Automotive Films Market

Updated on : June 27, 2024

Automotive Films Market

The automotive films market is projected to reach USD 9.7 billion by 2028, at a CAGR of 5.7% from USD 7.4 billion in 2023. The increasing need for heat reduction and UV protection, particularly from the automobile industry is the key factor driving the market for automotive films. The R&D in the automobile technologies of Asia-Pacific region, is growing the concerns for safety and security in the region further influencing the market. The rising awareness among consumers and vehicles owners about advantages of automotive films including UV protection, heat and glare reduction, and enhanced privacy is contributing to the expansion of market. These drivers collectively, fuel the growth of automotive films market making it a dynamic and evolving sector with upcoming opportunities for innovation and expansion.

Attractive Opportunities in the Automotive Films Market

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Automotive Films Market Dynamics

Driver: Technological advancements in automotive films market

Automotive films make driving experience comfortable by blocking the UV rays and reducing the amount of heat from entering vehicles. They enhance the security and privacy of the passengers and drivers. The innovations and developments in new technologies such as nano ceramic films is fueling the production of effective and durable automotive films. This is transforming the market by offering features such as enhancing the visibility of driver, reduction in heat and glare, increasing privacy and add up to the appearance of vehicles. Additionally, they prevent the damage caused by heat to the interiors of vehicles. The manufacturers continue to innovate and produce films to meet the changing demands of modern vehicles, further driving the market for automotive films.

Restraint: High installation cost of premium automotive films

The cost of installing premium automotive films requires high costs making it a restraint to market growth. The installation of these films requires expertise and precision along with the highly functional equipment. The prices tend to vary with the size of the vehicles. The customers in a price sensitive market find it expensive to purchase and install these materials. Moreover, in the regions with less feasible economic conditions to support luxury, these high installation costs for premium products limits the growth of the market. Furthermore, the reluctance of customers to invest in premium market slows down the overall adoption rate for these automotive films which hampers the market growth.

Opportunity: Growing demand for customized films

The customers in automotive sector are continuously seeking personalization of their vehicles to express their unique styles which is fueling the market for automotive films for different colors, patterns and finishes. Going beyond aesthetic, the customization also improves the performance of vehicles by reducing glare and heat, enhancing privacy and increasing visibility. Moreover, the rise in adoption of automotive films as an effective alternative for traditional repainting allows owners to enhance the appearance of their vehicles without making any permanent changes. Additionally, the trend towards this personalization is creating new opportunities for manufacturers to generate revenue enabling them to provide premium customized solutions at high price.

Challenge: Government regulations on automotive films

The strict regulations posed by government hamper the design and functionality of automotive films by imposing constraints such as tint darkness, reflectivity and the material used. The regulations specific to regions necessitates the manufacturers and installers to comply with these standards. In addition to discouraging innovation and increasing operating expenses, non-compliance with these regulations can result into fines, legal problems and necessity of increased product pricing. The regulations varying with regions further make it difficult to make strategies for expansion at international market as products are required to be customized depending on the local needs.

Automotive Films Market Ecosystem

Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis

"Automotive window films captures the largest share by films type in automotive films market, in terms of value."

Automotive window films capture the largest share by films type in automotive films market due to its wide variety of uses and advantages. These films are commonly used on vehicle windows to protect the passengers and drivers from UV rays and heat along with reduction in glare and enhanced privacy. In addition to improving the passenger comfort, they also prevent the damage caused by heat to the interiors of car. Automotive window films also increase the safety by protecting the passengers and driver from the shattered flying glass during an accident thereby reducing the risk of injury. Moreover, the encouragement of UV protection and energy efficiency by the regulatory bodies further increase he adoption of these films, making them the preferrable choice for customers. Collectively, these factors contribute to making automotive window films the largest segment by films type.

" Based on application, exterior captures the largest share in automotive films market in 2022, in terms of value."

The protective properties, durability and aesthetic benefits of automotive films makes exteriors application the largest market in terms of application. These films prevent the exteriors of vehicles from the damage caused by dust, stains, scratches, stone chips, debris and other forms of damage. The vulnerable parts of the vehicles such as front bumpers, hoods, mirrors, fenders, door edges, door handle cavities, and rock panels are covered with these films providing precise coverage to the vehicles. In addition to protecting against damage, these films also provide customization to enhance the appearance of the vehicles. They are also used for advertising purposes by applying on the exterior parts of the vehicles. The advertisements can be customized with unique designs, vibrant colors and graphics, thus,  making them visually appealing.

“North America was the largest market for automotive films in 2022, in terms of value."

North America accounted the largest automotive films market. The demand for automotive films in the region is expected to witness steady growth, driven by the well- established automotive sector. Technological advancements in the manufacturing sector are driving the market in this region. The automotive industry in North America is projected to grow due to increasing domestic demand and the plans for production plant expansions by major automotive manufacturers in Mexico. The market in the region is diversified and is strongly focused on the development of new products and advanced technology to cater to the needs of the automotive industry.

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Key Market Players

The key players in this market are 3M (US), Saint-Gobain (France), Eastman Chemical Company (US), Avery Dennison (US), LINTEC Corporation (Japan), Ergis S.A. (Poland), Toray industries, Inc. (Japan), Johnson Window Films (US), Hexis S.A. (France), XPEL, Inc. (US), and Nexfil Co., Ltd. (South Korea). Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow.

Automotive Films Market Report Scope

This report categorizes the global automotive films market based on films type, application, vehicle type, and region.

Automotive Films Market based on the Films Type:

• Automotive window films
• Automotive wrap films
• Paint protection films

Automotive Films Market based on the Application:

• Interior
• Exterior

Automotive Films Market based on the Vehicle Type:

• Passenger vehicles
• Commercial vehicles

Automotive Films Market based on the Region:

• Asia Pacific
• Europe
• North America
• South America
• Middle East & Africa

Recent Developments

• In June 2023, Toray Industries, Inc. developed a high heat-insulating solar control film PICASUS for advanced mobility applications. The film helped the company’s innovative nano-multilayer technology to deliver a transparency that is comparable to that of glass. It also offers world-class thermal insulation from the sun’s infrared rays.
• In February 2023, Eastman Chemical Company acquired Ai-Red Technology (Dalian) Co., Ltd., a manufacturer and supplier of paint protection and window film for auto and architectural markets in the Asia Pacific region. The acquisition helped Eastman Chemical Company to increase its presence in China and enhance its earning strength.

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