The Global Automotive Labels Market was worth US$ 7000 million in 2022 and is anticipated to reach a valuation of US$ 9650 million by 2028 and is predicted to register a CAGR of 5.5% during 2023-2028.
Market Overview:
Automobile brands use automotive labels to showcase their brand image in a unique form factor. The information and guidelines for using the specific parts and the safety measures are instructed to the consumers via automotive labels. Nowadays, automotive labels are also getting smart with continuously improving technology, including bar code labels, QR code labels, and RFID.
Market Drivers:
Due to the rising demand for vehicles worldwide, the market share of automotive labels is also increasing. The safety labels and other tags on different vehicle parts also increase with time. Thus, the increasing number of vehicles can be considered a big reason for the growth of the automotive labels market.
Eco-friendly labels are becoming mainstream in the automotive market as manufacturers are also moving towards sustainability. Labels made of materials that are made of naturally degradable materials are used. This is also a factor to be considered as a factor that causes growth of the automotive labels market.
The average income of most of the population has increased lately all over the world. People now have more disposable income. The expenditure on automobiles has increased, leading to a rise in the market value of automobile labels.
Also, with rapid technological advancements, physical labels are replaced by QR codes, Bar codes, and (RFID) Radio Frequency Identification. Thus, the penetration of advanced technology is elevating the market shares.
Therefore, the rising demand for vehicles, the market shift towards sustainability, the rising income of the population, and technological advancements are the factors that drive the automotive labels market growth.
Market Restraints:
Manufacturing customized labels per vehicle can be a high-cost-incurring process. Automobile manufacturers operating at small and medium levels cannot afford these labels.
Human and machine errors while printing labels affect the growth of automotive labels. Also, as technological advancements occur, the label producers must cope with it to maintain their market value.
Therefore, we can say that the higher cost of manufacturing labels, problems that arise due to human errors, and the unpredictable technical advancements in all the market sectors are the major factors that limit the growth of the automotive labels market.
Market Opportunities:
The government is imposing strict automotive labeling laws, keeping the users’ safety as the priority. The dos and don'ts about every important part and its usage should be labeled.
The increasing popularity of Bar codes, QR codes, and RFID tags can also be a big opportunity for the automotive labels market as the QR codes are getting popular daily and are user-friendly. At the same time, bar codes and RFID tags require a special scanner to scan and access the information. But its market share is increasing as some industries demand RFID tags on the components.
The popularity of high-speed supercars and hypercars is getting popular, which require specific kinds of components. Hence, these components need to have labels for giving user instructions.
The government laws regarding labeling, the rising popularity of advanced labeling options, and the growing popularity of special kinds of cars are acting as opportunities for growth in the automotive labels market.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 – 2028 |
|
Base Year |
2022 |
|
Forecast Period |
2023 - 2028 |
|
CAGR |
5.5% |
|
Segments Covered |
By Type, Application, Raw Materials, and Region. |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
|
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Market Leaders Profiled |
3M Company, Resource Label Group, H B Fuller, Avery Dennison Corporation, and Others. |
Market Segmentation:
Warning and safety labels are leading the automotive labels market shares. Multiple warning and safety labels are used in a vehicle as the safety and usage instructions must be given on several parts.
The branding labels just showcase the brand identity, and the usage is much less.
The asset labels track the maintenance history of parts and tools. The asset label mostly includes the registration number, the manufacturer and seller's location, and other required information.
The interior labels segment is leading the automotive labels market. These labels are necessary for the vehicle's functioning, including instructions regarding its controls, features, and functions. Drivers and passengers can use these instructions to operate the vehicle safely and efficiently. Interior labels may also include warnings and safety instructions. These warnings and safety instructions are essential for preventing accidents and injuries and have saved many lives.
Exterior labels are an important part of the vehicle's identity. They are used to identify the vehicle and its manufacturer and may also include the vehicle's model, year, and other information. Exterior labels are often used to create a visual identity for the vehicle and its manufacturer. They can convey the vehicle's brand, style, and personality. Generally, we call the exterior labels the logo of the brand.
Engine component labels are the smallest segment in the automotive labels market. These labels are used to identify and track engine components. These labels include the information ID number of the engine, the location of the manufacturer, and other required details. Engine components labels are used to manage the maintenance schedule of the engine.
Polypropylene (PP) is leading the automotive labels market as per raw materials are concerned. PP is a lightweight, strong, and durable material that is cheaper at the same time. Compared to other raw materials options, PP is more suitable for automobile usage. PP is a transparent material that is mostly used for interior labels.
PVC is a material that is opaque and rigid, and thus it is used to produce exterior labels. and The PE material is the least used in the automotive labels market.
Market Regional Analysis:
The Global Automotive Labels Market Report includes the segmentation of regions:
Asia Pacific region is leading the automotive labels market with around 40% of the global market share. In the Asia Pacific region, the automotive industry is expanding at a rapid pace, with auto giants like Tata, Suzuki, and Honda in the region.
North America stands second in the global automotive labels market, with around 30% of the market share.
After Asia Pacific and North America stand Europe with a 20% market share, and the rest of the two regions hold 10% of the market share each.
The COVID-19 pandemic had a negative impact on the automotive labels market. The demand for automobiles hit an all-time low during the pandemic, due to which production also came to a halt. Which ultimately decreased the demand for automotive labels.
The replacement of spare parts and any kind of components due to technical default or external damage also stopped as the usage of vehicles decreased due to restrictions on transportation laid by the government.
The major impact of COVID-19, which almost every industry suffered, was the disturbance in the global supply chain. Due to this, the supply of raw materials to the producers and the delivery of produced automotive labels to the consumers was impossible.
The COVID-19 pandemic had a harsh impact on the automotive labels market. Still, in the post-pandemic era, with the rise in popularity and usage of smart labels, the automotive labels market is growing stronger and gaining prominent market value.
Market Key Players:
Market Recent Developments:
Frequently Asked Questions
The Global Automotive labels market is expected to grow with a CAGR of 5.5% between 2023-2028.
The Global Automotive labels market size is expected to reach a revised size of US$ 9650 billion by 2028.
3M Company, Resource Label Group, and H B Fuller, are the three Automotive labels market key players.
Access the study in MULTIPLE FORMATS
Purchase options starting from $ 1800
Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM
Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!
Call us on: +1 888 702 9696 (U.S Toll Free)
Write to us: [email protected]
Reports By Region