Different types of
glass used in the automobile industry, such as windscreen, side and
rear windows, and glass panel roof, are collectively known as
automotive glass. The Automotive Glass Market can be primarily
divided into two segments: Aftersales Replacement Glass (ARG) and
Original Equipment Manufacturer (OEM) glass.Aftersales Replacement
Glass (ARG) is used in maintenance and repairing activities in
post-sale products.
On the other hand, Original Equipment
Manufacturer (OEM)glass is sold to vehicle manufacturers primarily
for installation on new automobiles.Demand for ARG is 15% to 20% of
the total demand for automotive glass, while remaining demand is
generated by OEM glass. Generally, automotive glass accounts for 3%
of the total vehicle weight. Demand for automotive glass
dependsondemand from the automotive industry.In 2014, the automotive
industry accounted for 15% of the total float glass market. Out of
this, 95% was accounted by the mainstream automotive industry
including trucks, buses, coaches, and off-road mobile machinery. The
remaining 5% is used in the transportation sector in inland
waterways, trains, trucks, metros, ships, etc.
Market prices of
automotive glass depend on its demand in the market and raw material
cost. After the economic slowdown in 2008, the automotive glass
market witnessed rise in demand due to increase in production of
automobiles. Average global price of automotive glass was highly
variable from 2008 to 2010; however, it stabilized after
2010,depicting consistency in the automobile market.The automotive
glass industry is expected to witness growth in the next few years
due to increasing global GDP and urbanization. Side glazing is the
latest trend in the automotive glass market; hence, average glass
used per vehicle has increased.Complexity and value of the glass
being delivered to the automotive industry is increasing to satisfy
the end userwith security and safety requirements. Research and
development is being carried by automotive glass manufacturers to
introduce innovative features and technology.The OEM market has to
overcome restraints to enterthe market by following a long
certification cycle, including third-party certification, design
automobile factory certification, testing, and bid invitation. Whole
vehicle manufacturers rely onlogistics supply, high-standard
synchronous R&D, production technology, and product quality of
auto glass production, while the OEM market has high concentration
rate and large demand.End-users choose auto glass manufacturers with
high brand awareness and large-scale suppliers.Automotive smart glass
with auto dimming properties has drawn attention of the automotive
industry. Manufacturers prefer advantageous location of production
base and realize short-distance supply to reduce costs. The smart
glass segment of automotive glass manipulatesand optimizes natural
light, cooling and heating load, lighting load etc.
In terms of
consumption of automotive glass, currentlyEurope accounts for more
than one-third share of the global automotive glass market, followed
by North America and Asia Pacific. China, Japan, South Korea,
European Union, and North America account for 93% of the global
automotive glass market. The automotive market in North America is
estimated to be one of the fastest-growing markets with a vehicle
production growth rate of 5.6% during the forecast period. Production
of light commercial vehicles has also grown rapidly in North America
at the rate of 9.7% during the forecast period. China, is responsible
for almost 10% of the global share and also have a lion’s share in
global OEM market.
