Coated Glass Market

Market Overview

The global coated glass market size was valued at USD 34,040 million in 2021, and it is expected to rise to USD 74,544 million at a CAGR of 9.1% during the forecast period (2022–2030).

Coated glass is an industrial glass component onto which thin coats of metal oxides are sprayed. It alters the glass's behavior in the visible and infrared domains concerning solar energy. On differentiates pyrolytic from magnetron coatings. This material can only be applied to the interior surface of insulating glass. Coated glass is flat glass with Low-E, reflective, and anti-reflection coatings.

The rising demand for commercial structures primarily drives the coated glass market. Concerns about rising air conditioning expenditures in commercial buildings are anticipated to increase the consumption of solar control glass throughout the foreseeable future. The rise of the automotive industry as a specialty application segment can further increase the need for coated glass.

The value chain of the global coated glass market includes raw material suppliers, manufacturers, fabricators, glaziers/installers, and end-use industries. The costs of raw materials majorly impact the entire cost of making flat glass, as they make up a substantial portion of the production process cost structure.

Market Dynamics

Market Drivers

• Increased Global Solar Capacity

The employment of solar panels as an alternative energy source is gaining prominence worldwide. Solar panels are progressively being used to generate electricity. The solar panel consists of silicon cells, a glass casing, a metal frame, and various wires to assist the current flow from the silicon cells. Recent trends show that solar glass casings are being heavily coated with nanomaterials. Solar glass with nanocoatings is water-repellent, self-cleaning, and anti-reflective. Nano-coated solar modules repel water faster than untreated glass due to their hydrophobic qualities. This characteristic drives the expansion of coated solar panels in places with persistent precipitation.

The global solar business is predicted to experience tremendous growth, mainly in power. Solar capabilities are increasing due to the depletion of renewable resources, technological improvements, government regulations, environmental concerns, the declining cost of solar systems, and the rising power demand. These reasons are anticipated to significantly impact the solar industry's adoption of coated glass over the projected period.

The advancements in the solar industry predict a rise in solar panel usage, which may eventually affect the need for coated glass. Solar panel glass is crucial because it acts as a barrier between the harsh external forces and the solar photovoltaic cells. Coated solar panel glass is vital because it directly influences the efficiency and output of solar photovoltaic systems. Coated solar panel glass possesses low reflectivity, high transmittance, good stiffness, safety, and durability for improved solar system performance.

• Development in Building and Construction Industry

Coated glass is widely used in the building and construction industry for facades, partitions, windows, etc., making the building and construction industry a critical market segment for coated glass. Coated glass is used in buildings as energy-saving glass due to its capacity to minimize the expense of air conditioning and heating for the building's occupants. Globally, there is a rising emphasis on improving the energy efficiency of buildings. According to International Energy Agency (IEA), 36% of global final energy consumption is accounted for by buildings, including commercial, residential, and public structures. As a result, they provide unprecedented energy savings prospects.

Over the previous two decades, there has been a rise in the global implementation of building regulations mandating energy efficiency in buildings. In 2003, the Design Standard for Energy Efficiency in Residential Buildings in the Hot Summer and Warm Winter Zones was established in China, particularly for the hottest southern regions of China. Low-e glasses are coated with metallic and/or metal oxide to improve solar management and energy efficiency. With the expansion of the worldwide construction sector and the tight enforcement of building rules, the coated glass market is anticipated to expand rapidly.

Market Restraint

• High Manufacturing Costs

The growing boom of the coated glass market, which is being pushed by the expansion of the building industry, is hampered by the high production cost. Since coated glass is produced from flat glass, a significant cost disadvantage is associated with the float line used to generate flat glass. Over 90% of the world's flat glass is produced using the float glass method. Consequently, flat glass is also known as float glass. Float glass facilities require a substantial investment to become operational and are profitable if their capacity utilization is greater than 70 %.

The whole cost structure of a float glass manufacturing process comprises raw materials, energy, wages, overheads, transportation, and depreciation. Cost of raw materials and energy consumption account for most of the cost structure. Melting and refining is the most expensive phase in producing float glass. The furnace is fed with raw materials to create molten glass.

This melting process accounts for around 60–70% of the total energy used in glass manufacture. These furnaces are powered by either fossil fuels, electricity, or both. Although research and development (R&D) efforts are underway to reduce energy consumption, it continues to account for a central portion of the overall manufacturing process's cost.

Market Opportunities

• New Increased Capacities

Growth in solar capacity was recorded, and the growing popularity of floating solar farms is predicted to enhance the demand for solar panels further. This is anticipated to increase demand for coated glass. Europe has experienced tremendous growth by installing new floating solar farms. In 2016, for instance, the largest floating solar power farm in Europe was constructed. The farm consists of almost 23,000 solar panels and is located on the Queen Elizabeth II reservoir in Walton-on-Thames. The need for coated glass has increased as the nation's infrastructure has expanded. For instance, the construction of the new terminal F at Philadelphia International Airport was launched in September 2018. For the new project, J.E. Berkowitz, an architectural glass fabricator, manufactured 3,800 square feet of coated glass.

European nations are also experiencing growth in the construction sector. By 2030, the United Kingdom is projected to become the biggest market in Europe, surpassing Germany. Multiple megaprojects conducted by the British government are expected to stimulate the construction industry. For instance, the expansion of Heathrow Airport included enormous expanses of glass and open green space. This is a favorable indicator for the European coated glass market. Increasing building activities that place a premium on coated glass consumption due to environmental concerns are expected to drive the global covered glass market in the coming years.

Regional Analysis

The regions are segmented as North America, Central and South America, Europe, Asia-Pacific, and the Middle East and Africa.

The Dominance of Europe and Asia-Pacific Over Others

Europe is expected to be the largest market for coated glass, accounting for USD 28,595 million at a CAGR of 9% during the forecast period. Particular emphasis on green development in the region is expected to boost the growth of the coated glass market. The country's green construction business focuses on heating and cooling, insulation, lighting, and self-powered buildings. Low-E coated solar control glass in many high-efficiency buildings reflects heat away from windows, leaving cold air for ventilation during the summer months.

According to the European Council for an Energy-Efficient Economy, the proportion of green buildings in Europe in 2016 was 28%, with Germany and Poland among the leaders. Increasing emphasis on green building projects is anticipated to positively affect the region's coated glass consumption. To improve the consumer experience, luxury automobile manufacturers are beginning to implement coated glass windshields. Increasing vehicle production in the area is another factor boosting the covered glass market in Europe.

Asia-Pacific is the second-largest market for coated glass and is expected to have a market value of USD 25,950 million at a CAGR of 9% by 2030. China, Japan, and South Korea are the most critical Asian-Pacific markets. However, growing economies like India, Indonesia, and Thailand have tremendous possibilities. This development potential can be linked to the high economic growth, increased disposable income, and an accompanying increase in demand for automobiles, homes, and solar installations in these nations.

In addition, a rise in the number of construction projects, the relocation of manufacturing facilities from other regions to Asian countries, rising investments in the automotive industry, and an increase in the production of solar panels are driving the expansion of the coated glass market in the region. The coated glass industry is projected to profit from the rise in automotive production in Asia-Pacific. Automakers are beginning to incorporate coated glass into vehicles, particularly luxury automobiles, despite the lack of widespread use of painted glass in the automotive sector. Significant cost advantages in Asian nations can aid in expanding automobile manufacturing.

Segmental Analysis

The market is categorized as Hard or Pyrolytic coating and Soft or Sputtered coating based on the coating type.

The soft coating glass accounts for the highest market share and is expected to be valued at USD 50,705 million at a CAGR of 9%by 2030. A soft/sputtered coating is applied to already made flat glass. During the sputtering process, float glass is placed in a vacuum chamber and burned with numerous layers of optically clear silver layered between layers of metal oxide. This method produces a practically undetectable coating and possesses the highest quality. Significant sputter-coated glasses include single silver Low-E, double silver Low-E, and triple silver Low-E.

Triple silver Low-E glass has the efficient heat transfer and visible light transmission among the three varieties. Glass with a soft coating must be handled with care since soft layers are fragile and can be damaged by air and water. The ultra-low emissivity of soft-coated glass, which enables it to reflect substantially more heat than hard-coated glass, is a significant factor driving its expansion.

In addition, soft-coated glass offers up to 70% less UV transmission than conventional glazing. In colder climates, where heat retention is of utmost importance, the sputtered coating is often employed on the outer face of the inner pane glass because it permits the glass to radiate heat back into the room. Moreover, soft-coated glass has more excellent visible light transmission and greater optical clarity than hard-coated glass. As a result of the role that these qualities of soft-coated glass play, the market is anticipated to expand in the coming years.

In the case of pyrolytic or hard-coated glass, the coating is placed during the float line production process. This is an online coating method in which the layer is melted into the mirror at temperatures between 650 and 700 ℃. The coating becomes a permanent component of the glass upon cooling. Single glazing units are the most common application for hard coated glass in residential and commercial structures.

Hard coating is expected to account for USD 21,379 million at a CAGR of 8% during the forecast period. This glass is carried and managed using the same infrastructure as float glass without added value. The durability of hard-coated glass is a significant contributor to the expansion of this market segment. This glass can be tempered, laminated, and heat-strengthened without danger of coating loss and can be used in glazing applications.

Based on application, the market is bifurcated into Automotive, Architecture, Optical, and others.

Architecture is expected to dominate the market with a share of USD 65,804 million and a CAGR of 9% during the forecast period. Coated glass is often used in residential and commercial buildings to keep the interiors cool in hot regions by reflecting outside heat while allowing maximum visible light transmission. By reflecting infrared energy, a structure's interior temperature is lowered, reducing the need for air conditioning systems. In colder locations, coated glass is also used to keep the structure's interior warm by re-radiating heat from within. This decreases the cost of heating in colder climates.

In addition, coated glass can be mixed with other types of glass to achieve value-added characteristics such as noise reduction, ornamental look, and safety and security. The IEA predicts that the global energy consumption of air conditioning systems will quadruple by 2050. As a result, construction energy consumption is expected to rise.

According to IEA estimates, buildings account for a staggering 36% of the world's total energy use. Therefore, governments are establishing diverse building rules to reduce the energy consumption of buildings. This is a significant prospect for the market for coated glass. Growing awareness of energy efficiency, global warming, the increase in green building construction, and technological advancements in coated glass are the major drivers driving the expansion of the painted glass in architectural applications.

Impact of covid-19

The spread of COVID-19 posed a grave threat to the global economy and civilization. The government proclaimed regulatory bans to curb the rapid spread of the virus, which resulted in the cessation of production, the closure of all work environments, the restriction of public interactions, and the temporary suspension of global manufacturing and trading activities. As a result of the pandemic, coated glass market expansion slowed down. Many manufacturing enterprises were required to temporarily cease operations to comply with government-mandated lockdowns. This resulted in the cessation of automotive production and construction-related activity and, consequently, the market's decline.

Market Recovery Timeline and Challenges

To deal with the after-effects of the pandemic, economies developed strategies and policies to kick-start the operations. This also propelled growth in the market of coated glass. As manufacturers and end-users could properly start their operations, it pushed the demand to increase in the market.

Recent Developments

• 2022- Mithun architects selected SolarbanÒ 67 SolexiaÒ glass by Vitro Architectural Glass for the LEEDÒ Platinum-certified Middle Earth Expansion for the university of California.
• 2022- Vitro Architectural Glass launched a new VitroSphereä digital glass simulator design tool.