Automotive glass market to generate appreciable proceeds via OEMs, surging demand for laminated products to impel the industry growth over 2018-2024
Publisher : Fractovia | Published Date : 2017-05-05Request Sample
The rapidly escalating growth of the automotive sector across the globe is quite overtly, the principal driving force for automotive glass market. With the rising disposable incomes of the growing middle class populace, automobiles are becoming more of a necessity than a luxury, consequently impelling car sales. As the standards of living continue to rise and the requirement for automobiles escalates more than ever before, the demand for highly advanced smart glass technologies to enhance visibility and improve sunlight protection will also witness an upsurge. In consequence, this would have a remunerative impact on automotive glass industry trends.
U.S. Automotive Glass Market, By Vehicle, 2017 & 2024, (USD Million)
Of late, the only school of thought prevalent among automakers is overall vehicle weight reduction that would enhance automobile performance as well as fuel efficiency. The installation of glass for windows, roofs, doors, vents, and windshields to reduce this weight will thus, positively influence global automotive glass industry. For the sake of user safety however, manufacturers prefer to install windshields with laminated glass, for the sole reason that they provide high UV resistance and durability. As per estimates, laminated automotive glass market size was worth USD 7 billion in 2017. Pertaining to the excellent features of this product, such as minimization of obstacle penetration through fragment scattering avoidance, the demand for this glass has been surging by the day. In order to adhere to regulatory norms regrading safety standards in vehicles, automakers have been using this product extensively in vehicle manufacturing, impelling laminated automotive glass market size, slated to register a CAGR of 7% over 2018-2024.
Unveiling automotive glass industry trends through distribution channels
Automotive glass market draws sales from two essential distribution systems – the OEMs and the aftermarket. Driven by the rising concerns about safety, OEMs held more than 80% of automotive glass market share in 2017, emerging as the dominant segment. Automotive glass industry firms are known to establish partnerships with automakers in order to liaison with OEMs to ensure effective automotive assemblies. OEMs, also known to harness the latest technology as it lowers the production costs and improves capital productivity, will thus emerge as a lucrative distribution channel for automotive glass market firms in the years ahead.
China has been forecast to be one of the countries across the APAC that would earn substantial revenue from OEMs. As per estimates, China automotive glass market size from OEMs will register a CAGR of 7% over 2018-2024. This growth may be credited to the increasing preference for luxury cars and the subsequently extensive spending on maintaining these vehicles.
Despite the popularity of OEMs, the aftermarket is expected to witness a commendable surge over the forthcoming six years. As per estimates, automotive glass market share from the aftermarket is expected to record a CAGR of more than 5% over 2018-2024. This growth can be primarily credited to the increasing number of accidents that damage car exteriors and the high consumer inclination for low cost products.
A pivotal pointer to be registered in this case is that regulations governing regarding copyright and patent infringement may act as plausible restraints for automotive glass market growth from the aftermarket. This is because aftermarket products are likely to differ from the original products in terms of certain specifications, on account of the patent and copyright infringement laws. In most cases however, the product is manufactured with exactly the same size and shape as that of the original, though the color and thickness may vary.
As per authentic statistics, the overall sale of vehicles cars across the globe as on 2017 was around 97 million units. The number if expected to increase steadily in the years to come, welcoming alongside a whole lot of changes in automobile design, production, and fuel source. As hybrid and electric vehicles take more precedence than diesel cars, the demand for specialized glass will observe an even greater incline, pertaining to a stringent regulatory framework regarding user and vehicle safety. With the appreciable contribution of renowned companies such as Saint-Gobain, Nippon, & Guardian, striving to bring forth a slew of advanced products into the mainstream automotive arena, in conjunction with the changing consumer preference toward glazed glass incorporated with impact and scratch resistance, automotive glass market is likely to chart out a lucrative growth path in the years ahead.
