Paint Protection Film Market

Market Overview

The global paint protection film market size was valued at USD 290 million in 2021 and is expected to grow to a value of USD 498 million by 2030, registering a CAGR of 6.2%.

Paint protection films or PPF are used as a safety shield against elements that can cause scratches, chips, stains, and other damaging elements to a vehicle’s structure. PPFs have the ability to provide the following features without any visible change or alteration towards the exterior. It is a thin layered polyurethane film or polymer that can aid in giving the attached features as well as protect from UV exposure, mineral deposits, and environmental conditions such as UV rain. Paint protection films are available in a wide range of colors or in the form of a visually clear substance. The global paint protection film market can be categorized into applications.

The global demand for paint protection films is anticipated to increase due to consumers' shifting preferences toward maintaining the finish of their vehicles and their growing knowledge of the importance of regular maintenance on their cars. One of the world's top automotive markets is the United States. As a result, the country is anticipated to see a high demand for paint protection films throughout the forecast period.

Market Dynamics

Market Drivers

• Rising Consumer Awareness

Emerging economies such as China, India, Malaysia, Thailand, Brazil, and Argentina have been heavily populated by the automotive sector and have been experiencing steady year-on-year growth. The increasing growth can be attributed to rapid industrialization and rising income levels, triggering an expanded foothold to own personal vehicles. While paint protection films were originally designed for military usage and still own a solid portion of the market, consumers have begun showing interest in using them for their vehicles. This has enabled the market to increase sales, with manufacturers and producers capturing the ongoing trend.

Aggressive marketing strategies and rising OEM expansion directly to consumers have allowed the market to grow exponentially. Shifting consumer preference toward keeping their vehicle’s finish for a longer time and increasing awareness of automobile maintenance will increase the value of the paint protection film market during the forecast. Additionally, automobile manufacturers and producers began including PPFs during manufacturing to increase shelf life. Paint protection has also seen a significant contribution in electrical and electronic sectors, including mobile phones, keyboards, and screens, owing to consumer awareness, which will increase the market's outreach. These factors are expected to heavily tilt the market growth trajectory in a positive manner.

• Increasing Demand from the Automotive Sector

The global automotive sector has been witnessing a surge in terms of sales and volume. The development of petroleum-based fuel or hybrid vehicles, autonomous driving, and the latest mobility services will add to the rocketing sales of the automotive sector. India, China, and Brazil are expected to be breeding grounds for the global automotive sector to flourish. A rising number of regulations in terms of safety and environmental standards will make the market a highly competitive sector, thereby pushing the sales to a higher value. Additionally, tightening carbon regulations by major economies for clean and green automobile technologies will aid the market’s growth.

The rising population and increasing urbanization will lead to shifting preferences toward automobile sales during the forecast. Shifting of OEMs towards being closer to heavy consumer regions and widespread use of ESR will further increase the grounds for the global paint protection film market as the forecast transcends. Also, easy car loans with attractive and affordable interests will enable consumers’ purchasing ability. Rising investments and expanding nature of manufacturing bases coupled with increased advancements in vehicular production will drastically increase the size of the market. These factors will boost the value of the global paint protection film market.

Market Restraints

• Lower Maintenance and Repairing Initiatives

Paint protection films have a wide range of applications in vehicles, such as door edges, full or partial hoods, door handles, trunk ledges, rear fender panels, and side mirrors. Additionally, it also has applications in electrical and electronics, including mobile phones, screens and keyboards, aerospace and defense equipment, and military transport units. While the awareness regarding paint protection films is increasing, the higher costs regarding installation and maintenance are posing challenges to the market. A majority of the paint protection films are usually manufactured in specialized and certified shops where they are installed as per requirements and needs. These factors play a key role in hindering the growth of the market during the forecast period.

Additionally, product variance plays a pivotal role in spreading the outreach of the paint protection film market. Product variance regarding performance and quality for absorbing strains, abrasions, and scratches are oftentimes found to be irregular in various regions. This can lead to a dissatisfied consumer base depending on the quality of work provided. Experts professionals are often required to install the paint protection films at a finer base without any major errors or damage to the surface. This leads to increased installation costs, which can limit market growth.

Market Opportunity

• Better Understanding of Vehicle Protection

Demand for paint protection films is also anticipated to increase due to growing consumer awareness of the advantages of utilizing them to shield painted surfaces from stone chips, insect splatters, and minor abrasions. The layer shields the paint from dents, scratches, and other damage brought on by pebbles, road debris, and other environmental factors. By protecting weak areas, PPF also maintains the vehicle's showroom-quality finish, prolongs its appearance of youth, and raises its resale value. This attracts clients, which raises the demand for paint protection films.

Regional Analysis

What is the Regional Outline for the Sales of Paint Protection Film?

"Asia-Pacific to Devour the Largest Market Share Owing to Shifting Automotive Manufacturing Hubs"

Asia-Pacific accounted for the primary market share during the forecast period, owing to shifting automotive manufacturing bases towards China, India, Thailand, and Indonesia, coupled with increasing automotive sales within the region. The market value for paint protection film in the Asia Pacific in 2021 was USD 110 million and is likely to grow to a value of USD 196 million by 2030, with a CAGR of 7.4% during the forecast.

Factors such as expanding the automotive sector in the region will lead to the penetration of paint protection films. For instance, the region noted a change in vehicular production from 43.9 million units to 44.9 million units from 2016 to 2017. This projection is expected to increase exponentially during the forecast period. Asia-Pacific is considered the largest manufacturing hub for vehicles, ships, and electronics.

Also, rising demand for performance-based and marine vehicles along with durable electronics will further increase the market’s footprint. Growing consumer awareness regarding the advantages of paint protection films over vinyl and PE films will further lead to an increased adoption rate during the forecast. The automotive sector withheld the largest subsegmental growth, with a value of USD 78 million in 2021, and will likely grow to a value of 136 million by 2030, with a CAGR growth of 6.7%.

North America will account for the second-largest market share during the forecast period, with a total market occupancy of 26% in 2021. North America had a market value of USD 77 million in 2021 and will likely grow to an estimated value of USD 126 million by 2030, with a CAGR of 4.7% during the forecast. The region boasts a robust manufacturing base in the US coupled with the rapid growth of automotive in Mexico, which will be responsible for the impending paint protection film market.

Additionally, factors such as national policies promoting the development of vehicles regarding fuel efficiency and greener policies will contribute to the market’s growth. In retrospect, the market runs parallel with strengthening the economy and providing stronger development, which grabs a fair share of attention towards the market, triggering an increased market volume.

Further, increasing investments in viable sectors such as automotive from corporations such as Toyota and General Motors towards Mexico for strengthening the foothold will add to the market’s value. Increasing demand from industries such as power trains, electrical components, interior furnishings, and exterior furnishing will provide an excellent base for the market to flourish. The automotive sector in North America is expected to gain the largest foothold in terms of subsegment growth, with a value of USD 55 million in 2021. It is expected to grow to an approximate value of USD 89 million by 2030, with a CAGR growth of 4.9% during the forecast.

Latin America

Due to rising industrial investments in the automotive industry, the PPF market in Central and South America is anticipated to experience substantial expansion. Regarding car manufacturing in Central and South America, Brazil is the industry leader. The nation was the eighth-largest automotive producer in the world in 2021, according to OICA figures. Even though most of the cars made in Brazil are utilized domestically, some are exported.

Segmental Analysis

The paint protection film market share is divided by applications, and region.

Which Paint Protection Film Application Segment is Expected to Reveal the Largest Market Share?

"Automotive Applications Are Expected to Divulge the Largest Market Share"

Based on application, the market can be segmented across automotive and transportation, electrical and electronics, aerospace and defense, and others. Automotive applications are expected to divulge the largest market share in terms of subsegmental growth, with an estimated share of 72% in 2021 out of the total volume. The market for automotive and transportation had a market value of USD 214 million in 2021 and is expected to grow to a value of USD 328 million by 2030, with a CAGR of 5.3% during the forecast.

Paint protection films are highly utilized in the automotive sector as they offer benefits such as paint protection from debris, gravel, and other dust particles, which add to the aesthetic value of the automobile. Factors such as increasing investments regarding defense applications in India, China, and Russia will contribute an accountable size to the market volume.

Additionally, the growing impact of the aerospace with increasing air passengers traveling to and fro within regional and global airspace will increase the width of the segment. Factors such as increasing per-capita income and rising consumer awareness regarding car care will add girth to the expanding nature of automotive and transportation.

aerospace and defense

The growing number of yearly air travelers will likely lead to significant growth in the aerospace and defense sector. Another critical market driver is India, the United States, and the United Kingdom's robust growth in the aerospace and military industries. Since their creation, paint protection films have been utilized extensively across a variety of end-use sectors, and demand for them is only anticipated to increase. By 2031, this sector is anticipated to generate 13.0% of the market's total revenue.

electrical and electronics

In terms of revenue, the electrical & electronics application sector had a significant portion of the market. In the electrical & electronics application area, demand for electronic devices such as smartphones, laptops, tablets, and phablets is anticipated to rise in growing economies in Asia Pacific and Central & South America, including China, India, Vietnam, Thailand, Brazil, and Argentina.

Impact of covid-19

The ongoing pandemic affected a wide range of business practices across the globe, and the sector of paint protection films was no different. During the initial stages of the pandemic, regular nationwide lockdowns and disruptions in the supply chains led to a decline in sales for the market. The market was categorized into pre-and post-pandemic stages, where the pre-pandemic stage indicated a steady growth rate year on year. Factors such as the reallocation of additional resources toward healthcare infrastructure further decreased the size of the global paint protection film market during the forecast.

Additionally, services across the globe were deemed essential and non-essential, with the paint protection film falling in the latter. Non-essential services were put on hold as the pandemic took a majority of resources and the workforce to contain the increasing load of cases. A shattered workforce forced the players in the market to operate at a less-than-optimal capacity, further declining production capabilities. This led to a gap in the demand-supply market, triggering a state of vacuum. However, as the pandemic looms past 2021, the market is expected to return to pre-pandemic level sales as global trade routes are expected to resume functioning.

Recent Developments

• In October 2022, Car Care Products Australia, a distributor of automotive protective films for Australia, announced the purchase of its paint protection film business by XPEL, Inc. (Nasdaq: XPEL), a global manufacturer of protective films and coatings. The non-paint protection film products sold by Car Care Products Australia will continue to be in production.
• In July 2022, Rivian Automotive LLC chose XPEL as its exclusive supplier for the new Paint Protection Film Factory Direct Program.
• In February 2022, ULTIMATE FUSION TM, the latest paint protection film from XPEL, Inc. (NASDAQ: XPEL), is a leading manufacturer of coatings and protective films.
• In July 2022, Introduce Mativ, Inc., a $3 billion global leader in specialty materials, was created due to the impending merger of equals from SWM and Neenah.