Functional films are a polymer film that is applied to the substrate in order to enhance the functionality and impart the advance properties to the product. These film scratch, heat, and chemical resistant which makes them ideal material across various end-user industries. Moreover, they are durable and flexible in nature which makes them suitable for miniaturization of devices application. These films require less energy for production and can be fabricated into a complex structure. Functional films can be classified into adhesive, optical, conductive, and water-soluble. Flat panel displays (FPD), electronics & semiconductor, automotive, construction, energy, healthcare/pharmaceutical, and packaging are some of the major end-user of functional film.
The global functional films market was estimated to account for slightly lesser than US$ 25 billion, in terms of revenue in 2018 and is predicted to grow at a CAGR of 4.8% during the forecast period (2019 to 2027)
Growth in the automotive industry due to increasing production of automobiles is projected to augment market growth of functional film. The functional film is used in the production of decoration, wheel arches, control arms, window profiles, and the steering knuckle. According to the European Automobile Manufacturers Association, 19.2 million motor vehicles were produced in the European Union in 2018, or some 20% of the 98.1 million motor vehicles produced around the world. Hence, the rising production of the automobile is expected to propel the market growth of the functional film.
Growing demand for the functional film from the construction industry for soundproofing and insulation applications is projected to augment the market growth of the functional film. According to the KHL GROUP LLP data, the Indian construction industry is predicted to grow at an average rate of 6.4% between 2018 and 2023. The Indian construction industry grew at the predicated rate of 6.4% per year between 2018 and 2023 it would have a value of approximately US$ 690 billion.
Stringent rules and regulations associated with the manufacturing functional films as it requires chemicals are projected to restrict the market growth. Due to the rising concern over the environment, various countries government 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.
Among application, flat panel display (FPD) dominated the global functional films market in 2018 with a 23% of market share in terms of revenue, followed by electronics & semiconductor and automotive, respectively.
The booming touchscreen panel industry around the globe is expected to augment the market growth of the functional film. Touchscreen panels are gaining huge demand from various applications such as home appliances, health care sectors, supermarkets, automotive and restaurants. For instance, in February 2017, CONTEC Co., Ltd. has developed an industrial touchscreen PC that can be installed on a desktop and that is equipped with a UPS battery. It is being used in a wide variety of applications such as operating terminals for medical IoT equipment and pharmaceutical equipment, as touch-type reception terminals, and as terminals for biometrics and for entrance and exit management.
Many manufacturers are investing in developing more functional films in order to increase the production capacity and this trend is expected to propel the market growth of the functional film. For instance, in April 2018, Coveris invests in the production of sustainable, functional films. Coveris has installed two new extrusion lines at its Cheshire-based facility in Winsford, UK to support the company’s Pack Positive sustainable growth strategy.
Key players operating in the global functional films market are 3M, Toray Industries, Inc., Nagase & Co. Ltd., Eastman Chemical Company, and Tatsuta Electric Wire & Cable Co., Ltd.
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