Trends in the Global Automotive Glass Industry

As the global economy has continued to recover since the global financial crisis of 2008, global demand for automotive glass has risen from 294 million square meters in 2009 to 415 million square meters in 2013, representing a compound annual growth rate of 9.0%. It is projected that from 2013 to 2018, global demand for automotive glass will grow at a compound annual growth rate of 4.9%. By 2018, global demand for automotive glass is expected to reach 528 million square meters.

The historical and forecast data for global automotive glass demand during the period shown are illustrated in the figure below.

From 2009 to 2013, the global market for automotive glass supplied with new vehicles grew at a compound annual growth rate (CAGR) of 10.1%. In 2013, the total size of the global market for automotive glass supplied with new vehicles reached 331 million square meters, accounting for 79.8% of the global automotive glass market and exhibiting a growth rate higher than that of the global automotive market during the same period. The primary drivers behind the growth of the global market for automotive glass supplied with new vehicles are the increasing demand for large windshields and the growing popularity of sunroofs in automobiles. It is projected that from 2013 to 2018, the global market for automotive glass supplied with new vehicles will expand at a CAGR of 5.0%, reaching a total volume of 423 million square meters by 2018. From 2009 to 2013, the global market for automotive glass supplied as aftermarket parts grew at a CAGR of 5.0%, with the total market size reaching 84 million square meters in 2013. It is forecast that from 2013 to 2018, the global market for automotive glass supplied as aftermarket parts will grow at a CAGR of 4.6%, reaching a total volume of 105 million square meters by 2018.

Global sales of automotive glass increased from US$10.7 billion in 2009 to US$14.2 billion in 2013, representing a compound annual growth rate of 7.6%. The market price of automotive glass is influenced by several factors, including raw material costs and market supply and demand. The average price of automotive glass declined from US$36.30 per square meter in 2009 to US$34.10 per square meter in 2010, primarily due to the impact of the global financial crisis in 2008. Since 2010, the average price of automotive glass has stabilized at around US$34 per square meter, largely because of the gradual recovery of the global automotive market and the closure of some unprofitable automotive glass production lines.

The global automotive glass market is highly concentrated, with the top four manufacturers accounting for approximately 77% of total global automotive glass sales as of 2013. The market shares of the world’s leading automotive glass manufacturers are shown in the figure below.

Trends in the Global Automotive Glass Industry

The adoption rate of car sunroofs is on the rise. Driven by consumers’ increasing demand for a superior driving experience, the demand for car sunroofs is expected to continue growing.

Automotive glass usage is on the rise. Over the past decade, the amount of automotive glass used per vehicle has grown at a compound annual growth rate of 1.4%, and this trend is expected to continue in the future, primarily driven by the increased inclination of windshields to broaden drivers’ field of vision and by rising demand for sunroofs.

Improvements in the properties and functions of automotive glass. Smart glass products—such as electrically-switchable smart glass, water-repellent glass, and head-up display (HUD) windshields—that come with value-added features and functions like energy savings, enhanced driving comfort, and improved safety will see widespread adoption in the automotive industry.

The trend toward modular production of automotive glass is gaining momentum. To reduce production costs, optimize supply chains, and strengthen quality control, leading global automakers are increasingly demanding modular production approaches for automotive components. This is expected to drive automotive glass manufacturers to further integrate value-added processes such as pre-assembly and injection-molded edging, thereby enhancing the added value of automotive glass products.