Protective films Market size is forecast to reach around $21 billion by 2025, after growing at a CAGR of 6% during 2020 – 2025. The demand for protective films is increasing globally as they enhance the life of the material by protecting them from scratches and abrasions. Increasing demand of protective films from building and construction, transportation, and packaging industry and especially from automotive and electronics industry; is the major drivers for the growth of protective films markets share during the forecast period. Furthermore, advancement in technology to offer sustainable product with minimal environmental impact are projected to enhance the protective films market size.
- Asia pacific dominates the protective film market in 2019, owing to increase in the demand from end use industry such as building and construction, automotive and electronics industries.
- The growing popularity of new age smartphones and touchscreen which uses polyester based protective film in order to cause no damage to sensors and touchscreen during manufacturing and transportation is likely to aid the protective films market.
- Difficulty in recycling the polymer based protective films act as a restraint for the growth of the protective films market.
Type- Segment Analysis
Adhesive coated segment is the largest segment of protective film market and is projected to grow with a highest CAGR of 7.5% between 2020-2025 .This type of protective films are most commonly used in paint and glass industry due to their compatibility with substrates like glass, plastics and metals and ease in the manufacturing process whereas self-adhesive film faces difficulty in maintaining uniform visco-elastic nature and peel resistance leading to a complex manufacturing process.
Type of Film – Segment Analysis
Polyethylene type protective films holds the largest market share of more than 25% in 2019 in the global market owing to its easily available and are cheapest among all other. Their suitability with different adhesives based on water, acrylic, solvents and others accounts for rise in their demand. Export of Polyethylene increased by 12% between year 2015 and 2018 worldwide, dominating the film market. Moreover, polyethylene films availability in different variants such as LDPE, HDPE, XLPE, VLDPE and HMWPE provide it an edge over others.
Application –Segment Analysis
Automotive segment is projected to witness the highest CAGR of 8% during the forecast period in the protective films market owing to growing demand for electric vehicle globally. According to OICA, total automotive sales jumped to 95 million in year 2018. Rapid industrialization along with the increase in transportation results in increase in demands of vehicles, subsequently resulting in increase in demand of protective films for car paint protection, dashboards, carpets and leathers against damage. Whereas, building and construction sector also emerged as a leading end-use industry in the global market. Urbanization, lead to the rapid growth of building and construction industries. According to IEA, global floor area in buildings expected to double to more than 415 billion square meter by 2050 due to which building materials such as window panels, doors, carpets are also expected to increase, resulting in high demand for protective films.
The outbreak of COVID-19 has badly impacted the protective film market. Industries are being shuttered all around the world and government announced lockdown. Companies are postponing their deals and meeting which further results in their downfall and lead to bankruptcy. According to Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales declined by 51% whereas commercial vehicles sales decreased by 88% in India in March 2020, subsequently hampering the growth of protective film market.
Geography- Segment Analysis
Asia pacific dominated the protective film market with a share of more than 35% followed by North America and Europe as regions are leader in automotive production and consumption .The growing construction industry due to urbanization and industrialization increases the automotive and electronics production and are expected to play an important role in driving the protective film market in the region. Countries in South East Asia like Indonesia, Thailand and Malaysia are witnessing high growth in automotive industries, subsequently resulting in protective film market growth. According to OICA, APAC automotive sales witnessed a growth of over 6.52% during 2012-2018, with South East Asian countries having huge potential to grow. Thus increase of automotive sales will enable the growth of film market.
Drivers –Protective Films Market
- Growth of Automotive and Construction sector
Rise in transportation and automotive industry subsequently increases the protection film market .In automotive field, films are employed for car paint protection and shielding car body, dashboards, leathers and carpets against damage. Thus rise in vehicular purchase is boosting the film Market. The advancement in polymer technology, films that are tough and resistant to abrasion are being engineered, these films are now extensively used in construction sector for moisture barrier and prevention of leakage. Due to rapid urbanization and industrialization in Asia Pacific region, construction market is rapidly increasing thereby enhancing the demand of glazed panels, floors and window profiles which uses protection films. According to Oxford economics, global construction market is expected to grow by 85% to $15.5 trillion worldwide by 2030.
- Growing demand for solar energy production
With the rise in popularity of solar energy production, growth of protection films also increases. Photovoltaic modules are exposed to several environmental stress factors including ultraviolet (UV) radiations. Polymeric films are used to cover the solar cells, thereby providing them protection against moisture, mechanical stresses and environmental corrosion. According to International Renewable Energy Agency total installed capacity of solar photovoltaic cells reached to 580,159MW in 2019 which was 483,078MW in 2018, subsequently escalating the growth of protective film market.
Challenges- Protective Film Market
- Non degradability and government regulations
Although polythene protective films demands are growing day by day but their disposal is a main concern. Protective films are difficult to dispose and recycle as they are constituted from non-degradable polyethylene polymer. Therefore their direct disposal raises the threat to environment. Thus restricting the growth of protective films market. Moreover, Government regulations to minimize the use of multilayered plastic polymer will act as a restraining factor for protective films industry For instance California government has introduced regulation known as SB270 in July 2015, prohibiting the use of plastic polymers at groceries, pharmacies and other stores.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the protective films market report. The market of protective films top 10 companies for xx% of the share. Major players in the protective film industry outlook are 3M, Nitto Denko Corporation, Chargeurs, DuPont, Arkema, Polifilm Group, among others.
Acquisition / Technological launches
- In February 2020, San Antonio based XPEL Inc., has acquired the Montreal-based paint protection film installation industry, PROTEX CENTRE for approximately $ 2.44 million
- In January 2020, Joint research project of Fraunhofer Institute for Microstructure of Materials and Systems (IMWS) and POLIFILM EXTRUSION to engineer the biopolymer based films for food packaging in order to increase the resistance of food to microbiological impacts.
- In September 2016, Pregis LLC has acquired the temporary protective film business of 3M which provides adhesive-backed temporary protective films used in automotive, appliance, metal working, and building and construction industries.