MarketsandMarkets projects that the market for automotive labels will grow from USD 5.74 Billion in 2015 to USD 7.30 Billion by 2020, at an estimated CAGR of 4.93%. This market is growing due to increasing parent industries such as automotive and packaging & labeling, mandatory compliance to the automotive labeling laws, rising demand of smart labels such as RFID & barcode, and rising demand for environmentally efficient labels production techniques. The emerging economies such as India, China, South Africa, and Brazil possess a great potential for the automotive labels market.
The automotive labels market is segmented on the basis of type, raw material, identification technology, printing technology, mechanism, application, and region. On the basis of type, asset labels held the largest market share, in terms of value, while warning & safety labels were the most widely used labels, in terms of volume, in the automotive labels industry. The barcode identification technology segment accounted for the largest share of the market, in terms of both, volume and value, among all identification technologies. The mechanism segment was dominated by the pressure-sensitive mechanism.
In terms of application, the market is segmented into exterior labels, interior labels, engine components, and others. The exterior labels segment is projected to grow at the highest rate, during the review period. In terms of printing technology, the market is classified as flexography, screen printing, digital printing, offset, and others. The flexography printing technology is projected to be the market leader during the review period. The automotive labels market is segmented on the basis of material into polyvinyl chloride (PVC), polypropylene (PP), polyethylene terephthalate (PET), polyethylene (PE), acrylonitrile butadiene styrene (ABS), polyurethane (PU), polycarbonate (PC), and others.
On the basis of key regions, the market for automotive labels is segmented into North America, Europe, Asia-Pacific, and Rest of the World (RoW). The Asia-Pacific region held the largest share among all the regions in 2014. This is mainly due to emerging economies in China and India, the growing automotive industry, and rising demand for sustainable packaging.
New product development was the major strategy adopted by most of the players in the market. Companies such as CCL Industries, Inc. (Canada), Sika AG (Switzerland), Adhesive Research, Inc. (U.S.), ImageTek Labels (U.S.), Lewis Label Products (U.S.), Dunmore (U.S.), 3M (U.S.), UPM (Finland), Avery Denison Corporation (U.S.), and H.B. Fuller (U.S.) were the key players who adopted this strategy to increase the reach of their offerings, improve their production capacity, and establish focus on core operations. Companies also emphasized investment & expansion to increase their business operations in the fast-growing regions. These companies have a strong product portfolio and distribution network and influencing presence in the developed as well as developing economies. However, varying environmental mandates across regions act as a restraint for the automotive labels market.