Automotive Glass Market Size, Share, Growth & Industry Analysis, By Glass Type (Tempered, Laminated), By Application (Windshield, Sidelite, Backlite, Sunroof), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Electric Vehicles), and Regional Forecast, 2021-2028

The global automotive glass market size was valued at USD 14.48 billion in 2020 and is projected to grow from USD 15.48 billion in 2021 to USD 31.16 billion in 2028, exhibiting a CAGR of 10.5% during forecast period. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 12.9% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Rapid growth in the transportation and logistics sector has fueled the production of heavy-duty vehicles. Increasing disposable income and rising population across the globe has also boosted the manufacturing and sales of automobiles. These key factors are driving the automotive glass market growth. Technological advancements in vehicle glass are enabling cost and weight reductions while improving driver comfort and safety.

Also, safety standards implemented by various governments concerning occupant crash protection are fueling the advancement in this type of glass. For instance, the Federal Motor Vehicle Safety Standard 205, introduced by the US government, addresses precise standards for auto glass transparency and strength. Additionally, they also introduced Standard 212, which includes standards for the amount of force/damage a windshield could withstand during an accident.

Short-Term Decrease in Demand for Auto Glass due to COVID-19 Pandemic

The pandemic-induced lockdown led to a severe drop in automobile production, especially in the first half of 2020. According to the International Organization of Motor Vehicle Manufacturers (OICA), global auto production decreased by 16% to less than 78 million vehicles in 2020, equivalent to sales levels in 2010. Europe which accounted for nearly 20% of global production witnessed a decline of more than 21% in year on year average. Similarly, in the U.S., South America and Brazil auto production decreased by around 19%, 30% and 32% respectively.

These factors directly translated to reduced demand for auto glass in 2020. However, electric car sales have continued to rise exponentially supported by existing policy support and new stimulus measures to assist the recovery of the automotive industry. According to the International Energy Agency, global electric car sales increased by more than 40% to 3 million in 2020 as compared to 2.1 million in 2019. For instance, In China, electric sales increased by 12% as compared to 2019.

Similarly, demand for SUVs has also rapidly increased alongside electric vehicles. For instance, according to the IEA, the share of SUVs in total sales surpassed 50% in the U.S. and increased by around 3% in both China and Europe (total share: 39%). This has been a major driver for R&D as these vehicles drive the demand for systems such as electrochromic roofs (also known as smart glass) and panoramic glass, among other products. Hence, these factors will positively influence the recovery of the market.

LATEST TRENDS

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Increased Adoption of Sunroof and Growing Focus on Safety to Drive Market Growth

Focus on improving the application of sunroof in mainstream vehicles and use of features such as head-up displays to improve driver alertness has led to increased investment in technological up-gradation of automotive glass. Set standards for windshield retention and roof crush during the rollover to enhance the safety features of cars is driving market trends. All these factors support and complement each other, owing to which the market is witnessing substantial growth.

Increasing Application of Glass in Automobiles and Environmental Benefits to Boost Market

Aerodynamic styling results in a more pronounced installation angle of windshields and back windows, thus making them longer. The added surface area increases the importance of the look of glass on the vehicles resulting in increasing preference for sunroofs and moonroofs. Reflective coatings decrease the air conditioning load, thus saving gas and reducing air pollution. Therefore environmental benefits of advancement in this type of glass are expected to have a positive impact on the market.

DRIVING FACTORS

Growing Demand for Electric & Hybrid Vehicles to Drive Market Growth

Emphasis on emission control and stringent environmental regulations are advancing the production of hybrid and electric vehicles, boosting the market growth. Consumers and manufacturers are likely to seek more eco-friendly cars to comply with government norms,  giving a push to hybrid & electric vehicles, which is driving the product.

Stringent Safety Norms Imposed by Government to Drive Market Growth

The stabilization of prices of materials such as soda ash, lime, oxides of magnesium, potassium, and aluminum, and skyrocketing fuel prices have boosted the growth of cost-effective glass for cars. Rising demand for vehicles in the transportation and logistics sector, coupled with a focus on improving vehicle aerodynamics owing to safety regulations, is driving the market growth of the market. Furthermore, the increase in the sale of crossovers and SUVs and rising disposable income, particularly in developing nations, are driving the growth of this market.

RESTRAINING FACTORS

High Cost and Intensive Capital Investment to Restrain Market Growth

The cost of laminated glass is substantially higher compared to tempered glass and the use of this technology is considerably restrained by low adoption in developing countries. Also, a high capital cost is required for R&D and the production of thin laminated glass for side windows. This investment, coupled with an emphasis on reducing production costs and cost burden on consumers, is anticipated to restrain the growth of this market.

SEGMENTATION

By Glass Type Analysis

Tempered Glass Segment Dominated Market in 2020 Due to Low Cost

Based on type, the market is segmented into laminated glass and tempered glass.

The laminated glass segment is anticipated to dominate the market over the forecast period. Some European OEMs such as Mercedes and BMW have standardized side glazing in their top-selling models. Laminated side glazing provides enhanced safety to occupants in case of vehicle rollover in an accident, which is projected to drive the growth of this market. The tempered glass segment is estimated to show steady growth in the market. The more straightforward manufacturing process and low cost coupled with high demand for sidelite and backlite are projected to drive the growth in this segment.

By Application Analysis

Sidelite Segment will Dominate Market Attributed to Higher Number of Sidelite Required in Each Vehicle

By application, the market is segmented into windshield, sidelite, backlite, and sunroof.

The sunroof segment is anticipated to dominate the market over the forecast period. Sunroof offers more control over the entry of natural light into the car. Increasing investments by new market entrants and the demand for energy-efficient products is likely to drive market growth in this segment. The windshield segment is estimated to show significant growth in the market owing to technological advancements such as embedded sensors and smart materials, augmented displays, self-cleaning glass, etc. The sidelite segment is projected to show good growth in the market owing to the increasing number of road accidents, which will accelerate the demand for improved quality of side glass. Backlite segment is also expected to show steady growth in this market.

By Vehicle Type Analysis

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Passenger Car Segment to Hold Largest Automotive Glass Market Share Owing to High Demand in Developing Countries

Based on vehicle type, the market is segmented into passenger cars, light commercial vehicles, heavy commercial vehicles, and electric vehicles (EV). The passenger car segment is anticipated to dominate the market over the forecast period. The increasing sales of passenger cars in China and India are likely to drive the growth in this segment. The LCV segment is estimated to show steady growth in the market owing to the rising popularity of crossover SUVs and the high demand for intra-city trucks and buses. The HCV segment is projected to show significant growth in the market owing to the need for lightweight and safety-oriented long haul transport vehicles. The EV segment is also expected to show considerable growth in this market owing to the early adoption of technologies such as head-up displays and smart glass for the panoramic sunroof.

REGIONAL INSIGHTS

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Asia Pacific holds the largest share of the market and is valued at USD 7.72 billion in 2020. China and India are key driver countries for the growth of the market in this region. Improving economic conditions and high population growth has resulted in increased vehicle production. This factor has led to increased demand for the product, and consumer preference for SUVs in China and India, which require more volume of glass compared to other vehicles, is likely to drive the market growth in this region.

Europe holds the second-largest share in the market and is also estimated to show significant growth in the market over the forecast period. Strict vehicular safety regulations, the presence of leading innovators such as Saint-Gobain Sekurit, and the increasing share of electric vehicles are factors driving the market growth in this region.

North America is projected to show steady growth in the market during the forecast period. Early adoption of advanced glass glazing techniques by numerous companies, including Magna International and Guardian Glass, among others, is expected to have a positive impact on market growth in this region.

KEY INDUSTRY PLAYERS

Saint-Gobain to Remain  Dominant Player in Market owing to Industry-Leading Products

Saint-Gobain is the leading player in this market. Through Saint-Gobain Sekurit, the group equips the world's leading automakers with glass roofs, backlites, windshields, sidelites, and pre-assembled modules. Saint-Gobain Sekurit glazing enables reduced vehicle energy consumption and provides innovative solutions to user demands for safety and comfort. Saint Gobain, through its Autover subsidiary, is also growing its business in the distribution of automobile glazing on the independent aftermarket. However, Magna International Inc. and Asahi Glass, among others, have provided intense competition via expansion strategies, partnerships, and new product development, which has led to an increased focus on research and development of vehicle glass.

LIST OF KEY COMPANIES PROFILED:

• Saint Gobain Sekurit (Herzogenrath, Germany)


• Fuyao Glass Industry Group Co. Ltd (Fuzhou, China)


• AGC Inc. (Tokyo, Japan)


• Xinyi Glass Holdings Limited (Hong Kong, China)


• Nippon Sheet Glass Co. Ltd (NSG) (Tokyo, Japan)


• Magna International Inc. (Aurora, Canada)


• Guardian Glass LLC (Michigan, U.S.)


• Webasto Group (Stockdorf, Germany)


• Corning Incorporated (New York, U.S.)


• Schott AG (Mainz, Germany)

KEY INDUSTRY DEVELOPMENTS:

• May 2021: Wideye, the European division of AGC Automotive, announced the creation of Wideye Rhino, dedicated to developing sensor protection glass solutions for non-automotive applications.


• October 2020: NSG Group announced that its windshield Head-Up Display (HUD) technology that planned to be installed in General Motors’ all-new full-size SUVs: the 2021 GMC Yukon/Yukon XL, 2021 Chevrolet Tahoe and Suburban, and 2021 Cadillac Escalade/Escalade ESV models.


• September 2020: AGC Inc. launched Curved-large cover glass for car-mounted displays has been installed in Cadillac's Luxury SUV, new 2021 Escalade. It has been used as the protecting surface glass for the industry’s first curved P-OLED (Plastic OLED) display supplied by LG Display and LG Electronics.


• June 2020: AGC Inc. launched light control glass, 'WONDERLITETM Dx', which has been implemented for the panoramic sunroof of Toyota's new Harrier, launched for sale on June 17, 2020.

REPORT COVERAGE

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The global automotive glass market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, Types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation