The Total Addressable Market (TAM) for Automotive Wrap Films was valued at USD 4.32 billion in 2021. It is expected to reach USD 25.49 billion by 2030, growing at a CAGR of 21.8% during the forecast period (2022–2030). A vinyl graphic directly applied over the vehicle's factory paint is known as an automotive wrap film. The two main uses of these films are to protect the original paint from corrosion and dust and to alter or improve the appearance of a vehicle. A single-vehicle wrap can last up to five years, making it a comparatively cost-effective option. Additionally, because they are relatively less expensive than other forms of advertising, automotive film wraps are frequently used for advertising purposes.
The demand for wrap films has increased due to the pre-owned car market's ongoing expansion because these films can hide significant scratches, poor paint jobs, and other flaws. Automotive wrap films are in high demand worldwide due to growing consumer interest in paint protection and color change films.
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Development of the Global Sign and Graphics Industry
Due to improvements in printing technology and a rise in the demand for graphics in various applications, the global sign and graphics industry has been expanding quickly over the past few years. The global market for outdoor advertising is expanding significantly faster than that for indoor advertising, according to the Advertising Association of America. Inkjet printer technology advancements have increased lifespan, reduced printer sales, and resulted in high productivity over the past few years. Future technologies are predicted to keep the printer market vibrant and drive the expansion of digital printing across a range of industries, including automotive wrap films. The primary market for the digital sign and graphics sector is North America, which is predicted to expand significantly in the future. Over the forecast period, growth is anticipated to be fueled by increased investment and printing process automation.
Rise of Customization Options for Automotive Wrap Film
In contrast to what paints can accomplish, automotive wrap films can give vehicles more vivid colors and distinctive textures. The painted colors cannot be as vivid and varied as vehicle wrap films because paints are applied directly to the body of vehicles in multiple layers over several days. These films were made on computers before being put on cars. This enables high-end printers and sophisticated software to add intricate colors and designs to automotive wrap films.
Auto enthusiasts also fuel the demand for intricate and highly complex car designs. It is very challenging to produce such designs because using paint to customize vehicles costs money and requires highly skilled workers. Considering that they can be created on computers, automotive wrap films are simple to install. If customers want to return to the original colors, they also assist in maintaining the factory colors of the vehicles. These elements are anticipated to fuel the market's expansion, and wrapping cars cost less than painting them over the forecast period.
The right environmental conditions and high efficiency levels are necessary for wrapping a vehicle. Proper printer coding should be carried out to get vibrant color and look on the wrap. The design is unattractive and unfit for vehicle wrapping if there is a coding error. The process's longest and most labor-intensive part is checking the car's surface for weather trims, cracks, and fenders. For a flawless wrap finish, it is essential to ensure that these cracks are clean and wax-free. The car must be completely dry so it can be wrapped a day before washing.
To ensure that no solution is left behind after the initial cleaning with a solution to remove all the wax content, it is then cleaned with alcohol. A small amount of dirt or wax could ruin the wrap. Therefore, taking the necessary precautions before wrapping a vehicle is crucial. If the car already has deep scratches, dents, corrosion, or other roughness, the wraps are not a better option. Additionally, the wrap will be unevenly applied, and the paint may come off when the wrap is removed if the automotive paint on the vehicle is of poor quality and not evenly distributed across the body. Therefore, repainting is preferable to wrapping when the vehicle's paint is poorly or damaged. The market for automotive wrap films is constrained by strict technical requirements to produce a flawless finish.
Growing Investments in Advertisement
The primary opportunity for the expansion of automotive wrap films in the United States lies in the sponsorships given to racing teams by businesses from various sectors, including automotive OEMs, consumer goods, electrical and electronics, and other businesses. Consumer interest in Formula 1 races, NASCAR races, and other automotive events is increasing, encouraging businesses to spend money on advertising at these events. Companies invest in advertising by supporting a team or a racer, and they use automotive wrap films to imprint their trademark on the vehicles.
The global automotive wrap films market is segmented by application.
Based on application, the global automotive wrap films market is bifurcated into trucks, buses, and passenger cars.
The passenger cars segment is the highest contributor to the market and is expected to grow at a CAGR of 24.1% during the forecast period. Vans, pickup trucks, and SUVs with GWVR less than 10,000 lb. are passenger cars. These fall under the categories of class 1 and class 2 vehicles. Automotive wrap films were initially primarily utilized for light-duty vehicle advertising. However, the demand for car customization has quickly increased due to the rising popularity of automotive wrap films and the availability of a wide range of colors and textures. Rising disposable income and shifting consumer lifestyles are also anticipated to boost demand over the forecast period.
Buses are considered light commercial vehicles and frequently have automotive wrap films applied for branding purposes. In order to increase the visibility of their brand, many businesses use medium-duty vehicles as moving billboards in their advertising. Additionally, medium-duty vehicle wraps are less expensive and have longer ranges than heavy-duty ones. They improve access to rural areas that light and heavy-duty vehicles cannot reach.
The global automotive wrap films market is segmented into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.
North America Dominates the Global Market
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North America is the most significant shareholder in the global automotive wrap films market and is expected to grow at a CAGR of 20.6% during the forecast period. Wrapped vehicles are used in advertising campaigns to reach a wide range of audiences. Global positioning satellite tracking systems, which offer comprehensive details about the vehicle, are used to assess the effectiveness of these campaigns. This has ultimately resulted in the region's extensive use of automotive wrap films for mobile advertising. Due to North America's early modernization and rapid adoption of new technologies, there is a high demand for customized cars, ultimately driving the market for automotive wrap films to expand.
Europe is expected to grow at a CAGR of 21.6%, generating USD 7,939.4 million during the forecast period. Due to significant manufacturers like Hexis, Orafol, Isee2, and KPMF, Europe is the second-largest market for automotive wrap films after North America. Vehicle color-changing or paint-replacement films are a relatively recent trend in Europe. Due to their low cost and superior performance to vehicle paint, drivers choose automotive wrap films over paint. In Europe, changing the color of a vehicle is one of the automotive wrap films' fastest-growing applications. To meet the increasing demand in the area, businesses like Avery Dennison, Isee2, KPMF, Orafol, Hexis, and 3M have been creating a range of colors and textures.
Due to the region's changing consumer lifestyle, large youth population, and rising popularity of vehicle graphics, the demand for automotive wrap films is anticipated to rise quickly. Over the forecast period, the market is anticipated to grow as wrap films are increasingly used for advertising purposes. Additionally, it is anticipated that the region's demand for automotive wrap films will increase due to rising consumer disposable income and a swift increase in vehicle sales, particularly in China and India.
In addition, the demand for these wraps is anticipated to increase due to their low cost and capacity to shield the original paint from damage. The application of wraps for advertising is made simple by the quick procedure and the presence of many suppliers in the area. Large vehicles, such as buses and trucks, are covered in automotive wrap films as part of a regional government initiative to promote tourism. Full and partial vehicle wraps are more in demand because they garner more attention than lettering and signs. Vehicle wraps are frequently used in advertising campaigns to increase brand visibility.
Compared to other regions, Central and South America adopt new technology more slowly. Due to its price sensitivity, the regional market only adopts new technology when its costs have fallen significantly. The market growth in the area is anticipated to be fueled by the recent advancements in print head, ink, and media technology, which have lowered the overall costs of automotive wrap films. The market for automotive wrap films is anticipated to grow in response to evolving consumer preferences and rising end-user disposable income. Due to a lack of road infrastructure and general consumer ignorance of the product, Central and South America's automotive wrap films market is anticipated to expand more slowly than other regions. The market growth is anticipated to be fueled by the low cost of automotive wrap films and the potential for revenue generation from advertising.
Factors like the high adoption rate of automotive wrap films and rapidly expanding auto sales in the Middle East and Africa are anticipated to fuel product demand over the forecast period. The use of wrap films in the region is assisted by international trade shows like Sign and Graphics Imaging (SGI). Customers prefer completely wrapping their cars to give them a distinctive color and appearance. This is more practical than painting the car, as the latter has fewer color options and is more expensive. In addition, several manufacturers and industry professionals, including Sign trade International, Strings International, and System Middle East, exhibit their newest product developments to increase sales. Over the next six years, demand is anticipated to increase due to the region's quickly increasing demand for automotive aftermarket services such as window, wrapping, decorative, and paint protection. Both passenger cars and commercial vehicles are selling more frequently in the area. Additionally, over the forecast period, rising consumer interest in car customization is anticipated to boost product demand.
The global automotive wrap films market’s major key players are AVERY DENNISON CORPORATION, Arlon Graphics, LLC, 3M, KPMF, Fedrigoni S.P.A. (Ritrama S.p.A.), Vvivid Vinyl, ORAFOL Europe GmbH, Hexis S.A.S, Guangzhou Carbins Film Co., LTD, and JMR Graphics.