Paint Protection Film Market Size, Share & COVID-19 Impact Analysis, By Material (Thermoplastic Polyurethane, Polyvinyl Chloride, and Others), By End-use Industry (Automotive, Electronics, and Others), and Regional Forecast, 2023-2030

The global paint protection film market size was valued at USD 528.3 million in 2022. The market is projected to grow from USD 559.1 million in 2023 to USD 853.1 million by 2030, exhibiting a CAGR of 6.2% during the forecast period.

Paint protection film is a transparent film of polymer material used to protect the paint of vehicles, screens, and glasses. It isolates the painted surface from the air and prevents oxidation and degradation. It protects painted surfaces from cuts, abrasion, and scratches and helps maintain the aesthetic appearance of vehicles to look newer for years. Paint protection films are made of elastomeric polymers, including thermoplastic polymer and polyvinyl chloride. In the complex environment, these films protect the vehicle’s paint from stones, gravel, debris, and other unforeseen obstacles on the road. They prevent the aging of paints by harmful substances and moisture in the environment and make the surface look new with a glossy appearance. They also protect the screens and covers of electronics and other appliances used in several industries, including automotive and electronics. Since the post-pandemic period is witnessing significant growth in the automotive and electronics industries across the globe, the demand for paint protection film is anticipated to rise in the near future.

COVID-19 IMPACT

Declined Production and Demand during COVID-19 Resulted in Decreased Market Growth

The outbreak of the COVID-19 pandemic significantly affected trade activities across the globe. Different manufacturing industries faced challenges regarding workforce, supply chains, and utilities. Lockdowns in major consumer economies, such as the U.S., Germany, the U.K., France, China, and India, led to lesser production. Automotive and electronics sectors are the leading consumers of paint protection films. The COVID-19 impact on these industries was severe, which negatively affected the market growth. However, with significant control over the spread of COVID-19 after mid-2021, different industries gradually started operating at their full capacity. This resulted in a considerable increase in demand for products, which is anticipated to continue during the forecast period.      

LATEST TRENDS

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Technological Advancements in Product Offerings to Boost Market

There has been significant research & development in polymers and materials since the last decade. The choice of raw material, technology used, manufacturing processes, and functionality of the end product has been significantly studied and enhanced to produce high-quality products with high functionality and performance. The introduction of innovative technologies to produce durable films is one of the major factors expected to surge the demand for Paint Protection Films (PPFs). For instance, 3M launched a PPF comprising the acrylic adhesive layer of cross-linking between polyurethanes, PVC, polyolefin, and other combinations with metal ions which has Young’s Modulus of less than or equal to 200Mpa.

In the recent past, the market has witnessed significant investment in developing technology to provide products with greater aesthetic appeal as well as mechanical performance. For instance, HEXIS Graphics, a prominent manufacturer of different types of films, developed PPFs using a new technology called ‘X technology’. The technology provides products with a glossier finish and greater conformability.  

DRIVING FACTORS

Increasing Demand from Several End-use Industries is expected to Drive the Market

PPFs are widely used to protect the paint from abrasion, scratches, stone chipping, bug platters, and other exterior damage. These applications play an important role in protecting vehicle paint and maintaining the vehicle surfaces. The rapidly growing automotive & transportation industry across the globe is anticipated to be the key driving factor for this market.

The global automotive industry contributes significantly to the world’s overall GDP and roughly around 3% of the world’s total output. This rate is higher in developing markets, such as India and China, which account for 7% of GDP. The automotive industry has gained significant momentum with the decline of COVID-19 after mid-2021. For instance, the sector reached 122.83 million units in 2021 and is expected to grow at a CAGR of 3.71% from 2020 to 2030.

Paint protection films are transparent, colored, and made of an elastomeric polymer that allows the film layer to keep its shape when stretched. A high-quality PPF lamination enhances the car's appearance for a long time while protecting it from rock chips and minor scratches. These films offer realistic colors that closely imitate the look for originality and the performance of automotive paint.

The film is completely safe and extends the life of the vehicle’s interior and exterior. Continued demand growth for luxury cars directly impacts the market since it determines the resale value according to its appearance and body condition. Apart from that, PPF gives assurance to preserve the original shine and glaze of the car.

Moreover, the increasing demand for electronic devices, including smartphones, laptops, tablets, and computers, is anticipated to drive the market. For instance, according to icea.org, in 2021, 1.37 billion units of cell phones were shipped worldwide. Continuous growth in demand for such electronic devices is to drive the market. Electronic devices are sensitive to accidental falls, abrasion, fluid spills, and dust which necessitate the installation of PPFs.

RESTRAINING FACTORS

High Installation Costs and Temporary Life Span are Anticipated to Limit the Market Growth

Paint protection film may appear to be a one-time investment, but the installation price remains high as it needs expert handling. Experts ensure proper installation of the protective films without any error or damage on the surface of the designated object. Furthermore, the protective films will be avoided or restricted if the customer intends to keep the vehicle for a short duration.

The common defect of protective films is to degrade and turn yellow when exposed to excessive UV rays (a common occurrence on outdoor vehicles). However, urethane films of today can be used for a long time without losing their flawless transparency.

The warranties offered by PPFs typically range from five to twelve years. The film's integrity cannot be guaranteed after this point. However, during the span of the warranty, if the film is damaged, the manufacturer or the installer has to bear the replacement costs for the film, which acts as a loss or restraint for the manufacturer.

PPFs will only protect the painted surface once cured and not eliminate the labor-intensive and costly painting process. On the other hand, PPFs require a significant amount of time for cutting, pasting, and installing. Hence, paint replacement films can be considered if a vehicle owner is worried about waiting times.

SEGMENTATION

By Material Analysis

Thermoplastic Polyurethane Segment to Generate High Revenue Due to Exceptional Performance

Based on material, the market is segmented into thermoplastic polyurethane, polyvinyl chloride, and others. Thermoplastic polyurethane held the major share of the market in 2022. Thermoplastic polyurethane is a type of plastic that exhibits special properties such as transparency, elasticity, hydrophilic resistance, chemical and abrasion resistance, low temperature flexibility, and fine mechanical properties. Thermoplastic polyurethane films also exhibit high durability, which makes them a product of choice in the automotive industry.

The Polyvinyl Chloride (PVC) segment significantly contributed to the market in 2022. It is a white, brittle solid. It has good abrasion resistance with better mechanical properties. It has good chemical resistance and insulation properties for medium-voltage and low-frequency insulation materials. PVC paint protective films are highly implemented in the electronics sector.

By End-use Industry Analysis

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Automotive Segment to Hold a Significant Share Due to High Demand

On the basis of end-use industry, the market is segmented into automotive, electronics, and others. The automotive segment held around 82% of the global market in 2022. High demand for passenger and luxury vehicles from 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 paint protection films in the near future.

Moreover, increasing adoption of paint protective films for protecting the exterior of electronic devices from chemicals, harsh environments, water, and other fluids, abrasion, and scratches is anticipated to aid market growth. The low maintenance cost of PPFs is anticipated to boost the demand from the electronics sector.

REGIONAL INSIGHTS

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The market size for the Asia Pacific region was valued at USD 241.4 million in 2022. Asia Pacific is the home to major developing economies such as China and India, with a significant untapped economic growth potential that is likely to be realized during the forecast period. Since these countries are progressing in their economic expansion, the demand for automobiles to support this growth is anticipated to grow simultaneously. The region has witnessed a significant rise in demand for paint protection films in the recent past. For instance, in 2022, BASF supplied its PPF product ‘RODIM TPU’ to about 2,000 Audi and Volkswagen distributors in China, which helped it improve end-user satisfaction and brand image.

North America is a heavily industrialized region with constant demand for automobiles. The region has a high standard of living and mature demand for high-end vehicles, leading to continued growth of the automotive industry. For instance, according to the American Automotive Policy Council, the automotive industry contributed 3% of America’s GDP. Automakers have exported vehicles and parts worth more than USD 1.1 trillion, nearly USD 36 billion more than aerospace. Automakers have been able to centralize production in high-functioning markets such as the U.S. by moving toward global model platforms. Some significant factors, including the region's developed manufacturing sector, Original Equipment Manufacturers (OEMs), and supportive government regulations, are anticipated to drive market expansion.

Europe is expected to hold a key share of the market owing to the well-established automotive industry in Germany, the U.K., France, and Italy. Opportunities for suppliers in developing nations, such as the Czech Republic, Hungary, Poland, Slovakia, and Romania, among other European countries, are likely to advance the value chain. According to europarl.europa.eu, the European automotive sector is central to Europe's economy. It generates a turnover representing over 7% of the EU GDP in 2020. Some major industrial countries in Europe pivoted toward electronics & aerospace, and demand for PPFs is anticipated to rise by creating new market growth opportunities.

In the recent past, Latin America witnessed significant investment in the automotive and electronics industries. For example, Mexico, owing to its logistical proximity as an exporter to the U.S. and Canada, has witnessed significant investments in the automobile sector. Since the manufacturing industry in South America is developing, demand for electrical infrastructure to support this development is also expected to rise. This is anticipated to benefit and drive the paint protection film market growth in the region.

The automotive industry is expected to expand significantly in the Middle East and Africa in the coming years. Substantial growth can be attributed to high disposable income consumers in the Gulf countries. The GCC region dominates the Middle East & Africa markets due to the high demand for automobiles in the region. The industrial sector in the region is witnessing a significant transition. For instance, easily available low-cost raw materials such as petrochemicals are attracting huge foreign direct investments in several end-use industries. This, in turn, is anticipated to benefit the market in the region.     

KEY INDUSTRY PLAYERS

Major Companies Focus on Acquisition of Small and Regional Players and Expansion of Production Facilities to Boost Sales Revenue

In manufacturing, the market is consolidated in North America, Europe, and Asia Pacific. Europe holds the largest paint protection film market share owing to higher consumption and production. Global players, such as XPEL Inc., Eastman Chemical Company, and SWM Inc., focus on strengthening their business through mergers, acquisitions, or partnering with regional players and local distributors.

LIST OF KEY COMPANIES PROFILED:

• Eastman Chemical Company (U.S.)


• 3M (U.S.)


• XPEL, Inc. (U.S.)


• AVERY DENNISON CORPORATION (U.S.)


• Kangde Xin Optical Film Materials (Shanghai) Co., Ltd (China)


• Renolit SE (Germany)


• SWM, Inc. (U.S.)


• Guangdong Mr Film Plastic Industrial Co., Ltd (China)


• Sunvase (China)

KEY INDUSTRY DEVELOPMENTS

• November 2021: XPEL acquired invisiFRAME, Ltd, a designer and manufacturer of PPF patterns for bicycles, thus further expanding its non-automotive offerings.

• June 2021: Avery Dennison announced training classes for automotive paint protection film and window film to help the participants to improve skills and techniques, reduce installation time, and maximize time.

REPORT COVERAGE

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The report provides qualitative and quantitative insights on the market share, growth rate, size, and regional analysis by different segments. The research report also offers an elaborative analysis of the market dynamics and competitive landscape. Key insights such as Porter’s five forces, recent industry developments, and the regulatory scenario are also covered as part of the scope of the study.

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