The intrinsic capabilities of smart glasses to provide acoustic and thermal insulations, facilitate energy conservation and add aesthetics, effectively validating the evolving architectural philosophy are one part of the factor that is expected to drive the growth of the smart glass market. Additionally, the regulatory measures and policy-driven incentives by various national governments are expected to catalyze various strategic decisions pertaining to the smart glass market. The automotive sector along with public transportations such as trains and aviation-related applications are also expected to drive the market of smart glass. Further, robust demand from the commercial sector that stems from their strategic imperative of reducing their carbon footprint is also expected to be a noteworthy driver facilitating the growth of the market. Nevertheless, the demand from the residential sector for smart glasses will take some time to gain momentum which will be majorly supported by curiosity and initial interest. On the contrary, integrating smart glass solutions are expected to incur high initial expenditure which comprises procurement and installation expenditure. Further, even though smart glass solutions are dirt proof which necessitates occasional cleaning, maintaining them at regular intervals is required to prevent any possible malfunctioning, thereby incurring further expenses on maintenance. These factors are expected to deter market growth to a certain extent.

During the past few years, urban areas have experienced substantial growth with rapid changes experienced by nations around the world driven by their respective urbanized population. This has increasingly posed the challenge of meeting energy demands through sustainable means concomitantly reducing the cost of utilities. Thus, the initial endeavor of reducing the installation of light fixtures to increase daylight entering buildings and consequently reduce the cost of electricity manifested into the law of unintended consequences of increased glare and heat inside buildings which resulted in higher HVAC expenditures, which in turn stemmed from heat gains in warm months and heat loss in cold months. This realization has led to decisions about smart glass integration as exemplified by the reported announcement of California, USA, based Kinestral Technologies, Inc. in September 2018 that smart homes and buildings by Menlo Park, California based tech and construction company Katerra, will be having Halio Smart-Tinting Glass integrated into them, which is covered under a partnership between the two organizations. Further, the partnership also facilitates integrating Halio’s cloud-based automation system into Katerra’s systems, enabling an intuitive and seamless user experience for Karterra’s customers. Thus, such comprehensive partnerships are expected to contribute to the smart glass market growth, in the coming few years. This also effectively addresses the 2019 update to California’s Energy Code which necessitates greater than 50 % improvement in residential housing energy efficiency, which made it the most stringent building energy code in the USA.

The recognition of environment-friendly building codes are not just restricted to state energy policies but also has been acknowledged by supranational agencies like United Nations Economic Commission for Europe, which recognizes that buildings are central to meeting the sustainability challenge since buildings are responsible for 40% of CO2 emissions, 70% of the consumption of electric power generated requiring efficacious energy performance management of buildings. With respect to EU 28, it can be stated with certitude that the energy and power industry has benefited from the institutionalization of public financial and fiscal instruments supporting energy renovations in buildings. Many countries within the EU have opted for deploying a combination of different instruments, each of them tailored to address different barriers, specific segments, and recipient groups within the building sector. Financial support is predominantly offered in the form of grants and /or subsidies, which is a particularly popular instrument in Austria, Croatia, Ireland, Cyprus, Estonia, Latvia, Greece, and Poland. Whereas in countries like the UK, Spain, Slovenia, Slovakia, Romania, Portugal, Malta, Luxembourg, Lithuania, Latvia, Italy, Hungary, Germany, France, Estonia, Czech Republic, Bulgaria, Belgium, and Austria, loans and soft loans are made available.

Further schemes like the SALIX scheme in the UK, the National Revolving Fund for Energy Savings in the Netherlands, the Kredex Fund in Estonia and Energy Efficiency, and Renewable Sources Fund in Bulgaria, are designed in the form of revolving funds, ultimately facilitating the scaling up of energy efficiency investments using a revolving mechanism. In other words, a portion of the savings generated by supported investments is used to replenish in part the fund (i.e. revolved) facilitating the possibilities of reinvestment in future projects of equivalent value. Further, surmising the aforementioned, there are reportedly about 129 instruments which support energy renovations in buildings across the EU, out of which 10% constitutes tax incentives, 19% constitutes loans/soft loans, 61% constitutes grants/subsidies, and the remainder 10% comprises a combination of the above.  As of 2019, 15 billion Euros have been spent approximately by public resources on an annual basis across the EU. The largest schemes in terms of public resources expenditure are the German KfW Energy Efficient Refurbishment Programme, the French Energy Transition Tax Credit scheme, the Austrian Regional subsidies for energy efficiency in residential buildings, Italian Eco-bonus tax rebate scheme. Thus, delineating the fact that the investment environment is conducive for further development of the smart glass market in the next few years. 

Besides buildings, smart glasses have received worldwide cognizance in other applications such as automotive and public transport to name a few, which is also expected to fuel the growth of the market. For instance, marking the worlds’ first adoption to be used as a sunroof in a mass-production vehicle, WONDERLITE™ Dx by AGC Inc. has been reportedly integrated by Toyota's new Harrier that was commercially made available in June 2020. The rationale for the integration is its rapid response time, which is the fastest in the world to date, enabling instantaneous control of the light transmission. Earlier in September 2018, a collaboration was announced between Heliotrope Technologies Inc. and Oran Safety Glass (OSG) to introduce NanoEC™ smart glass technology thereby endeavoring the commercialization of the technology in the transportation industry. Further enabling transport operators to sustainably respond to the need for real-time passenger comfort. In this manner, the need for curtains has been eliminated which not only results in saving water as the need for laundering them is also eliminated at the same time but also provides the passengers with a technologically-driven-innovative means to control the degree of shade without comprising the experience of the view.

$3.5 billion was the approx. total export value of avocado from Latin American countries (LAC) during 2016 – 18 which is further expected to increase due to per capita income growth and changing consumer tastes towards more premium tropical fruits, in particular, avocados, as per FAO estimates. Moreover, the change in consumer preferences shifting towards higher consumption of tropical fruits in developed regions, especially to avocados, is expected to stimulate a further expansion in trade. Additionally, population growth, the increasing awareness of nutritional benefits of tropical fruits that are inclusive of but not limited to avocados; the repeated identification of the same as one of the nutritional super fruits; the growing inclination of supplanting the consumption of refined sugar and widespread availability are few of the factors that are poised to drive the avocado market growth during the next few years. Moreover, according to FAO, around 80% of avocado cultivation in Mexico is carried out by smallholder farmers who are endowed with lands of 5 ha or less, each, which suggests that contingent on fair and inclusive trade conditions, tropical fruit farming is a source of substantial income for smallholder producers, which is looking good for the avocado market.

Nevertheless, increasing occurrences of erratic and extreme weather conditions along with climate-change risks pose a considerable threat to its production, subsequently to the market, especially given that many production zones are located in the LAC regions. Ramifications arising from deforestation, forest fire, irrigation, land clearing, among others add further stress to the production and trade, posing as a possible endangerment to the commercial viability of the food and beverage industry as a whole. Further, factors such as mounting price pressure, phytosanitary restrictions, trade tensions, and volatile freight costs have the potential to deter the global avocado market growth to a certain extent.  From the perspective of prices, export unit values of avocados had displayed a downward trend in 2018 as a result of a rapid supply growth facilitated by Mexico, which is the home to leading exporters and producers around the world. There was a registered decline by 17% form the peak annual average of USD 2 900/ton registered in 2017.

On the other hand, owing to a rapidly growing global demand, export volumes of avocado surpassed those of mango in 2017, despite weather-related declines experienced in 2017, and went on to occupy a significant share in 2018. The year 2018 witnessed the prevalence of favorable climatic conditions and lower occurrences of destructive climatic events in the case of tropical fruit-producing regions, like that of avocado. This supported a robust supply of the avocados. Avocado production is principally carried out in Mexico, and it’s the source that caters to global and domestic markets.  Avocado production in Mexico reportedly accounted for more than 1/3^rd of global output in 2018, which is an estimated increase by 11 % from 2017 stemming from significant investments in yield-improving technologies and area expansion. Further Mexico is advantaged with three factors which give it an edge in the avocado market, which are as follows:

• all-season production
• ability to produce higher quality Hass variety
• proximity to the USA

Further, benefitting from similar investments, production in the Dominican Republic, the world’s second-leading producer of avocado experienced an expansion by an estimated 10% in 2018, reaching approximately 700 000 tons. Further, production in Peru had reportedly registered an estimated 13% increase over 2017, due to an increase in harvested areas that was to the tune of approx. 8 %. The increase was due to strong import demand from the European Union, the largest export destination for Peru. Concomitantly in 2018, Peru was recognized as the 3^rd leading avocado producer with an 8% volume share in 2018.

To surmise, in 2018, the world production of avocado was to the tune of an estimated 6.3 million tons in 2018 which reportedly represented 6.7% increase from its 2017 production according to FAO, Further, among the principal tropical fruits avocado has experienced the fastest growth in production during the last decade, at a registered annual average rate of 6 % mainly owing to an increase in the areas of harvest, which in turn has been driven by surging global import demands. The import demand had reportedly expanded at an annual average rate of 13 % over the previous decade as per FAO. Moreover, to put things into perspective, approximately 35 % of global avocado production was destined for export markets, in comparison with approx. average of 3% to 5% pertaining to other major tropical fruits. With respect to the quantum of trade, the global exports of avocado increased to 2.2 million tons in 2018, which was reportedly an industry first, and represented a 15.9% increase from 2017. The volume also reportedly outperformed 12.6% of the average annual growth rate observed over the previous decade. Moreover, Mexico accounted for an estimated 54 % of avocado exports in 2018 which encompassed the shipment of 1 million tons of avocado to the USA, representing a 77% share of its exports. The main export destinations for avocado are the USA, which reportedly accounted for nearly half of global shipments in 2018, followed by the EU that accounted for 28% of the import.

Moreover, the per capita fresh fruit retail availability of avocado was reportedly 3.6 kgs in 2018., and that of the EU was 1.4 kg on average. The principal avocado consuming markets in the EU, which are  France and the United Kingdom reached an estimated retail availability of 1.7 kg and 1.5 kg per capita, respectively.  Besides, health-conscious and vegan consumption proclivities, demand for avocado is also fueled by marketing activities which are integral to facilitating a healthy avocado market growth. For example, as per FAO, every box of Hass avocado imported from Mexico, Chile, and the Dominican Republic are financed through a fee of USD 0.6 and made commercially available at popular events in the USA. Further, establishing new business entities to cater to the demand of avocado too, has contributed to the market growth, for instance, the launch of a spinoff called The Avocado Company, which is a wholly-owned subsidiary of the Fresca Group Ltd based out of the UK was reportedly announced in June 2018. It was launched with the rationale to offer a year-round supply of avocado to meet the anticipated growth in demand for avocados in the UK.

Further demand for avocado also incentivized the launch of Grade 2 avocados during March the same year, which otherwise are generally sold to foodservice distributors and industrial users in bulk configurations, due to its external scars and blemishes that haven’t been able to facilitate its wide retail merchandising. Unveiled by Mission Produce, a subsidiary of Cabilfrut S.A. making then commercially available in 2lb and 3lb bags, the organization has capitalized on growing consumer awareness of the health benefits and acceptance of visually imperfect produce, thereby facilitating further growth of the market.

Further, avocado chips startup AvoLov based out of Oregon, the USA had reportedly perfected dehydrating avocados in 2018 to produce crispy avocado chips followed by two years of intensive research, ultimately capitalizing on the growing preference for the fruit, which was later made commercially available, the same year during March, in three flavors. The application of avocado has also transcended the boundary of edibles and have moved over to personal care as well. This was exemplified by the launch of Avocado Melt Sleeping Mask by Glow Recipe that comprises 74% of avocado, in November 2018. The product reportedly employs the flesh, extract, oil, and butter components of avocados to facilitate skin nourishment, among others during the winters. Thus to improve large-scale commercialization of avocado, secondary product development has also been a major facilitator for the avocado market growth.

Experience the convenience of savoring instant popcorns, woken up by an alarm, monitoring heart rate while on the run, watching the favorite shows, swiftly googling an unsolvable problem, withdrawing cash from ATMs, monitoring one’s child’s health as well as facilitating elderly care, embarking on hassle-free trips to the safeguarding of national sovereignty, technology has effectively undergone a colossal digital revolution that is driving the demand for consumer electronics which not only have become affordable but also consume less energy. Further due to growing penetration of internet connectivity and advancements in Information and Communication Technology (ICT) as a whole, human residences are not limited to national boundaries but have transcended barriers. These advancements have also propelled the demand for smart homes, industries, connected healthcare, autonomous driving, and smart cities. This has led to the designing and fabrication of powerful yet compact semiconductors that have permeated almost every industry vertical which are inclusive of but not limited to telecommunication, healthcare, consumer electronics, automotive, aerospace, and defense, among others.

Now, it is a well-acknowledged fact that semiconductors are not available to the end-user as standalone components but is constituent of semiconductor surface-mount devices that are a part of the larger end-use products Viz. a cellular phone. Thus, to address the high volume of demand surface mount technology (SMT) is the preferred means for both designing and manufacturing in the semiconductor industry, which is reportedly known for ensuring a faster time-to-market. Besides the consumer demand-side factors mentioned above, demand for SMT  by designers are mainly driven by factors like substantial weight reduction, space-saving, and electrical noise reduction, among others, and demand for SMT by manufacturers is fueled by factors such as reduced board cost,  material handling costs, and a streamlined and well-managed manufacturing process. Fast-forwarding to the present, COVID 19 has brought about a marked shift in the manner in which daily functions used to take place.

Profitmaking institutions, educational entities, and businesses have collectively driven the need for web connectivity and a reliable means of communication which are cellular devices and/or personnel computers. These unprecedented developments have further fueled the need for semiconductors which in turn is anticipated to fuel the growth of the SMT market to stratospheric heights. Another reason which makes COVID 19 a catalyst in the SMT market growth is the demand for ventilators of monumental proportions. Further, the rate of development pertaining to non-contact diagnostics solutions that are capable of safeguarding the health workers from unknowingly contracting infections have also contributed to the growth of the market.

Further, in a world where peace is maintained with the aid of deterrents of peace and its continuous developments, it necessitates national governments to secure military budgets of elephantine proportions. A share of this budget is directed to aerospace, space and defense research in technology where semiconductor surface-mount devices are an integral part, thus making the employment of SMT an inseparable aspect of the entire defense value chain. Moreover, innovations in robotics, quantum computing, nanotechnology, material science, internet of things, biotechnology, autonomous systems, artificial intelligence as well as 3D printing are poised to transform the defense industries in unexampled ways. Within the ambit of defense, a healthy contribution towards the surface mount technology market growth is expected to stem from the need for securitization and militarization of cyberspace. This need is substantiated by the recent ransomware attacks as well as identity thefts through malware. Such is the importance of cybersecurity that from a regional perspective that the EU recently adopted the EU Cybersecurity Act in 2019 which made the European Network and Information Security Agency (ENISA) a permanent government agency with a reported budget allocation of €17 million for 2020 as proposed cybersecurity budget for 2021-27 which is to the tune of €2 billion.

This budget allocation will reportedly cover the bolstering of the EU’s cybersecurity industry, financing state-of-the-art cybersecurity equipment, and infrastructure, safeguarding the digital economy, society, and democracies through polling expertise. Further need for cybersecurity doesn’t stem from the requirement of combating cybercrimes and protecting critical infrastructure only. It is also to safeguard the vital lifelines of the economy by protecting the backbone that comprises electronic communications networks and services and network and information systems, the rationale that has been enshrined in the EU Cybersecurity Act, among others. EU’ s commitment to lead the next generation of cybersecurity and digital technologies is also well pronounced in the act. EU also aspires to develop companies pertaining to cybersecurity to give itself ta competitive advantage in the global market. It also envisions close cooperation with research institutions and universities to minimize its dependence on foreign security and services simultaneously enabling the strengthening of the supply chain within the union. In view of the above, it is anticipated that the global surface mount technology market will experience a meteoric rise. 

Before all foregoing certain recent market developments are being elucidated below:

April 2018 – Expansion

Xiaomi had announced its first plant that was dedicated to local manufacturing of PCBA (Printed Circuit Board Assembly) units in Sriperumbudur, Tamil Nadu, in partnership with Foxconn was operational. In this manner, Xiaomi anticipated its manufacturing operations contribute 50% value if the smartphone.

September 2018 – Investment

Teledyne Advanced Electronic Solutions (AES), a business unit of Teledyne Technologies Incorporated (NYSE: TDY), which caters to Defense, Space and Commercial sectors around the world through its comprehensive portfolio of highly engineered solutions had made a substantial capital assets-investment in its production facility in Lewisburg, Tennessee. Reportedly monikered as a technical refresh, the investment comprised three Surface Mount Technology (SMT) machines, among others.

December 2018 – Facility expansion

REDARC Electronics an advanced electronics manufacturing firm based out of South Australian has officially opened its expanded factory in Adelaide suburb Lonsdale, which was inaugurated by the then Minister for Defense Christopher Pyne and SA Premier Steven Marshall. Facilitated by a federal government Next Generation Manufacturing Investment Program grant which was to the tune of $2.5 million, the expenditure also includes the purchase of a surface mount technology line for mounting electronic components. It also entailed an electromagnetic compatibility chamber and a vibration test lab that enables highly accelerated lifetime testing of products.

Favorable construction market, growing carbon emissions, growing concerns over polluting consumption practices, helpful government policies, rising consumer spending on clean energy, and variable energy prices are few of the factors that are responsible for driving an anticipated growth of the heat pump market. Furthermore, the rising need for heating requirements for water and space around the world along with increasing commercial accessibility of energy-efficient solutions are expected to augment the growth of the market. Moreover, conducive government policies will also assist in the reinforcement of the market growth, in the next few years. From the perspective of consumption, IEA notes that approximately 20 million households bought heat pumps in 2019.

Despite a share of the above are reversible units there is an unquestionable growth in major heating markets. IEA also notes that despite the emergence of heat pumps as one of the most commonly installed technologies in new residential constructions, only 5% of the heating demand of buildings around the world, whereas fossil fuel-based and conventional electric technologies comprised 3/4^th of sales globally in 2019. The market growth is expected to be restrained to a certain degree due to high upfront purchase and installation costs, among others.  With respect to opportunities, policy support and innovations are required to facilitate the removal of market barriers for renovation and enhance energy performance.

The construction segment of real-estate development is reportedly the main driver resulting in most hear pump technology purchase. Further, with respect to national markets, in the case of the USA, the heat pump sales share for newly constructed buildings is over 40% for single-family dwellings and is about 50% for new multi-family buildings. On the other side of the Atlantic, the market is witnessing a rapid expansion as the year 2018 registered purchase of heat pumps by approx. 1.3 million households. While France, Italy, Spain contributes to the half of the tola sales in the European Union (EU), Estonia, Finland, Norway and Sweden reportedly have the highest penetration rates with more than 25 heat pumps sold per 1 000 households each year, which is conducive for regional heat pump market growth.

The Permeating Popularity of Various Heat Pump Technology

The air source heat pumps are rapidly gaining currency and are becoming more widespread during the recent years and now occupy the largest share of global sales due to factors like improved standards of construction, favorable policy environment and rising demand for air-conditions. On the other hand, the sales of water source heat pumps, especially those intended for production for hot water, have tripled majorly contributed by sales in China. The increase in purchases was facilitated by subsidies made available through the Coal-to-Electricity program of northern China, which incentivized the replacement of coal-fired boilers with air-to-water heat pumps. The second-largest market was Japan in terms of sales for the same, during 2018 which was to the tune of 480000. Besides despite experiencing a lower sales volume, Europe experienced a steep rise in sales of heat pump water heaters which numbered 155000 units in 2018 from approx. 30000 units in 2010. On the contrary, wit annual sales of around 400000, ground-source heat pumps are relatively less common around the world, with Sweden accounting for the highest number of per capita installations globally. In view of the above, it can be stated with certainty that the energy and power industry is poised to witness a surge in heat pump technology demand irrespective of their types.

Policy Regulations and Government Programs Open up Opportunities for Future Growth

The labeling of products with a seasonal performance factor for heating and minimum energy performance standards for heat pumps has been mandated by the USA, thereby paving a way for such performance-based incentivizing system to encourage the use of heat pumps in conjunction with local PV production in a self-supply mode which in turn is anticipated to boost performance during the coming years and contribute to the reduction of electricity consumption from the public grid. Besides, in the EU and China, heat pumps’ energy source is categorized as renewable heat which makes incentives Viz. tax rebates accessible. On the other hand, subsidies made available under the aegis of the Air Pollution Prevention and Control Action Plan are aiding in the reduction of upfront installation and equipment costs in China. Moreover, the subsidies for air-source heat pumps across various Chinese provinces were made available by the Chinese Ministry of Environmental Protection as evidenced by the reported RMB24 000 to RMB 29 000 per household in Beijing, Shanxi, and Tianjin in February 2017. EIA also notes that 30% of the initial investment cost incurred towards ground-source heat pumps is covered by the state in the case of both the USA and China. The overall favorable outlook has mobilized developments in 2018 within the heat pump market, which are as follows:

January – Joint Venture

The leading manufacturer of technologically advanced ductless and variable refrigerant flow (VRF) heating and air conditioning systems Mitsubishi Electric Corporation (TOKYO: 6503) and a world-leading developer of comfortable, sustainable and efficient environments Ingersoll-Rand plc (NYSE: IR) had reportedly announced an agreement between them to establish a 50 %-50 % joint venture (JV) pending a global antitrust review.  The JV was agreed upon to facilitate marketing and sales as well as distribution VRF and ductless heating and air systems which would be reportedly highly efficient, mini-split, multi-split, variable-speed and VRF air conditioners and heat pumps intended for commercial and light commercial as well as residential applications

April – Acquisition

The 3^rd largest supplier to heat pump market of the Nordic region with annual sales registering around 68 million euros,  Danfoss Värmepumpar AB, known under the brand name 'Thermia', based in Arvika, Sweden was reportedly acquired by The Stiebel Eltron Group for an undisclosed amount, enabling the latter to focus on the heating and cooling with renewable energy, consequently develop business in other markets which were then dominated by ground/water heat pumps.

Nevertheless, albeit such promising potential for the market global pandemic and its resultant effects like lockdown measures leading both supply-side and demand-side shocks is expected to create a dent in the growth prospects of the market.