The smart glass market is projected to grow at a CAGR of 12.01% to reach US$8.863 billion by 2025, from US$4.488 billion in 2019. Rising global adoption of green buildings and eco-friendly technologies is the major factor driving the demand for these glasses. The market growth is further fueled by financial support and tax benefits from different governments provided to smart glass manufacturers. The growing automotive industry is also escalating the demand for these glasses as they help to control the heat inside the vehicle while saving energy. However, the growth of the global smart glass market is expected to impede in the forecast period owing to the lack of consumer awareness about the benefits of these glasses, and difficulty in maintaining exact glass color balance. Moreover, smart glasses are expensive than their alternatives and may be challenging in terms of its higher adoption.
The presence of alternatives may pose a threat in hampering the growth of the global smart glass market during the forecast period.
For smart glass, which is also known as switchable glass, there is a presence of alternatives where most of them are offering the same benefits as that of the smart glass, the consumers may find these alternatives as a convenient option at the time of purchase. This is because of the fact that these are cheaper in comparison to smart or switchable glasses. Examples include blinds, shoji screens, and frosted window vinyl. Many of these are quite convenient in terms of application and are available with different levels of opacity. Some of the products may be easily cut on the basis of its usage and hence are easy for the on-site application. Additionally, with researchers working on the development of affordable smart glass alternatives, the presence of alternates may have a high impact on impeding the market growth in the forecast period. Researchers at the Massachusetts Institute of Technology, have come with a solution of an affordable smart glass alternative, PDMS, which according to their prediction is a cheaper polymer material for smart windows. The material is capable of adjusting according to the incoming light and can be extensively used in engineering applications for controlling indoor light through windows.
The Asia Pacific region is expected to show higher growth prospects in the forecast period with the growing real-estate industry.
With the growing concerns regarding climate change, there are certain regulations that are revolutionizing the real-estate sector. These concerns have further given rise to the adoption of green or eco-friendly technologies coupled with huge energy savings, hence, fueling the market demand in the forecast period. Furthermore, in the Asia Pacific region, the growth in the middle-class population has created a market demand for smart glasses in the residential sector as well. This is because of the increase in family income and growing disposable income. Hence, these emerging middle-class population has become potential consumers for the adoption of smart glasses, further creating a huge consumer base. The growing urbanization, giving rise to the development of smart cities as per the customers’ demand is further providing an opportunity for the market to thrive in the forecast period and in the coming years. According to the United Nations statistics, by 2018, it was projected that a greater number of people will be residing in the urban areas in comparison to the rural areas. The APAC region comprises around 60% of the total urban population on a global level. By 2050, it is expected that around two-thirds of the total regional population will reside in cities. Furthermore, the growing automotive industry, especially in the emerging economies of India and China is further propelling the market demand in the forecast period.