U.S. Automotive Wrap Films Market Growth & Trends
The U.S. automotive wrap films market size is anticipated to reach USD 4.32 billion by 2028, according to a new report by Grand View Research, Inc. The market is projected to register a CAGR of 18.8% from 2021 to 2028. The growing trend of company spending on automobile advertising and offering sponsorships to the automotive race teams to increase the visibility of the company is expected to drive the demand for automotive wrap films in the U.S.
Companies operating in consumer goods, food and beverages, tourism, electrical and electronics, and various other industries are using vehicles with automotive wraps for showcasing and advertising their product offerings. Companies operating in these industries hire vehicles from fleet owners and use customized wraps with company names and logos imprinted on them. Additionally, an automotive wrap film is a cost-effective solution, which maintains the original paint job and provides a high resale value for the vehicles. The minimum service life for good quality automotive wrap ranges from 5 to 6 years. The rising trend of hydro dipping poses a challenge in the growth of the U.S. market for automotive wrap films.
Automotive wrap films offer the flexibility to get the vehicle fully wrapped or semi-wrapped depending upon the requirement. These wraps can be a bit expensive than paint in the case of complex designs, however, with high quality, the overall return on investment in the case of automotive wrap films is high as compared to vehicle paint. Automotive wraps are a cost-effective option when the paint cost is expected to be very high, for example, in the case of racing cars, as these cars often require quick color and design changes depending upon their sponsors, company, and branding. The low cost of wraps as compared to vehicle paints makes it suitable for these applications, which, in turn, is anticipated to increase the demand over the forecast period.
Prominent players involved in the production of wrap films are focusing on product development and strategic initiatives with regional players to minimize the risk of expanding into a new marketplace. For instance, in October 2020, Arlon Graphics, LLC introduced cast wrap portfolio with FLITE technology. This product innovation enabled the company to cater to vehicle wrap installers with quick and easy installations with fewer rolls for wrapping.
U.S. Automotive Wrap Films Market Report Highlights
- The light-duty vehicles application segment was accounted for over 53.8% of the overall revenue in 2020. This high share is attributed to the rising trend of consumer spending on personalized customization in their vehicles which majorly constitutes lightweight vehicles
- The growing demand for hydro dipping poses a challenge in the growth of automotive wrap films as hydro dipping is a relatively easy and cost-effective solution for customization
- Key players involved in the market are focusing on investment in research and development activities to increase market offerings that give them a competitive edge over the other players
- Exterior location is anticipated to remain the dominant segment in the market for automotive wrap films in the U.S. throughout the forecast period