Glass Substrate Market - Forecast(2023 - 2028)

Glass Substrate Market Overview

Glass Substrate Market size is forecast to reach US$2.6 billion by 2027, after growing at a CAGR of 5.7% during 2022-2027. The glass substrate is a blend of silicon-like borosilicate and aluminosilicate among others. It is a thin panel, widely used in the fabrication of glass products which are ideal in the display & cover glass, camera lenses and others. It is primarily used in the automotive, healthcare and electronics sectors owing to its low electrical loss, corrosion-free and excellent optical transmission. According to Glass for Europe, transportation holds 15% of flat glass consumption and others hold 5% of the share for solar applications, appliances (fridges or ovens), electronics, furniture and many more in Europe. Therefore, the growing development of the transportation sector along with the growing demand for electronics and others would boost the demand for glass substrates during the forecast period. However, due to the COVID-19 pandemic, the market declined in 2020, owing to the shutdown of the manufacturing facilities to reduce the spread of the virus. However, the market is expected to flourish due to the growing consumption from the various end-use sectors. Therefore, the rise in the consumption of glass in the various end-use industries will eventually drive the Glass Substrate Market.

Glass Substrate Market Report Coverage

The “Glass Substrate Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the glass substrate industry.

Key Takeaways

• The Asia Pacific is expected to register a CAGR of 6.5% during the forecast period (2022-2027). The increasing demand for electronics and automotive among Asian countries such as China, India, Japan and South Korea is driving the market for glass substrates.
• Growing demand for Glass Substrate for electronics products such as TV, smartphones and laptop among others is expected to boost the demand for glass substrate during the forecast period.
• Robust demand for borosilicate glass for the display panel, conservatory, insulation, reinforcement structures and others, owing to temperature and corrosion properties, would surge the demand for the Glass Substrate.
• Rising demand for laboratory apparatus and the development of the solar power industry will also boost the Glass Substrate Market.

Figure: Asia Pacific Glass Substrate Market Revenue, 2021-2027 (US$ Billion)

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Glass Substrate Market Segment Analysis – by Type

The borosilicate segments accounted for around 55% of the Glass Substrate Market share in 2021 and are estimated to grow at a significant CAGR during the forecast period. Borosilicate glass is a type of glass that consists of boron and silicon. Thus, it has very low coefficients of thermal extension in comparison with any other common glass. The borosilicate glass substrate is widely used in laboratory apparatus and solar panels, pharmaceutical packaging material, household cookware, heat-resistant glass panels and many more. According to the US Solar Energy Industry Association, as of 2020, more than 10,000 companies in every U.S. state worked for the generation of solar energy. In 2021, the solar industry generated more than US$33 billion of private investment in the American economy. Therefore, the growing solar investment would increase the solar installation and in turn, would boost borosilicate segments of the Glass Substrate Market size during the forecast period.

Glass Substrate Market Segment Analysis - by Application

The electronics segment accounted for approximately 20% of the Glass Substrate Market share in 2021 and is estimated to grow at a significant CAGR during the forecast period. The synthesis of zinc oxide and indium-tin-oxide nanostructures on glass substrate by electrochemical deposition is widely used in the manufacturing of semiconductors products such as integrated circuits, complementary metal-oxide-semiconductor (CMOS), image, batteries, sensors and others. These are used in the manufacturing of various electronic products such as LEDs, smartphones, tablets, computers, camera lenses and others. According to Japan Electronics and Information Technology Industry Associations, the total production value in March 2022 for electronic devices was around 381,355 million yen, 6,083 million yen for electronic tubes, 83,163 million yen for discrete semiconductors, 192,789 million yen for integrated circuits (ICs) and 99,320 million yen for liquid crystal devices (LCDs). Thus, the increasing production and consumption of electronic goods are expected to drive the demand for the Glass Substrate Market size during the forecast period.

Glass Substrate Market Segment Analysis - by Geography

The Asia-Pacific region held the largest Glass Substrate Market share (up to 48%) in 2021, owing to the growing industrial, medical, solar and automotive market in developing countries like China, India, Indonesia and others. The major factor responsible for the growth of glass substrate is low carbon footprint which promotes eco-friendly products that can be recycled. Glass substrate products are widely used in displays of electronics devices, medical devices, solar panels and others. According to the China Association for Medical Devices Industry (CAMDI), the development and reform commission of Shenzhen municipality, China is investing US$15.82 million in the special support program for market access to drugs and medical devices. Also, the production of New Energy Vehicles (NEV) in April 2022 was around 312,000 units with a year-on-year growth of 43.9% as compared to 2021 according to the China Association of Automobiles Manufacturers. Therefore, the growing automotive and medical device sectors are boosting the demand for the Glass Substrate Market size during the forecast period.

Glass Substrate Market Drivers:

Increasing demand for Glass Substrate for Medical Device applications

The Glass Substrate is the ideal material for medical device applications. An increase in the production of high-tech medical devices to treat chronic and age-related diseases and to meet the rigorous needs of the people would boost the demand for glass substrate. According to Innovative Medicines Canada, the Canadian research-based pharmaceutical industry invested over US$2.2 billion in research and development (R&D), with an increase of 13% in 2021 as compared to 2020 and contributed US$15 billion to the economy. The industry has an R&D-to-sales ratio of 9.7%, almost three times higher as compared to the previous year. The rising number of healthcare facilities will help boost the demand for medical devices in the market. The government of India has taken various initiatives such as the ‘Production Linked Incentives (PLI) Scheme for Medical Devices 2020’ and establishing medical parks to flourish the demand for medical devices. According to India Brand Equity Foundation, the medical technology sector in India is expected to reach US$50 billion by 2025. Therefore, the growing initiatives and investment in the medical sector would be boosting the Glass Substrate Market size during the forecast period.

Growing Solar industry across the globe

The solar industry is growing rapidly owing to increasing demand from emerging market economies due to net-zero emissions. As a result, many countries are increasingly producing more solar power and investment in the foreign production of solar power has increased dramatically. Glass substrate plays a vital role in solar sectors as it is widely used for the production of solar panels which are composed of various blends of silicon like borosilicate and aluminosilicate glass. According to the International Energy Agency, solar power generation increased by 23% and recorded 156 TWh of power generation in 2020. Solar power demonstrated the second-largest absolute generation growth of all renewable technologies in 2020 and is expected to grow with a CAGR of 24% between 2020 and 2030 owing to net zero-emission. Therefore, the growth in the solar power sector will eventually help to boost the demand for the Glass Substrate Market size during the forecast period.

Glass Substrate Market Challenge:

Higher Price of Glass Substrate

Glass Substrate is quite expensive. The reason behind this is its production cost. While producing glass, the machinery and the equipment used in the process are also tagged with higher expenses. Moreover, the machinery requires high maintenance. Owing to this factor, the glass substrate product comes with a higher price (US$1-10 per piece) as compared to its alternative materials (plastic substrate US$0.01-2 per piece), which tends to constrain the growth of the market. Also, the fragile nature of the products requires extra cost for the trade of the products, which in turn increases the cost of the products and hinders the market growth.

Glass Substrate Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Glass Substrate Market. The top 10 companies in the Glass Substrate Market are:

1. AGC Inc.
2. SCHOTT AG
3. Corning Inc.
4. LG Chem Ltd.
5. Saint-Gobain S.A.
6. Nippon Sheet Glass Co. Ltd.
7. Plan Optik AG
8. HOYA Corporation
9. IRICO Group Electronics Co. Ltd.
10. OHARA Inc.

Recent Developments

• In June 2022, BOE launched a new P0.9 glass-based Mini LED display product, based on tiny LED crystal particles as pixel luminous points, with the world's first mass production, low power consumption and ultra-high bit number.
• In February 2022, SKC (a subsidiary of South Korean chaebol SK Group) announced to build a 12,000 sq-meter, US$80MM semiconductor glass substrate production plant in Covington Georgia by 2023 with plans to expand it to 72,000 sq-meter by 2025.
• In February 2022, Borosil Renewables was planning to expand its solar panel glass manufacturing capacity from 450 tons per day to 2,000 as it saw strong growth in demand. The company is adding a third solar line with a capacity of 550 metric tons which is expected to start production by September 2022 and would enhance the manufacturer’s daily production capacity to 1,000 tons.
• In July 2020, US-based Corning Inc. launched Gorilla Glass Victus after Gorilla Glass 6. Laboratory tests suggested that Corning Gorilla Glass Victus could be dropped from a height of up to 2 meters to a hard and rough surface to remain intact, while other brands of aluminosilicate glass usually get damaged when dropped from a height of fewer than 0.8 meters.

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