Smart Glass Market Expected to Reach $15.1 Billion by 2030

According to a new report published by Allied Market Research, titled, "Smart Glass Market by Technology and End User Industry: Global Opportunity Analysis and Industry Forecast, 2021–2030, "the global smart glass market was valued at $4.6 billion in 2020, and is projected to reach $15.1 billion by 2030, growing at a CAGR of 12.6% from 2021 to 2030”.

Smart glass is a switchable, electronically tintable glass that can alter the amount of light transmitted through transparent materials. It can be tuned into transparent, translucent or opaque either automatically or manually. It is used as a privacy screen in hotels, houses, automotive, aerospace, and other end use sectors.

Rapid development of building & construction activities based on modern theme architecture has surged the demand for smart glass used in in windows, partitions, skylights, and doors for creating adaptive light atmosphere. This is expected to fuel the growth of the smart glass market during the forecast period. Furthermore, increase in transportation and logistics activities has surged the sales of automotive sector where smart glass is used in rear and side view mirrors, sunroofs, windshields, backlights and sidelights of both heavy and light-weight vehicles. This is expected to drive the global smart glass market.

However, the manufacturing of smart glass requires expensive and sophisticated equipment. This restrains the manufacturers with less investment potential to enter into smart glass market which in turn may hamper the growth of the global smart glass market during the forecast period.

On the contrary, the rapid shift toward renewable energy sources for power generation purposes has surged the popularity of smart glass used in heating & cooling systems of renewable energy plants. This is expected to offer major opportunities to the global smart glass market.

The smart glass market is segmented on the technology, end user industry, and region.

By technology, the market is segregated into thermochromic, photochromic, electrochromic, suspended particle device (SPD), polymer disperse liquid crystal (PDLC), and others. The suspended particle device (SPD) segment dominated the global market, in terms of revenue in 2020, with 33% of the total share. This is attributed to that suspended particle device-based smart glass can be automatically or manually tuned to precisely control the amount of light, glare, and heat passing through it. Moreover, it allows a variable and reversible change in glass transmittance that benefits the privacy and security. This has made the customers become more linear toward the usage of suspended particles device (SPD) technology-based smart glasses in windows, skylights, facades and curtain walls.

By end use industry the global market is divided into transportation, construction, power generation, and others. The construction segment dominated the global market, in terms of revenue in 2020, with 51.2% of the total share. This is attributed to rise in urbanization and government expenditure on infrastructural development in both developed and developing economies which in turn has led the building & construction sector to witness a significant growth where smart glass is widely employed in windows, partitions, skylights, doors, and curtain walls to create a climate adaptive light atmosphere. This factor augments the growth of the construction segment in the global smart glass market.

Region-wise, the smart glass market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific smart glass market size is projected to grow at the highest CAGR during the forecast period, owing to rise in building & construction, aerospace, automotive &transportation, and othersectors that have enhanced demand for smart glass in the North American region. Moreover, the strong demand for smart glass in countries such as China, India, Australia, and others, due to different developing application segments has attracted the key players to expand or enter in the region.

Key players operating in the global smart glass market include Asahi Glass Co. Ltd, ChromoGenics, Gauzy Ltd and Entities, Gentex Corporation, Halio Inc., PleotintLlc, RavenbrickLlc, Research Frontiers Inc., Saint  Gobain and, Showa Denko Materials Co. Ltd.

COVID-19 analysis

The novel coronavirus is an incomparable global pandemic that has spread to over 180 countries and caused huge losses of lives and the economy around the globe. The smart glass market has been negatively impacted due to the wake of the COVID-19 pandemic, owing to its dependence on the building & construction, automotive, transportation, aerospace & aviation, and other sectors. The increasing risk of infection among the workforce has resulted in delayed construction projects amid the COVID-19 scenario where smart glass is widely used in windows, partitions, skylights, doors, and curtain walls to create a climate adaptive light atmosphere. For instance, according to an article published by CNA, the construction Industry Joint Committee (CIJC) has said that the shortage of manpower may lead to delay in construction projects attributed to workplace safety, and other factors. Moreover, several smart glass manufacturers have either shut down or shrank their operations which in turn have resulted in supply chain disruptions. Also, different raw materials for producing smart glass is purchased or hired from other enterprises. The decreased purchasing potential of suppliers has also negatively impacted the market amid the COVID-19 scenario. Furthermore, the COVID-19 pandemic has led to disruptions in transportation, contractual implications problems, labor shortage, and other factors that together have led the smart glass market to witness a downfall. For instance, according to a report published by the Australian Performance of Construction Index (PCI) Survey, the construction activity has dropped by 16.3 points to 21.6 points from March 20201 to August 2020.

However, emerging geographic scenarios, enhanced domestic supply chain, and strong public investments are projected to drive the growth of Smart glass market. For instance, according to an interim report for the 2021 Australian infrastructure plan, the Australian Construction Industry Forum (ACIF) expects the construction industry to return to pre-COVID-19 levels by 2022-23, driven by strong public investments. This is predicted to boost the growth of the Smart glass market post-COVID-19 period.

Key findings of the study

• The suspended particle device (SPD) segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 12.8% from 2021 to 2030.
• The transportation segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 13.0% from 2021 to 2030.
• The Europe garnered the highest share of 34.5% in 2020, in terms of revenue, growing at a CAGR of 12.8%.