May 28, 2024

The Functional Films Market is Expected to be Flourished by Growing Demand from Various End-use Industries

Functional films are thin polymeric films developed using nanotechnology or deposited molecule layers that impart specific functionality to the underlying substrate when applied. Some common functional films include anti-reflective films, flame retardant films, and conductive films. These films find wide applications in electronics, pharmaceuticals, food and beverages, and construction industries. For instance, anti-reflective films are commonly used on electronic display screens to reduce glare and improve visibility. Conductive films are used as transparent conductive layers in touchscreens, organic light-emitting diode (OLED) displays, and solar panels.

The global Functional Films Market is estimated to be valued at US$ 9.02 million in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Growing demand from various end-use industries: Functional films find applications in a wide range of industries such as electronics, automotive, pharmaceuticals, solar panels, and construction. The growing demand for functionalized surfaces and transparent conductive films from electronics and solar industries is expected to remain a key driver for the functional films market over the forecast period. Additionally, increasing construction activities around the world are encouraging the consumption of functional films such as flame retardant and anti-microbial films during building construction.

Expansion of electronics industry: Rising penetration of smart devices and consumer electronics globally has augmented the demand for functional films that provide useful properties like resistance to heat, scratches, fingerprints. Miniaturization trend in electronics requiring transparent multilayer circuitry is also expected to propel the demand for transparent and conductive functional films such as anti-reflective films over the next few years.

Segment Analysis

The functional films market can be segmented into conductive films, optical films, and protective films. The protective films segment is expected to dominate the market during the forecast period. This is owing to the growing applications of protective films in various end-use industries such as construction and automotive. Protective films are used to protect surfaces from scratches, moisture, dust, and other environmental factors. They extend the lifespan of surfaces and components.

PEST Analysis

  • Political: Functional films find wide applications in industries such as automotive and electronics that are subject to stringent regulations regarding fuel emissions and product quality. Stable political conditions promote the growth of end-use industries.
  • Economic: A growing global economy translates to higher disposable incomes, boosting consumer spending on automobiles and electronics. This augurs well for functional films demand. As economies industrialize, manufacturing activity rises, further propelling the market.
  • Social: Rising health awareness drives the use of functional films in food packaging and medical devices for ensuring food safety and sterility of products. Changing lifestyles and high purchasing power of consumers also support the market growth.
  • Technological: Ongoing R&D brings new opportunities through innovations in materials and film properties. Advances in manufacturing technologies help scale up production while reducing costs.

Key Takeaways

The global functional films market is expected to witness high growth during the forecast period of 2023 to 2030.

Regional analysis: Asia Pacific dominates the global functional films market, both in terms of production and consumption. Key factors contributing to the region’s leading position include rapidly growing manufacturing sectors, availability of raw materials, and low labor costs.

Key players operating in the functional films market are 3M, Toray Industries, Inc., Nagase & Co. Ltd. Key players are focusing on new product launches, capacity expansions, and mergers and acquisitions to gain competitive advantage and cater to the growing demand for functional films.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it