The advanced glass market size is expected to reach USD 52 billion by 2027, with a CAGR of 7.2% from 2022-2027, benefiting from the use of advanced glass in various end-uses such as automotive, aerospace, infrastructure, electronics, sports, etc. The use in the industry is increasing. Advanced glass types such as coated glass, laminated glass, tempered glass, ceramic glass, etc., offer distinct advantages including safety, sound insulation, sound attenuation, durability, UV control, safety, ease of installation, versatility in design, These features are expected to increase market demand. Rapid growth in the construction industry has increased the demand for advanced glass, thereby boosting the growth of the market. At the same time, the booming automotive industry is also expected to significantly boost the advanced glass market over the forecast period. In addition, the solar industry is also expected to contribute to the growth of the advanced glass market.
The COVID-19 outbreak in 2020 will have an impact on the global economy and major global industries, and the demand for advanced glass has been significantly affected. Global lockdowns and restrictions on industrial operations, trade activities, supply chain disruptions, and other activities peaked in the premium glass market. In this context, key end-use industries for advanced glass such as automotive, construction, aerospace, and solar have also been affected. The market has been impacted by travel restrictions, delays in new car manufacturing, lower demand from the aerospace industry, and a few months of suspension of construction activity around the world in 2020. The growth of the premium glass market has moderated in 2020 due to slow demand from these end-use industries. However, the market is recovering, companies are resuming operations with reduced capacity, and following government guidance, all end-use industries are fully operational by early 2021, boosting the high demand for premium glass. Hence, the advanced glass market is expected to grow rapidly over the forecast period.
Advanced Glass Market Analysis
The coated glass segment holds the largest share in the premium glass market in 2021 and will grow at a CAGR of 6.7% during 2022-2027, attributable to the various advantages it offers such as reduced radiant heat, better thermal performance, reduce reliance on heating and cooling systems, protect furniture from long-term sun damage, reduce condensation and more. Coated glass helps improve the energy efficiency of buildings. Coated glass windows retain heat in the summer and the building in the winter, not only making the building more comfortable year-round, but also reducing energy bills. The wide range of properties of all these coated glasses is the key factor expected to boost the demand for coated glass in different regions during the forecast period.
Figure 1 The growth of the coated glass market
Advanced Glass Market Analysis - By Application
In 2021, the security segment will hold the largest share in the advanced glass market owing to the use of advanced glass. In an era where sustainability and durability are highly desirable, advanced home window glazing is the ideal solution recommended for residential spaces. Advanced processing technology makes the premium glass stronger and more durable. Premium glass is a strong, safe, and convenient medium of choice for interior applications from the façades of the tallest buildings to doors, windows, and furniture, it not only provides protection from physical intrusion but can be used internally without breakage or injury, Advanced glass helps to meet the basic requirements of safety and security and is the key driving factor for the advanced glass market over the forecast period.
Figure 2 The growth of the advanced home window glazing market
Advanced Glass Market Analysis - By Terminal
The electrical and electronics segment will hold the largest share of the premium glass market in 2021, growing at a CAGR of 7.2% during 2022-2027, attributable to the use of premium glass such as coated glass, laminated glass, tempered glass in the electrical and electronics industry. In the electronics industry, advanced glass is primarily used to make display panels for televisions, computers, and mobile devices. Due to the increasing popularity of portable devices, manufacturers have begun to use precision glass that will not fall off. In addition, improved glasses are currently being developed for the fabrication of flexible devices such as organic light-emitting diodes. Premium glass is used in particular for laptops, cell phones as screen protectors, and these glasses are also used to make flat panel displays. In 2019, revenue from the information and communications technology sector was estimated at $210 billion, according to Canadian government data. From 2013 to 2018, the revenue of the ICT sector grew from $158 billion to $200 billion, an increase of 26.9%. Hence, the increasing application of advanced glass and the expansion of the ICT market are the major factors driving the demand for advanced glass in the electrical and electronics market during the forecast period.
Advanced Glass Market Analysis - By Geography
The Asia Pacific will hold the largest share of the premium glass market at 41% in 2021, owing to the growing demand for premium glass such as coated glass, laminated glass, tempered glass, ceramic glass, etc. in the electrical and electronic industry in the region. According to the "National Integrated Circuit Development Promotion Program", the Chinese government is vigorously supporting the electronics industry, especially the integrated circuit manufacturing and design industries.
By 2022, China's IC production will accelerate at an annual average rate of more than 14%. India's contribution to global electronics production has risen from 1.3% in 2012 to 3% in 2018, according to the Indian Investment Corporation, and India could have a digital economy worth $800 billion to $1 trillion by 2025, of which the digital sector accounts for 18-23% of total economic activity. According to the Japan Electronics and Information Technology Industry Association, in December 2019, the production of consumer electronic equipment was US$356 million, and in December 2020, the production of consumer electronic equipment increased to US$380 million, an increase of 6.8% over 2019. Hence, with the development of the electronics industry, the demand for advanced glass will also increase, which is expected to drive the advanced glass market in the Asia Pacific over the forecast period.
Advanced Glass Market Drivers
Increase car production
Advanced glass such as coated glass, laminated glass, tempered glass, ceramic glass, etc., are widely used in automobile production of windshields, side windows, backlights, displays, etc. In addition, high-grade glass is often used to reduce noise and improve the thermal comfort of vehicles. According to the International Trade Administration, China is the world's largest auto market, and the Chinese government expects the auto manufacturing industry to reach 35 million vehicles by 2025. According to the International Organization of Automobile Manufacturers, African passenger car production stood at 776,967 units in 2018, rising to 787,287 units in 2019, an increase of 1.3 percent. Japan's vehicle production rose to 6,90,311 units in November from 6,67,462 units in October, according to the Japan Automobile Manufacturers Association. Hence, increasing automated production will require more advanced glass to manufacture various auto parts, which will be the driving force for the advanced glass market during the forecast period.
Booming aerospace industry
Advanced glass such as coated glass, laminated glass, tempered glass, ceramic glass, etc., has a wide variety of physical properties that can be easily adjusted during production. Advanced glasses are appreciated in the aerospace sector for their superior heat resistance, high strength-to-weight ratio, corrosion resistance, and relatively low production costs compared to polymers and traditional aerospace alloys. Therefore, the demand for advanced glass in the aerospace sector is increasing. According to the International Trade Administration, China was one of the fastest-growing markets in 2019. China is expected to need about 6,810 new commercial aircraft over the next 20 years, worth $1 trillion, according to Boeing data. Boeing's current market outlook forecasts a need for 2,520 new planes in the Middle East by 2030. According to Boeing India, demand is expected to increase by 2,300 aircraft, worth $320 billion, over the next 20 years. Hence, the growing aviation industry has significantly boosted the demand for premium glass, thus being the driving force of the premium glass market.
Lack of advanced glass raw materials and high cost
Different glass sectors and specific factories use different raw materials. The main raw materials are silica sand, soda ash, limestone, feldspar, and dolomite. The scarcity of raw materials such as silica sand and limestone is the most significant challenge facing the advanced glass industry in most regions.
Only a small fraction of the available sand beds are suitable for making glass. For example, there are only 6 locations in the UK suitable for the production of silica glass for flint container glass. In addition, the prices of raw materials used to produce high-grade glass are also volatile. According to the All India Glass Manufacturers Federation, between 2014-15 and 2017-18, India's raw material expenditure as a percentage of sales revenue rose by 1.23%, and these factors are expected to pose a significant challenge to the growth of the premium glass market.
The Asia Pacific dominates the premium glass market owing to the growing electrical and electronics industry in the region. According to the Indian Investment Corporation, India's domestic electronics market will reach $400 billion by 2025.
Advanced glass such as coated glass, laminated glass, tempered glass, ceramic glass has a wide range of properties such as increased safety, sound and noise reduction, durability, UV control, safety, ease of installation, general functionality in design, etc. These properties of advanced glass are expected to boost the market growth.
In addition, increasing government investment in construction and construction projects is expected to further increase product demand shortly. Strict government regulations requiring the use of energy-efficient products and the desire to use renewable resources are expected to provide lucrative opportunities for the market.
However, high manufacturing costs associated with advanced glass manufacturing are likely to restrain the market growth over the forecast period.
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