Overview of Automotive and Transport Market for Glass   

Demand from the automotive and transport sectors accounts for fifteen to twenty percent of the float glass market.

Of this, ninety-five percent goes to the automotive industry (including buses and coaches, trucks, and off-road mobile machinery) and the rest is accounted for by the other transport sectors: trains, metros, trams, ships and boats for maritime and inland waterways (including merchant and industrial ships and boats, cruise ships, yachts, and public-transport and tourist vessels), and all types of aircraft.

The market for automotive glass consists of Original Equipment supplied to car manufacturers for new cars and other vehicles, and Automotive Glass Replacement product, supplied to the aftermarket for retrofit purposes (usually following damage).

Globally, demand for replacement glass represents 5% of the total demand for automotive glass.

In addition to light vehicles there are several niche vehicle segments including medium and heavy trucks, buses and coaches, and off-road vehicles such as tractors, diggers, forestry machinery, etc., each with specialized glazing requirements.

Structural trends for the Original Equipment market:

• Consolidation in the Original Equipment customer base (vehicle manufacturers) is mirrored on the glass supply side.
• Vehicle manufacturers' drive to reduce costs in their core assembly operations is leading glass suppliers to assume some activities previously undertaken by vehicle manufacturers.
• Demand on the glazing manufacturers are becoming more intense, as vehicle manufacturers seek both to update their product ranges more frequently and to shorten the time needed to bring their new models to the market.

Original Equipment market drivers:

• Styling trends have led to a growth in the amount of glass used per vehicle
• Side-glazing (car windows) are increasingly made from laminated glass for increased safety and security (front windscreens have been made from laminated glass for a long time).
• Overall, the value and complexity of the product being delivered to vehicle manufacturers is increasing, due to new, innovative product technologies and features being introduced and to the assumption by the glass manufacturers of activities previously undertaken by the car makers.

Automotive Glass Replacement market drivers:

• Market demand is determined by the number of vehicles in use as well as replacement rate and weather conditions. Glazing replacement tends to be the greatest within the well developed markets of Western Europe.
• Aftermarket demand is weighted towards laminated rather than toughened glass.