Automotive Glass Market Dynamics
Drivers: Stringent safety norms imposed by the government
Cost-effective auto glass has emerged due to the stabilization of component costs for materials including soda ash, oxides of magnesium, lime, potassium, and aluminum, as well as rising gas prices. The market is growing due to rising vehicle demand in the logistics and transportation sector and an emphasis on improving vehicle aerodynamics due to safety rules. This market is also growing due to rising disposable income, especially in developing nations, and increased sales of crossovers and SUVs.
Restraints: High cost and intensive capital investment
Since laminated glass is far more expensive than tempered glass, its use is severely restricted in developing countries. It costs a lot of money to conduct research and develop thin laminated glass for side windows. The market's growth is anticipated to be restricted by this investment as well as efforts to reduce consumer and manufacturing expenses.
Opportunities: Increased demand for luxury car
The market for luxury cars is anticipated to increase in the upcoming days, offering industry participants several attractive opportunities. Demand for auto glass will rise if there is a rise in the popularity of luxury vehicles. High-end automobile glass is used in luxury vehicles to increase safety and aesthetic appeal. Adopting lightweight and energy-efficient goods would further benefit market participants during the projection period. The market for automotive glass will also grow more quickly due to the increased need for embedded glass in electronic devices.
BEV segment is estimated to be the largest growing market during the forecast period
The BEV category is expected to grow significantly over the forecast period. Sunlight is allegedly absorbed by solar glass, which can be used in BEVs to increase their range, according to the Enhanced Protective Glass Automotive Association (EPGAA). Due to increased sales in Asia Pacific and Europe, decreased energy use for air conditioning, and a reduction in the overall amount of time battery packs are exposed to heat from the outside, the market for automotive glass for BEVs is anticipated to grow. The Asia Pacific area has the greatest market for electric vehicles that is expanding at the fastest rate due to the increased popularity of SUVs among customers. The IEA estimates that 9–10% of the world's vehicle market will be made up of BEV sales by 2021. The biggest market for BEVs worldwide in 2021 was China. Businesses, including Toyota (Japan) and BYD (China), have reaffirmed their commitment to expanding the region's BEV production. Toyota released 30 new E.V. models in 2021, while BYD declared that starting in April 2022, it would only produce BEV automobiles.
In comparison to HEVs and PHEVs, the sales of BEVs are supported by numerous governments worldwide through generous tax breaks and subsidy programs. BEVs are anticipated to increase faster because of a charging infrastructure that is always being improved and charging times getting shorter. As a result, the market for automotive glass will expand during the forecast period as BEV sales increase.
Passenger car segment is estimated to be the fastest-growing market during the forecast period
In 2021, the passenger car category dominated the market and is estimated to continue its dominance over the forecast period. The growth in this market segment is projected to be fuelled by the rising passenger car sales in China and India. While weight reduction increases fuel efficiency, stronger glass offers better safety. Manufacturers of luxury and sports cars are fast recognizing the value of this feature. High-end automobile manufacturers have carefully experimented with the entire glass roof as automotive glass products are increasingly important for a luxurious appearance. There is a large demand for glass in passenger automobiles due to increased customer priorities and growing safety concerns stemming from accidents.
Asia Pacific segment is estimated to be the fastest growing market during the forecast period
In 2021, Asia Pacific is the largest automotive glass market and is projected to expand at the highest CAGR over the projected period due to growing demand for automobiles in the emerging nations in the region. China and India are the two most crucial nations in this area for market expansion. The presence of established glass manufacturers, growing R&D capacities, and several new production facilities in China to meet the expanding demand for electric cars are all contributing to the growth of the global market in the region. India and China have abundant economic resources to assemble and manufacture automotive parts.
Furthermore, the continued popularity of electric vehicles in various developing nations, especially India, creates enormous potential opportunities for the Asia Pacific automotive glass market. The Indian automobile sector, where output is predicted to increase dramatically due to the country's BS-VI requirements, is also likely to boost the growth of the automotive glass market in Asia-Pacific. For instance, in February 2019, the Indian government authorized the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME)-II scheme with a USD 1.4 billion financial commitment from 2019 to 2022. Such activities are projected to boost electric vehicle manufacturing in the coming years, increasing the region's demand for automotive glass.
Key Market Players
The automotive glass market is dominated by a few global players and comprises several regional players. Some of the key manufacturers operating in the market are AGC Inc., Central Glass Co. Ltd., Corning Incorporated, Fuyao Glass Industry Group Co., Ltd., Guardian Industries, Nippon Sheet Glass Co. Ltd., Saint-Gobain, Taiwan Glass Ind Corp, Xinyi Glass Holdings Co., Ltd. and ÅžiÅŸecam Group.
- In July 2022, through the acquisition of Kaycan Ltd. (Canada), Compagnie de Saint-Gobain S.A. expanded its building products with technology from Kaycan Ltd. Furthermore, Compagnie de Saint-Gobain S.A. expects the acquisition to strengthen its position in the North American market.
- In October 2021, Webasto showed off its roof sensor module, which has sensors, cameras, and related functions and visually appealingly uses Lidar technology.
- In May 2021, Wideye, AGC Automotive's European business, announced the formation of Wideye Rhino, a company focused on creating sensor protection glass solutions for non-automotive applications.
- In September 2020, AGC Inc. was established. Cadillac's new 2021 Escalade Luxury SUV features curved-large cover glass for car-mounted displays. It served as the protective surface glass for the industry's first curved P-OLED (Plastic OLED) display, which was provided by L.G. Display and L.G. Electronics.
Segmentation of Global Automotive Glass Market-
Global Automotive Glass Market – By Glass Type
- Laminated Glass
- Tempered Glass
- Active Smart Glass
- Suspended Particle Device (SPD)
- Electrochromic (E.C.)
- Liquid Crystal (L.C.)/Polymer Dispersed Liquid Crystal (PDLC)
- Passive Glass
- Dimmable Mirrors
- Sideview Mirror
- Rearview Mirror
- Passenger Car
- Passenger Car
- Commercial vehicle
- Metal-coated Glass
- Tinted Glass
- Head-Up Display
- Windscreens With ADAS
- Windscreens with Rain Sensors
- Heated Windscreens
- Water-Repellent Windscreens
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- South-east Asia
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East and Africa