RALEIGH, N.C., July 26, 2021 /PRNewswire/ -- The global glass market will see a boom in the coming years due to the widespread construction and automotive industry operations, along with the government's investment in renewable sources. According to a report by Beroe, buyers who source glass in low volumes may focus on third-party distributors instead of direct sourcing and approaching authorized distributors. However, for exterior commercial glass, the supply is done by authorized distributors.
"Increasing use of flat glass in photovoltaic modules, solar panels, and e-glass owing to a rising need for clean energy is anticipated to be one of the key trends escalating market growth. Tempered glass, in particular, is being employed in roofing applications as well as in the manufacturing of glass windows," said Jayanthi Chakarapani, Research Analyst at Beroe. "For commercial glass, most of the supply to the market is done by authorized distributors and third-party distributors on medium to long term contracts due to the fluctuations in the prices."
The trends like a rise in the use of advanced nanotechnology in flat glass, solar control glazing for automotive and building glasses, lightweight glazing glass, and a rise in the hybrid guide plate had a significant impact on the commercial glass industry. Toughened glass makes up 35 percent of the market because it is used widely by the construction and automotive sectors. Coated glass usage will see the highest growth rate owing to its heat-reflective and other vital properties. Laminated glass is also positioned firmly in terms of market share due to its shatterproof properties. In the coming period, the extra-clear glass is also expected to see robust growth. The construction segment dominates the market for flat glass with 75 percent of the market revenue share. Toughened and coated flat glass is utilized in making housing and commercial places energy efficient. The automotive segment also uses laminated and coated glass flat.
Some of the drivers and constraints of the industry include:
- Downstream demand: Flat glass will be in high demand for solar panels. The interest in creating a sustainable future has added to its demand for panels that use flat glass like a protective shield.
- Technological advancements: Recently, value-adding developments such as low-emissivity (low-E) glass, smart windows, and self-cleaning capabilities have created new opportunities for glass companies.
- Strict regulations: There are government regulations for glass usage in construction and automobile industries (Leadership in Energy and Environmental Design and FEMA).
- Alternate material: Flat glass helps uninstall the panels in the vehicle industry, and this will see a growth of laminated flat glass. Plastic shields will be the biggest competition because they are light in weight and scratch resistant.
Distribution for exterior commercial glass is done by authorized distributors and third-party distributors on medium to long contracts due to the fluctuations in the prices. Therefore, it is prudent to enter medium-term contracts while buying glass to avoid price fluctuation. So, consumers can take advantage of the changes in prices to schedule large purchases. Short-term contracts usually range from spot purchase to a contract term of up to 2-3 months for lower volumes. Long-term contracts are for 6-24 months with fixed and hedged prices of metal for larger volumes.
"Engaging with third-party distributors may increase the scope for discounts and steady supply, especially when one is looking to build inventories," said Jayanthi Chakarapani of Beroe. "But different companies have different needs and priorities. Therefore, even though it's suggested to choose third-party distributors for low volume, which is what many are going for now, companies must establish their own sourcing practices for commercial glass that adequately meet their distinct needs."
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About Beroe Inc
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions — leading to lower costs, greater profits, and reduced risk. Beroe has been providing these services for more than 15 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies. For more information about Beroe Inc., please visit https://www.beroeinc.com/ .
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SOURCE Beroe Inc.