Automotive Smart Glass Market Size to Peak $16.41 Bn by 2034

Automotive Smart Glass Market Trends, Share and Growth Analysis 2034

The automotive smart glass industry is expected to grow from USD 2.18 billion in 2024 to USD 16.41 billion by 2034, driven by a CAGR of 22.38%. Automotive smart glass enhances driving comfort and safety by adjusting transparency based on light conditions. It reduces glare, blocks UV rays, and improves privacy. This innovative glass is used in windows, sunroofs, and windshields for a smarter, more comfortable ride.

Last Updated: 14 February 2025 Category: Automotive Technology Insight Code: 1086 Format: PDF / PPT / Excel

Senior Research Analyst

Dr. Arjun Patel

Reviewed By

Aditi Shivarkar

Automotive Smart Glass Market Size,Trends & Growth Dynamics

The automotive smart glass market is anticipated to grow from USD 2.67 billion in 2025 to USD 16.41 billion by 2034, with a compound annual growth rate (CAGR) of 22.38% during the forecast period from 2025 to 2034.

Automotive Smart Glass Market Size 2023 to 2034

 

The COVID-19 pandemic severely impacted the global economy, leading to a slowdown in vehicle production and business activities. However, as restrictions ease and automotive production resumes, the market is poised for significant growth during the forecast period.

Innovations in smart car glass technology and its increasing application in high-end and luxury vehicles are driving demand in the market. Leading automakers like Tesla, Tata, Mercedes, and BMW are actively participating by introducing products and collaborating with smart car glass manufacturers, further stimulating market growth.

The expansion of the global automotive market, particularly the rising sales of SUVs and luxury cars, is expected to fuel the demand for automotive intelligent glass. Notable examples include Mercedes-Benz's "Magic Sky Control" roof system and McLaren's offering in the McLaren 720S, showcasing the adoption of smart glass technology by renowned brands. Additionally, recent introductions of front heating systems by brands like Jaguar and Land Rover cater to specific market needs, such as faster demisting and defrosting for regions experiencing harsh winters like Pennsylvania.

Asia Pacific and Europe are anticipated to emerge as the largest markets for automotive smart glass. China remains a key driver of growth in the Asia-Pacific region, while Japan serves as a technology hub for automotive innovation.

With the automotive industry rebounding from the pandemic-induced slowdown, the smart car glass market presents lucrative opportunities for stakeholders. Continued innovation, strategic partnerships, and targeted product offerings will be key to capitalizing on the growing demand for intelligent glass solutions in the automotive sector.

Rise in Penetration of Suspended Particle Devices (SPD) in Vehicles

Global auto sales are projected to increase from an estimated 66.7 million vehicles in 2021 to around 67.2 million vehicles in 2022. However, the global economy faced challenges in 2020 and 2021, resulting in economic downturns. In 2022, disruptions in the semiconductor industry caused by COVID-19 and the conflict in Ukraine led to shortages and further supply chain disruptions. Despite these obstacles, sales are anticipated to rebound in 2023.

One technology poised to enhance the driving experience is Suspended Particle Device (SPD) technology. SPD smart sunroofs, roof systems, windows, and visors offer dynamically adjustable and responsive light control, transforming car glass or plastic. SPD glass boasts exceptional efficiency, with a low burn rate of just 2.5% depending on the finish. Compared to other smart glasses, SPD glasses consume less power, averaging 1.5 watts per square meter compared to 3 watts per square meter for PDLC smart glass. According to Continental, SPD smart equipment can reduce CO2 emissions by 4 grams per kilometer and increase driving efficiency by 5.5%. Notably, Mercedes utilizes SPD smart glass to decrease interior heat by up to 10 degrees Celsius (18 Fahrenheit).

Suspended particle devices are utilized as films to transition automotive sunroofs and glass from transparent to opaque, offering protection against infrared and ultraviolet radiation. This helps prevent interior overheating and premature aging of materials like leather. High-end Mercedes models, including the S-Class sedan and SL Roadster, feature SPD hardware.

The COVID-19 pandemic led to restrictions on the distribution and transportation of raw materials in some countries, disrupting the smart film supply chain and impacting smart glass prices. Factory closures, particularly in the automotive sector, contributed to financial setbacks.

Customer dissatisfaction with quality products and rising prices may lead to decreased business revenue over time. The market expansion of SPD smart windows could be constrained by these factors. However, the anticipated increase in global auto sales is expected to stimulate demand for smart glass, mitigating some challenges and fostering market growth.

Europe is Expected to Grow at the Fastest Rate in the Market

Automotive Smart Glass Market NA, EU, APAC, LA, MEA Share, 2024

The demand for luxury vehicles has witnessed a significant upsurge in recent years, driven by an increasing preference for convenience features and upscale amenities, particularly in the aftermath of the COVID-19 pandemic. This shift in consumer preferences has led to a greater emphasis on advanced features such as sunroofs and auto-tinted glass, reflecting a broader trend towards convenience-focused innovations in the automotive sector.

Several key factors are contributing to the growth of the automotive smart glass market in Europe. Firstly, the robust growth of passenger car sales in major European markets has spurred demand for advanced technologies and luxury features, including smart glass solutions. Moreover, the rising sales of luxury vehicles have further propelled market expansion. Additionally, the growing interest and acceptance of solar-powered cars among consumers have boosted demand for smart glass solutions that enhance energy efficiency and sustainability.

Germany stands out as a key driver of innovation and production in the European automotive industry, with its automotive sector serving as a cornerstone of the region's economy. Germany's significant contributions to automotive research and development, with a remarkable 60% growth in R&D investment, underscore the pivotal role of innovation centers in driving demand for automotive smart glass solutions.

In May 2022, a notable collaboration between Microsoft and Volkswagen marked a significant milestone in the integration of augmented reality technology into future mobility concepts. Volkswagen's partnership with Microsoft to develop HoloLens 2, an integrated headset for use in vehicles, exemplifies the industry's efforts to embrace cutting-edge technologies to enhance the driving experience and advance mobility solutions.

In contrast, challenges persist in the UK car market, with declines observed since 2017, attributed to various factors including the impact of COVID-19 and uncertainties surrounding Brexit. Similarly, France has experienced shifts in the automotive landscape, with increased foreign investment in technologies like artificial intelligence and smart glass solutions, signaling a growing focus on innovation and technological advancement.

Partnerships and collaborations between smart glass manufacturers and leading automakers, such as Gauzy's collaborations with Daimler and other industry players, highlight the widespread adoption of smart glass technologies across the automotive sector. The integration of smart glass solutions into popular car models by manufacturers like Audi, BMW, Nissan, and Range Rover reflects a broader trend towards incorporating advanced features to meet evolving consumer preferences and market demands.

Automotive Smart Glass Industry Overview

The automotive smart glass market is characterized by the presence of key players such as Saint-Gobain, AGC Inc., Nippon Sheet Glass Co. Ltd., Gentex Corporation, and Corning Inc. These companies hold significant positions in the market due to their extensive experience and diverse product offerings catering to various automobile manufacturers. They are deeply committed to innovation, constantly exploring new technologies, and employing strategic initiatives like acquisitions, technology licensing, and partnerships to expand their presence, bolster support, and seize emerging opportunities in the industry.

For instance, in April 2022, AGP Group secured a significant milestone by entering into a US$250 million loan agreement in collaboration with OMERS Capital Markets and BMO Financial Group. This strategic partnership aims to provide substantial support for AGP Group's ambitious global expansion plans, enabling them to capitalize on the growing demand for automotive smart glass solutions worldwide. This move underscores the pressing need for swift technological integration within the automotive sector and reflects the industry's proactive stance in meeting evolving consumer preferences and regulatory requirements.

Automotive Smart Glass Market Companies

Automotive Smart Glass Market Leaders

  • Corning Inc.
  • Guardian Industries
  • Saint-Gobain SA
  • AGP Glass
  • Hitachi Chemical Co. Ltd
  • Research Frontiers Inc.
  • Nippon Sheet Glass Co. Ltd
  • AGC Inc.
  • Gentex Corporation
  • Gauzy Ltd.

Automotive Smart Glass Market Recent Developments

  • August 2022: AGC Inc. announced a strategic collaboration with a leading electric vehicle manufacturer to develop and integrate next-generation smart glass solutions into their upcoming vehicle models. Leveraging AGC's expertise in glass technology and the manufacturer's focus on innovation, the partnership aims to enhance the driving experience by introducing advanced features such as dynamic tinting, augmented reality displays, and energy-efficient glazing systems. This collaboration underscores AGC's commitment to driving automotive innovation and sustainability in the rapidly evolving electric vehicle market.
  • October 2022: Saint-Gobain unveiled its latest advancement in automotive smart glass technology with the introduction of "SmartView Pro™," a state-of-the-art heads-up display (HUD) system for vehicles. SmartView Pro™ utilizes cutting-edge augmented reality (AR) technology to project critical driving information onto the windshield, enhancing driver awareness and safety while minimizing distractions. The system offers customizable display options, intuitive gesture controls, and seamless integration with advanced driver assistance systems (ADAS), making it a valuable addition to modern vehicles. Saint-Gobain's SmartView Pro™ represents a significant milestone in the evolution of automotive HUD technology, providing drivers with a safer and more immersive driving experience.
  • December 2022: Gentex Corporation announced the expansion of its manufacturing facilities to meet the growing demand for automotive smart glass solutions. The company's investment includes the construction of a new state-of-the-art production facility equipped with advanced glass processing technologies and automated manufacturing systems. This expansion will enable Gentex to ramp up production capacity and accelerate the development of innovative smart glass products tailored to meet the evolving needs of automakers and consumers worldwide. Gentex's continued investment in manufacturing capabilities underscores its commitment to driving innovation and excellence in the automotive smart glass market.
  • April 2022: Corning Incorporated unveiled its latest innovation, a smart glass technology called "Corning® AutoGrade™ Gorilla® Glass." This advanced automotive glass solution offers superior durability, scratch resistance, and optical clarity, enhancing both safety and aesthetics in vehicle design. Corning achieved this breakthrough by leveraging its expertise in glass manufacturing and materials science, providing automakers with cutting-edge solutions to meet evolving consumer demands for enhanced vehicle performance and aesthetics.
  • March 2022: Nippon Sheet Glass Co. Ltd. (NSG Group) announced a strategic partnership with a leading automotive manufacturer to integrate its proprietary "SolarSmart™" technology into select vehicle models. SolarSmart™ glass utilizes advanced solar control coatings to regulate cabin temperatures, reduce reliance on air conditioning systems, and enhance energy efficiency in electric and hybrid vehicles. This collaboration underscores NSG Group's commitment to sustainability and innovation in the automotive sector, offering consumers eco-friendly solutions that align with evolving environmental regulations and consumer preferences.
  • December 2021: Gentex Corporation introduced its latest innovation, "Gentex VisionWall™," a revolutionary automotive smart glass technology designed to transform vehicle interiors into immersive digital environments. Utilizing state-of-the-art transparent display technology, Gentex VisionWall™ seamlessly integrates augmented reality (AR) and infotainment features directly into the windshield and windows, providing occupants with unparalleled connectivity, entertainment, and safety functionalities. This pioneering solution exemplifies Gentex's dedication to pushing the boundaries of automotive technology and enhancing the overall driving experience for consumers worldwide.

Automotive Smart Glass Industry Segmentation

Automotive smart glass utilizes a flexible film composed of Suspended Particle Device (SPD), a tinted material designed to regulate light transmission. This technology allows the glass to block up to 99% of light while ensuring clarity for drivers to maintain proper visibility while operating their vehicles.
The automotive smart glass market is categorized into several segments based on different factors. Firstly, by technology, the industry is divided into three main categories: electrochromic, polymer dispersed liquid (PDLC), and dispersion device (SPD). Each technology offers unique benefits and functionalities to enhance the performance of smart glass in vehicles.

Secondly, based on application, the market is segmented into various areas where smart glass is commonly utilized, including rear and side windows, sunroof glass, and front and rear windows. These different applications cater to different needs and preferences of vehicle manufacturers and consumers.

Thirdly, the market is segmented by vehicle type, distinguishing between passenger cars and commercial vehicles. This segmentation acknowledges the diverse requirements and specifications of smart glass solutions across different types of vehicles.

Lastly, the market is geographically segmented into regions such as North America, Europe, Asia Pacific, and the Rest of the World. Each region may exhibit unique trends, preferences, and regulatory landscapes that influence the adoption and growth of automotive smart glass technology.

Overall, these segmentation criteria provide a comprehensive framework for understanding and analyzing the automotive smart glass market, enabling stakeholders to identify opportunities and make informed decisions in this dynamic industry.

MARKET SEGMENTATION

By Technology Type

  • Electrochromic
  • Polymer Dispersed Liquid Device (PDLC)
  • Suspended Particle Device (SPD)

By Application Type

  • Rear and Side Windows
  • Sunroof Glass
  • Front and Rear Windshield

By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles

By Geography

  • North America
    • United States
    • Canada
    • Rest of North America
  • Europe
    • Germany
    • France
    • United Kingdom
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of Asia-Pacific
  • Latin America
    • Brazil
    • Rest of Latin America
  • Middle East and Africa
    • South Africa
    • Rest of Middle-East and Africa
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About The Author

Dr. Arjun Patel is a distinguished expert in the automotive industry, holding advanced degrees in Automotive Engineering and Mechanical Engineering. His expertise spans automotive market dynamics, technological advancements, and sustainable practices. Dr. Patel excels in conducting in depth research and analysis on market trends, consumer preferences, and the economic implications within the automotive sector. He is renowned for his insightful publications on topics such as electric vehicles, autonomous driving technologies, and the evolution of sustainable transportation solutions. Dr. Patels research contributions have significantly advanced understanding in the field, earning him recognition as a leading authority in automotive research and analysis.

FAQ's

Automotive smart glass, by reducing the need for auxiliary heating and cooling systems through its thermal management capabilities, helps lower energy consumption in vehicles. This contributes to reducing greenhouse gas emissions and aligns with sustainability goals by promoting energy-efficient transportation solutions.

Innovations in automotive smart glass technology are expanding its capabilities beyond basic tinting and transparency control. Integrating heads-up displays (HUDs), augmented reality (AR) overlays, or biometric sensors directly into the glass surface enhances driver assistance features, improves user experience, and provides valuable information without obstructing the drivers view.

Automotive smart glass employs sensors and algorithms to adapt to changing environmental conditions and driving scenarios. By automatically adjusting its tint or transparency levels based on factors like sunlight intensity, ambient temperature, or the presence of oncoming headlights, it ensures optimal visibility, comfort, and safety for vehicle occupants.

Automotive smart glass has applications beyond traditional passenger vehicles, including commercial trucks, public transportation vehicles, and specialized vehicles like emergency response or military vehicles. In these contexts, smart glass technology can enhance safety, security, and operational efficiency by providing glare reduction, privacy control, and temperature regulation features.

Automotive smart glass solutions play a crucial role in integrating with emerging trends in vehicle connectivity and autonomous driving. By enabling seamless communication between the glass and onboard systems, and by facilitating enhanced visibility and user interaction in self-driving vehicles, smart glass technology contributes to the advancement of connected and autonomous mobility solutions.

CREST NL, Corning, Westfield Fasteners Ltd., Zeiss, Springer Journal, Continental.

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