June 25, 2024

The Growing Application base is driving the Functional Films Market

Functional films are polymeric films used for technological applications like protective films, conductive films, and optical films. They are extensively used in industries like electronics, automotive and construction to provide protection, conductivity, optical correctness and other functional properties. Functional films are used as conductivity adhesives for circuit boards and touch panels. Optical films are used as polarizing films and anti-reflective films in solar panels and display devices. Barrier films provide protection against moisture, oxygen, and other environmental factors.

The global Functional Films Market is estimated to be valued at US$ 9.02 Bn in 2024 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 key trends:

One of the key trends driving the growth of functional films market is the increasing penetration of touch enabled devices. Functional films like ITO (indium tin oxide) and silver nanowire films are extensively used as conductive adhesives in touch panels of smartphones, tablets, laptops, POS systems and various other consumer electronics. As per statistics, the worldwide shipments of touchscreen smartphones exceeded 1.57 billion units in 2021. This growing demand from consumer electronics sector is a major factor boosting the demand for functional films globally. Another key trend is the increasing use of barrier films in food packaging industry. Functional barrier films help extend the shelf life of food products by keeping out moisture, oxygen and other environmental threats. This growing focus on food safety and quality is propelling the demand for barrier films in food packaging applications.

Porter’s Analysis

  • Threat of new entrants: The functional films market requires large investments in research, production facilities and brand building due to which the threat from new entrants is low.
  • Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of multiple functional films manufacturers. However, continuous technological advancements reduce the impact of bargaining power over a period of time.
  • Bargaining power of suppliers: The bargaining power of suppliers is low due to the availability of substitute raw materials and minimal differentiation in products.
  • Threat of new substitutes: The threat of substitutes is moderate as there are no direct substitutes for functional films but alternative technologies can be explored.
  • Competitive rivalry: The functional films market is competitive due to the presence of global and regional players.

Key Takeaways

The global functional films market is expected to witness high growth.

Regional analysis: The Asia Pacific region currently dominates the global functional films market and is expected to grow at the fastest rate during the forecast period. This can be attributed to the rising electronics and automotive industries in the region.

Key players related content comprises 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. 3M is one of the leading players and offers optical and barrier films for various applications like touch sensors, displays, and photovoltaics.

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