In the market studied, owing to its huge application in the sector, the construction industry accounted for a major share, and has been witnessing an increasing demand in the market, owing to the rebounding real estate sector and growing number of projects and investments in the sector.
According to MEED Projects, the value of projects either in the planning stage or in the delivery stage across the GCC is estimated at USD 2.7 trillion, with Saudi Arabia leading the way with USD 1.1 trillion worth of projects, followed by UAE at USD 830 billion and the remaining total spread across Qatar, Kuwait, Bahrain, and Oman. These projects are likely to drive the MEA flat glass market. Factors, such as increasing urbanization, booming real estate sector, usage of solar products and product innovation regarding characteristics, are some of the factors bolstering the growth of the market. However, utilization of low-quality flat glass has been declining, with the rising awareness among the big players in the market. The growing solar energy market, due to increasing dependence on the renewable energy sources, along with the subsidies available for energy storage, is anticipated to propel the growth of the market, thereby accelerating the demand for glass in the market. In 2015, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, passed a resolution on solar energy distribution, which has a significant impact on the use of solar power across the region.
Tempered flat glass accounts for the majority share of the market, by product, followed by laminated glass. This can be attributed to the significant number of applications of tempered glass, such as shower doors, passenger vehicle doors, mobile screen protectors, bullet-proof products, etc. The industry is consolidated, with the leading players constituting more than half the market share. Dynamic shifts in the product standards, such as lightweight and non-fragile nature, are driving the flat glass manufacturers to incorporate the latest technological innovative methods. Some of the players profiled in the report are - Saint Gobain, Schott Glass, Sisecam, Euroglass, NSG, and Asahi glass.
Growth in the Automotive Industry driving the Demand for Flat Glass
Flat glass has two major modes of application in the automotive industry - original equipment (OE) supplied to manufacturers for new vehicles and automotive glass replacement (AGR) products supplied to the aftermarket for retrofit purposes, usually damages. In Middle East & Africa (MEA), the demand for original equipment glass is expected to be around five times that of AGR, which has resulted in an increased usage of flat glass in the automotive sector. Almost 830,000 commercial vehicles and passenger cars were sold to customers in Saudi Arabia. Increasing vehicle penetration due to the growing spending power of consumers has accelerated the growth of the flat glass market. Additionally, the significant growth in luxury cars, including double-thick glass in interiors, is also one of the factors driving the sales of automotive flat glass market.
Increased Adoption of Insulated and Glazed Glass to Save Electricity
Insulated glass reduces pollution, saves energy, and improves comfort inside the building. The enhanced properties of acoustic insulation and thermal insulation provided by these products are expected to drive the demand. Due to rise in demand for green buildings, in Middle East & Africa, especially Dubai, the insulating glass market is expected to register the highest growth rate. In addition, government initiatives aimed to reduce carbon emissions in commercial buildings are expected to boost the market. However, the high product cost might hinder the growth of the market.
The non-residential segment contributes to a major share of the insulating glass market. The ability to control heat inside the buildings, in addition to reducing noise pollution, resulting in more environmentally-sustainable commercial complexes, are fueling their adoption rate in the non-residential sector. However, owing to a boom in residential construction, the residential segment is expected to record the highest growth rate over the forecast period. The tightening guidelines regarding energy-efficient buildings for residential purpose are significantly affecting the market.
Saudi Arabia to Spectate a Rise in the Demand for Flat Glass
Saudi Arabia is establishing itself as the new automotive hub in the Middle East. The development of the country’s automotive sector has been identified as one of the five priority industries, as per the National Industrial Clusters Development Programme (NICDP), which favors the market for flat glass. Increasing growth in the construction sector is another factor favoring the market for flat glass in the country. The government’s initiatives, like White Land Tax initiative, to address the country’s housing shortage, is expected to support the growth of flat glass. Furthermore, stringent regulations regarding the usage of solar power instead of thermal electricity, are also favoring the conditions for flat glass in the region. King Abdullah City for Atomic and Renewable Energy (KA CARE) has introduced new renewable energy program, with an investment of USD 109 billion, to add 54 GW additional power generation capacity from renewable sources. By 2032, solar power is anticipated to contribute around 41 GW of overall power capacity additions.
Key Developments in the Market
- May 2017 - Asahi Glass Co. Ltd started mass production of 3-D curved cover glass for car-mounted displays, at its Keihin Plant for the first time. The company also decided to boost the production capacity, to respond to the increasing demand for the product.
- February 2017 - Abu Dhabi-based Al Heya Special Glass Factory launched its first ‘Made in UAE’ blast and bullet resistance glass, which can sustain the impact from a .40 caliber round fired from a range of 10 meters. The glass is also explosion resistant, and the firm’s production capacity will be around 240,000 m2 per year, in flat and curved glass.
Reasons to Purchase this Report
- Understanding how the growth in the automotive and construction industries could drive the demand for flat glass.
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis.
- The end-user vertical that is likely to witness the highest adoption.
- Identify the latest developments, market shares, and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet (in excel).
1.1 Key Deliverables of the Study
1.2 Study Assumptions
1.3 Market Definition
1.4 Key Findings of the Study
2. Research Approach and Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Factors Driving the Market
4.2.1 Growing Electronic Display Demand
4.2.2 Positive Automotive Industry Outlook
4.3 Factors Restraining the Market
4.3.1 Increase in Raw Material Prices
4.4 Industry Value Chain Analysis
4.5 Industry Attractiveness – Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Consumers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products or Services
4.5.5 Competitive Rivalry among Existing Competitors
5. Middle East and Africa Flat Glass Market Segmentation
5.1 By Product Type
5.1.1 Insulated Glass
5.1.2 Tempered Glass
5.1.3 Laminated Glass
5.1.4 Other Product Types
5.2 End-user Vertical
5.2.3 Other End-user Verticals
5.3 By Geography
5.3.1 Saudi Arabia
5.3.3 South America
5.3.4 Rest of Middle East and Africa
6. Competitive Intelligence – Company Profiles
6.1 Saint Gobain Corporation
6.2 Schott AG
6.3 Sisecam Group
6.4 Euroglass SPA
6.5 Nippon Sheet Glass Co. Ltd
6.6 Asahi glass Group
6.7 Guardian Glass Co
6.8 PPG Industries Inc.
6.9 Cardinal Glass Industries
6.10 Phoenicia Flat Glass Industries Ltd
6.11 Hebei Tong Yong Glass Industry Co. Ltd
6.12 Hebei Xingtai Jinniu Glass Co. Ltd
7. Investment Analysis
8. Outlook of the Middle East and Africa Flat Glass Market
- Saint Gobain Corporation
- Schott AG
- Sisecam Group
- Nippon Sheet Glass Co. Ltd.
- Asahi glass Group
- Guardian Glass Co
- PPG Industires Inc.
- Cardinal Glass Industries
- Phoenicia Flat Glass Industries Ltd.
- Hebei Tong Yong Glass Industry Co. Ltd.