U.S. Contract Glazing Market Size, Share & Trends Analysis Report By Application (Building & Construction, Automotive), By Product, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The U.S. contract glazing market size was valued at USD 7.9 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 4.7% from 2020 to 2027. Increasing demand for flat glass products in the construction industry on account of rising developments in the commercial sector of the country is anticipated to augment market growth.

Increasing the construction of hotels, office buildings, and retail stores in the U.S. are accelerating the demand for contract glazing services. The U.S. hotel construction pipeline has been showing a positive trend past few years, which is expected to be seen during the forecast period as well. The country had more than a thousand new hotels in 2019 and this number is expected to grow by 2% to 2.5% in 2020 and 2021.

Growing demand for flat glass products in construction and automotive industries, on account of their characteristics, such as transparency, strength, workability, and transmittance is expected to positively influence the market growth. Building and construction is the key application segment and with a rising number of upcoming projects, such as Lincoln Yards in Chicago and River District in North Carolina, the construction spending in residential as well as commercial segments by private companies and government agencies is expected to increase. The growing number of construction projects is expected to boost the demand for glass, thereby driving the growth of the U.S. contract glazing market.

The demand in the automotive industry is expected to grow in the forthcoming years on account of the increasing number of road accidents, leading to the replacement of windshields and windows in the vehicles. An average of 6 million car accidents are recorded in U.S. every year. In addition, a rising number of old vehicles that require regular maintenance and repairs is anticipated to augment the automotive aftermarket segment in near future.

The lack of a skilled workforce in the country is anticipated to restrain the demand for contract glazing in near future. Labor has been a top priority and challenge for the construction companies and contract glaziers since past few years. The U.S. economy is facing a shortage of workers, which can be indicated by a higher number of job openings than the people looking for it. For instance, according to the U.S. Department of Labor, in January 2019, the country had 7.6 unfilled jobs, whereas only 6.5 million people were looking for work.

U.S. Contract Glazing Market Trends

The contract glazing market in the U.S. is mainly driven by rising demand for flat glass products in the automobile and construction industries. The flat glass was the largest segment of the market in 2019, accounting for a volume share of over 94.0% and this trend is expected to continue over the coming years. The use of flat glass in the construction industry improves aesthetics and light & heat transmittance in buildings. In the automotive aftermarket, the product is used in the repair and replacement of windshields and front & rear mirrors.

Glass is now being used in the construction industry as an insulation material in structural components and cladding systems. It is also used to make fenestrations on façade systems and conventional windows. Glass is constantly undergoing technological transformations owing to the increasing demand for green buildings across the U.S. Increasing construction spending, along with a rising number of infrastructural projects, in the U.S. is expected to fuel the demand for flat glass. According to the U.S. Census Bureau, the overall construction spending in the country increased by 3.3% from 2017 to 2018.

The building & construction industry is the major end-user of contract glazing services. This industry can be segregated into residential, commercial, and institutional segments, of which the commercial segment accounts for the largest market share. This segment comprises office buildings, hotels, and retail stores, which are expected to increase at a rapid rate. Upcoming projects in the commercial sector are likely to augment the demand for contract glazing in the country during the forecast period.

Glass products are increasingly being incorporated in buildings considering the technological advancements in the industry. For instance, in October 2019, the guitar-shaped Seminole Hard Rock Hotel & Casino, a 35-story glass-clad building, opened in Florida. The façade of the hotel incorporates about 247.2 thousand square feet of glass. The hotel has an appealing appearance and includes a custom hurricane impact curtainwall system. 

The U.S. contract glazing market is anticipated to hinder over the coming years owing to the lack of a skilled workforce. According to primary sources, labor has been a significant challenge for contract glaziers and construction companies for the past few years. The task of finding skilled labor in order to accomplish the desired construction or contract glazing project on time is becoming difficult. For instance, the hotel industry has been witnessing the tightest construction labor markets past few years, which is resulting in a delay in the new construction activities or renovations and leading to higher costs. 

Companies are facing a hard time in finding all types of construction employees, especially the field labor, carpenters, plumbers, and electricians. Industry leaders are rooting this problem back to 2008, when construction projects took a halt, forcing the workers to find other types of employment. Around 600 thousand workers left the industry during the recession and have not returned since then. The shortage of labor in the country has directly impacted the increase in construction costs, land costs, and raw material costs.

Application Insights

Based on application, the market is segmented into building and construction, automotive, and others. Building and construction was the largest segment in 2019 accounting for a revenue share of over 75%. The growth is directly proportional to the increasing demand for glass in the country. This industry can be further segregated into residential, commercial, and institutional segments, of which the commercial segment accounting for the largest market share.

The growth of the commercial sector can be attributed to the increasing number of hotels in the country. A significant number of hotels were constructed in 2019, and the same trend is expected to continue in 2020. Ritz-Carlton, Paradise Valley, The Godfrey Hotel Hollywood, The Ben, Loews Kansas City, and Kimpton Bozeman, are among the few hotels expected to open in 2020.

The other applications segment comprises of the glass utilized and installed in the interiors of residential and non-residential sectors, such as partitions, shower walls, cubicles, doors, and various types of décor that involves glass. The demand for glass is increasing in bathrooms when it comes to the residential sector owing to benefits such as ease in cleaning, less space consumption, and less clutter. Unlike glass, the usage of other materials such as metallic or wooden barriers can get weathered and rotten away over time.

Product Insights

Based on product, the market is segmented into flat glass and others, where the former is further split into basic, laminated, tempered, and insulated. Insulated glass accounts for the largest market share in 2019 and is majorly used in the exterior of the buildings. Its demand persists owing to the excellent thermal and sound insulation properties it provides along with high-strength against wind and snow loads when compared to single pane glass.

Tempered and laminated glasses are widely preferred in the automotive industry owing to their characteristics that meet the safety demand. As a result, these glasses are categorized as safety glasses in the industry. Their demand is increasing on account of the rising number of road accidents in the country. For instance, according to the National Safety Council, the traffic fatalities in the country reached nearly 40,000 in 2018. The number was around 18,580 between January 2019 and June 2019. The road accidents lead to car damage and replacement of parts including windshields, backlites, and sidelites, thus, driving the demand.

Fiberglass also has applications in the automotive industry especially in aftermarket body kits, such as front and rear bumpers and bonnets. The increasing willingness of consumers to customize and create a unique look that is different from an assembly-line vehicle is expected to boost the demand for aftermarket body kits, in turn, is likely to propel the product demand.

Regional Insights

The Southeast U.S. dominates the market and is anticipated to register the highest growth rate across the forecast period. The high potential for the construction industry to flourish in the region on account of factors such as steady population growth, ample availability of land, low cost of living, and ambient climate, is expected to provide a boost to the contract glazing market. States including Florida, Tennessee, and Georgia are expected to witness a widespread expansion of the construction market in the coming years. 

Furthermore, growing road accidents in states like Florida, South Carolina, Alabama, and Kentucky are giving opportunities to the repair and replacement auto part service industry, thus propelling market growth. According to the World Atlas, in 2017, the number of car crashes in Florida reached 1,011, much higher than the number of car crashes (437) in Tennessee. Thus, the increasing number of accidents in this region is likely to boost the need for the repair and replacement of auto parts. This, in turn, is likely to propel the market growth during the forecast period.

The northeast region is anticipated to witness the highest growth rate in the country over the coming years. The region is densely populated by culturally diverse people with high economic indicators, which invites more advanced infrastructure projects. Moreover, the presence of the nation’s biggest metropolitan area New York in the region gives further aid to the development of the construction industry. 

The GDP of Massachusetts witnessed the highest CAGR of 4.7% from 2014 to 2018, followed by New York and New Hampshire with 4% each, and Maine with 3.8%. According to the U.S. Bureau of Economic Analysis, the U.S. witnessed positive growth in GDP in the first three quarters of 2019. New York’s percent change in real GDP was 3.8% in Q1 and 1.7% in Q2 and that of Massachusetts was 2.7% and 1.5%, respectively. The growth in the GDP signifies the growing construction activities in the region.

Key Companies & Market Share Insights

The industry is characterized by intense competition among both domestic and internationally reputed market participants. Market players are facing tough competition from foreign companies that are bidding at extremely low prices to gain projects. Along with the foreign companies, the glaziers in the country are facing intense competition from companies that are specialized only in the fabrication and distribution of glass products.

The fabricating companies are adopting strategies such as mergers and acquisitions in order to increase their market share in the industry and to cater their products to potential customers. For instance, in January 2020, American Insulated Glass, LLC.—leading glass fabricator and distributor in Southeast U.S.—acquired A .L. Smith Glass Company, a glass fabricator and distributor in Ijamsville, Maryland. The acquisition was intended to meet the needs of the commercial construction sector. Some of the prominent players in the U.S. contract glazing market include:

• Benson Industries, Inc.

• Binswanger Glass

• Crown Corr, Inc.

• Enclos Corp.

• Gamma

U.S. Contract Glazing Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at country level 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 U.S. contract glazing market report on the basis of product, application, and region:

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

  • Flat Glass

    • Basic

    • Tempered

    • Laminated

    • Insulated

  • Others

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

  • Building & Construction

  • Automotive

  • Others

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

  • U.S.

    • Northeast

    • Southwest

    • West

    • Southeast

    • Midwest