Market Overview:
Functional films are thin films with special properties or functions beyond basic film functions such as mechanical protection or barrier aspects. They can control thermal transfer, modify surface friction and wettability, conduct electricity, or control light. They are coated onto carrier materials such as plastics, glass, or metal using advanced deposition techniques. Properties of functional films include barrier properties, security and privacy, filtration, insulation, self-cleaning, anti-fogging, anti-scratch, anti-microbial, anti-reflection, and conductive. Due to these unique properties, functional films find numerous applications in various end-use industries including packaging, automotive, construction, electronics, and others.
Market key trends:
One of the key trends in The Functional Films Market Share is the growing demand for barrier films. Barrier films prevent penetration of gases such as oxygen, carbon dioxide, nitrogen etc. through packaging materials. This helps extend the shelf life of packaged products. Industries such as food and beverage are major consumers of barrier films as they help retain taste, texture and freshness of packaged food items for longer duration. Increasing health awareness and preference for packaged convenience food has boosted demand for barrier films in food packaging. Additionally, the electronics industry utilizes barrier films to protect devices from moisture, oxygen and other corrosive gases. Rising electronics consumption worldwide is expected to propel the demand for barrier films over the forecast period.
Porter’s Analysis
Threat of new entrants: The functional films market requires high initial investments for R&D and manufacturing facilities which limits the threat of new entrants.
Bargaining power of buyers: The presence of numerous functional film manufacturers reduces the bargaining power of buyers.
Bargaining power of suppliers: The availability of substitute raw materials provides suppliers with low bargaining power.
Threat of new substitutes: Ongoing R&D has led to the development of new materials that pose threats of substitution.
Competitive rivalry: The functional films market is fragmented with the presence of several international players.
Key Takeaways
The global functional films market is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing demand from electronics and automotive industries. Functional films find wide application in electronics such as display screens, touch panels and automotive components including window films, lighting and components.
Regional analysis North America dominates the global functional films market and is expected to continue its dominance over the forecast period. This can be attributed to widespread adoption of functional films in industries such as electronics and automotive in the region. The Asia Pacific functional films market is anticipated to exhibit the fastest growth over 2023-2030 due to rising electronics and automotive production in China, Japan and India.
Key players operating in the functional films market are 3M, Toray Industries, Inc., Nagase & Co. Ltd., Eastman Chemical Company, and Tatsuta Electric Wire & Cable Co., Ltd. 3M and Toray Industries account for major share of the global functional films market.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
