The automotive labels market is projected to grow at a CAGR of 5.09% to reach US$9.461 billion by 2025, from US$7.024 billion in 2019. The rising disposable income among the individuals coupled with the increasing propensity to spend is leading to increased production and consumption of automobilesThe growth of various industries has resulted in the creation of more job and it has led to a rise in the disposable income of the individuals. This is facilitating a surge in their propensity to spend, and allowing them on luxury items. This factor coupled with the desire to purchase a vehicle among the low income and the middle-income population is resulting in increased production of passenger vehicles thereby contributing to the market growth over the forecast period.
There is a rising prevalence of the individuals who lack the basic knowledge of the technical know-how of how the different components in the vehicles work or the basic factors to keep in mind while driving a vehicle in order to stay safe and keep your occupants safe. The demand for smart labels RFID import is rising which are enhanced techniques to ensure the products that are used original and also would not cause any harm to the driver whilst the driving activity. On the other hand, the labels are also made to deliver important information regarding the part that is been used in the vehicle on the safety guidelines that should be adhered to while interacting with the product. In addition, the presence of RFID or barcodes against the products or some information is essential and important, as it is able to help the owner track the vehicle or the part if it is stolen. The availability of enhanced and advanced products by market players is increasing awareness among the people and boosting the demand for automotive labels.
Some of the examples of product offerings are as follows:
Warning and Safety labels to register considerable growth over the forecast period
The Warning and Safety labels are expected to hold a significant share and register considerable growth over the forecast period owing to the fact that they are able to provide imperative information to the drivers and the vehicle informing about the different functions and the safety procedures that must be followed in order to prevent injury. For example, one of the labels that are provided inside the vehicle includes airbag warning label which is provided to make the driver aware that the airbags are present in the vehicle and it can cause harm if the seat belts are not applied and crop production is not taken before a crash takes place.
The Asia Pacific region holds a considerable chunk of the market share owing to the increasing production of automobiles to accelerate the development of the automotive sector, being facilitated by the Government Initiatives in countries such as India and China.
The automotive sector is among one of the most well-developed sectors in the country that has India and China but it has been in a slump and has resulted in a decline in the production of automobiles. According to the statistics provided by OICA, the production of passenger vehicles in India in 2018 was registered to be around 4,032,481 and reduced to 3,623,335 in 2019, thus, witnessing a decline of -10.1 %. On the other hand, in China, automobile production in 2018 was registered to be 23,529,423 and dropped to 21,360,193 in 2019, thus, witnessing a decline of -9.2 %. These figures have resulted in the governments in India and China take initiative in order to boost automotive production in the countries and accelerate the development of the automotive sector to recover from the slump.