The Functional Films Market is Estimated To Witness High Growth Owing To Rising Demand from Various End-Use Industries
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| Functional Films Market |
Market Overview:
Functional films are thin polymer-based films designed
to impart specific properties to any substrate. They are designed to provide
durability, chemical resistance, barrier, and security. Functional films are
used across various end-use industries such as electronics, automotive,
construction, packaging, and medical.
Market key trends:
The global functional films market is expected to witness significant
growth over the forecast period, owing to rising demand from various end-use
industries such as electronics, automotive, and packaging. One of the major
trends influencing market growth is increasing use of barrier films. Barrier
films help protect products and enhance shelf life by preventing oxygen,
moisture, grease, or light from damaging products or reacting with internal
packaging components. Moreover, growing automotive industry worldwide is
projected to augment the demand for anti-fog films and anti-scratch films
during the forecast period. Anti-fog films are used to prevent the interior
material of cars from fogging up, whereas anti-scratch films are used to
provide protection from exterior scratches and abrasions.
Porter’s Analysis
Threat of new entrants: The threat of The
Functional Films Market Share is moderate as setting up new
manufacturing plants requires high initial investment. However, the growing
demands provide opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is high due to the
presence of many functional film manufacturers. Buyers can negotiate on prices
easily.
Bargaining power of suppliers: The bargaining power of suppliers is moderate.
Many raw material suppliers are available but suppliers of specialty chemicals
have some bargaining power.
Threat of new substitutes: The threat of substitutes is low as functional films
have superior properties compared to alternative materials.
Competitive rivalry: Rivalry in the functional films market is high due to many
global players competing on pricing, quality, and innovation.
SWOT Analysis
Strength: Growing demand from various end-use industries and superior barrier
and protective properties of functional films are strengths.
Weakness: High initial investment costs and availability of substitutes are
weaknesses.
Opportunity: Increasing use in sensors, displays, and packaging and emerging
applications present opportunities.
Threats: Volatility in raw material prices and stringent environmental
regulations pose threats.
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
various end-use industries like electronics, automotive, and packaging. Asia
Pacific dominates the market and is expected to grow the fastest owing to
presence of electronics manufacturing hubs and growing packaging industries in
China, India, and Southeast Asian countries.
Regional analysis Functional films find wide usage in electronics for
applications such as flexible displays, touch panels, and semiconductor
packaging. Rapid growth of electronics industry especially in China, South
Korea, Taiwan, and India is fueling demand in Asia Pacific. The region held
over 50% market share in 2023.
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. Key players are focusing on new product development,
expansion in emerging markets and strategic partnerships for sustained growth.
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