Automotive Labels Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)

The automotive labels market was valued at USD 7.06 billion in 2020 and is expected to reach USD 9.45 billion by 2026, at a CAGR of 4.75% over the forecast period 2021 – 2026. The automotive labels market is growing significantly due to the growth in the packaging and labeling market across all end-user industries. Also, the simultaneous growth in the automotive industry is giving rise to mandatory compliance with automotive labeling laws.

– Further, the rising demand for smart labels such as RFID & barcode, and rising demand for environmentally efficient label production techniques are certain factors expected to boost the market growth.
– Further, the robust nature of the labels can help them withstand harsh operating conditions for a longer shelf life of the automobiles. This nature of the automotive labels is expected to boost the market growth. Also, the labels help enforcement agencies easily detect and locate stolen vehicles. Furthermore, the regulatory authorities can check the compliance of the automobiles with the applicable laws.
– Furthermore, with technological changes happening in almost every industry, the automotive labels market is under progress. Autonomous driving platforms generate hundreds of millions of images and videos to be labeled with the highest levels of accuracy.
– Hence, in March 2019, Linker announced the launch of its service to deliver AI-based auto-labeling with continuous learning for the autonomous driving industry. Linker’s auto-labeling technology is integrated with Microsoft Azure cloud services and is designed to deliver a seamless and scalable solution to pre-process datasets used for machine learning in vertically integrated industries such as autonomous driving.
– However, the high costs involved in manufacturing the labels, especially for the small and medium manufacturers, are hindering the market growth. The small manufacturers usually produce in small quantities and are not able to get a sufficient return on investment, hence restraining the production of automotive labels in the market.

Key Market Trends

Warning and Safety Labels Expected to Expected to Grow Significantly

– The warning and safety labels provide the drivers and passengers with usage and useful operational information, which also includes the safety protocols and information regarding potential hazards. This information increases safety and reduces liability issues.
– Moreover, an error in labeling is equivalent to a faulty part, which could potentially result in significant injury. Hence, precise, quality warnings are vital to avoiding hazardous situations and ensuring the safety of passengers and workers.
– Further, the warning and safety labels help decrease counterfeiting, which is considered as one of the primary growth factors for the adoption of these labels in the automotive industry. To counter the counterfeiting issue, vendors are offering labels that help in protecting the brand.
– Also, various factors such as growth in the number of similar products, safety concerns, and changes in branding techniques are expected to drive the market growth.

North America Expected to Grow Significantly

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– The North America region is expected to register a significant growth rate in the automotive labels market, owing to the major technological drifts taking place in the region. Also, the presence of existing and upcoming players in the market is expected to boost market growth.
– Other major factors propelling the demand for automotive labels include the presence of major automobile manufacturers in the region and their partnerships with the small local players to maximize distribution.
– Many market players are viewing strategic alliances and partnerships as a lucrative path for expansion. For instance, in January 2019, TSC acquired Diversified Labeling Solutions, Inc. (DLS), a labeling solutions provider. DLS is headquartered in the United States.

Competitive Landscape

The competitive landscape of the automotive labels market is consolidated due to the presence of few vendors in the market providing the solution, owing to the fact that the automotive labels market is new and is still in its nascent stage. Companies are emphasizing investment & expansion to increase their business operations in the fast-growing regions like the Asia-Pacific. Since the companies are still investing in R&D to develop products and solutions and deliver to the customers according to the demands, the companies are also viewing strategic partnerships and acquisitions as the most lucrative path to gain maximum market share.

– July 2019 – Coveris acquired 100% of the shares of Amberley Adhesive Labels Ltd., a company based in Dorset, UK. Amberley is the manufacturer of high-quality self-adhesive labels, and Coveris expects to further strengthen its Labels & Board business as a result of the acquisition.
– May 2019 – Jowatherm-Reaktant launched PUR hot melt adhesives with reduced monomer content and which are non-hazardous and are in high demand in the automotive industry. The MR series provides a high-performance PUR solution for a wide variety of 3D lamination processes in the automotive sector.
– November 2018 – UPM Raflatac has introduced a new solvent-free RX adhesive family for durable labeling applications. As these adhesives have been specially developed for these specific substrates, they ensure the highest bonding and durability performance – even in the challenging conditions experienced in automotive, industrial and consumer electronics applications.

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