In 2016, the global market size of auto glass was CNY 75.2 billion according to conservative estimates, increasing at an approximate rate of 4.5%. Demand for auto glass is determined by both the new automobile production volume and the automobile reserve volume. Since the automobile reserve volume remains stable in the present global market, the growth rate of demand for auto glass is more associated with that of new automobile production volume. In addition, there is little difference between the growth rate of auto glass market and that of automobile production volume.
Major Demand Markets of Auto Glass in New Automobile Market
In 2016, global automobile production volume reached 94.98 million at a growth rate of 4.5%. China, America and Europe were three major markets of the new automobile market, accounting for 30%, 22% and 23% respectively of the global automobile production volume (together taking up 75%).
In the same year, China’s automobile production volume was 28.12 million at a growth rate of 14.5%, which made China the world’s biggest automobile market. Among the global increment of 4.2 million automobiles in 2016, China occupied 86% of the total volume, which was 3.62 million. The production volume in Europe increased by 530 thousand, whereas that in America decreased by 110 thousand. In this sense, the growth rate of China’s automobile production volume has a direct influence on the growth rate of global automobile production volume.
Major Demand Markets of Auto Glass in Aftermarket
From the perspective of the automobile reserve volume, the global figure was 1.28 billion in 2015 at a growth rate of 3.8%, among which China, America and Europe accounting for 13%, 32% and 30% respectively. On the one hand, growth rates of automobile reserve volume remain stable in both American and European markets, at about 2%. On the other hand, this figure often maintains relatively high in Chinese market since domestic incomes rise and automobile prices drop with the rapid economic development. It is conservatively estimated that the growth rate of China’s automobile reserve volume will keep above 10% in 2016. If automobile reserve volumes of the other two markets remain stable that accounts for 30% of global market shares, China’s automobile reserve volume is expected to occupy no fewer than the last-year figure of 13%. From the perspective of the automobile reserve volume, China, America and Europe are still three major demand markets of auto glass.
In 2016, the production volume of new automobiles reached 28.12 million, accounting for 29.6% of global production volume. In the same year, the automobile reserve volume was about 193 million in China, accounting for 14.5% of global reserve volume.