With an increase in the demand in the automobile sector, year after year, the components used to build a vehicle are expected to be consumed more. The growth in the market is primarily driven by the increasing tilt angle in windshields, for greater viewing angles, as well as the increasing demand for sunroofs. The increasing casualty rates in automobile accidents, globally, has brought automobile safety under the focus. This also has emerged as a driver for the automotive glass market, as automobile manufacturers are pushing the OEMs to manufacture glass, with much higher safety standards, for all vehicle segments.
Technological advancements in the automotive industry help attain maximum fuel efficiency and safety of the passengers. This, in turn, has influenced the manufacturers to engage in extensive R&D, which is expected to fuel the growth of the automotive glass market. Lightweight properties, along with better security, are the key factors that are stimulating product penetration in the industry. The North American and European markets are the leaders and are improvising on the technology in the automotive glass sector, such as smart glass. Smart glass products featuring value-added functions, such as improving driving efficiency, comfort, and safety through head-up displays (HUDs), are also factors that are driving the market. The main players in this market include Asahi Glass, Fuyao, Benson Auto Glass, Saint-Gobain, and others.
Key Market Trends
Increasing Application of Glass in Automobiles
Increasing usage of sunroof glass, particularly in high-end vehicles, is anticipated to have a positive impact on the growth of the automotive glass market. Nowadays, consumers are showing preference toward a sunroof in the car, which has lead to an increase in the utilization of glass. Installation of the sunroof is now not only limited to the luxury car segment, but has also been introduced to the other segments, by car manufacturers, like Honda and Toyota. In addition, advancements in vehicle design have led to an increase in the size of the windshield and side windows, thereby leading to the overall development of the industry.
Smart glass has been forecast as the future of the automotive industry. Most of the research has been directed toward improving and making smart glass applicable to mainstream vehicles. It can be used to provide a head-up display in the automobiles, just like in the glass cockpit of a helicopter. This makes accessibility to all the controls much more comfortable, and also enhances the ambiance of the vehicle. Manufacturers, like Mercedes and Volvo, are putting in a lot of effort to make this into a reality, in automobiles.
Increasing Demand for Used Car Sales
The region has been witnessing rising demand for used cars, owing to factors, such as lower vehicle price inflation, people leaving the country, financials issues being faced by consumers, and disposing of pre-owned vehicles. In the United Arab Emirates, in 2018, ~15% of consumers sold their cars for financial reasons, a number that increased by 63% from 2016. The number of people planning to purchase another car after selling the one they own, dropped by 18%. In South Africa, better economic conditions, political stability, lower interest rates, and reducing petrol prices are expected to increase the demand for used cars in the country.
The rise in demand for sales of used cars is expected to boost the demand for aftermarket glass market in the automotive industry. Owing to extreme heat and high temperature, the demand for laminated glass may increase.
The Middle East automotive aftermarket glass market is consolidated with major players, like Nippon Sheet Glass, Guardian Glass, Asahi Glass Corporation, Saint-Gobain, Fuyao, PG Group, and others.Other players include Independent Aftermarket Players, like Auto Glass Middle East LLC, National Auto Glass, BSG, Veltiro, etc.
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1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porters Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1 Glass Type
5.1.1 Laminated Glass
5.1.2 Tempered Glass
5.3 Vehicle Type
5.3.1 Passenger Cars
5.3.2 Commercial Vehicle
5.4.1 South Africa
5.4.3 Saudi Arabia
5.4.4 United Arab Emirates
6 COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Asahi glass group
6.2.2 Auto Glass Middle East LLC
6.2.3 Magna International
6.2.7 NSG Group
6.2.8 Xinyi Glass
6.2.9 Fuyao Group
7 MARKET OPPORTUNITIES AND FUTURE TRENDS