Market Trends of Automotive Glass Industry
This section covers the major market trends shaping the Automotive Glass Market according to our research experts:
Increasing Application of Smart Glass in Automobiles
Automotive glass is a critical aspect of vehicles, with frequent innovations fueling growth. Among the improvements, the automotive smart glass market has been gaining major traction, especially in premium vehicle applications. These materials generate higher levels of comfort for passengers, with superior functionality in security, privacy, and temperature control, which will bolster market penetration in the years to come.
Smart glass options are rapidly finding growth in the production of sun and moon roofs, in line with changes with consumer bias and car manufacturing companies, especially in Europe. For instance, in January 2021, GM announced its new electric car, Cadillac Celestiq, which will come with a smart glass roof. The development of advanced ADAS systems in new automobiles will also contribute to growth in the industry.
Increasing usage of sunroof glass, particularly in high-end vehicles, is anticipated to positively impact the automotive glass market's growth. Nowadays, consumers are showing preference toward a sunroof in the car, which has led to an increase in the utilization of glass. Installation of the sunroof is now limited to the luxury car segment and has also been introduced to the other segments by car manufacturers, like Honda and Toyota. In addition, advancements in vehicle design have led to an increase in the size of the windshield and side windows, thereby leading to the overall development of the industry.
Smart glass has been forecast as the future of the automotive industry. Most of the research has been directed toward improving and making smart glass applicable to mainstream vehicles. It can be used to provide a head-up display in automobiles, just like in the glass cockpit of a helicopter. This makes access to all the controls much more comfortable and also enhances the ambiance of the vehicle. Manufacturers, like Mercedes and Volvo, are putting in a lot of effort to make this into a reality in automobiles.
Asia-Pacific is Expected to be the Fastest Growing Region
Asia-Pacific is expected to grow at the highest CAGR during the forecast period. Emerging economics and the strong presence of manufacturers in Japan, China, and India will boost the market in this region. Rapid changes in regulations to make transportation more advancing on the technology front and the ever-increasing population of this region will create more opportunities in the automotive glass market.
China is the biggest producer of automobiles in the world. The abundance of economic resources to assemble and manufacture automotive parts in India and China, the presence of established glass manufacturing players, increasing R&D capacities, and the presence of several new production plants in China to cater to the growing needs for electric cars are adding to the global automotive glass market growth in the region. For instance, in November 2019, a joint venture deal was signed between Volkswagen and SAIC to open its first manufacturing plant in Anting, China, which is expected to begin its production in October 2020 with an annual capacity of 300 thousand.
The growth in Asia-Pacific is also to be driven by the Indian automotive market, where the production is expected to increase significantly considering the BS-VI norms in the country. In January 2019, Kia Motors commenced trial production at its new 536-acre plant in Andhra Pradesh, with an annual capacity of 3 lakh units. Furthermore, in February 2019, the Government of India approved the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME)-II scheme with a fund allocation of USD 1.4 billion from 2019 to 2022.
Such initiatives are expected to drive automotive production in the coming years, which, in turn, would drive the demand for automotive glass in the country. Some of the other rising markets in the Asian region are Vietnam, Indonesia, and the Philippines.
