRAP FILMS MARKET SHARE BY REGION 2022 (%)

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

Europe’s Automotive Wrap Films market accounts for the third-largest market share. Europe is home to some of the world's leading automakers. The region has a well-established automotive industry and a large number of high-end and luxury passenger cars on the road. These vehicles are often customized using Automotive Wrap Films to enhance their aesthetic appeal. In addition, the European market is characterized by stringent regulations for vehicle advertising, which have increased the demand for Automotive Wrap Films as a safer alternative to traditional vehicle paint jobs.

The growing trend of vehicle personalization in the region is also driving the demand for Automotive Wrap Films. Further, the Germany Automotive Wrap Films market held the largest market share, and the UK Automotive Wrap Films market was the fastest-growing market in the European region.

North America is home to a large number of automotive enthusiasts and is a major market for vehicle customization. The region has a well-established automotive industry and a large number of passenger cars on the road, which makes it an attractive market for automotive wrap films. In addition, the growing demand for out-of-home advertising in the region is also driving the growth of the market. Moreover, the U.S. Automotive Wrap Films market held the largest market share, and the Canada Automotive Wrap Films market was the fastest-growing market in the North American region.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Automotive Wrap Films market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Automotive Wrap Films industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Automotive Wrap Films. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Automotive Wrap Films industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Automotive Wrap Films industry to benefit customers and expand the market sector. Major Automotive Wrap Films market players, including 3M, Arlon Graphics, Llc, Avery Dennison Corporation, HEXIS S.A.S., KAY PREMIUM MARKING FILMS LTD, Vvivid Vinyl Inc., and ORAFOL Europe GmbH, and others, are attempting to increase market demand by funding R&D initiatives.

3M Company is a multinational conglomerate corporation. The company is a leading innovator in a wide range of industries, including healthcare, industrial, consumer goods, and safety and graphics. 3M operates through four business segments: Safety and Industrial, Transportation and Electronics, Health Care, and Consumer. The Safety and Industrial segment provides a range of products, including personal protective equipment, safety and security products, industrial adhesives and tapes, abrasives, and roofing granules. The Transportation and Electronics segment provides solutions for the automotive, aerospace, and electronic industries.

The Health Care segment offers medical and surgical supplies, dental and orthodontic products, and drug delivery systems. The Consumer segment provides products for home improvement, personal care, and other consumer applications.

Arlon Graphics is a global leader in the manufacture of high-performance pressure-sensitive cut vinyl, flexible substrates, and print media for the sign, graphics, and automotive industries.  Arlon Graphics specializes in the production of premium cast vinyl films for vehicle wraps and fleet graphics, architectural signage, and other applications. The company also manufactures a range of calendered and perforated vinyl films, digital print media, and laminates. Its products are designed for use in a variety of environments, including outdoor and indoor signage, wall graphics, and vehicle wraps.

In 2019, Arlon Graphics was acquired by FLEXcon Company, Inc., a leading producer of adhesive coating and laminating technologies, creating a powerful force in the pressure-sensitive graphics industry.