Flat Glass in China to 2011

Flat glass demand in China to increase 8.6% annually through 2011

Demand for flat glass in China is expected to climb 8.6 percent per year through 2011 to 2.2 billion square meters. Measured in value, flat glass demand will expand more than eleven percent per year, reaching ¥117.5 billion in 2011. The Chinese flat glass market will outpace growth in all other parts of the world, driven by healthy gains in building construction activity, as industrialization efforts continue and income levels rise. Government efforts to further increase average per capita living space and priva-tize home ownership, sustained strength in foreign direct investment funding, rapid growth in motor vehicle production and products renovation in electronics, will also contribute to flat glass gains.

Fabricated flat glass, float glass to be fastest growing

Primary flat glass -- including drawn glass, rolled glass and float glass -- accounted for four-fifths of overall Chinese flat glass demand in 2006 when measured in square meters. Float glass will continue to make inroads against drawn and rolled glass and will comprise 87 percent of total demand in 2011. Float glass gains will be driven by improved product quality, healthy growth in building construction activity and foreign company investment. Growth in drawn and rolled glass production will be dampened by the Chinese government' s efforts at shutting down old, inefficient and low quality sheet glass furnaces, as well as a growing preference for higher quality float glass in construction appli-cations. Fabricated flat glass encompasses insulating glass, tempered glass, laminated glass, mirrors and other specialty products. Demand for fabricated flat glass will grow more than 16 percent per year to 610 million square meters in 2011. Fabricated flat glass demand will benefit from increasing requirements for high-end glass products for furniture and windows plus strong growth in motor ve-hicle and electronic display production.

Electrical/electronic, motor vehicle markets to lead gains

The architectural market will remain the largest outlet for flat glass, accounting for 86 percent of total demand in 2011. Gains will be spurred by ongoing privatization efforts, further growth in the average size of new homes and continuous foreign investment funding. The smaller electronic display market will expand at the fastest annual rate through 2011, driven by strong increases in television monitor and computer output, product innovation and growth in personal income levels. Flat glass demand in motor vehicles will also be considerably robust, driven by ro-bust growth in motor vehicle production.

Study coverage

This new Freedonia industry study, Flat Glass in China presents historical demand data for the years 1996, 2001 and 2006 plus forecasts for 2011 and 2016 by flat glass product, market, and region. In addition, the study considers market environment factors, assesses the industry structure, evaluates company market shares and profiles 33 leading competitors.