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Industry Insights, Market Size, CAGR, High-Level Analysis: Automotive Glass Market The global automotive glass market size was valued at USD 30.3 billion in 2019 and is expected to register a CAGR of 4.5% over the forecast period. 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 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. Product Insights of Automotive Glass Market 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 its 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 of Automotive Glass Market 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 of Automotive Glass Market 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 of Automotive Glass Market North America is expected to register the highest growth rate in terms of revenue over the forecast period. The region has been witnessing an increase in the sale and production of commercial vehicles, which would subsequently drive the demand for automotive glass. For instance, in May 2019, GM announced its investment of USD 24.0 million for increasing production of GMC Sierra 1500 and Chevrolet Silverado 1500 pickup trucks at its Fort Wayne Assembly Plant in Indiana, U.S. Europe was the second-largest market in 2019 with a share of over 23.0% in terms of volume. New plants, favorable policies, innovations, and electric vehicles are driving the Europe market for automotive glass. Introduction of new electric vehicles would play a significant role in driving the demand for automotive glass, since the number of available electric vehicle models are expected to reach 175 in 2020 and 330 in 2025 from less than 100 in 2019. Owing to the increased preference for sustainable vehicles in the region, electrical vehicles is expected to witness a growth rate of over 5.0% in countries such as U.K. by the end of 2020. Asia Pacific dominated the global market in 2019, wherein China accounts for more than half of the automotive production of the world. Several new production plants have been set up in China to meet the growing demand for electrical vehicles. In November 2019, a joint venture deal was signed between Volkswagen and SAIC to open its first manufacturing plant in Anting, China, which is expected to begin its production in October 2020 with an annual capacity of 300 thousand. The growth in Asia Pacific is also to be driven by the Indian automotive market, where the production is expected to increase significantly considering the BS VI norms in the country. In January 2019, Kia Motors commenced trial production at its new 536-acre plant in Andhra Pradesh, with an annual capacity of 3 lakh units. Furthermore, in February 2019, the Government of India approved the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME)-II scheme with a fund allocation of USD 1.4 billion from 2019 to 2022. Such initiatives are expected to drive the automotive production in the coming years, which, in turn, would drive the demand for automotive glass in the country. Market Share Insights of Automotive Glass Market 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. Segmentations, Sub Segmentations, CAGR, & High-Level Analysis overview of Automotive Glass Market Research Report This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2019 to 2030. For the purpose of this study, this market research report 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, 2019 - 2030) Tempered Laminated Others Application Outlook (Volume, Million Square Meters; Revenue, USD Million, 2019 - 2030) Windscreen Backlite Sidelite Sunroof End-Use Outlook (Volume, Million Square Meters; Revenue, USD Million, 2019 - 2030) Original Equipment Manufacturer (OEM) Aftermarket Replacement (ARG) Vehicle Type Outlook (Volume, Million Square Meters; Revenue, USD Million, 2019 - 2030) Passenger Car Light Commercial Heavy Commercial
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 1.3.2. GVR’s 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 Formulation & Data Visualization | read more...