Paint Protection Film Market Size, Share & COVID-19 Impact Analysis, By Material (Thermoplastic Polyurethanes, Polyvinyl Chloride, and Others), By End-User Industry (Automotive, Electronics, and Others), and Regional Forecast, 2021-2028

The global paint protection film market size was USD 432.6 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the product witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market for paint protection film (PPF) exhibited a decline of 2.36% in 2020. The market is projected to grow from USD 456.8 million in 2021 to USD 697.1 million in 2028 at a CAGR of 6.2% during the 2021-2028 period. The sudden decline in CAGR is attributable to this product’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The market is expected to show considerable growth due to the increasing demand for PPF films from the automotive sector. The exceptional properties and performance of PPF shall aid market growth.

COVID-19 Pandemic: Decline in Demand from Automotive Sector to Hamper Growth

COVID-19 has significantly disturbed several economies globally due to the massive disruption in production and supply chain. The disruption in the supply and demand chain of products and services resulted from the government guidelines and strict implementation of the lockdown and other pandemic-curbing protocols. The automotive industry was one of the highly impacted sectors worldwide due to the worldwide lockdown and halt in production activities. The automotive segment held more than 80% of the market share in 2020, which significantly impacted the paint protection film business. Besides, the unavailability of raw materials like TPU and PVC due to the restriction in transportation services was another factor that resulted in a decline in the supply of PPF. The COVID-19 outbreak and compulsion of safety protocols disrupted the supply chain for raw materials, which further resulted in a standstill.

However, certain suppression protocols issued by the government, like operating of companies on 30% of staff, coupled with research and development of vaccines, supported the recovery of the business. For instance, in April 2020, the Ministry of Home Affairs of India allowed Special Economic Zones and Export Oriented Units to reopen after an extended lockdown.

LATEST TRENDS

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Technological Advancements in Product Offerings to Be a Key Market Trend

There has been significant research and development in the field of polymers and materials since the last decade. The selection of raw materials, the technology used, manufacturing processes, and functionality of the end-product have been significantly studied and enhanced to produce excellent quality products with high functionality and performance. The introduction of innovative technologies to produce durable films is one of the major factors expected to contribute to the paint protection film market growth. For instance, 3M produced a PPF consisting of the acrylic adhesive layer of cross-linking between polyurethanes, PVC, polyolefin, and other combinations with metal ions having Young’s Modulus of less than or equal to 200 Mpa.

DRIVING FACTORS

Growing Demand from End-User Sectors to Drive Market Growth

Paint protection films (PPFs) are transparent protective films composed of polymers. They are employed to protect the exterior surfaces of various equipment and objects like cars, vehicles, airplanes, RVs, cellphones, electronics, and screens of various devices. High demand from various end-sectors, including, electronics, marine, automotive, transportation, and others, is expected to propel market growth. Increasing demand from the automotive sector to protect passenger vehicles from slight abrasion, scratches, stone chipping, bugs, platters, and other exterior damages is one of the prime factors driving the growth of this market.

Moreover, the growing demand for electronic devices like smartphones, tablets, laptops, computers, and other devices shall subsequently raise the demand for paint protective films. Electronic gadgets are sensitive towards abrasion, accidental falls, fluid spills, and dust accredited to which paint protection films are installed.

Superior Properties of Paint Protective Films to Drive Market Growth

PPFs provide excellent protection to cars and other objects due to the superior properties exhibited by the films. The composition of the films is mostly polymers like polyurethanes and PVC, which exhibit exceptional properties like durability, sturdy nature, high mechanical strength, flexibility, UV protection, and others. Objects subjected to harsh environments, continuous heat, and sunlight exposure highly employ paint protective films. Additionally, PPF costs relatively lower than maintenance of the exterior of cars and automobiles without any protective films. This makes PPF an economical choice and further is expected to increase the demand.

RESTRAINING FACTORS

High Installation Cost Shall Hamper the Market Growth.

Paint protection films need expert handling while installation. Experts ensure proper installation of the protective films on the surface of the designated object without any error or damage to the object's surface.  High installation costs of the PPF charged by the experts are expected to act as a limiting factor for the market.

SEGMENTATION

By Material Analysis

Thermoplastic Polyurethane Segment to Generate High Revenue Due to Exceptional Performance

Based on type, the market is segmented into thermoplastic polyurethane, polyvinyl chloride, and others.

The thermoplastic polyurethane segment held a major share in the market in 2020. Thermoplastic polyurethane is a polymer that exhibits superior properties like transparency, elasticity, hydrophilic resistance, chemical and abrasion resistance, low-temperature flexibility, and mechanical properties. These films also exhibit durability, which is why they are mostly employed in automotive end-use.

Polyvinyl Chloride (PVC) segment holds a 26.2% share of the PPF market.  PVC protective films are highly implemented in electronic sectors due to their high hardness, mechanical properties, coupled with good insulation properties.

By End-User Industry Analysis

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Automotive Segment to Hold a Significant Share Due to High Demand for Passenger And Luxury Vehicles

The market is segmented into automotive, electronics, aerospace and defense, and others in terms of end-user.

The automotive segment held 82.1% of the global market share in 2020. High demand for passenger and luxury vehicles from all across the world is expected to increase the demand from the automotive sector. For example, according to the European Automobile Manufacturer Association (ACEA), in 2019, 12.8 million car units were sold in the EU. Increasing demand for vehicles is expected to fuel the demand for PPF.

The high adoption of paint protective films for protecting the exterior of electronic devices from chemicals, harsh environment, water, and other fluids, abrasion, and scratches shall aid growth. The low maintenance cost of PPF shall boost demand from the electronic sector.

REGIONAL INSIGHTS

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Asia Pacific stood at USD 196.0 million in 2020 with a share of 45% in paint protection film market in the same year. The region dominated the market and is anticipated to maintain its position during the forecast period attributed to the easy availability of raw materials and lower labor costs. Additionally, the developing automotive sector in countries like India, China, Japan, and South Korea is expected to add to the demand for PPF.

Europe is expected to hold a key share in the market attributed to the well-established automotive production industry in countries like Germany, UK, France, and Italy. Large-scale automobile production like passenger cars, luxury cars, and commercial vehicles shall drive the regional market. For instance, 1.5 % of the total production in the EU were upper medium and luxury cars which use PPF.

North America is expected to hold a significant share attributed to the presence of an ample number of end-user industries and manufacturing bases. Besides, an increase in the disposable income of consumers is one of the key factors driving the regional market.

Latin America is experiencing a rise in the economic and industrial sector attributed to the various schemes and initiatives implemented by the government. Increasing demand for automobiles shall, in turn, uplift the demand for Paint Protection Films.

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The Middle East & Africa is expected to grow with a relatively thorough growth rate owing to the considerable refurbishment market of automotive.

KEY INDUSTRY PLAYERS

Key Companies to Adopt Strategies and Broaden Their Market Presence

With a few global players capturing a significant share, the global market is concentrated in nature. 3M Company, STEK-USA, XPEL, Inc., ORAFOL Europe GmbH, Eastman Performance Films, LLC, Reflek Technologies Corporation Premium Shield Limited, OPTICSHIELD, Hexis S.A, Schweitzer-Mauduit International, Inc., and Avery Dennison Corporation are some of the market's key players.

Industry players operate principally based on the product's price and performance. To boost the company’s market position and achieve a competitive advantage, several major players are engaged in numerous planned product launches and research to promote brand and sales. For instance, in September 2017, Hexis S.A. invested USD 18.8 million as a fragment of a 5-year strategic plan till 2020. This plan involved the acquisition of lands, new systems, modernization of production processes and technology.

LIST OF KEY COMPANIES PROFILED:

• Eastman Performance Films LLC (Tennessee, US)


• 3M Company (Minnesota, US)


• XPEL, Inc. (Texas, US)


• Avery Dennison Corporation (California, US)


• LG Chem (Seoul, South Korea)


• KDX Composite Material (Maryland, US)


• Premier Protective Films International (California, US)


• Renolit (Worms, Germany)


• SWM, Inc. (Georgia, US)


• Other Key Players

KEY INDUSTRY DEVELOPMENTS:

• In May 2021, Eastman performance Films announced that the LLumar paint protection film is the preferred paint protection film brand of the National Corvette Museum.


• In April 2021, Eastman Performance Films launched its new and first-of-its-kind car protection technology. The company introduced the newest auto paint protection film under the brand name ‘LLumar Valor’ to perform against extreme elements on a luxury cars.


• In May 2021, XPEL Inc., a global manufacturer of paint protection film and coatings announced the acquisition of PermaPlate film, a distributor and installing service provider of window films serving dealerships in US.

REPORT COVERAGE

An Infographic Representation of Paint Protection Film Market

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The paint protection film market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, products, and raw materials. In addition, the report offers insights into market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years. This report includes historical data and forecasts revenue growth at global, regional, and country levels, and analyzes the industry's latest market dynamics and opportunities.

Report Scope & Segmentation