Global Automotive Labels Market Size, Share, Forecast Report, 2020-2027
A label is used to identify information written or printed on a piece of paper, cloth, polymer, or other materials and attached to an article. Labels used in the automotive industry are tough to stand up against harsh environments and provides identification, dates, usage information, and security to assure customers that they are getting OEM quality products. Automotive labels are pasted on the interior part, exterior part, and engine components of vehicles. The global automotive labels market is estimated to reach around USD 10 billion by 2025, growing at ~5.5% CAGR during the forecast period.
The market for automotive labels market is growing due to increasing demand for smart labels such as barcode and RFID in the automotive industry for ensuring the automotive part’s safety and providing identification and information. The increasing demand for eco-friendly label production techniques is also a major driving factor for the growth of the global automotive labels market. However, the rising raw material cost of labels and different mandates across the regions acts as a restraint to the growth of the global automotive labels industry.
However, the rapid development of the automotive industry in emerging economies such as China, India, Mexico, and Vietnam, the growing demand for electric vehicles, and the emergence of new products for automobiles are providing growth opportunities for the global market.
Segmentation: Global Automotive Labels Market
The global automotive labels market is segmented based on type, material, identification technology, printing technology, mechanism, and region.
Based on type, the global market has been segmented into warning & safety, asset, branding, dome, and other labels. Based on material, the global market has been segmented into polypropylene (PP), polyethylene (PE), polyethylene terephthalate (PET), polyvinyl chloride (PVC), polycarbonate (PC), and others. On the basis of identification technology, the global market has been segmented into barcode, RFID, and others. Based on printing technology, the global market has been segmented into flexography, offset, digital printing, screen printing, and others. Based on mechanism, the global market has been segmented into pressure-sensitive, heat transfer, and others. Based on vehicle type, the global market has been divided into passenger car and commercial vehicle.
Geographically, the global market has been segmented into four major regions, namely, North America, Europe, Asia-Pacific, and the rest of the world.
Asia-Pacific is projected to be the largest market for automotive labels and is expected to dominate the market by the end of the forecasted period due to the increasing demand of smart labels and environmental concerns for efficient labels production techniques in this region. Developing countries such as China and India are the key markets that possess great potential for automotive labels market in the region.
North America is growing at a substantial rate over the forecast period. The factors contributing to the growth of this market in the region are stringent regulations, rising demand for sustainable packaging and the growing demand for environment-friendly vehicles whereas Europe is projected to hold the second-largest position in the global market over the forecast period. The presence of major OEM brands, such as BMW, Aston Martin, Jaguar, and Mercedes Benz, is contributing to the growth of this market in Europe.
The prominent players operating in the global automotive labels market are 3M (US), Avery Dennison Corporation (US), UPM-Kymmene Corporation (Finland), H.B. Fuller (US), Sika AG (Switzerland), CCL Industries Inc. (Canada), Barry-Wehmiller Companies Inc. (US), Dunmore (US), Lewis Labels Products Corp. (US), and Precision Contract Manufacturing (US).