Study Says U.S. Demand for Advanced Flat Glass Products to Reach $7 Billion in 2014
January 3, 2011

U.S. demand for advanced flat glass products is projected to increase 9.1 percent annually from a weak 2009 base to 745 million square feet in 2014, valued at $7.0 billion. This is according to a recently released study, Advanced Flat Glass from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

U.S. Advanced Flat Glass Demand
(in millions of dollars)

 

% Annual Growth

Item
2004
2009
2014
'04-'09
'09-'14
Advanced Flat Glass Demand
5067
4045
7000
-4.4
11.6
Safety & Security Glass
3407
2389
4195
-6.9
11.9
Solar Control Glass
1215
1142
2060
-1.2
12.5
Other Advanced Glass
445
514
745
2.9
7.7

USGNN.com™ spoke today to a few industry representatives who report that they agree with many aspects of the study.

“This report does match up to what we’ve been finding in our research,” says Max Perilstein, chief marketing officer at Vitro America. “We’re very excited about this news because it solidifies the business plan we have going forward. We have been following the trends very closely and have been making the moves necessary to take advantage of the change in markets.”

“It is expected that residential and automotive will be the drivers in demand for the production of flat glass,” adds Russell Huffer, chief executive of Apogee. “They have always represented the dominant demand.  Nonresidential demand will increase over this time frame as well, as it fell to such low levels of demand in 2010 and is not expected to increase significantly in 2011.”

According to the report, the growth in flat glass products represents a significant improvement over the 2004-2009 period, when advanced flat glass consumption suffered from the combination of a weak economy, crisis in financial markets, the bursting of the housing bubble and a sharp downturn in motor vehicle production. Going forward, a rebound in residential construction and motor vehicle production from low 2009 levels will spark strong growth in demand for advanced flat glass products. 

Guardian is bullish on the North American glass industry and reports like this one only serve to underline our measured optimism,” says Earnest Thompson, director, Guardian marketing and brand management. “There remain challenges but trends over the next few years are positive.  The companies making sound business decisions today are in an excellent position to enjoy new growth in advanced glass products across the board during the coming years.”  

Safety and security glass accounted for nearly three-fifths of demand in value terms in 2009, reflecting the widespread use of these products in motor vehicles (laminated windshields and tempered window glass) and in nonresidential construction (laminated security glass and tempered fire-rated glass). Growth in demand will be paced by safety glass used in vehicular markets and laminated hurricane glass, although the latter will remain a regional product, the study says.

Consumption of solar control products is forecast to increase more than 12 percent annually from a weak 2009 base to $2.1 billion in 2014, according to the report. Low-E glass has emerged as the most widely used product in manufactured window units, particularly the double-pane units that now dominate residential window applications. 
Electrochromic mirrors comprise the largest smart glass product category and will post outsized growth due to a strong recovery in vehicle production and growing market penetration, the report says. Other smart glass products, such as electrochromic windows, suspended particle device windows and liquid crystal display windows, will make some market inroads, although demand is predicted to remain relatively small through 2014.  Demand for other advanced flat glass products is projected to increase 7.7 percent annually.  Self-cleaning glass will also record very strong gains through 2014, albeit from a relatively small 2009 base. 

“There is no doubt that specialty materials like impact laminated and dynamic glass will see continued growth and we’re thrilled that there’s more proof to that theory with this report,” adds Perilstein. “It’s also encouraging that people are seeing the value of low-E and other solar control materials.  It’s taken a long time, but I think now it really has become a part of our everyday routine and as the technology and offerings expand, so will the business growth.”

Huffer is a little more hesitant when it comes to forecasts for “new” technology.  

“The typical outcome is that one or two of the ‘new’ technologies will in fact be successful and the others will disappoint. Picking the winners is challenging,” he says.

“Solar control, use of low-E, will in my opinion, continue to grow in its use,” adds Huffer. “I believe that new products that control visible light to lower levels will be successful in non-residential construction. Nonresidential buildings have a significantly different heating/cooling balance than residential construction. High light levels with larger glass to wall ratios are proving to be not as energy efficient as lower light transmission glass applications. I believe that recent measures still had low-E at less than 60 percent of the nonresidential market.  It is very cost effective to use low-E in these applications and there are no service or capacity limitations to meet this increasing demand.”

 

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