Below is information shared from ResearchAndMarkets.com’s latest report, “U.S. Automotive Wrap Films Market 2021-2028.”
According to a new report, the U.S. automotive wrap films market is anticipated to reach $4.32 billion by 2028 at a CAGR of 18.8% from 2021-2028.
What’s the reasoning behind this? The report says it’s the growing trend of company spending on vehicle advertising and offering sponsorships to automotive race teams. These factors are expected to drive the demand for car wrap films in the U.S.
Consumer goods, food and beverage, tourism, electrical and electronics, and various other industries use vehicle wraps to showcase and advertise their product offerings. Companies in these industries hire vehicles from fleet owners and use custom wraps with company names, logos, and tag lines to promote their businesses.
The report also notes that vehicle wraps are a cost-effective marketing solution. The overall return on investment is high compared to paint, especially when thinking about race cars needing quick color and design updates. The minimum service life for a good quality wrap ranges from five to six years.
The report points out that wrap film manufacturers (like Avery Dennison, Arlon Graphics, 3M, JMR Graphics Inc., ORAFOL Europe GmbH, VVIVID Vinyls, HEXIS S.A., and RITRAMA S.p.A.) are focusing on product development and initiatives with regional players to minimize the risk of expanding into a new marketplace. For example, in October 2020, Arlon Graphics introduced its cast wrap portfolio with FLITE technology. This product helped the company to cater to vehicle wrap installers with quick and easy installations with fewer rolls for wrapping.
Other report highlights
- The light-duty vehicles application segment accounted for over 53.8% of the overall revenue in 2020. This high share is attributed to rising consumer spending on personalized vehicle customization, which largely includes lightweight cars.
- The demand for hydro dipping poses a challenge in the growth of vehicle wrap films as it’s a relatively easy and low-cost solution for customization.