Automotive Glass Market Analysis

Automotive Glass Market Analysis

Tempered glass segment accounted for more than 35% of the automotive glass market share in 2020. Tempered glass is known for its high rigid strength, which protects the vehicle occupant during an accident. Tempered glass is generally used in passenger car windows while windshields are mostly made from laminated glass. Growing passenger vehicle sales and increased safety regulations on automotive glass will further help in the penetration of tempered glass in automotive production.

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Sidelite application segment revenue is set to witness around 6.5% CAGR through 2027. Sidelite automotive glass protects the automotive occupant from wind, debris, harsh environment, sun rays, and U.V. radiation. Automotive glass manufacturers are also working on sidelite glass that can keep the internal environment of the vehicle cool irrespective of the outside environment. Electric vehicle manufacturers are further driving the demand for sidelite glass that not only provides security but also increases the aesthetic appeal of the automotive. Growing electric vehicle penetration in the automotive segment along with rising production of automobiles will have a positive impact on the industry.

The passenger cars segment is poised to observe above 6% CAGR in the automotive glass market driven by the growing middle-class population, increasing income levels, and easy reimbursement of loans in many emerging economies globally. Increased safety regulations on automotive glass in passenger cars are positively impacting automotive glass manufacturers. Moreover, increased replacement and repair activities of automotive glass in passenger vehicles will further augment industry demand.

OEMs generated about USD 6 billion revenue in 2020 and will observe significant growth through 2027. The growth of the automotive industry is stagnant; however, the demand for electric vehicles is rising owing to growing consumer awareness of fuel emissions and favorable government policies to make electric vehicles the future candidate in the automotive industry. For instance, the Norway government has announced to go all-electric by 2025. In 2020, more than 54% of the total vehicle sales consisted of electric vehicles. The growing electric vehicle penetration will further boost the automotive glass market demand.

In 2020, Asia Pacific captured over 45% of the automotive glass market revenue share. The regional industry is dominated by China on account of numerous automotive glass manufacturers and growing automotive production in the region. The industry is rapidly growing in India, Thailand, and Malaysia due to the increasing demand for automotive and the presence of numerous automotive manufacturers in the region. Europe held the second-highest market share, which can be attributed to the growing electric vehicle sales in the region and stringent regulations on automotive glass.