Glass Substrate Market

Increasing demand for glass substrate for medical device applications and the growing solar industry across the globe are driving the market growth

Market CAGR for glass substrate is being driven by the increasing demand for glass substrate for medical device applications and the growing solar industry across the globe. The glass substrate emerges as the optimal material for medical device applications. An upsurge in the production of advanced medical devices targeting chronic and age-related diseases tailored to meet stringent requirements is anticipated to drive the demand for glass substrates.

According to Innovative Medicines Canada, the research-based pharmaceutical industry in Canada allocated over US$2.2 billion towards research and development (R&D), marking a 13% increase in 2021 compared to 2020, and contributed US$15 billion to the economy. Notably, the industry exhibited an R&D-to-sales ratio of 9.7%, nearly three times higher than the previous year. The proliferation of healthcare facilities is expected to further augment the demand for medical devices. In India, the government has initiated various measures such as the ‘Production Linked Incentives (PLI) Scheme for Medical Devices 2020’ and the establishment of medical parks to stimulate demand for medical devices.

As per the India Brand Equity Foundation, the medical technology sector in India is projected to reach US$50 billion by 2025.

The solar industry is experiencing rapid growth, driven by increasing demand from emerging market economies aiming for net-zero emissions. Consequently, many countries are ramping up solar power production, with a significant surge in foreign investments in this sector. Glass substrate plays a crucial role in the solar industry, particularly in the manufacturing of solar panels composed of various silicon blends like borosilicate and aluminosilicate glass. According to the International Energy Agency, solar power generation saw a remarkable 23% increase, reaching 156 TWh of power generation in 2020.

In the United States, installations of photovoltaic (PV) systems hit a record 15.8 GW alternating current (ac) in the first nine months of 2023, marking a 31% year-over-year increase (as reported by the Solar Energy Industries Association at 19.3 GWdc). The U.S. Energy Information Administration (EIA) projects a significant rise in the percentage of electric capacity additions from solar, forecasted to grow from 46% in 2022 to 71% in 2025.

Solar power exhibited the second-largest absolute generation growth among renewable technologies in 2020 and is projected to maintain a Compound Annual Growth Rate (CAGR) of 24% between 2020 and 2030, primarily fueled by the pursuit of net-zero emissions. As a result, it is anticipated that throughout the projection period, demand for the glass substrate market will increase due to the increasing demand for glass substrate for medical device applications and the growing solar industry across the globe. Thus driving the glass substrate market revenue.

The Global Glass Substrate Market Industry is poised for substantial growth, with projections indicating a market value of 7.8 USD Billion in 2024 and an anticipated increase to 11.5 USD Billion by 2035. This growth reflects a compound annual growth rate (CAGR) of 3.63% from 2025 to 2035, driven by various factors including technological advancements and increasing applications across multiple sectors. The market's expansion is indicative of the rising importance of glass substrates in modern technology, suggesting a robust future for the industry as it adapts to evolving consumer demands and technological innovations.

The Global Glass Substrate Market Industry is witnessing growth due to the automotive sector's increasing adoption of advanced glass technologies. Modern vehicles utilize glass substrates for various applications, including displays, sensors, and safety features. The trend towards electric and autonomous vehicles necessitates high-quality glass substrates that can withstand diverse environmental conditions while providing optimal performance. This shift is expected to bolster the market, as automotive manufacturers prioritize innovative materials that enhance vehicle functionality and aesthetics. As a result, the industry is likely to see a steady increase in demand, contributing to the overall market value.

The Global Glass Substrate Market Industry experiences a notable surge in demand driven by the electronics sector. As technology advances, the need for high-quality glass substrates in devices such as smartphones, tablets, and televisions increases. In 2024, the market is projected to reach 7.8 USD Billion, reflecting the growing reliance on glass substrates for enhanced display performance. The trend towards thinner and lighter devices further propels this demand, as manufacturers seek materials that offer both durability and aesthetic appeal. This growth trajectory suggests a robust future for the industry, with expectations of reaching 11.5 USD Billion by 2035.

The Global Glass Substrate Market Industry is significantly influenced by advancements in solar technology. Glass substrates are essential components in photovoltaic cells, which convert sunlight into electricity. As the world shifts towards renewable energy sources, the demand for efficient solar panels increases. The integration of high-performance glass substrates enhances the efficiency and longevity of solar panels, making them more appealing to consumers and businesses alike. This trend is likely to contribute to the overall market growth, as the industry adapts to meet the needs of a greener future, potentially aligning with the projected CAGR of 3.63% from 2025 to 2035.

The Global Glass Substrate Market Industry is expanding into the healthcare sector, where glass substrates are utilized in diagnostic devices and laboratory equipment. The precision and reliability of glass substrates make them ideal for applications such as microfluidics and biosensors. As the healthcare industry increasingly adopts advanced technologies for diagnostics and treatment, the demand for high-quality glass substrates is expected to rise. This trend indicates a diversification of the market, as manufacturers explore new opportunities within the healthcare domain, potentially leading to increased market value and innovation in product offerings.

The Global Glass Substrate Market Industry is influenced by sustainability trends in manufacturing processes. As environmental concerns grow, manufacturers are increasingly adopting eco-friendly practices, including the use of recycled materials and energy-efficient production methods. This shift not only aligns with global sustainability goals but also appeals to consumers who prioritize environmentally responsible products. The emphasis on sustainability is likely to drive innovation within the industry, as companies seek to develop glass substrates that meet both performance and environmental standards. This trend could contribute to the overall growth of the market, enhancing its appeal across various sectors.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. The anticipated expansion of the glass substrate market in North America can be attributed to several key factors. This region demonstrates a significant interest in renewable energy, particularly solar power. In 2023, the United States witnessed a remarkable surge in solar energy capacity installation, reaching a record-breaking 31 gigawatts (GW). This marked a substantial 55% increase compared to installations in 2022 and exceeded the previous record set in 2021.

With the total installed solar capacity now standing at 161 GW in the U.S., it accounts for approximately 5% of the nation's electricity generation, as reported by the Solar Energy Industries Association. Renewables, including large hydropower, contributed around 25% of the electricity generated in the United States during the first half of 2023. The initiation of solar projects further drives the demand for glass substrates in photovoltaic modules.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GLASS SUBSTRATE MARKET SHARE, BY REGION 2023 (USD Billion)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe's glass substrate market accounts for the second-largest market share as the automotive sector is progressively integrating glass substrates into various functionalities, including heads-up displays, touch panels, and augmented reality systems. According to the European Automobile Manufacturers Association (ACEA), car sales in the EU surged by nearly 17% in the initial three quarters of 2023, with a projected 12% growth for the entire year. Production figures indicate that over nine million cars were manufactured in the EU during the same period, marking a 14% increase from 2022.

Furthermore, EU car trade exhibited a €70 billion trade surplus in the initial three quarters of 2023, reflecting a 4.7% rise. In Europe, electric vehicle sales saw a notable uptick of over 15% in 2022 compared to 2021, totaling 2.7 million units. This trend underscores the escalating demand for cutting-edge display technologies and glass substrates to cater to the evolving landscape, particularly with the emergence of electric and autonomous vehicles. Further, the German glass substrate market held the largest market share, and the UK glass substrate market was the fastest-growing market in the European region.

The Asia-Pacific glass substrate market is expected to grow at the fastest CAGR from 2023 to 2032. China possesses one of the largest healthcare sectors globally. Under the 13th Five-Year Plan, the Chinese government emphasizes health and innovation, leading to anticipated increased investments in the medical device manufacturing sector during the forecast period. Consequently, the production of high-tech medical devices aimed at treating chronic and age-related diseases is expected to rise, thereby boosting demand for the glass substrate market.

According to the India Brand Equity Foundation (IBEF), the healthcare industry in India is projected to reach USD 372 billion by 2022, with the medical devices sector expected to surpass USD 11 billion by the same year. India's public expenditure on healthcare witnessed an increase to 2.1% of GDP in FY23 and 2.2% in FY22, compared to 1.6% in FY21, as per the Economic Survey 2022-23.

In the Union Budget 2023-24, the government allocated Rs. 89,155 crore (US$ 10.76 billion) to the Ministry of Health and Family Welfare (MoHFW), signaling an anticipated surge in demand for medical devices in the coming years, further propelling the demand for the glass substrate market. Moreover, China’s glass substrate market held the largest market share, and the Indian glass substrate market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the glass substrate market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the glass substrate industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the glass substrate industry to benefit clients and increase the market sector. In recent years, the glass substrate industry has offered some of the most significant advantages to the electronics and semiconductor sectors. Major players in the glass substrate market include AGC Inc. (Japan), Schott (Germany), Corning, Incorporated (US), Nippon Sheet Glass Co., Ltd. (Japan), Plan Optik AG (Germany), HOYA Corporation (Japan), Ohara Inc. (Japan), IRICO Group New Energy Company Limited (China), Toppan Inc. (Japan), Tunghsu Group Co.

Ltd. (China) are attempting to increase market demand by investing in research and development operations.

AGC Inc., formerly known as Asahi Glass Co. Ltd., is a leading provider of a wide range of products, including glass, electronic components, chemicals, and ceramics. Its diverse product portfolio includes float flat glass, automotive glass, decorative glass, heat insulating and shielding glass, architectural glass, disaster-resistant and security glass, and polished wired glass. Additionally, AGC offers LCD glass substrates, specialty glass for display applications, cover glass for car-mounted displays, glass for solar power systems, fabricated glass for industrial use, and optoelectronic and lighting glass products.

The company also provides polyvinyl chloride, vinyl chloride monomer, caustic soda, fluorinated resins, and water and oil repellents. AGC markets its products under various brand names such as Attoch, Lacobel, Wonderlite, XCV, Madomado, Temperlite, Lamisafe, Aflas, Preminol, Glascene, and Thermotect. With a presence spanning across Asia, the Middle East, Africa, the Americas, and Europe, AGC is headquartered in Chiyoda-Ku, Tokyo, Japan. In February 2023, AGC Inc. (Japan) partnered with Saint-Gobain to develop a pioneering flat glass line pilot project aimed at significantly reducing direct CO2 emissions.

Schott (Schott), a subsidiary of Carl Zeiss Stiftung AG, is a technology group specializing in the development, manufacturing, and marketing of specialty glass materials and glass ceramics. The company offers a diverse portfolio of special glass, specialty materials, components, and systems, including advanced optics, pharmaceutical systems, electronic packaging products, lighting and imaging solutions, and flat glass, among others. Its products cater to a wide range of industries, such as home appliances, automotive, electronics, pharmaceuticals, life sciences, aviation, and optics.

With operations spanning across Europe, Asia, the Middle East and Africa, North America, and South America, Schott is headquartered in Mainz, Rheinland-Pfalz, Germany. In September 2023, Schott (Germany) unveiled a three-point action plan aimed at addressing the chip industry's requirements for glass-substrate-based advanced chip packaging.