The global smart glass market size was valued at $4.5 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 6.8% from 2021 to 2028.
The emergence of energy-conservation initiatives, such as green buildings and eco-friendly structures, globally is expected to offer promising growth prospects to the market.
Administrative support through financial benefits and tax initiatives globally is also stimulating the growth of the market. For instance, the European banks have a new mortgage scheme for green homes, encouraging end-users to adopt energy-saving products, such as smart glass. Smart glass has gained traction in recent years due to its energy-saving properties, thermal and acoustic insulation, and elegant 3D design proposition. With smart glass fitted in place of normal glass into windows, doors, partitions, and skylights, the user has better sunlight control, preventing an increase in indoor temperatures during summers and subsequently reducing the building's overall energy cost. The reduced reliance on HVAC systems helps reduce the carbon footprint of the building.
Factors such as the steady growth of the construction industry and rising investment in infrastructure projects contribute significantly to market growth. The tectonic shift in consumer preference for glass over bricks and cement walls is also likely to favor the growth prospects of the market over the next few years. Moreover, the recent trend of large, floor-to-ceiling glass windows is providing new business opportunities to manufacturers.
Also, the replacement and renovation activities are expected to drive the demand for smart glass across the globe. The Department of Energy (DoE) estimates that there are approximately 19 million square feet of installed residential windows in the U.S. alone and approximately 500 million square feet of windows are installed in the commercial sector, out of which most buildings are constructed before the implementation of the ASHRAE standards, which address areas such as thermal comfort, indoor air quality, and energy conservation in buildings. Retrofitting such buildings is expected to provide a significant growth opportunity for the market in the U.S. alone. However, factors such as lack of awareness about their benefits and high base cost could impede the demand for smart glass to a certain extent over the forecast period. These challenges can be overcome by technological advancement and government subsidiary schemes to reduce the overall cost. Extensive marketing endeavors in selected geographies and word-of-mouth publicity could also help augment sales.
The COVID-19 pandemic had an unprecedented impact on several industries. The automotive glass market is adversely impacted due to the temporary closure of assembly plants across the globe. In the second quarter of 2020, automotive sales were down by almost 45% worldwide, especially in Europe, impacting the overall smart glass demand. Moreover, trade restrictions across national and international boundaries and other trade limitations have affected the glass industry's global supply chain, resulting in lower sales activity. The demand for building glass also witnessed a massive drop due to the slowdown of the construction industry.
Government initiatives such as the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by the U.S. Congress provided some relief for businesses that were impacted by the pandemic. Through special loans, the act aimed to provide financial relief to businesses and individuals facing economic challenges due to the pandemic. The act has helped several small- and medium-sized companies stay afloat amid the pandemic.
The electrochromic glass segment captured the largest share of over 83% in 2020. Electrochromic glass can be tinted, colored, and turn opaque easily, modulating heat and transmitting light according to the situation. Factors such as low driving voltage, high blockage ratio of UV and IV rays, and the ability to easily integrate with large glass panels are expected to drive the electrochromic glass segment over the forecast period. Educational buildings, commercial spaces, hospitals, and retail outlets are some of the key application areas of electrochromic glass.
The suspended particle device (SPD) smart glass segment is expected to register the highest CAGR over the forecast period. SPD glass provides instant and precise light control and can turn from transparent to dark within 1-3 seconds. This glass possesses an exceptional optical quality that can effectively control the glare from sun rays. Besides, SPD smart glass promises high stability against UV rays, providing enough natural lighting.
Polymer dispersed liquid crystal (PDLC) glass finds substantial use in electronic devices. Sometimes, PDLC glass is referred to as a magic glass, intelligent glass, switchable glass, or privacy glass. The technology finds dynamic applicability at homes and offices, providing privacy without compromising on the light. Moreover, the technology finds applicability in dynamic sectors, such as automotive, aircraft, marine, and architecture. PDLC glass is deployed in places where privacy is a key requirement. The increasing emphasis on the usage of ‘Green Energy’ resources drives the demand for PDLC smart glass technology.
The transportation application segment held the largest share of 49.5% in 2020. In 2019, over 45 billion electrochromic auto-dimming mirrors were sold globally. Increasing energy concerns and environmental consciousness in the transportation sector are creating promising growth prospects for the market. The transportation application segment is sub-segmented into automotive, aircraft, and marine. The substantial growth of the automotive segment is attributed to the increased adoption of smart glass by luxury automobile manufacturers. Airbus SE, The Boeing Company, Beechcraft Corporation, Embraer S.A., and Bombardier Inc. are preferring electronically-dimmable windows over their conventional counterparts.
The transportation application segment held the largest share of 49.5% in 2020. In 2019, over 45 billion electrochromic auto-dimming mirrors were sold globally. Increasing energy concerns and environmental consciousness in the transportation sector are creating promising growth prospects for the market. The transportation application segment is sub-segmented into automotive, aircraft, and marine. The substantial growth of the automotive segment is attributed to the increased adoption of smart glass by luxury automobile manufacturers. Airbus SE, The Boeing Company, Beechcraft Corporation, Embraer S.A., and Bombardier Inc. are preferring electronically-dimmable windows over their conventional counterparts.
North America dominated the smart glass market in 2020 by capturing a revenue share of over 33%. The growth is attributed to high disposable income, value-added product offerings, such as laminated glazing, and energy conservation regulations for buildings. The increasing adoption rate of electric cars with advanced integrated technologies in the region is also anticipated to boost the demand for smart glass in the automotive sector. For instance, the Office of Energy Efficiency & Renewable Energy in the U.S. has collaborated with Sage Electrochromics, Inc. (Saint-Gobain) to develop a smart glass that can prevent buildings from glaring, fading, and heat gain, which is aiding in the regional market growth.
Asia Pacific is anticipated to register the highest CAGR during the forecast period. The regional market presents a promising growth opportunity in the transportation sector. The growing awareness about energy conservation in the region is expected to drive the adoption of innovative technologies, such as energy-efficient windows and energy-efficient air-conditioners. Moreover, rising disposable income and increased penetration of luxury automobiles are driving the regional market.
