Market Trends of Automotive Smart Glass Industry
Rise in penetration of suspended particle devices (SPD) in vehicles
- Worldwide car sales grew to around 67.2 million automobiles in 2022, up from around 66.7 million units in 2021. In 2020 and 2021, a faltering global economy caused the industry to experience a downward trend. In 2022, COVID-19 and the Russian war in Ukraine contributed to shortages in the automotive semiconductor market and additional supply chain disruptions. Despite these challenges, 2023 sales growth is anticipated.
- Suspended particle devices (SPD) can improve users driving experience. SPD-smart sunroofs, roof systems, windows, and visors turn car glass or plastic into a dynamically adjustable and responsive light-management system. Depending on the post-processing operations, SPD glasses provide a minimum haze of 2.5%.
- SPD glasses are more efficient than other smart glasses, with an average consumption of 1.5 watts per sq. m compared to the 3 watts per sq. m of the energy requirement of PDLC smart glass. According to Continental, SPD smart glass results in a 4 g per km carbon dioxide reduction, improving the driving range by 5.5%. Using SPD smart glass, Mercedes reduced the heat by up to 10 Celsius (18 Fahrenheit).
- A suspended particle device, a film that converts the transparency of car sunroofs and other glass to opaque, prevents the infrared and ultraviolet radiation that overheats interiors and prematurely ages leather and other materials. For instance, SPD glass is now available on a few high-end Mercedes models, notably the S-class sedan and SL roadster.
- Several countries implemented limitations on the distribution and transit of raw materials due to the impact of COVID-19, disrupting the supply chain of smart films. The limits had a significant influence on smart glass pricing. Shutdowns of manufacturing plants, particularly in the automobile sector, resulted in a massive decline in market income.
- Lack of consumer awareness of long-term advantages and a rising number of complications, such as high cost, would most likely operate as a market restraint for the expansion of SPD for smart windows in the projected period. The high cost of items and their ease of availability will be the most significant and immediate barrier to the market's growth. However, increased vehicle sales across the Globe are anticipated to fuel the market for smart glass.
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Europe is Expected to Grow at the Fastest Rate in the Market
- The demand for luxury cars has increased across the region over the past few years. Additionally, there has been a huge shift from traditional features toward advanced convenience features, such as a sunroof and automatic tinted glass, owing to the increasing demand for advanced convenience features and luxury cars over the forecast period post-pandemic.
- Some of the major factors driving the growth of the market are a rise in sales of passenger cars in the major markets of Europe, increasing sales of luxury cars, and the increasing demand and preference for a sunroof in the vehicles.
- The German automotive sector has been the backbone of the European automotive industry for the last decades. Germany has evolved into one of the largest countries when it comes to the production and innovation of high-tech automotive products. In addition, a net of +60% growth has been observed in Europe's automotive sector for R&D on the back of Germany. This showcases that the strong innovation hub plays a pivotal role in the demand for automotive smart glass.
- In May 2022, Microsoft and Volkswagen collaborated to put augmented reality glasses in motion. The future of mobility by researchers at German automaker Volkswagen, who see augmented reality as one of the key elements of the future mobility concept. To get a little closer to this vision, Volkswagen has worked with Microsoft to make the mixed-reality glasses HoloLens 2 available for the first time in mobile vehicles.
- The automotive industry in the United Kingdom witnessed a downturn due to various factors, including COVID-19 and Brexit, which impacted vehicle sales from 2017 onward. The production figures, especially for passenger cars, have also been decreasing.
- France has witnessed some improved investments in new technology like artificial intelligence (AI) and smart glass in automotive fleets from foreign automakers. For instance, in February 2022, Israeli smart glass technology provider Gauzy announced that it would acquire a French company to expand its offerings and become the world's leading solution company for lighting control and shading system technology.
- Terms and conditions for the acquisition of Vision Systems, based in France, a Tieronesupplier developing shading solutions for the aerospace, land transportation, and marine industries. Gauzy has worked with many automakers around the world, including Daimler, to integrate its optical control glass technology into automobiles. We partner with BMW, LG, and auto parts suppliers Brose, Vision Systems, Texas Instruments, and others to offer a variety of lighting and shading products.
- Several new car launches with smart glass are likely to encourage manufacturers to operate in this segment. Hence, many car manufacturers, like Audi, BMW, Nissan, and Range Rover, are offering sunroof options in their popular models, like Q-series, X-series, Qashqai, and Evoque, respectively.
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