|
|
 |
|
Viewing report
|
|
|
|
Wrapping It Up - Market Overview of the Vehicle Wrapping Industry
Frost & Sullivan, Sep 2008, Pages: 57
This Frost & Sullivan research titled Wrap It Up - Market Overview of Vehicle Wrapping Industry provides insight into the potential of the vehicle wrap market with respect to vehicles, revenues, and opportunities. The objective of this research service is to educate automotive aftermarket participants about this product/service and provide insight into the market’s structure. It also examines the key issues, challenges, opportunities, and trends that are at play in the vehicle wrap industry for light vehicles as well as commercial vehicles in North America. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: wrap medias, wrap printing, and wrap installation.
Market Overview
Huge Scope Offered for Mobile Advertising Enlivens the Vehicle Wrapping Market in North America
Originally designed as a means of creating mobile advertising, vehicle wraps have witnessed rapid growth in North America in recent years. The market, which is in the growth stage, is a long way from saturation. The medium enables wide marketing outreach, and the effectiveness of the advertising as well as its aesthetic appeal has been the reason behind the huge demand for vehicle wraps. 'Vehicle wraps open new doors for automotive savvy business operators looking for the next service expansion opportunity,' notes the analyst of this research service. 'Demand from commercial vehicle operators also supports a host of interrelated automotive services, including glass repair, collision repair, body customization, performance tuning, custom paint, electronics installation, detailing, hitch, and accessory installations.' Further, each wrap passes through three phases, graphics development, printing, and installation, and numerous small participants operating in these segments are also eyeing the wrap industry. With high fuel prices impacting virtually all automotive related services, segments such as vehicle wraps are expected to offset the impact of rising fuel prices and combine advertising with service delivery.
With the industry crossing the five-year mark, the number of wrapped vehicles returning to shops for removal is growing. Going forward, removal will emerge as a significant contributor to overall market revenues. Another factor fuelling growth in the vehicle wrap sector is the availability of GPS tracking information developed in 2003. These systems co-ordinate route information with population and vehicle concentrations and provide assistance to media buyers and advertisers, greatly facilitating the assessment of reach, advertising effectiveness and return on investments (ROI).The industry generated an estimated $220-$250 million at the retail level (finished product) in 2008. This is expected to increase 10 percent on an average annually up to 2011.
Quality Remains the Key for Market Development and Penetration
While the market is still in the developmental stage, it is extremely sophisticated. Proliferation in the number of companies offering vehicle wrap services is already fuelling price competition. This has raised concerns among existing participants regarding long-term profitability, image quality, and installation quality. Industry leaders fearful of quality and price erosion are putting measures in place to raise the quality bar, effectively restricting entry and preventing price erosion and commoditization. 'Quality assurance is the strategic position that will grow the revenues of this marketplace,' observes the analyst. 'For the corporate sector, wraps are intended for the communication of corporate images or building corporate identity, therefore, it is imperative that the highest standards of quality are maintained.'
At present, scant data is available regarding the true size of the vehicle wrap market in terms of the number of vehicles wrapped or the printed media. These metrics are still being evaluated, and once the lacuna is filled, the prospects of the market will receive a significant boost. Information on lead generation related to the wrap, number of vehicle wraps complete, wrap images in place, and average wrap cost per vehicle size will prove to be immensely valuable for small business owners. Vehicle wraps have already permeated the public transit vehicle sector. Trends indicate that the concept will gain traction in the future and encompass a wider spectrum in the overall transportation arena.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Vehicle Wrap Application Segment:
- Heavy duty vehicles (5-8)
- Light vehicles (class 1-4)
Customers who bought this item also bought
Russian and CEE Automotive Industry Outlook
Strategic Analysis of the North American Automotive Salvage Industry
Automotive Starters and Alternators Market in India
North American Brakes Aftermarket: Friction Parts
An Evaluation of Key North American Automotive Repair Industry Metrics in 2010
Seeing Clear: Market Analysis of the Canadian Automotive Wiper Blades and Refills Aftermarket
North American Light Vehicle Infotainment Systems Market - Investment Analysis and Growth Opportunities
Strategic Analysis of the North American Market for Map-enabled ADAS
North American Automotive Sensors Aftermarket
Automotive Position, Pressure, and Temperature Sensors
|
|
|
|
