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Market Trends of the Car Wrap Industry

Originally designed as a means of creating mobile advertising, car 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 car wraps.

A new Frost & Sullivan research titled "Wrap It Up - Market Overview of Vehicle Wrapping Industry" provides insight into the potential of the car wrap market with respect to vehicles, revenues, and opportunities.

"Car 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 car wrap passes through three phases, graphics development, printing, and installation, and numerous small participants operating in these segments are also looking at 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 fueling growth in the car 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.

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