Automotive Glass Market Size, Share & Trends Analysis Report By Product (Laminated, Tempered), By Application (Windscreen, Sunroof), By End Use, By Vehicle Type, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global automotive glass market size was valued at USD 30.2 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 4.5% from 2020 to 2027. Increasing emphasis on lightweight cars on account of rising harmful emissions from vehicles that have an adverse effect on the environment drives the glass penetration in the automotive industry.

The production of automobiles witnessed a decline in the past two years; however, it is expected to register an upward growth trend from the second half of 2020 onward. This growth is attributed to the development of the automotive manufacturing sector, particularly in countries such as China and India owing to increasing government initiatives regarding motor vehicle regulations.

Technological advancements in the automotive sector, along with continuous upgradation in vehicle design, has compelled market players to introduce advanced products for automotive manufacturers. For instance, in FY 2018-2019, AIS offered its products to various new car models with several innovative changes, including solar green glass and acoustic PVB for Yaris and a 2.8mm backlite for the new Wagon R.

The rise in production of electric vehicles and the incorporation of various new technologies in terms of display and battery are expected to have a positive influence on the demand for automotive glass over the forecast period. For instance, in June 2019, Lightyear, a Dutch company, introduced the first prototype of its electric car called the Lightyear One, which has five square meters of integrated solar cells beneath the roof and hood. These solar panels are produced from safety glass and can recharge directly from the sun.

The key challenge for the market is the raw materials required to produce glass. Raw materials and energy utilization account for a major share in the cost structure of glass and their supply has a direct impact on glass production and its prices. For instance, the price of one of the key raw materials, soda ash, has witnessed consistent increase over the past few months, one of the reasons being its limited supply. In order to remedy this situation, soda ash manufacturers are increasing their production capacities for fulfilling the demand from its key markets including automotive glass, chemicals, and industrial products.

Automotive Glass Market Trends

Growing emphasis on fuel efficiency and reduction in harmful emissions from vehicles has led to increased production of lightweight and electric vehicles. This is anticipated to boost the demand for glass in the automotive industry in the forthcoming years. The automotive industry has been witnessing significant technological innovations over the past many years. Despite the decline in the overall production of vehicles, the demand for automotive glass is anticipated to prevail over the forecast period due to the increasing production of commercial vehicles and electric cars.

The overall heavy commercial vehicle production increased by 2.8% from 2017 to 2018. Africa witnessed a phenomenal growth of around 50%, followed by South America with 29.2%, North America with 17.3%, and Europe with 10.2%. The rising production of commercial vehicles is a positive sign for the global automotive glass market. In addition, a significant rise in the production of electric vehicles is further anticipated to provide a lucrative opportunity for the automotive glass market.

With advancements in vehicles, such as from fuel-based to electric and from manual to automatic, technological developments are also being witnessed in the case of glass, such as the dimmable and display glass technology by Gentex Corporation. The company introduced a full display mirror, which turns the rearview mirror into a screen. This can be seen in the Chevy Bolt EV.

Furthermore, solar technology is being increasingly incorporated into the automotive industry and is anticipated to be an excellent feature in electric cars over the forthcoming years. In 2019, Lightyear, a car company founded in 2016, launched the first prototype of its electric vehicle. The car is covered in solar panels on the roof and hood. The company claims that the solar panels are capable of charging the car battery with up to 12 kilometers of range per hour. The electric car is expected to be available for sale by 2021.

Rapidly changing consumer demand has led to numerous advancements in the technology used in automotive glass. Ascending demand for sunroofs over the past few years has led to an increase in the utilization of automotive glass. A high consumer focus on luxury is expected to propel innovation in vehicles. Today, automotive manufacturers offer either built-in or optional sunroof systems, especially in mid and premium car segments, which, in turn, is anticipated to propel the demand for automotive glass over the forecast period.

The growth of the automotive glass market, is, however, restricted by one key disadvantage, high manufacturing cost. Over 90% of the world’s automotive glass is manufactured by the float glass process. Float glass plants require large capital to become functional and turn out to be profitable if working at a capacity utilization of over 70%. A major share of the overall cost structure of automotive glass is held by its raw material and energy consumption.

Product Insights

Tempered automotive glass dominated the product segment, accounting for a share of 59.3%, in terms of volume, in 2019. Its large share is attributed to factors including low cost, high strength, and robustness. The product holds strength 4-5 times more than a basic float and is more cost-effective than laminated automotive glass. As a result, it is the most preferred type of glass in automotive, particularly for windows and backlites.

The laminated automotive glass segment is anticipated to register the highest growth in terms of revenue, with a CAGR of 4.6% over the forecast period. The structure consists of a PVB layer sandwiched between the two glass layers. It mainly finds application in windscreens owing to the safety characteristic that allows it to stay intact even after accidents occur, which prevents the passengers in the vehicle from getting hurt or injured. It is preferred for sunroofs as well, which is expected to drive the segment growth. Companies such as Volvo, Ferrari, and Tesla use laminated glass in all their cars that have panoramic sunroofs.

Application Insights

In terms of revenue, windscreen dominated the market in 2019 and this trend is anticipated to continue through the forecast period. Windscreen carries significant importance in a vehicle structure; hence, both automotive and glass manufacturers are engaged in developing new technologies for enhancing its appearance and features. For instance, introduction of new types of windshields with self-cleaning glass is anticipated to drive the segment growth over the forecast period.

For several years, automotive manufacturers have preferred tempered glass for sidelites or the side windows of cars. The sidelite segment is expected to outpace windscreen in terms of volume by the end of the forecast period. Increased utilization of tempered automotive glass in sidelites, particularly in the aftermarket, is anticipated to propel market growth in the coming years. Increasing number of road accidents are a primary reason for the growing use of glass in the automotive aftermarket. As a safety implementation, manufacturers are now switching to laminated glass for side windows to prevent severe injuries in case of accidents with a heavy impact.

Sunroof is projected to register the highest CAGR over the forecast period. The incorporation of sunroofs in affordable cars is a key growth factor for the segment. Technological advancements such as the usage of lightweight materials in the production of sunroofs helps automotive manufacturers bring them down from the luxury segment to the mass market. The demand for sunroofs is expected to increase in the coming years, subsequently driving the automotive glass market.

End-Use Insights

On the basis of end use, the market is segmented into original equipment manufacturers (OEMs) and aftersales replacement glass (ARG). OEM dominated the market in terms of volume in 2019, since a majority of automotive glass is used for the production of vehicles. The aftermarket segment is driven by factors such as high use of old vehicles, need for maintenance and upgradation for these vehicles, and increasing road accidents.

The OEM segment is anticipated to register a significant growth rate owing to the establishment of new automotive plants, particularly for electric vehicles. For instance, Tesla’s factory in Shanghai, China delivered its first 15 Model 3 cars in December 2019. The plant is expected to pace up its production in 2020 with an annual capacity of 150,000 Modern 3 cars. Moreover, in March 2019, Ford announced its plan for setting up a new facility in Michigan, U.S. for autonomous vehicles, which is expected to open by 2021.

Vehicle Type Insights

Passenger cars emerged as the largest vehicle type segment in 2019 and is anticipated to register a CAGR of 4.5%, in terms of revenue, over the forecast period. This is attributed to factors such as changing consumer trends, increasing middle-class population, and growing environmental concerns pertaining to low-emission and lightweight vehicles on the roads.

Commercial vehicles are expected to register a rapid growth rate over the forecast period owing to the surge in transportation and construction activities. As a result, automotive manufacturers are compelled to increase their production in order to cater to the growing demand. For instance, in October 2019, VE Commercial Vehicles Ltd announced its investment in its new 150-acre plant in Bhopal, Madhya Pradesh, India, in line with the BS-VI norms.

Automotive manufacturers plan to increase production of commercial vehicles since larger vehicles prove to be profitable to manufacturers and dealers as higher list price creates higher profit margins. In June 2019, GM announced its investment of USD 150.0 million for boosting the production of heavy-duty pickup trucks at its Flint Assembly Plant in Michigan, U.S. by 40 thousand per year. Therefore, increased production of commercial vehicles is anticipated to provide lucrative opportunities for automotive glass in the coming years.

Regional Insights

In terms of both revenue and volume, Asia Pacific held the major share of the global automotive glass market in 2019. This can be attributed to the high economic growth, rising disposable income, and subsequent increase in the demand for commercial vehicles in the region. Moreover, rising investments in the automotive industry is propelling the growth of the automotive glass market in the region.

Countries such as China and India have been witnessing changing consumer demands in terms of vehicle styling, safety, and comfort. This has led to a high focus of the manufacturers on enhancing their efficiency in order to meet the rising vehicle demand. Asia Pacific has been witnessing high demand for premium vehicles on account of changing consumer lifestyles and rising disposable income. This has led to an increase in the production of vehicles with sunroofs, thereby positively affecting the market growth.

The North America automotive glass market has been witnessing a significant increase in the sale of commercial vehicles which is anticipated to play a significant role in propelling the demand for automotive glass over the forecast period. Value-added features including solar control, de-icing & de-misting, integrated antennas, and integrated rain and light sensors for automatic wiper or headlight activation are being included by the manufacturers in order to provide differentiated products and increase profit.

The applications of automotive glass in the U.S. are highly technical in nature owing to the continuous technological advancements. The presence of numerous glass as well as car manufacturers are expected to play a key role in fueling the demand for automotive glass in the economy. Technological advancement, high consumer disposable income, and the luxurious lifestyle of consumers are anticipated to have a positive impact on the demand over the coming years. The U.S. has one of the largest automotive markets in the world.

Key Companies & Market Share Insights

The market relies heavily on raw material manufacturers, suppliers, distributors, manufacturers, and end users. Despite the presence of innumerable players in the industry, the market is consolidated in nature owing to presence of few major manufacturers such as AGC Ltd., Saint-Gobain, Fuyao Glass Industry Group Co., Ltd., and NSG Group.

The leading manufacturers are engaged in the development and implementation of new strategies for increasing their market share. Apart from capacity expansion, mergers, acquisitions, and new product developments, integration across different stages of the value chain is also amongst one of the strategies adopted by key players to help them gain a competitive advantage over other manufacturers.

Automotive Glass Market Report Scope

Global Automotive Glass Market Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global automotive glass market report on the basis of product, application, end use, vehicle type, and region:

• Product Outlook (Volume, Million Square Meters; Revenue, USD Million, 2016 - 2027)

  • Tempered

  • Laminated

  • Others

• Application Outlook (Volume, Million Square Meters; Revenue, USD Million, 2016 - 2027)

  • Windscreen

  • Backlite

  • Sidelite

  • Sunroof

• End-Use Outlook (Volume, Million Square Meters; Revenue, USD Million, 2016 - 2027)

  • Original Equipment Manufacturer (OEM)

  • Aftermarket Replacement (ARG)

• Vehicle Type Outlook (Volume, Million Square Meters; Revenue, USD Million, 2016 - 2027)

  • Passenger Car

  • Light Commercial

  • Heavy Commercial

• Regional Outlook (Volume, Million Square Meters; Revenue, USD Million, 2016 - 2027)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa