Global Electrochromic Glass Market Outlook Report - Market Size, Share Analysis and Forecast (2024-2032)

Global Electrochromic Glass Market Size

The global electrochromic glass market value reached around USD 1.88 billion in 2023. The market is further expected to grow at a CAGR of 8.4% in the forecast period of 2024-2032 to attain USD 3.88 billion by 2032.

Global Electrochromic Glass Market Share

The electrochromic glass market is witnessing significant growth, driven by increasing demand for energy-efficient building materials and smart glass technology. With a projected market share expansion, electrochromic glass offers dynamic light control and temperature regulation, making it ideal for commercial and residential applications. This innovative technology enables windows to change tint, enhancing privacy and reducing glare while contributing to energy savings. Key sectors, including automotive, architecture, and electronics, are adopting electrochromic solutions, further boosting market demand. As environmental sustainability becomes a priority, the integration of electrochromic glass in green building designs is gaining traction. Major players in the market are investing in research and development to enhance product performance and affordability, positioning themselves for future opportunities in this growing industry. The electrochromic glass market is set to redefine modern living and contribute to smarter, more energy-efficient spaces.

Growing Applications of the Product in Various Industries to Boost the Electrochromic Glass Market Growth

The rising applications of the electrochromic glass in construction and automotive industries is increasing the overall demand of electrochromic glass market. In the automotive industry, as smart technology features become a major criterion influencing the customers’ purchasing decision, the adoption of electrochromic glass panels as a cheaper, low-energy alternative to windows and automated sunroof panels is expected to increase.

Meanwhile, in the construction sector, electrochromic glass demand is gaining traction in residential and commercial sectors, owing to the rapid development of hospitals, schools, colleges, houses, and offices, among other. Over the forecast period, the growing technological advancements, and the increasing demand for energy-efficient solutions in major industry verticals are anticipated to enhance the growth of the electrochromic glass market.

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Industry Outlook

Construction Sector Overview

As per the U.S. Census data, monthly spending on private and public construction in the U.S. from 2005 to 2022 indicates several key trends. Residential construction spending peaked around early 2006 at approximately USD 700 billion, then declined sharply to about USD 250 billion by early 2009. It remained relatively stable until around 2012, after which it began a steady increase, reaching around USD 900 billion by early 2022.

As per electrochromic glass industry analysis, the non-residential construction spending increased gradually from 2005 to 2008, peaking at about USD 400 billion, followed by a decline to around USD 250 billion by early 2011. It then experienced fluctuations but generally trended upwards, reaching around USD 500 billion by early 2022.

Meanwhile, public construction spending showed a more stable trend, starting at around USD 250 billion in 2005, with minor fluctuations throughout the period. It reached a high of about USD 350 billion in 2009, then decreased slightly and stabilised around USD 300 billion from 2014 onwards. These trends in construction sectors have majorly impacted the electrochromic glass industry revenue and will continue to do over the forecast period as well.

As per the Bureau of Labor Statistics (BLS) current employment statistics, from January 2022 to May 2024, year-over-year change in total nonfarm and construction employment has experienced several trends:

• Nonresidential Construction: Employment started at around 2% in January 2022, peaked above 5% in mid-2022, and then gradually decreased to about 3% by the end of 2022. It fluctuated around this level, ending at approximately 3.8% in May 2024. The overall change since January 2022 is 9.7%.

• Residential Construction: Employment began at around 5% in January 2022, reaching its highest point of over 6% mid-year. It then experienced a decline, fluctuating below 2% in early 2023, and slightly increasing to around 2.2% by May 2024. The overall change since January 2022 is 6.6%.

• Total Nonfarm: Employment showed a consistent trend, starting at approximately 4% in January 2022, then gradually decreasing to around 2% by early 2023. It remained relatively stable around this level, with minor fluctuations, ending at about 1.8% in May 2024. The overall change since January 2022 is 5.7%.

Automotive Sector Overview

As per the ACEA data on world vehicle production, 85.4 million motor vehicles were produced globally in 2022, reflecting a 5.7% increase compared to 2021. Greater China led the production with 27,222 thousand units in 2022, up from 26,411 thousand units in 2021, which has resulted in growth of the electrochromic glass industry. North America also saw significant growth, with production rising from 13,596 thousand units in 2021 to 14,901 thousand units in 2022. Similarly, South Asia experienced an increase from 8,356 thousand units in 2021 to 10,230 thousand units in 2022. Japan/Korea's production went up slightly from 11,065 thousand units in 2021 to 11,334 thousand units in 2022. South America and the Middle East/Africa also saw increases, with South America producing 3,025 thousand units in 2022 compared to 2,796 thousand units in 2021, and the Middle East/Africa producing 2,294 thousand units in 2022 compared to 2,103 thousand units in 2021. However, Europe saw a slight decline in production, decreasing from 16,480 thousand units in 2021 to 16,391 thousand units in 2022. Overall, the global vehicle production market showed a positive trend in 2022 compared to the previous year.

• In 2019, the global car manufacturing industry revenue was 2.88 trillion U.S. dollars.

• In 2020, revenue decreased to 2.62 trillion U.S. dollars, reflecting the impact of the COVID-19 pandemic.

• In 2021, revenue slightly increased to 2.65 trillion U.S. dollars, indicating a partial recovery.

• In 2022, revenue decreased again to 2.52 trillion U.S. dollars.

Electrochromic Glass Industry Statistics in India

As per the Society of Indian Automobile Manufacturers (SIAM) data, the automobile production trends from 2018-19 to 2023-24 show significant fluctuations across various vehicle categories. Passenger vehicles saw a decline from 40,28,471 units in 2018-19 to 30,62,280 units in 2020-21, followed by a steady recovery to 49,01,844 units in 2023-24. Commercial vehicles experienced a similar trend, decreasing from 11,12,405 units in 2018-19 to 6,24,939 units in 2020-21, and then increasing to 10,66,429 units in 2023-24. Three-wheelers dropped from 12,68,833 units in 2018-19 to 6,14,613 units in 2020-21, before rising to 9,92,936 units in 2023-24. Two-wheelers also saw a decline from 2,44,99,777 units in 2018-19 to 1,80,34,941 units in 2020-21, with subsequent growth to 2,14,68,527 units in 2023-24. Quadricycles had minor fluctuations, with production numbers varying from 5,388 units in 2018-19 to 3,836 units in 2020-21, and then increasing to 5,006 units in 2023-24. According to analysis of electrochromic glass industry in India, the grand total of automobile production decreased from 3,09,14,874 units in 2018-19 to 2,26,55,609 units in 2020-21, and then recovered to 2,84,34,742 units in 2023-24.

As per the Society of Indian Automobile Manufacturers (SIAM) data on automobile domestic sales trends from 2018-19 to 2023-24, the following observations are made:

Passenger vehicles sales declined from 33,77,389 units in 2018-19 to 27,11,457 units in 2020-21, before recovering to 42,18,746 units in 2023-24. Commercial vehicles sales decreased from 10,07,311 units in 2018-19 to 5,68,559 units in 2020-21, and then rose steadily to 9,67,878 units in 2023-24. The recovery of sales has influenced electrochromic glass market share in India as these vehicles use the product for making window components. Three-wheelers saw a significant drop from 7,01,005 units in 2018-19 to 2,19,446 units in 2020-21, with a subsequent recovery to 6,91,749 units in 2023-24. Two-wheelers experienced a decline from 2,11,79,847 units in 2018-19 to 1,51,20,783 units in 2020-21, then increased to 1,79,74,365 units in 2023-24. Quadricycles had minimal fluctuations, with sales numbers varying from 627 units in 2018-19 to 725 units in 2023-24. The grand total of domestic sales decreased from 2,62,66,179 units in 2018-19 to 1,86,20,233 units in 2020-21 and then recovered to 2,38,53,463 units in 2023-24.

Electrochromic Glass Market Trends

The global shift towards eco-friendly and sustainable or green buildings is a major trend in electrochromic glass market as it has driven the adoption of electrochromic glass, which has capacity to save energy by a substantial level. This is why the product is becoming a central element in smart and modern buildings.

Moreover, this innovative technology provides comfort for users and allows the users to control the amount of light passing through space, which is why it makes a promising solution for various construction, aerospace, and automotive applications.

Recent Developments

In May 2023, Glass Dyenamics, a leading electrochromic glass company, recently completed 150,000 cycles over 5,000 hours under ASTM E2141-21 durability conditions. This achievement was in collaboration with the U.S. Department of Energy's National Renewable Energy Laboratory (NREL). The adoption of electrochromic windows can avoid 78 million metric tons of COâ‚‚ emissions annually by 2030, which is equivalent to the energy use of 9,393,008 million homes for an entire year and can save more than USD 19 billion in utility bills.

In February 2022, Nio Capital invested in Ambilight, which is a developer of electrochromic technology that adjusts light transmission in glass. This investment enabled Nio to incorporate colour-changing glass roofs in its latest automotive models.

What are the strengths of the global electrochromic glass market?

• Electrochromic glass demand growth is rising as they are energy-efficient, sustainable, and help to reduce energy consumption in buildings.

• It enhances user comfort and control by allowing adjustments to light and heat levels.

• This technology reduces glare and blocks harmful UV radiation, protecting interior furnishings and occupants.

What are the weaknesses of the global electrochromic glass market?

• The high initial cost of electrochromic glass can be a barrier to adoption for many potential users.

• There is limited awareness and adoption of this technology compared to traditional glass options.

• The technological complexities involved in manufacturing and installing electrochromic glass can pose challenges.

What opportunities exist for the global electrochromic glass market?

• There is a growing demand for green buildings, which presents an opportunity for increased use of electrochromic glass.

• The automotive industry is increasingly using electrochromic glass for sunroofs and windows, creating new electrochromic glass market opportunities.

• Advances in smart glass technology are likely to improve performance and reduce costs.

What risks face the global electrochromic glass market?

• High competition from alternative technologies, such as smart films and other types of smart glass, could limit market growth.

• Economic downturns affecting the construction and automotive industries can reduce demand for electrochromic glass, influencing electrochromic glass demand forecast.

• Regulatory and environmental challenges could impact the production and use of electrochromic glass.

Global Electrochromic Glass Market Competition

• Major players dominate the market. They drive the competition through extensive R&D and product innovation.

• The market faces high competition from alternative smart glass technologies, which impacts pricing and profitability. Continuous innovation and technological advancements are crucial for maintaining a competitive edge.

• Competitive pricing pressures are significant, affecting overall profitability in the market. Strategic partnerships and collaborations among key players help in expanding electrochromic glass market reach and innovation.

• Regional competition varies, with different adoption rates across geographies. This creates opportunities and challenges for market expansion in different regions.

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Electrochromic Glass Industry Segmentations

The significant applications of the product include:

• Windows

• Mirror

• Display

The major end uses of the product are:

• Construction

• Automotive

• Aerospace

• Others

The regional markets for the product include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Electrochromic Glass Market Share by Construction Sector

With the recovery of the construction sector post 2021, the market is expected to witness a surge in demand due to its increasingly common use in windows, displays, and sunroofs, especially in developed regions. The electrochromic glass allows engineers and builders to create more comfortable indoor spaces by developing building facades that can eliminate glare, solar heat gain, and UV exposure. Moreover, being an energy-friendly alternative to automated windowpanes/shutters, the product is expected to witness increased adoption in commercial spaces, along with other smart glass options, thus, driving the market expansion.

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Electrochromic Glass Market Regional Insight

The market share in North America is growing due to the rapid adoption of electrochromic glasses in residential and commercial sectors. This is due to the rising demand for innovative smart glass products and the stringent regulations pertaining to energy conservation in the United States and Canada. In addition, the electrochromic glass market dynamics and trends in the region are influenced by the technological advancements in the small, medium, and large enterprises, aimed towards bolstering the comfort of employees working inside the closed doors. Furthermore, the presence of major electrochromic glass manufacturers in the region is likely to augment the market growth in the forecast period.

Competitive Landscape of Global Electrochromic Glass Market

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report also gives a detailed analysis of the following key players in the electrochromic glass market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• AGC Inc.

• Chromogenics AB

• Kinestral Technologies, Inc.

• Polytronix, Inc.

• Smartglass International Limited

• Others

Key Highlights of the Report

Electrochromic Glass Market Report Snapshots

Electrochromic Glass Market Size

Electrochromic Glass Market Growth

Electrochromic Glass Market Trends

Electrochromic Glass Market Share

Electrochromic Glass Companies

Electrochromic Glass Market Regional Analysis