Functional Films Market by Type (Conductive Films, Optical Films, Protective Films, Barrier Films, Adhesive Films), Material (Polyethylene), End-Use (Packaging, Electronics, Automotive), Substrate (Glass, Plastic) and Region - Global Forecast to 2030
Updated on : August 22, 2024
Functional Films Market
The functional films market was valued at USD 30.5 billion in 2023 and is projected to reach USD 49.6 billion by 2030, growing at 7.2% cagr from 2023 to 2030. The market experiences robust growth driven by a multitude of influential factors. These functional films, engineered materials with exceptional properties, find applications across a diverse range of high-tech industries.
Attractive Opportunities in the Functional Films Market
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Functional Films Market Dynamics
Driver: Growing demand for smart packaging solutions
Growing demand for smart packaging solutions might increase demand for functional films by up to 20% over the next five years. It is a prominent driver of the functional films market, notably in the food & beverage, pharmaceutical, and logistics industries. Functional films are increasingly being used to create smart packaging solutions that can effectively monitor and track the status of diverse products throughout transportation and storage. Because of their customized features, functional films play an important role in a wide range of smart packaging applications. These specialized materials are designed to have specific qualities such as barrier capabilities, conductivity, or antibacterial properties. Functional films play an important role in smart packaging applications such as time-temperature indicators (TTIs), radio-frequency identification (RFID) tags, and active packaging systems.
Restraint: Limited availability of high-purity raw materials
The growing demand for functional films in the automotive industry is being driven by the need for lightweight and durable materials for car bodies, interiors, and windows, as well as the growing trend towards autonomous and semi-autonomous vehicles, the increasing demand for safety features, and the growing awareness of environmental issues. Functional films are thin, flexible materials that can be created to have a range of features such as barrier capabilities, conductivity properties, and antibacterial qualities. This makes them suitable for a wide range of automotive applications. For example, by replacing traditional materials such as metal and plastic, functional films can be used to make lightweight and durable materials for automobile bodies. This can help to enhance vehicle fuel efficiency and reduce pollutants. Functional films can also be utilized to make interior components that are more durable and easier to clean. Furthermore, functional films can be utilized to make windows that are lighter, stronger, and less prone to scratching and breaking. The use of functional films in the automobile sector is predicted to increase by 15% over the next few years, as these materials have certain advantages over traditional materials. Functional films are lightweight and robust and can be created with a range of qualities to satisfy specific requirements.
Opportunities: Use of functional films in agriculture
The development of new functional films for emerging applications is an important opportunity element for the functional films market. This is primarily due to increased demand for creative solutions in a variety of industries, such as wearable electronics, smart packaging, and energy storage. Functional films are critical components in the production of flexible, lightweight, and durable electronic devices in the field of wearable electronics. As the need for wearable technology grows, functional films will play a critical role in addressing customer demands for pleasant and multifunctional gadgets. Smart packaging is another growing use where functional films might help. Sensors, RFID technology, and even antimicrobial qualities can be incorporated into these films to improve product protection, traceability, and ease. The market for functional films in smart packaging is predicted to grow significantly as the emphasis on sustainable packaging and customer involvement grows. Another possible application for functional films is energy storage.
Challenges: Competition from traditional packaging materials
Traditional packaging materials might present considerable obstacles to the functional film sector. For many years, traditional packaging materials such as glass, metal, and paper have been frequently employed for packing. When compared to some functional films, these materials are well-established, trusted, and frequently viewed as more ecologically benign solutions. One significant challenge arising from this competition is resistance to change. Many sectors and consumers have long-standing associations with traditional packaging materials, so the transition to functional films may be difficult. Furthermore, the impression of functional films as less eco-friendly due to their reliance on plastics can stymie their uptake, particularly in areas with severe environmental regulations or growing environmental consciousness. Cost can also be an important consideration. Functional films may necessitate investments in new production techniques or equipment, which may be more expensive at first than continuing to use standard materials. This cost barrier may dissuade businesses from switching to functional films, even if they offer improved performance or novel features.
Functional Films Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of wet room waterproofing solutions. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Toray Industries Inc. (Japan), Eastman Chemical Company (US), Covestro AG (Germany), Honeywell International (US), 3M Company (US), Nitto Denko Corporation (Japan), Dupont Teijin Films US Limited (US), Mitsubishi Chemical Corporation (Japan), Toyobo Co., Ltd (Japan), Dai Nippon Printing Co., Ltd (Japan).
Based on material, Polyethylene Terephthalate is projected to account for the second largest share of the Functional films market.
PET (polyethylene terephthalate) is the fastest-growing material in the functional film market due to its favorable properties such as high strength, transparency, and recyclability. It is also lightweight and has good barrier properties, making it suitable for a variety of applications, including food packaging, flexible electronics, and medical devices.
Based on type, barrier film is projected to account for the second largest share of the Functional films market.
Due to their capacity to protect items against moisture, oxygen, and other dangerous elements, barrier films are the fastest-growing material in the functional film market. This is especially crucial for food and pharmaceutical products, which must be kept safe from rotting and contamination. Barrier films are also employed in a range of other applications, including flexible electronics, medical devices, and building materials. The growing popularity of flexible electronics is fuelling demand for barrier films. Flexible electronics are gadgets made of thin, flexible materials such as plastics and metals. Barrier films are used in flexible electronics to protect the devices from moisture, oxygen, and other dangerous substances.
Based on substrates, Glass is projected to account for the second largest share of the Functional films market.
Because of its unique qualities, such as high surface smoothness, chemical stability, and optical clarity, glass is the fastest-growing substrate in the functional film industry. The increasing demand for smartphones and other mobile devices, the expanding popularity of touch displays, and the increasing acceptance of solar energy are all driving the expansion of the glass substrate market. Smartphones and other mobile devices are the biggest users of glass substrates, and demand for these devices is likely to rise in the future years. Touch screens are another key application for glass substrates, and their demand is likely to rise as they become more widely used in a variety of applications such as car displays and industrial control systems.
North America is expected to be the fastest growing market during the forecast period.
North America is the fastest-growing area in the functional films market due to numerous factors, including its strong economy, high disposable income, and advanced technical infrastructure. The region is home to a large number of renowned functional film manufacturers, including Dow Chemical Company, DuPont, and Eastman Chemical Company. These companies are heavily spending on research and development to generate new and innovative functional film products. The growing need for functional films in a variety of applications, such as packaging, electronics, and medical devices, is also driving the North American functional films market. The need for longer shelf life and greater protection for food goods is driving the demand for functional films in packaging.
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Functional Films Market Players
The Functional films market is dominated by a few major players that have a wide regional presence. The key players in the Functional films market are Toray Industries Inc. (Japan), Eastman Chemical Company (US), Covestro AG (Germany), Honeywell International (US), 3M Company (US), Nitto Denko Corporation (Japan), Dupont Teijin Films US Limited (US), Mitsubishi Chemical Corporation (Japan), Toyobo Co., Ltd (Japan), Dai Nippon Printing Co., Ltd (Japan). In the last few years, the companies have adopted growth strategies such as Product launches, Investments, Acquisitions, and expansions to capture a larger share of the Functional films market.
Functional Films Market Report Scope
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Report Metric |
Details |
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Years considered for the study |
2021-2028 |
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Base Year |
2022 |
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Forecast period |
2023–2028 |
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Units considered |
Value (USD Million/Billion) |
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Segments |
Material, Type, Substrates, end-use, and Region |
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Regions |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies |
Toray Industries Inc. (Japan), Eastman Chemical Company (US), Covestro AG (Germany), Honeywell International (US), 3M Company (US), Nitto Denko Corporation (Japan), Dupont Teijin Films US Limited (US), Mitsubishi Chemical Corporation (Japan), Toyobo Co., Ltd (Japan), Dai Nippon Printing Co., Ltd (Japan). |
This report categorizes the global functional films market based on raw material, Type, uses, application, and region.
On the basis of type, the functional films market has been segmented as follows:
- Conductive Films
- Optical Films
- Protective Films
- Barrier Films
- Adhesive Films
- Decorative Films
- Label Films
- Others
On the basis of material, the functional films market has been segmented as follows
- Polypropylene
- Polyethylene Terephthalate
- Polyethylene
- Polyvinyl Chloride
- Others
On the basis of Substrates, the functional films market has been segmented as follows
- Glass
- Plastic
- Metal
- Wood
- Others
On the basis of end-use, the functional films market has been segmented as follows:
- Automotive
- Packaging
- Healthcare & Pharmaceutical
- Electronic
- Others
On the basis of region, the functional films market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In August 2020, Dai Nippon Printing Co., LTD (Japan) acquired Toyo Seikan's (Japan), a leading manufacturer of functional films. This acquisition expanded DNP's functional film portfolio and strengthened its position in the market. DNP is now one of the leading providers of functional films in the world.
- In December 2020, Honeywell acquired Pluvitec, a leading provider of optical coatings and surface treatments for display and semiconductor applications. The acquisition expands Honeywell's portfolio of functional films and enhances its capabilities in the development and manufacturing of high-performance optical coatings.
- In March 2021, DNP partnered with Covestro AG to develop new functional films. This partnership combined DNP's expertise in materials science and printing with Covestro's expertise in polymer chemistry and materials development.
Frequently Asked Questions (FAQ):
What are the factors influencing the growth of the Functional films market?
The growth of this market can be attributed to the Increasing demand from emerging industries and growing awareness of the benefits of functional films.
Which are the key applications driving the Functional films market?
The sectors driving the demand for Functional films are Growing demand for smart packaging solutions the rising demand for functional films in the automotive industry.
Who are the major manufacturers?
Major manufacturers include Toray Industries Inc. (Japan), Eastman Chemical Company (US), Covestro AG (Germany), Honeywell International (US), 3M Company (US), Nitto Denko Corporation (Japan), Dupont Teijin Films US Limited (US), Mitsubishi Chemical Corporation (Japan), Toyobo Co., Ltd (Japan), Dai Nippon Printing Co., Ltd (Japan) among others.
What will be the growth prospects of the Functional films market?
Rising demand from the packaging industry, Growing demand from the automotive industry, are some of the driving factors.
Which end-use segment has the largest market share in the specialty advanced ceramics market ?
Electronics, end-use segment covers the largest market share in the market. .
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The study involved four major activities in estimating the market size of the functional films market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, trade directories, certified publications, articles from recognized authors, gold standard and silver standard websites, and databases.
Secondary research has been used to obtain key information about the value chain of the industry, monetary chain of the market, the total pool of key functional films, market classification and segmentation according to industry trends to the bottom-most level, and regional markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The functional films market comprises several stakeholders in the value chain, which include raw material suppliers, manufacturers, and end users. Various primary sources from the supply and demand sides of the functional film market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders in end-use sectors. The primary sources from the supply side include manufacturers, associations, and institutions involved in the functional films industry.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to chemistry, application, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of functional films and future outlook of their business which will affect the overall market.
The breakdown of profiles of the primary interviewees is illustrated in the figure below:
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2022 available in the public domain, product portfolios, and geographical presence.
Other designations include sales representatives, production heads, and technicians.
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Market Size Estimation
The top-down approach was used to estimate and validate the size of various submarkets for functional films for each region. The research methodology used to estimate the market size included the following steps:
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- The global market was then segmented into five major regions and validated by industry experts.
- All percentage shares, splits, and breakdowns based on material, type, end-use, and country were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and added with detailed inputs and analysis and presented in this report.
Functional Films Market: Bottum-Up Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
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Functional Films Market: Top-Down Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
Data Triangulation
After arriving at the total market size from the estimation process functional films above, the overall market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated by using both the top-down and bottom-up approaches and primary interviews. Hence, for every data segment, there have been three sources—top-down approach, bottom-up approach, and expert interviews. The data was assumed correct when the values arrived from the three sources matched.
Market Definition
The functional films market is quickly expanding, driven by rising demand from a wide range of industries such as packaging, automotive, electronics, and healthcare and pharmaceutical. Functional films are thin, flexible sheets of material that are put to a substrate in order to modify or improve its qualities. Polymers such as polyethylene, polypropylene, polyester, and polyvinyl chloride are used to make them. Functional films are classed according to their function, such as barrier films, conductive films, optical films, and decorative films. Packaging, automotive, electronics, renewable energy, and medical devices are just a few of the industries that use functional films. Functional films are used in the packaging sector to increase the barrier qualities, strength, and durability of packaging materials.
Key Stakeholders
- functional films Manufacturers
- functional films Traders, Distributors, and Suppliers
- Raw Type Suppliers
- Government and Private Research Organizations
- Associations and Industrial Bodies
- R&D Institutions
- Environmental Support Agencies
Report Objectives
- To define, describe, and forecast the size of the functional films market, in terms of value and volume.
- To provide detailed information regarding the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market.
- To estimate and forecast the market size based on substrate,material, type, end-use, and region.
- To forecast the size of the market with respect to major regions, namely, Europe, North America, Asia Pacific, Middle East & Africa, and South America, along with their key countries.
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market.
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of market leaders.
- To track and analyze recent developments such as expansions, new product launches, partnerships & agreements, and acquisitions in the market.
- To strategically profile key market players and comprehensively analyze their core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional application
Company Information
- Detailed analysis and profiles of additional market players
Tariff & Regulations
- Regulations and impact on functional films market
By Form Analysis
- Market size for functional films in terms of value and volume
Growth opportunities and latent adjacency in Functional Films Market