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Glass Substrate Market: Opportunities and Challenges

General Report December 29, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Market Overview
  3. Market Trends
  4. Market Segmentation
  5. Major Players and Market Share
  6. Industry News and Developments
  7. Conclusion

1. Summary

  • A deep dive into the glass substrate market reveals a landscape energized by the rising demand from the electronics sector, where high-quality displays and cutting-edge display technologies such as OLED and flexible screens drive growth. This market is valued at over USD 7 billion as of 2023 and is poised for further expansion at a 3.5% CAGR from 2023 to 2032, aiming to reach USD 11.30 billion by 2031. A significant factor contributing to this growth is the increase in wearable electronics, requiring advanced glass substrates that can endure daily wear and tear while providing top-tier performance. Companies like AGC Inc., SCHOTT AG, and Corning Incorporated are at the forefront of this industry, utilizing innovative strategies and products to meet the needs of modern electronic applications. However, the industry faces challenges, including stringent environmental regulations and manufacturing hurdles. The transition towards sustainable and durable materials is seen as a key path forward, reflecting a dynamic balance between opportunity and complexity.

2. Market Overview

  • 2-1. Current market value and growth forecast

  • The glass substrate market was valued at over USD 7 billion in 2023. It is projected to register a compound annual growth rate (CAGR) of over 3.5% between 2023 and 2032. The glass substrate market is expected to reach USD 11.30 billion by 2031, growing from USD 6.54 billion in 2023, with a CAGR of 7.3% during the forecast period of 2024 to 2031. Key drivers for this growth include the increasing demand for high-resolution displays in consumer electronics such as smartphones, tablets, and televisions.

  • 2-2. Key growth drivers

  • The rising demand from the electronics industry drives significant growth in the glass substrate market, particularly due to the need for high-quality displays. There is a heightened preference for larger and higher-resolution displays, as well as sleek designs, pushing manufacturers toward advanced glass substrate solutions. The market growth is also fueled by advancements in display technologies including OLEDs, which demand high-performance substrates. Additionally, the surge in wearable technology has created a demand for durable and lightweight glass substrates. Collaborations between electronics manufacturers and glass substrate producers are encouraged to meet evolving technological needs.

  • 2-3. Market challenges and pitfalls

  • Despite the growth potential, the glass substrate market faces several challenges. Manufacturing issues, such as handling, stress, and the accumulation of materials, pose significant barriers to production. Stringent environmental regulations impact manufacturing processes and require better sustainability measures. Furthermore, the disposal and recycling of glass substrates at the end of their lifecycle present additional challenges due to potential environmental impacts. There remains a lack of information regarding the behavior of glass substrates under various pressures, which could affect their lifespan and performance in practical applications.

3. Market Trends

  • 3-1. Adoption of advanced display technologies

  • The glass substrate market has witnessed a significant adoption of advanced display technologies, specifically for applications in electronics such as smartphones, tablets, televisions, and wearable devices. In 2023, the market was valued at over USD 7 billion, with a strong impact from the growing consumer preference for larger and higher-resolution displays. Innovations like flexible and foldable displays are further necessitating specialized glass substrates capable of accommodating new device form factors. In September 2023, Intel announced the development of a new glass-substrate technology aimed at next-generation high-power processors, indicating progressive enhancements in the sector.

  • 3-2. Growth in wearable electronics

  • Wearable electronics are a burgeoning segment that significantly contributes to the growth of the glass substrate market. The growing demand for devices such as fitness trackers and Augmented Reality (AR) glasses requires advanced glass substrates that can withstand daily use and deliver optimal performance. For example, Humane launched its AI Pin in November 2023, a wearable device emphasizing a minimalistic design without compromising functionality. Such innovations indicate an ongoing trend towards sophisticated substrates tailored specifically for the unique demands of wearable devices.

  • 3-3. Emerging applications in semiconductor packaging

  • The glass substrate market is also experiencing surging demand due to emerging applications in semiconductor packaging. Technologies like low-temperature co-fired ceramic (LTCC) substrates are gaining popularity due to their superior thermal and electrical characteristics, making them highly desirable for high-frequency and high-power applications. Companies are developing glass substrates compatible with advanced packaging technologies, which facilitate intricate geometries and high-density connections. In September 2023, Intel unveiled one of the industry's first glass substrates designed for next-generation advanced packaging, showcasing the innovation within the sector.

4. Market Segmentation

  • 4-1. Segmentation by type (borosilicate, silicon, etc.)

  • The market is segmented based on the type of glass substrate, which includes borosilicate, silicon, fused silica/quartz, aluminosilicate, and ceramic. The borosilicate segment held the largest market share of over 30% in 2023. Borosilicate glass substrates are preferred due to their ability to withstand high temperatures during manufacturing processes and maintain dimensional stability, which is crucial for large area displays such as LCD and OLED screens. They are also favored in the semiconductor industry for their compatibility with photolithography processes.

  • 4-2. Segmentation by end-use industries (electronics, automotive, etc.)

  • The glass substrate market is further segmented by end-use industries, which include electronics, automotive, healthcare, aerospace & defense, energy, and others. The electronics segment is expected to dominate the market due to the increasing integration of advanced display technologies in smartphones and TVs. The automotive segment is anticipated to register a CAGR of over 5% from 2024 to 2032, driven by advanced technologies such as Heads-up Displays (HUDs) and advanced driver assistance systems (ADAS).

  • 4-3. Geographical segmentation and regional analysis

  • Geographically, the glass substrate market is expected to register significant growth in the Asia Pacific region, projected to grow at a CAGR of over 4% from 2024 to 2032. This region is home to major electronics manufacturing hubs, including China, Japan, South Korea, and Taiwan, which significantly contribute to the market. The increasing demand driven by urbanization and rising disposable incomes in these countries is also a contributing factor.

5. Major Players and Market Share

  • 5-1. Key market players and their contributions

  • Major players in the glass substrate industry include AGC Inc., SCHOTT AG, Corning Incorporated, Nippon Electric Glass Co., Ltd., HOYA Corporation, Toppan Inc., and Ohara Inc. AGC Inc. is one of the world's largest manufacturers of glass products and holds a significant share of over 20% in the glass substrate market. SCHOTT AG specializes in glass manufacturing and also plays a major role in the sector. Corning Incorporated is recognized for its innovative display glass technologies, recently announcing a 20% price hike for display glass substrates in response to rising costs. Nippon Electric Glass Co., Ltd. and HOYA Corporation are prominent players contributing to advancements in glass substrate manufacturing.

  • 5-2. Market share analysis of leading companies

  • As of 2023, AGC Inc. and SCHOTT AG combined hold over 20% of the market share in the glass substrate industry. The borosilicate segment alone, a key focus area for these companies, recorded a market share of over 30% in 2023, indicating strong performance due to its high efficiency and stability in high-temperature manufacturing processes. The market is expected to continue showing growth, driven by increasing demand for high-quality displays across various electronic devices.

  • 5-3. Recent developments from major players

  • Recent developments include significant expansions and technological advancements from key players. In November 2023, AUO Corp. initiated operations for the second phase of its sixth-generation Low-temperature Polycrystalline Silicon (LTPS) LCD fabrication in Kunshan, China, aimed at increasing glass substrate production. Additionally, Schott and Lumus expanded their partnership in January 2024 to address growing demands for optical AR spectacles, and in April 2023, Schott introduced high-tech solutions including ceramic cooktop designs at AWE 2023 in Shanghai, China.

6. Industry News and Developments

  • 6-1. Recent industry news impacting the glass substrate market

  • In November 2023, AUO Corp., a flat panel supplier company, began operations of the second phase of its sixth-generation Low-temperature Polycrystalline Silicon (LTPS) LCD fabrication in Kunshan, China, to increase production of glass substrates. With the newly added capacity in its Kunshan plant, it can produce over 40,000 units of glass substrates per month. Additionally, in June 2023, Saint-Gobain India Pvt Ltd. launched low-carbon glass, expected to reduce carbon emissions by approximately 40%. Despite its low carbon properties, this new glass substrate will retain the same level of technical, quality, and aesthetic performance as regular glass, utilizing two-thirds of recycled content as raw material alongside renewable energy sources.

  • 6-2. Technological advancements and collaborations

  • The increasing demand for high-resolution displays is driving advancements in glass substrate technologies. Recent innovations include flexible and foldable displays, as well as advanced packaging solutions such as Fan-Out Wafer-Level Packaging (FOWLP) and System-in-Package (SiP). For instance, Intel unveiled a revolutionary glass substrate technology in September 2023 for next-generation packaging applications, allowing for continued scaling of data-centric applications. Schott has also expanded its partnership with Lumus to address the growing demand for optical Augmented Reality (AR) spectacles by expanding production capabilities. Moreover, in May 2023, Corning Incorporated announced a 20% price hike for its display glass substrates in response to rising costs amid prolonged inflation.

  • 6-3. Sustainability initiatives in glass production

  • The glass substrate market is seeing efforts towards sustainability through innovations such as low-carbon glass, which was launched by Saint-Gobain India Pvt Ltd. in June 2023. This product is designed to reduce carbon emissions while maintaining performance standards of traditional glass. Additionally, companies are increasingly focusing on using recycled content in their production processes, with recent trends favoring environmentally responsible manufacturing practices. AGC Inc. has achieved environmental product certification for architectural float glass, promoting transparency regarding the environmental impact of their products.

Conclusion

  • The glass substrate market's growth trajectory is fueled by rapid advancements in display technology, coupled with the escalating consumer demand for premium electronic displays. Leading companies like AGC Inc., SCHOTT AG, and Corning Incorporated are capitalizing on this surge by enhancing their product offerings and forging strategic partnerships. Despite facing stringent environmental standards and manufacturing-related issues, these companies continue to innovate, providing superior substrates that cater to evolving technological requisites. The market is characterized by its segmentation into various types, such as borosilicate and silicon, each catering to specific industrial needs, with borosilicate holding a significant 30% market share due to its ability to withstand high temperatures. As the industry navigates challenges like sustainability, there is an emphasis on integrating more environmentally friendly practices, as seen with low-carbon glass production initiatives by companies such as Saint-Gobain India Pvt Ltd. Looking ahead, the market is set for transformation with growing applications in semiconductor packaging and the potential of offering enhanced solutions through collaborations, like those between Schott and Lumus for AR spectacles. Stakeholders should consider adopting sustainable practices as a competitive leverage, while also keeping an eye on technological innovations that may redefine the glass substrate market landscape in the coming years.

Glossary

  • AGC Inc. [Company]: AGC Inc. is a leading manufacturer of glass products, contributing significantly to the glass substrate market through innovations in display technology and high-quality substrates for various applications.
  • SCHOTT AG [Company]: SCHOTT AG specializes in glass and glass ceramics manufacturing, playing a crucial role in providing substrates for electronic devices, thereby enhancing optical clarity and thermal stability in modern display technologies.
  • Corning Incorporated [Company]: Corning Incorporated is known for its advanced glass technologies, including display glass substrates, and is focused on addressing rising demand through strategic pricing and capacity expansion.

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