Paint Protection Film Market Size, Share & Trends Analysis Report By Material (Thermoplastic Polyurethane (TPU), Polyvinyl Chloride (PVC), Others), By Application, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global paint protection film market size was valued at USD 458.28 million in 2021 and is expected to register a compound annual growth rate (CAGR) of 5.6% from 2022 to 2030. The shift in consumer preference toward keeping the finish of their vehicles intact, coupled with the rising awareness among them for ensuring proper maintenance of their automobiles, is expected to fuel the demand for paint protection films worldwide. The U.S. is one of the leading automotive markets in the world. As such, the country is expected to witness significant demand for paint protection films throughout the forecast period. The presence of major paint protection film (PPF) manufacturers and many of their installers in the U.S. is anticipated to further boost the market growth for these films in the country from 2022 to 2030. Increasing awareness among consumers regarding the benefits of paint protection films is expected to surge the consumption of these films in the U.S. during the next few years.

Several states in the U.S., including California, New Jersey, Washington, and Louisiana, offer tax credits, exemptions, and rebates for promoting the procurement of electric vehicles (EVs). New Jersey and Washington exempt the sales and use taxes on electric vehicles (EVs), while California offers rebates on the purchase and usage of plug-in hybrid electric vehicles (PHEVs) and other light-duty zero-emission vehicles.

These tax incentives implemented by the different states of the U.S. are anticipated to contribute to the growth of the market for electric vehicles in the country from 2022 to 2030. This, in turn, is anticipated to fuel the consumption of paint protection films applied to exterior parts of vehicles in the U.S. during the coming years.

The growing aerospace & defense industry in North America is further anticipated to fuel the demand for paint protection films in the region. Countries such as the U.S. and Canada are mature automotive markets and are expected to account for significant shares of the demand for pre-owned vehicles in terms of revenue in the coming years. In addition, surging concerns regarding vehicle protection in North America and increasing penetration of paint protection films in various applications are expected to drive the demand for them in the region. The demand for TPU-based paint protection films in North America is expected to be driven by the superior scratch resistance and aesthetic appeal offered by them.

The region is expected to witness increasing demand for fuel-efficient aircraft in the coming years owing to the rising fuel prices. The plans of airlines in the region to modify/replace their existing inefficient aircraft with fuel-efficient airplanes are expected to augment the market growth in the region from 2022 to 2030.

According to Boeing, new aircraft deliveries and sales increased in 2021 as consumers looked past the impact of COVID-19, leading to an increase in air passengers. Up from 157 in 2020, Boeing delivered 340 jetliners to airlines and other purchasers. Airbus announced that it delivered 611 planes in 2021; this number was 8% more than the number of aircraft delivered by the company in 2020. Surging demand from customers is expected to fuel the growth of the market in North America from 2022 to 2030.

Material Insights

Based on material, the global market is segmented into thermoplastic polyurethane (TPU), polyvinyl chloride (PVC), and others. PPFs are high-grade thermoplastic polyurethane films that are either colored or translucent and are professionally applied to the uppermost layer of the vehicle's paint.

The thermoplastic polyurethane (TPU) film segment accounted for a significant share of the market in 2021 and is anticipated to maintain its dominance throughout the forecast period. TPU films are produced from TPU pellets manufactured using polyether polyurethanes or polyester polyurethanes. Methylene diphenyl diisocyanate (MDI) is a raw material for manufacturing polyurethane.

These films require low-temperature flexibility, hydraulic stability, and fungal resistance. Various additives are also added to thermoplastic polyurethanes during the process to enhance their properties. Various methods are used to produce TPU films from pellets. These processes include cast films and sheet extrusion, extrusion coating, blown film, wire & cable coating, hose jacketing, and tubing & profile extrusion.

The first and most popular type of paint protection film was polyvinyl chloride (PVC) film. These films are frequently referred to as first-generation paint protection films. PVC films provide some paint protection for automobiles, but because of their rigid construction, the installation might be difficult. In addition, PVC ages 1 to 3 years before hardening and gradually loses color and elasticity. Another disadvantage is that the vehicle’s paint may flake when PVC sheets are removed.

Application Insights

Based on application, the global market is segmented into automotive & transportation, electrical & electronics, aerospace & defense, and others. Increasing consumer awareness regarding the availability of products for substrate paint protection, coupled with the growing automotive industry, is expected to drive product demand. The demand for paint protection films in developed countries is growing significantly owing to the high consumer disposable income and the ability to spend on expensive installations for protecting the exterior components of vehicles.

High prices of these films and high installation costs are expected to hamper product demand in developing economies. However, rising consumer spending on luxury products and growing urbanization in developing economies are expected to propel the demand for paint protection films during the projected period.

The automotive & transportation application segment accounted for a 72.7% share of the overall market, in terms of revenue, in 2021. Increasing sales in countries such as India, China, and the U.S., are expected to augment the product demand during the next seven years. For instance, according to the Society of Indian Automobile Manufacturers (SIAM), the Indian automobile sector staged a spirited comeback in 2021; despite the challenges of semiconductor shortage and a deadly second wave of the coronavirus, sales grew by 27.0% and crossed the 30-million-unit mark. Automobile manufacturing companies sent 3.82 million units to dealerships in 2021, compared to 2.43 million units in 2020.

The aerospace & defense industry is expected to grow significantly due to the increasing number of air passengers yearly. Strong growth in the aerospace & defense sector in India, the U.S., and the U.K. is another critical factor driving this segment. Paint protection films have been widely used in numerous end-use industries since their invention, and their demand is expected to grow strongly. This segment is expected to account for a share of 13.0% of the overall market, in terms of revenue, by 2030.

The electrical & electronics application segment accounted for a 5.8% share of the overall market, in terms of revenue, in 2021. Increasing demand for electronic gadgets such as mobiles, laptops, tablets, and phablets in emerging economies of the Asia Pacific and Central & South America, such as China, India, Vietnam, Thailand, Brazil, and Argentina, is expected to drive paint protection film consumption in the electrical & electronics application segment.

Regional Insights

Based on region, the market has been studied for North America, Europe, Asia Pacific, Central & South America, and the Middle East & Africa. In terms of revenue, Europe accounted for the largest share of 31.8% of the paint protection film market in 2021. Europe has a robust automotive sector. According to the European Commission, the automotive sector in Europe represents more than a 7.0% share of the European Union GDP and is linked with upstream and downstream industries such as textiles, chemicals, steel & mobility, repair, and ICT.

The automotive sector in Europe consists of leading manufacturers such as Volkswagen AG, Stellantis NV, Renault Group, and Mercedes-Benz Group AG. The region also has assembly lines set up by foreign automobile manufacturers such as Hyundai Motor Company, TOYOTA MOTOR CORPORATION, and Kia. Furthermore, the region has a significant presence of many SMEs specialized in manufacturing automobile components in the EU member countries such as Italy, Spain, France, the Czech Republic, and Hungary, which is expected to play a pivotal role in driving the automotive industry in Europe.

Asia Pacific was the fastest-growing market for PPF in 2021, as the establishment of automobile manufacturing facilities in India, Thailand, and Indonesia by leading automotive manufacturers, coupled with rising automotive sales in Asia Pacific, is anticipated to drive the demand for paint protection films in the region. This, in turn, leads to market growth for these films in the Asia Pacific during the forecast period.

The market for second-hand or used cars has witnessed considerable growth in Asia Pacific owing to the increasing preference of consumers for mobility. Moreover, the emergence of online portals to promote the selling of used cars and carry out condition checks to estimate the proper value of used cars has enhanced the confidence of consumers to procure them.

For novice drivers, investing in new vehicles will not be economical. As such, they prefer used vehicles over new vehicles, thereby leading to the growth of the used vehicles market in the Asia Pacific. Thus, the flourishing used vehicles market in the region is expected to drive the demand for paint protection films that protect the exterior paint of these cars and reduce their repainting costs.

The PPF market in Central & South America is expected to grow significantly due to the increasing industrial investments in the automotive sector. Brazil is the leader in Central & South America in automobile production. According to the statistics by OICA, the country was the eighth-largest automobile producer in the world in 2021. Although most of the cars manufactured in Brazil are used locally, some are exported to other countries.

According to OICA, 2,248,253 vehicles were sold in the country in 2021, compared to 2,014,055 in 2020. The country has over 400 auto parts producers, including General Motors, Volkswagen AG, Ford Motor Company, FCA Italy S.p.A., and Renault Group. Brazil is expected to grow substantially due to the increasing demand for trucks and buses. This is expected to drive the demand for paint protection films.

Key Companies & Market Share Insights

The paint protection film (PPF) market is highly consolidated across companies such as 3M, XPEL, Inc., and GARWARE, which are the key players in the market and have been categorized as market innovators. These companies have had a prolonged presence in the market and hence, have been successful in establishing a global footprint.

The market leaders in the segment are comparatively new, yet they have succeeded in establishing a wide customer base with their broad product portfolios. These players have also developed contracts with global suppliers and distributors to enhance their market presence. Emerging players, on the other hand, mainly operate at a regional level and face intense competition to enter the global market.

New product launches, collaborations, and technological developments are the major strategies adopted by companies. For example, in September 2022, 3M launched the Scotchgard Paint Protection Film (PPF) Pro Series 200 Gloss. The new Scotchgard PPF Pro Series 200 Gloss offers excellent clarity, hydrophobic features, and high gloss. Moreover, the good flexibility of the film allows an easy repairable installation experience, which can help 3M strengthen its market position in the paint protection films market. Some of the prominent companies in the global paint protection film market include:

• 3M

• XPEL Inc.

• Schweitzer-Mauduit International, Inc.

• Eastman Chemical Company

• Avery Dennison Corporation

• Saint-Gobain S.A.

• RENOLIT SE

• Ziebart International Corporation

• Hexis S.A.S

• Garware Hi-Tech Films Ltd.

Paint Protection Film Market Report Scope

Global Paint Protection Film Market Segmentation

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global paint protection film market report based on the material, application, and region:

• Material Outlook (Volume, Thousand sq. Meter; Revenue, USD Million, 2019 - 2030)

  • Thermoplastic Polyurethane (TPU)

  • Polyvinyl chloride (PVC)

  • Others

• Application Outlook (Volume, Thousand sq. Meter; Revenue, USD Million, 2019 - 2030)

  • Automotive & Transportation

  • Electrical & Electronics

  • Aerospace & Defence

  • Others

• Regional Outlook (Volume, Thousand sq. Meter; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

    • Indonesia

    • Thailand

    • Malaysia

  • Central & South America

  • Middle East & Africa