Asia-Pacific Float Glass Market size is forecast to reach US$53,658.1 million by 2026, after growing at a CAGR of 6.4% during 2021-2026. The growing trend towards fascinating materials and rising demand for float glass as transparent glazing material in the building envelope, including windows in the external walls, is estimated to drive the Asia-Pacific float glass market in the residential sector. The increasing use of laminated glass owing to its seamless safety solution, from entry doors and glass floors, to display cases and aquariums in residential buildings has even further raised the market growth. Currently, with the upsurge of new upcoming construction projects the Asia-Pacific float glass market is estimated to see substantial growth in the forecast period.
The construction industry is one of the fastest-growing sectors in the Asia-Pacific region. Rising income level, large population base, and rapid urbanization has led towards the growth of independent houses in the Asia-Pacific countries. Float glasses are increasingly being used in windows, doors, tabletops, stairs, glass partitions, furniture articles, and several other independent house areas. Furthermore, the rising usage of clear float glasses in facades of high-rise independent house buildings to make them look more attractive is further anticipated to drive the market growth. Currently, the increasing growth of new private sector houses has also uplifted the growth of the Asia-Pacific float glass industry.
The COVID-19 outbreak wreaked havoc on the transportation, solar, consumer goods, and building industry, posing significant economic concerns. As a result of the government's severe measures to slow the spread of the coronavirus, automotive manufacturing, consumer goods production, and construction output growth decreased, causing widespread fear and financial difficulties for the float glass industry in APAC. Several projects remained unfinished as a result of a lack of funding. The construction industry also experienced problems including supply chain disruption, a shortage of subcontractors and materials, and contract terminations to save costs, all of which slowed the growth of the float glass market over the projection period. Construction in several Asia-Pacific countries was temporarily halted. For instance, in reaction to the enlarged state of emergency declared by the Japanese government over the COVID-19 epidemic, prominent Japanese building companies such as Kajima Corporation, Obayashi Corporation, and Taisei Corporation have paused construction activity nationally until early May 2020. According to the Ministry of Trade & Industry, construction nearly stopped altogether, shrinking 95.6% quarter on quarter, far more than any other sector in Singapore. With the temporary decrease in construction activities, the demand for float glass had significantly fallen, which had an immediate major impact on the float glass industry in 2020. Furthermore, float glass manufacturers across Asia-Pacific had to shut down their production facilities and services as countries adopted partial or absolute lockdown policies to deal with the pandemic, which hindered the production of float glass. Manufacturers were stranded on raw material orders due to a major effect on the logistics industry due to the lockdown in the COVID-19 area. However, governments took the initiative to gain the construction momentum back by heavily taking initiatives to accelerate the growth of construction activities. For instance, the Australian government launched the HomeBuilder initiative to keep the residential building industry afloat during the coronavirus outbreak. HomeBuilder offers a US$25,000 grant to qualifying owner-occupiers to construct a new home or substantially renovate an existing home.
China holds a major share of the Asia-Pacific float glass market, owing to the flourishing construction sector in the country, which is accelerating the demand for float glass in China. China is one of the developed nations in the Asia Pacific region with a diverse range of industries such as heavy, medium, and small-scale industries. The construction industry in China is one of the largest in the world, the industry is expected to grow at a CAGR of 5.2% between 2021-2026. According to the CGTN, some of the ongoing mega construction projects in China include Shanghai Urban Rail Transit Expansion, Wuhan Urban Rail Transit, Beijing Airport Expansion, Intercity, and Rail Network in Eastern Guangdong, among others. According to the Government of Canada, in 2018, the Chinese construction sector grew by 4.5%, up from 3.5% in 2017. The U.S. Leadership in Energy and Environmental Design (LEED) certification is also prevalent in China. In 2018, LEED-certified Grade A office buildings exceeded 523 million square meters across greater China, an increase of 7.3% from the previous year, and accounted for over 27% of the total market share in ten prominent cities. Thus, with the flourishing construction industry in the country, the market of float glass is bolstering in the country.
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Asia-Pacific Float Glass Market Drivers:
Flourishing Residential Construction Sector
Float glass is used for smaller windows in domestic housing. Float glass provides lowered solar heat gain, glare control. It also cut down the harmful UV radiations into the interiors, owing to which flat glass such as laminated and toughened glass is being extensively used in residential construction. The governments are taking initiatives to increase the construction of the residential building to provide proper housing for the surging population in the Asia-Pacific region. For instance, the Thailand government allocated THB4 billion (US$125.6 million) to finance five low-cost housing projects in the country. Indian government allocated sizeable funding for housing in the 2021 Budget. An amount of Rs 50,000 crore (US$6.8 billion) was allocated to the Ministry of Housing and Urban Development (MoHUA) as well as a fund of Rs 25,300 crore (US$3.5 billion) is created to support the completion of stalled housing projects. The Indian government has also launched a project-'100 smart cities' to drive the Indian residential sector. Furthermore, Pradhan Mantri Awas Yojana (PMAY) program, which aims to provide affordable housing to all urban poor by 2022 through initiatives like financial support, is also expected to be a major driver for the float glass market growth. Such government initiatives are set to increase the demand for float glass in the residential construction sector, and further drive the float glass market growth in the Asia-Pacific region during the forecast period.
Rising Government Incentive Stimulating the Green Building Projects
Constructors are using float glass as a major component during the construction of the green building as float glass is known to be excellent green material. Float glasses reflect heat or UV rays to maintain an optimal temperature inside the building. Float glass in buildings also substantially reduces the need for artificial lighting and allows daylight to make the interiors airier and more open. And there is an upsurge in the green building projects investment, for instance, according to the U.S. Green Building Council (USGBC), in 2020, there were 1,190 newly added LEED registration projects in China, a 50 percent increase from the level in 2019, owing to which there is an increasing demand of float glass. Also, Indian Green Building Council (IGBC) is very closely working with several Central and State Government agencies to promote the green building movement in the country by giving Incentives to IGBC-rated Green Building Projects. For instance, the Small Industries Development Bank of India (SIDBI) would provide financial support at concessional rates to all IGBC-rated green construction projects in the MSME sector. Indian Green Building Council (IGBC) anticipates that India will have one lakh green buildings by 2025. Furthermore, in August 2019, the Asian Development Bank (ADB) and Japan’s Government Pension Investment Fund (GPIF) recently formed a partnership to support green project financing through investments in ADB’s green bonds. The Asian Development Bank (ADB) sells green bonds to fund initiatives in the Asia Pacific that assist developing countries to reduce greenhouse gas emissions and adapt to the effects of climate change. Thus, such government incentives in the Asia-Pacific region are stimulating green building Projects. However, these countries are far behind their set targets, which means that in the coming year there will be an increase in the construction of energy-efficient green buildings, which act as a driver for the float glass market.
The core strategy of the key players operating in the Asia-Pacific float glass market is focused on research and development. Research and Development departments are continually improving existing product performance, optimizing manufacturing efficiencies, and developing the next generation of float glasses for new applications. Exploring new technology platforms and production techniques and applying them in the product development process allows the players of Nonwovens to create improved product solutions that enable customers to stay at the forefront of their industries.
The Major Players in this Market Include
The major companies in the Asia-Pacific float glass market include AGC Inc., China Glass Holdings Limited, Fuyao Glass Industry Group Co., Ltd., Nippon Sheet Glass Co. Ltd., Xinyi Glass Holdings Co. Ltd., Kibing Group, Saint-Gobain Glass India, Jinjing Group, Gujarat Guardian Limited, and BG Float Glass Company Ltd. The key focus of the companies has shifted towards acquisition and product launch.
In December 2020, Xinyi Glass Holdings Co. Ltd. made a US$212 million takeover offer for China Glass Holdings Ltd. The offer includes the purchase of all 1.81 billion shares issued by China Glass. By increasing production efficiency and lowering purchase, production, and fixed costs, the acquisition will increase economies of scale. In May 2021, China Glass Holdings Limited acquired Fujian Longtai Jiahao Investment Co., Ltd. This acquisition helped China Glass Holdings Limited in developing the business of float glass, deepening the expansion of new energy fields, and accelerating the pace of industrial transformation and upgrading.
In March 2021, China Glass Holdings Limited launched an environmental impact assessment of the 640td high-quality float glass and functional glass production line. The production scale is of 4.11 million weight boxes of glass; the project has 267 employees, and the non-cold repair works 365 days a year. In September 2020, Kibing Group announced a product called ultra-white and ultra-thick float glass together with its subsidiaries Zhangzhou Kibing, Changxing Kibing, Heyuan Kibing, and Liling Kibing.
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