Global functional films market was valued at US$ 29.02 Million in 2022 and is expected to exhibit a CAGR of 5.6%, in terms of revenue, over the forecast period (2023-2030) to reach US$ 45.06 Million by 2030.
Global Functional Films Market - Impact of Coronavirus (COVID-19) Pandemic
The pandemic has negatively impacted the demand for functional films that are used in a range of industries such as electronics, automotive, etc. Due to strict lockdowns imposed across the globe, bottlenecks in the supply chain were witnessed. Furthermore, demand declined due to decrease in construction and transportation activities. Companies have reduced investment in the market for functional films as a result of focusing on managing the pandemic's economic effects and fund maintenance.
The COVID-19 pandemic had a negative significant impact on the global market for functional films, due to decreased demand, supply chain disruptions, investment, changes in consumer behavior, and government stimulus.
Global Functional Films Market: Growth Drivers
Growing demand for electric vehicles
There has been a huge inclination of customers to buy electric vehicles for mobility which has led to a massive surge in the production of electric automobiles across the globe. This is mainly attributed to growing concern about the environment as conventional vehicles are not environment-friendly and can cause a huge threat to the ecosystem. The carbon di-oxide which is emitted on burning fossil fuel is responsible for rising global temperature on earth which in turn leads to global warming. To minimize the risk associated with vehicles running on fossil fuels, automobile companies have started looking to manufacture electric cars and other vehicles that draw electric energy sourced from renewable resources. Sales of functional films that are extensively used as an important utility in automobiles have risen on account of increasing sales of automobile cars and other passenger vehicles such as electric cars and buses.
Rising utilization of solar-based applications
Increasing installation of solar panels is projected to propel the market growth of functional film. According to World Economic Forum, solar is expected to account for 60% of the increase in global renewable capacity by 2023. Therefore, the growing solar cell market is projected to propel the growth of the Global functional film market.
Figure 1. Global Driveline Additives Market Share, By Product Type, 2022
Global Functional Films Market: Restraints
Stringent rules and regulations imposed on the production of toxic chemicals
Stringent rules and regulations are associated with the production of functional films which may lead to a decline in the growth of the market. Pollution is a major problem for industries that use fossil-based chemicals such as synthetic polymers as the primary raw material for manufacturing functional films. Due to the rising awareness about sustainability, various countries’ governments are imposing strict rules on the usage of toxic chemicals which are hazardous to the environment. This factor is expected to hinder the market growth of functional films.
Global Functional Films Market: Market Opportunity:
The market for functional film is expected to develop thanks to rising consumer electronics output, particularly in the Asia Pacific. In the production of smartphones and tablets, functional film is frequently used. According to the MMR study, the appliances and consumer electronics business is expected to reach in size US$ 45.06 Million by 2030
|Base Year:||2022||Market Size in 2022:||US$ 9.02 Mn|
|Historical Data for:||2017 to 2021||Forecast Period:||2023 to 2030|
|Forecast Period 2023 to 2030 CAGR:||5.6%||2030 Value Projection:||US$ 45.06 Mn|
3M, Toray Industries, Inc., Nagase & Co. Ltd., Eastman Chemical Company, and Tatsuta Electric Wire & Cable Co., Ltd.
|Restraints & Challenges:||
Global Functional Films Market: Segmentation
On the basis of product type, the global functional films market is segmented into conductive, optical, adhesive, and water-soluble. On the basis of application, the global functional films market is segmented into flat panel display (FPD), electronics & semiconductors, automotive, construction, energy, healthcare & pharmaceuticals, and packaging. Based on product type, the optical segment dominated the global market in 2022, accounting for 47% share, in terms of revenue, followed by conductive, adhesive, and water-soluble. The global functional films market is expected to witness growth in the near future, owing to an increasing number of electric vehicles manufactured every year and the increasing usage of functional films for electronics and semiconductor applications.
Figure 2. Global Functional Films Market Share, By Region, 2022
Global Functional Films Market: Regional Analysis
Asia Pacific region dominated the global functional films market in 2022, accounting for 42% share, in terms of value, followed by North America and Europe.
Growing automotive industry in the region is expected to boost demand for functional films in Asia Pacific region. Due to the region's expanding economy and population, the automotive industry in Asia Pacific is growing. Furthermore, rising disposable income in the region has increased consumer spending on vehicles, which resulted in increasing demand for functional films. Significant economic expansion, expansion of the automotive industry, and rising industrialization are the crucial factors that are significantly driving the growth of Asia Pacific functional films market. China has the largest market share in the region. Increased demand from the automotive industry is expected to drive the global functional films market growth.
North America is expected to be the second-largest market for functional films. The demand for functional films in these regions in the North American and European automotive industry is expected to be driven by the alternative demand for thin polymer-based functional films. During the forecast period, the functional films market is expected to develop fastest in Middle East, Africa and Latin America.
Global Functional Films Market: Recent Developments
Global Functional Films Market: Key Companies
Key players operating in the global functional films market include 3M, Toray Industries, Inc., Nagase & Co. Ltd., Eastman Chemical Company, and Tatsuta Electric Wire & Cable Co., Ltd.
*Definition: Functional films are the type of films or sheets which are used for increasing the potential of a product by improving the functionality of the substrate. Along with providing dimensional benefits, these functional films are also compatible with a wide range of materials and recent modern technologies. In addition to this, they exhibit other benefits, such as lesser energy required for their processing as well as functional films can also be fabricated into customized composite structures based on the requirement.
Functional films are polymer sheets that are used to improve the properties of the fragile substrate. They are widely used across solar cells and the automotive industry to enhance the functional properties of automotive components. These films can be classified into adhesive films, conductive films, optical films, and water-soluble films. In the healthcare industry, functional films play a very important role in the development of various high-quality medical products. These films are protective, heat &chemical resistant, transparent, durable, and flexible. Therefore, these films are gaining huge demand across the various end user industry due to their excellent chemical and physical properties.
The global functional films market has witnessed an increase in growth in terms of revenue, in recent years, owing to the rising growth in demand for functional films in the electronics industry across the globe. The steady surge in demand for advanced functional films is primarily driven by the rising adoption of miniaturization of devices and technological advancements in the electronics industry. This scenario is anticipated to provide lucrative growth to the global functional films market in the forthcoming years.
On the basis of product type, the global functional films market is bifurcated into conductive, optical, adhesive, and water-soluble. Among regions, Asia pacific is expected to observe substantial growth in terms of revenue, during the forecast period, owing to the steady rise in growth of various end use industries such as electronics, automotive, pharmaceutical, packaging, construction, and energy.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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