The global automotive windshield market is forecasted to grow at a compound annual growth rate (CAGR) of close to 5% from 2017-2021, according to a recent report from Technavio. The report lists passenger cars, long combination vehicles (LCVs), and medium and heavy commercial vehicles (M&HCVs) as the three major application segments; the passenger cars segment accounted for more than 84% of the market share in 2016.

“With the advances in technology, OEMs have been able to develop automotive windshields that enhance passenger safety in case of collisions and improve visibility even in unfavorable weather conditions such as rain and fog,” said Praveen Kumar, a lead analyst at Technavio for automotive components. “OEMs are also working to reduce distractions with virtual enhancements.”

According to the report, three market drivers are contributing to the growth of the global automotive windshield market: stabilization of raw materials prices, increasing passenger car sales, and an increase in electronic applications in passenger cars. Prices of materials such as sodium oxide, silica, and calcium oxide have been stable over the last few years, which will lead to stability in the price of automotive windshields during the forecast period.

The sale of automotive windshields is directly proportional to the sale of passenger cars, which grew worldwide by 3.25% in 2015. SUVs and crossovers accounted for the highest sales in the passenger car markets in China and Europe. The lowering of interest rates on car loans in the U.S. has also enabled consumers to buy larger and more expensive vehicles.

OEMs like Toyota have laid out plans to increase their production of passenger cars. Toyota is planning to relocate its auto production to Mexico by 2019 to meet the rising demand for SUVs and crossovers in Canada and the U.S. The new plant is also set for manufacturing its flagship model, Corolla.

The passenger car segment has seen high adoption of electronic solutions in the last decade due to advances in technology. The growing demand for better navigation, safety, comfort, and electronic content is pushing the adoption of electrical distribution systems in passenger cars. Manufacturers have seen a boost in demand for high-speed wiring, connectors, heated windshields (connected with the electrical system of the vehicle to heat the tungsten wire and defrost snow and ice), HUD windshields, and others.

OEMs are leveraging technology from other industries like consumer electronics to adopt more advanced technologies in automotive applications. This cross-technology concept has provided considerable benefits to the passenger cars segment, and a similar trend is likely to follow in the commercial vehicles segment over the coming years. The increase in the use of electronics in passenger cars will boost the adoption of advanced windshield technologies in the overall automotive sector.

For more information, visit www.technavio.com.