Electrochromic Glass Market

Market Overview

The Global Electrochromic Glass Market size was valued at USD 2.08 billion in 2022 and is projected to reach USD 4.67 billion by 2031, with a CAGR of 9.4 % during the forecast period 2023–2031.

Electrochromic glass is a chromogenic material, a type of glass whose light transmission properties can be altered in response to an external electrical stimulus. Dynamic glass provides numerous advantages, including on-demand privacy, enhanced control, and high energy efficiency, making it an increasingly popular option for doors, windows, and partitions in many commercial and residential buildings. Since its introduction in 1986, electrochromic glass has undergone continuous development and achieved widespread commercialization. Future Internet of Things and hospitals will be able to utilize electrochromic glass as a result of the progression of technology. Electrochromic devices are used as glare attenuation mechanisms in automobile rear-view mirrors and as solar gain regulators in smart windows for buildings.

Electrochromic glass is predominantly utilized in non-residential structures like offices, hospitals, and hotels. This glass is extremely energy-efficient and prevents excess heat from entering the room. Therefore, it helps to keep the room cooler in the summer and reduces the cost of air conditioning. This is accomplished by reflecting the light that falls on the glass, thereby keeping the room cooler.

Market Dynamics

What are the Driving Factors for The Global Electrochromic Glass Market?

Electrochromic glass is a novel material; hence, scientists are focused on finding new applications to use this wonder material in different applications, one of which is in the construction sector. It is mainly used in smart windows, building facades, partition walls, and roofing panels of smart homes, hotels, museums, institutions, and smart offices.

Corporate companies, hospitality businesses, and institutions in North America and Europe, such as hotels, are being upgraded to electrochromic glass windows and facades to enhance the beauty and panache of the buildings. Further, electrochromic glasses yield better energy savings and aesthetic appeal compared to tinted windows and have the potential to save up to 20% of energy costs along with improving productivity. Due to these advantages and an increasing number of architectural designers, building developers are incorporating electrochromic glasses during the construction of new buildings, which is anticipated to propel market growth.

According to the U.S. Department of Energy, energy used in homes, buildings, and industries represents more than 70% of U.S. energy consumption, energy bills, and carbon pollution. This could be greatly reduced by adopting energy-saving solutions such as the installation of electrochromic windows, which help reduce interior temperature and indoor environmental quality (IEQ). This would greatly reduce heating, ventilation, and air conditioning (HVAC) costs and reduce its size. Hence, governments have actively initiated incentives for installing energy-saving solutions at home and offices. The U.S. Department of Energy helps with financial improvements in energy efficiency through tax credits, rebates, and savings. This initiative leads to a rise in demand for electrochromic glasses.

What are the Restraints for The Global Electrochromic Glass Market?

Electrochromic glasses are more expensive than low-emissivity (low-E) or thermochromic glasses. In fact, the cost of electrochromic glass windows is twice that of ordinary windows. The high price is mainly due to technological complexities in the production of electrochromic glasses. Further, due to a lack of funding and large volume production, the return on investment (ROI) is low. These factors discourage companies from investing in new production facilities and expansions. As a result, the growth of the electrochromic glass market is mainly limited to developed economies such as North America and Europe.

What are the Future Opportunities for The Global Electrochromic Glass Market?

A rise in demand for electrochromic glass from end-use industries such as the automotive and consumer electronics sectors is likely to present market participants with new growth opportunities. The key players in these end-use industries are constantly on the lookout for innovative solutions, such as electrochromic glass, to enhance the user experience of their product offerings. Leading automakers, for instance, intend to replace conventional rear-view mirrors with electrochromic glass displays. Similarly, the possibility of replacing Smartphone glass panels with electrochromic glass to conceal camera lenses and improve their appearance is being investigated; this trend may also spread to other consumer electronics, which is anticipated to drive market growth. The development of multifunctional electrochromic glass capable of generating solar energy will add a new dimension to the electrochromic glass product line. Combining photocatalytic remediation of indoor air with electrochromic glazing is possible, and the temperature increase caused by optical absorption in a darkened device can contribute significantly to air purification efficiency. Such advancements will transform the global market for electrochromic glass.

Regional Analysis

The global market for Electrochromic Glass has been segmented based on geography into North America, Europe, Asia Pacific, and LAMEA.

Electrochromic glass is an emerging technology, and North America is ideal for its growth, owing to its combined economic capabilities. The North American electrochromic glass market is further segmented into U.S., Canada, and Mexico. Electrochromic glass is mainly used by construction and the automotive sectors to achieve better energy savings and design variants. Applications include building facades, roofing panels, windows, partition walls, automotive sunroofs, visors, and side windows. The leading players in the electrochromic glass market are AGC Inc., Compagnie de Saint-Gobain S.A., Hitachi Chemical Co. Ltd., Kinestral Technologies Inc., Pleotint LLC, Polytronix Inc., Research Frontiers Inc. Smartglass International Ltd., and View Inc. They are actively involved in diversifying their product range and market footprint and have adopted product launches and partnerships as their key strategy to achieve it.

Energy savings are provided by the use of electrochromic glasses; its comfort and aesthetic appeal are attracting leading building developers and renovators to adopt electrochromic glass in their windows and facades. For instance, in 2019, a 107,000-square-foot-tower by BlueSky Properties in Vancouver was installed with View Smart windows by View Inc. Similarly, Regeneron, a biopharmaceutical company, also adopted smart windows by View Inc. This trend is likely to increase during the forecast period. The high capital cost involved in the production of components for electrochromic glasses leads to a surge in prices, which is expected to decrease the contribution of North America to the global electrochromic glass market share. Presently, the price of installing electrochromic glass is twice that of traditional glasses. Constructional activities in Mexico and Canada are rapidly progressing, and so a high adoption rate of electrochromic glass is more likely to offer new opportunities for market growth.

Electrochromic glass is a rapidly emerging glass technology that turns from opaque to transparent with the click of a switch. Such glasses are used by the construction and automotive sectors. Europe is a lucrative region for the growth of this market, owing to the presence of key end-use industries such as major automotive companies and construction companies. This region is further segmented into the UK, Germany, France, Spain, Italy, and the rest of Europe.

The Europe electrochromic glass market involves both new as well as old glass manufacturing companies, namely, AGC Inc., ChromoGenics AB, Compagnie de Saint-Gobain S.A., and Hitachi Chemical Co. Ltd., Kinestral Technologies Inc., Research Frontiers Inc., and Smartglass International Ltd. are the leading players in the market. These companies focus on product development & launches and technical partnerships to sustain the intense market competition.

Asia-Pacific electrochromic glass market is analyzed across China, Japan, Korea, ASEAN, and the Rest of Asia-Pacific. Electrochromic glass is a specialty glass used in building facades to control incident light. This is helpful in controlling the interior temperatures of building in equatorial regions such as Asia-Pacific, which experiences hot climates. Due to this, Asia-Pacific is projected to majorly contribute to the market growth.

Further, Asia-Pacific is projected to be the fastest-growing region in the global electrochromic glass market, owing to the presence of developing nations in this region, such as China, Korea, and Japan. China is leading the Asia-Pacific electrochromic glass market with around half of the market share and is anticipated to be the fastest-growing region in Asia-Pacific throughout the forecast period. Moreover, Japan and Korea are also contributing significantly toward the growth of the electrochromic glass market in Asia-Pacific. Leading electrochromic glass companies active in the Asia-Pacific region are AGC Inc., Compagnie de Saint-Gobain S.A., Hitachi Chemical Co. Ltd., Kinestral Technologies Inc., Pleotint LLC, Polytronix Inc., and Research Frontiers Inc.

The LAMEA electrochromic glass market is growing at a steady rate, mainly due to the presence of developing economies such as Brazil, Argentina, South Africa, and the rest of Asia-Pacific. In Latin America, electrochromic glass is mainly used in automobile applications, whereas in the Middle East countries such as Saudi Arabia, the market is likely to be driven by the construction sector.

Leading players active in this region are AGC Inc., Compagnie de Saint-Gobain S.A., Hitachi Chemical Co. Ltd., Kinestral Technologies Inc., Research Frontiers Inc., Smartglass International Ltd., and View Inc. These players have a licensee in these regions to produce electrochromic glass and cater to the regional demand.

Segmental Analysis

The global Electrochromic Glass Market is segmented into Application and End User.

On the basis of application, the global electrochromic glass market is segmented into windows, mirrors, and displays.

Electrochromic windows can automatically control the amount of light and solar energy passing through them, thereby providing indoor comfort and optimal lighting conditions. They help in bringing down indoor temperatures, thereby reducing HVAC costs. Thus, electrochromic glass windows contribute to energy and cost savings. These windows are mainly used in residential as well as non-residential applications, including facades, roofing panels, and partition walls. Almost all leading players in the electrochromic glass windows market offer different tinting options to sustain the intense competition. To extend their product reach, companies like Research Frontiers Inc. and Saint-Gobain AGC Inc. have signed partnerships and agreements with regional glass companies. For instance, Saint-Gobain partnered with New-York based Innovative Glass Corporation Company to get exclusive rights to market SageGlass in the New York/Tristate region.

Electrochromic mirrors automatically dim when exposed to sunlight, thereby reducing the discomforting glare. The amount of dimming is proportional to the intensity of light shining onto them. This technology allows optimal dimming and a clearer view than conventional rear-view mirrors. Mirrors based on electrochromic glass are mainly used in automotive applications, such as rear-view mirrors that regulate reflections of flashing lights from following vehicles at night to prevent glare.

Displays based on electrochromic glass are an upcoming technology mainly used as a high-definition rear projection screen to display corporate presentations. It also includes electrochromic glass-based visors and sunglasses. Guardian Glass is one of the leading players in the electrochromic glass market that specializes in the production of electrochromic glasses for projection displays and owns various patents.

On the basis of the end-use industry, the global electrochromic glass market is segmented into construction, automotive, aerospace, and others.

The construction segment is subdivided into residential and non-residential applications. Electrochromic glass is an ideal replacement for blinds and curtains as they reduce glare and deterioration of upholstery fabrics due to UV rays without compromising on energy savings and natural daylight. The residential applications include the use of electrochromic glass in smart homes, particularly windows, bathrooms, shower enclosures, and doors.

Automotive parts based on electrochromic glass are in their developmental phase, as they must be manufactured precisely to fit them within the curved surface of cars. They are currently employed by a few car companies, such as Rivian and Mercedes-Benz. In automotive, electrochromic glasses are used as sunroofs, side windows, sun-visors, and rear windows. The use of electrochromic glasses in automotive parts ensures the reduction of unwanted light & glare and build-up heat inside the vehicle, thereby making them preferable over normal glasses. This improves the vehicle’s fuel efficiency, thus reducing carbon emissions. Furthermore, due to their quick switching speed, they provide instant privacy. Leading automotive electrochromic glass players are AGC Inc. and Research Frontiers Inc. Research Frontiers holds the patent for SPD technology and has permitted licenses to other local glass manufacturers to meet local market demands.

The aerospace industry's rapid adoption of electrochromic glass in the manufacturing of partitions, windows, sun-visors, doors, and skylights drives the aerospace electrochromic glass market. The recent trend is to incorporate electronically dimmable windows in aircraft cabins with increased size.

Leading aircraft manufacturers such as Airbus and Boeing have either started using electrochromic glass in aircraft cabins or have shown their interest in doing so in the future. The use of smart glass in aircraft cabins and windows enables passengers to regulate the tint or amount of light, heat, glare, and noise they can be exposed to.

Recent Developments

• In December 2019, Research Frontiers and South Korea-based Glatic Co., Ltd. jointly announced that Glatic had acquired a license from Research Frontiers Inc. to produce and sell SPD-SmartGlass smart windows for the South Korean architectural market. This partnership allowed Research Frontiers to expand its geographical presence in key areas of the world.
• In June 2018, Kinestral Technologies partnered with Canada-based Vitrum Glass Group to produce Halio Smart-Tinting insulating glass units for multiple commercial projects in North America. Vitrum has been supplying North American customers with top-quality architectural glass products for over 20 years. The partnership helped Kinestral penetrate the commercial North American market and increase its revenue.
• In December 2017, AGC, Kinestral Technologies Inc., and G-Tech Optoelectronics Corp. announced a joint venture that will sell, distribute, and service Halio smart glasses to the global market. The new ventures are Halio North America, Halio International, and Halio China. The joint venture helped AGC increase its market revenue.
• In December 2017, Pleotint announced a distribution partnership with Texas-based Portella Steel Doors and Windows. The partnership enables the company to offer Suntuitive glass with its steel doors and windows. Further, the partnership helped Pleotint to take advantage of the company’s dealer network and increase its market presence.