Asia Pacific Flat Glass Market 2020 and Forecast 2021-2027

  • TBI381333
  • November 05, 2020
  • Global
  • 135 pages
  • IFF Market Research
                                              

Report Overview: Asia Pacific Flat Glass Market

The Asia Pacific flat glass market size was valued at USD 41.38 billion in 2020 and looks set to grow at a compounded annual growth rate (CAGR) of 5.2% from 2021 to 2027. The growth is attributed to the increasing construction activities across the emerging economies of the region such as India, China, and Indonesia. Architectural segment is anticipated to witness highest penetration in the forthcoming years due to the increasing construction of green buildings. Coated flat glass reflects a large amount of solar heat, which makes it important to be used in the exterior portion of the building. Increasing building and construction spending and manufacturing growth are all factors propelling the demand for the product in the region. Since the past few years, China has emerged as the largest construction market in the world. This can be illustrated by the fact that China accounted for over 41% of the world’s total construction spending in 2018. Rising infrastructural developments are boosting construction industry in the country, which is expected to positively impact the demand for flat glass in architectural applications in the country. However, due to the COVID-19 pandemic in the country which continued till March 2020, housing activities is likely to be restricted for a short term period. Construction activities across the country halted its activities as the pandemic became reality. The gradual downfall in the construction output was reported around (-3.1%) in the first quarter of 2020 and is anticipated to further decline to nearly (-4.5%) in the second quarter of 2020. Government of China is projected to launch series of economic packages to boost construction activities in the country, which is likely to revive product demand. For instance, the government of China aims to launch an economic package of nearly USD 394 billion through local government special bonds to ramp up construction spending in the country.

Product Insights: Asia Pacific Flat Glass Market

Basic float glass led the market and accounted for more than 34% share in terms of revenue in 2019. It is a low-cost product and is therefore extensively used for architectural applications such as windows, facades, curtain walls, and other applications in different forms. Furthermore, it has high transparency and is free of optical distortions imparting a clear vision. Tempered glass is anticipated to witness tremendous growth over the forecast period on account of its increasing application in building and construction industry. The product is extensively used as a safety product in automotive applications. However, since the past few years, it has witnessed a significant penetration in interior as well as exterior applications of a building. The insulated glass unit is predicted to witness the fastest CAGR of 6.9%, in terms of revenue, from 2020 to 2027. Rising government initiatives directed towards energy conservation of buildings in both developed and developing countries of the region is a significant factor contributing to segment growth. Laminated glass is the preferred product for windshields of automobiles, although rising preference of building owners towards safety has also propelled its consumption in architectural applications. In terms of interlayer used for the production of laminated glass, polyvinyl butyral (PVB) film lead the market in 2019 owing to its cost-effectiveness and relatively easier manufacturing process. Application insights Architectural application led the market and accounted for more than 83% of the revenue share in 2019. Increasing population, urbanization, government initiatives related to environmental concerns, and refurbishment of windows are the factors propelling infrastructural developments and construction activities to grow at a significant rate in Asia Pacific. This has led to high consumption of the product. Automotive was the second-largest application segment of the product in 2019. The production of automobiles has a direct impact on the consumption of the product. Although the regional production of automobiles experienced a dip in 2019 and is likely to take a major hit in 2020 owing to the COVID-19 pandemic, it is expected to bounce back in medium-term as the demand for lightweight vehicles and electric vehicles is anticipated to increase. Other applications like solar, appliances, and electronics are also likely to register healthy growth in the forthcoming years. Factors such as the depletion of non-renewable resources and reductions in the cost of solar power are expected to encourage utilization of solar panels, which in turn is estimated to benefit the market growth.

Regional Insights: Asia Pacific Flat Glass Market

China lead the market and accounted for over 68% revenue share in 2019. China is currently the largest consumer and producer of the product by a considerable margin. The market in the country witnessed unprecedented growth from 2014 to 2019 and is likely to continue over the forecast period owing to the surge in new construction activities as well as automotive production. Indonesia is expected to expand at the fastest CAGR of 7.1%, in terms of volume, from 2020 to 2027. Majority of established players based in Malaysia are targeting Indonesia to increase their revenue and expand market shares owing to the rapid expansion of its construction sector. As a result, domestic producers such as PT Mulia Glass are facing significant challenges owing to cheaper imports from Malaysia and rising production costs in Indonesia owing to high energy prices. Vietnam flat glass industry is driven by its construction sector growth in terms of new construction, output, and remodeling. Government of Vietnam is focusing on development of affordable housing for the low-income section. The affordable housing supply in Vietnam increased at a compounded annual growth rate of nearly 17% from 2014 to 2019, thus, providing strong support to the market growth in the country. South Korea is projected to be driven by increasing product application scope in solar panels. South Korea’s Ministry of Trade, Industry, and Energy (MOTIE) recently announced the development of a 2.1 GW floating solar power project in the Korean Peninsula. The cost of the aforementioned project was valued at USD 3.9 billion and the first phase of the project is expected to be completed by 2022. This is anticipated to contribute to the country’s energy plan to secure 30.8 GW solar capacity by 2030 from current capacity of 9.5 GW in 2019

Key Companies & Market Share Insights: Asia Pacific Flat Glass Market

The market is highly competitive in nature owing to the presence of several global and regional players. The industry players are targeting the region owing to booming construction industry and rising automotive production in the region. Malaysia is the country in Asia pacific with one of the highest flat glass production capacities per capita in global market. Xinyi Glass Holdings Limited and Kibing Group are among the major producers in the country. Some of the prominent players in the Asia Pacific flat glass market include:

Key companies Profiled: Asia Pacific Flat Glass Market Report

This report forecasts revenue and volume growth at country and regional 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, Trusted Business Insights has segmented the Asia Pacific flat glass market report on the basis of product, application, and region:

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

  • Tempered
  • Laminated
  • Basic Float
  • Insulating
  • Others

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

  • Architectural
  • Automotive
  • Others

Table of contents
Chapter 1. Methodology and Scope
   1.1. Market Segmentation & Scope
   1.2. Market Definition
   1.3. Information Procurement
        1.3.1. Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum)
        1.3.2. IFF Internal Database
        1.3.3. Secondary Sources & Third-Party Perspectives
        1.3.4. Primary Research
   1.4. Information Analysis
        1.4.1. Data Analysis Models
   1.5. Market 
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